National Fire and Marine Insurance Company v. Lindemann et al

Filing 151

ORDER denying 145 Sealed Motion to Reconsider and Vacate Order of September 27, 2017 Granting Release of Escrowed Funds (Doc. 141) . The Court's stay regarding payment of escrow funds to the Estate of Sue AnnLindemann (Doc. 144) is hereby lifted. Signed by Judge David R. Herndon on 10/10/2017. (lmp)

IN THE UNITED STATES DISTRICT COURT
FOR THE SOUTHERN DISTRICT OF ILLINOIS
NATIONAL FIRE AND MARINE
INSURANCE COMPANY,
Plaintiff,
v.
LEE LINDEMANN, Special Administrator of the
Estate of Sue Ann Lindeman, and ST.
ELIZABETH’S HOSPITAL OF THE SISTERS
OF THE THIRD ORDER OF ST. FRANCIS,
Defendants;

Case No. 15-cv-910-DRH-DGW

And,
ST. ELIZABETH’S HOSPITAL OF THE
SISTERS OF THE THIRD ORDER OF ST.
FRANCIS,
Cross-Claimant
v.
ERICK FALCONER, MIDWEST EMERGENCY
DEPARTMENT SERVICE, INC., NATIONAL FIRE
AND MARINE INSURANCE COMPANY, and WESTERN
HEALTHCARE, LLC.
Cross-Defendants;
And,
MIDWEST EMERGENCY DEPARTMENT
SERVICE, INC.,
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Cross-Claimant,
ORDER
HERNDON, District Judge:
Pending before the Court is Plaintiff National Fire and Marine Insurance
Company’s sealed motion to reconsider and vacate the Court’s September 27,
2017 Order granting release of escrowed funds (Doc. 145). Defendant Lee
Lindemann, Special Administrator of the Estate of Sue Ann Lindemann,
deceased, opposes the motion (Doc. 150). For the reasons stated below, plaintiff’s
motion is denied.
In the exhibits provided by National Fire accompanying its motion to
reconsider, National Fire included the state court transcript where the settlement
terms were placed on the record and it was clearly stated that the decision of this
Court would be honored by the parties and considered final (Doc. 147). At Doc.
148, in a letter from National Fire's counsel, plaintiff's counsel herein, to
underlying medical malpractice plaintiff's counsel, Mr. Cook, National Fire’s
position had changed, and National Fire was then reserving the right to appeal a
decision of this Court. At that time, the agreement between the parties was for the
money deposited with the Court to be left on deposit until the "resolution of the
matter." The Court will soon be entering an order denying National Fire's motion
for summary judgment (Doc. 133) due to its refusal to provide discovery in this
case. In light of the change in positions of the parties, the unreasonable delay in
this litigation by the plaintiff, and the fact that National Fire is not prejudiced by
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the distribution of the money on deposit, the Court refuses to reconsider it prior
order directing the Clerk of Court to distribute the money on deposit to
underlying malpractice plaintiff Lindemann and her estate’s counsel Mr. Cook.
The Court notes that if National Fire loses this case, and at that time, if the
Court still has the escrowed funds on deposit, the Court will pay the proceeds to
the underlying medical malpractice plaintiff— the Estate of Sue Ann Lindemann.
In the event that National Fire prevails and the escrowed funds are still on deposit
with the Court, the Court shall return the money back to National Fire, and St.
Elizabeth's shall pay the exact sum of money to the underlying medical
malpractice plaintiff. In the event that National Fire prevails and the Court has
already distributed the escrowed funds to the underlying medical malpractice
plaintiff pursuant to the motion at issue (Doc. 131), St Elizabeth's shall pay the
exact sum of money to National Fire. Clearly, National Fire is not prejudiced by
this early distribution despite its argument to the contrary.
Accordingly, the motion to reconsider and vacate the Court’s September 27,
2017 Order granting release of escrowed funds (Doc. 145) is DENIED. The
Court’s stay regarding payment of escrow funds to the Estate of Sue Ann
Lindemann is hereby lifted.

Digitally signed by
Judge David R.
Herndon
Date: 2017.10.10
16:02:50 -05'00'

IT IS SO ORDERED.

United States District Judge
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