text:
    Karrie POMMIER, Plaintiff-Appellant, v. JUNGHEINRICH LIFT TRUCK CORPORATION, Multiton Mic Corporation, and Calumet Lift Truck Corporation, Defendants
    (Jungheinrich Lift Truck Corporation and Multiton Mic Corporation, Defendants-Appellees,
    EMD Millipore Corporation, Third-Party Defendant).
    Appeal No. 3-17-0116
    Appellate Court of Illinois, Third District.
    Opinion filed February 28, 2018 Rehearing denied March 23, 2018
    James E. Ocasek, of Cooney & Conway, of Chicago, for appellant.
    John J. Bullaro Jr. and Scott R. Sinson, of Bullaro & Carton, P.C., of Chicago, for appellees.
   JUSTICE SCHMIDT delivered the judgment of the court, with opinion.

¶ 1 Plaintiff, Karrie Pommier, filed this lawsuit after she allegedly injured her right shoulder while operating an electric pallet jack at work on October 29, 2009. Her complaint alleged strict products liability and negligence claims against Jungheinrich Lift Truck Corporation (JLT), Multiton Mic Corporation (MMC), and Calumet Lift Truck Service Company, Inc. (Calumet). The trial court granted Calumet summary judgment on the strict liability claim but denied Calumet summary judgment on the negligence claim. The court later granted JLT and MMC (defendants) summary judgment on all claims. Plaintiff appeals this judgment. We affirm.

¶ 2 BACKGROUND

¶ 3 On September 29, 2011, plaintiff filed her complaint in Cook County. In October 2012, the court transferred the case to Kankakee County pursuant to Illinois Supreme Court Rule 187 (eff. Aug. 1, 1986). The complaint alleged that plaintiff worked as a manufacturing operator at EMD Millipore Corporation (Millipore). On October 29, 2009, she injured her right shoulder while operating a Multiton ELE 45 electric pallet jack for Millipore.

¶ 4 The complaint alleged negligence and strict products liability claims against defendants. Count I alleged that defendants "carelessly and negligently developed, designed, manufactured, distributed, and sold [the jack] such that it could suddenly stop functioning; * * * without conducting or obtaining adequate research that the control circuitry and machine was generally recognized as safe; [and] * * * when it knew or should have known that the particular product may cause injury to its operators." Count II alleged that the jack "was in a defective condition, unreasonably dangerous for its intended use" because "the device spontaneously malfunctioned without warning; there were inadequate power controls for movement of the device; the controls permitted unexpected, sudden application of the brakes during movement; [and] the emergency stopping protocol engaged in unplanned or unexpected situations."

¶ 5 I. The Pallet Jack's Alleged Defect

¶ 6 When they examined the jack, experts for both sides found that someone previously inverted the jack's brake cam. Neither expert found any other defect. The jack's braking system employs three primary parts: the tiller handle, the cam, and the roller switch. Operators use the tiller handle to steer and drive the jack. The cam is mounted at the base of the tiller. It rotates over the fixed roller switch as the operator raises or lowers the tiller. Contact between the cam and the roller switch activates the brakes.

¶ 7 The cam is designed to contact the roller switch when the tiller reaches certain angles. Based on the jack's design, an operator cannot physically position the tiller in any range between 0 degrees (parallel to the ground) and 15 degrees. The designed lower braking range is between 15 degrees and 34 degrees-when an operator lowers the tiller to angles in this range, the cam should contact the roller switch and activate the brakes. The designed upper braking range is between 80 degrees and 90 degrees. The "F arc" should be between 34 degrees and 80 degrees. When an operator positions the tiller within the "F arc," the brakes should not activate.

¶ 8 The cam screws onto a stud affixed to the tiller. A nut in the center of the cam holds it in place. If someone tightens the nut without holding the cam in place, the cam may rotate with the nut as it is secured. Properly installed, the cam should sit horizontally while the tiller rests at a 39-degree angle.

¶ 9 During her deposition, plaintiff testified that she operated the jack on October 29, 2009. She walked in front of the jack and held onto the tiller handle with her right hand. Her right arm extended behind her; her hand and the tiller handle were positioned just above her waist. As plaintiff continued to move forward, the jack stopped and caused "a pulling in her shoulder." She stated: "If you would walk it would-it would automatically stop on you. You could be walking and it would just-it would just stop and it would jerk you."

¶ 10 Plaintiff's expert, Daniel Pacheco, opined that the inverted cam caused plaintiff's injury "and similar [prior] incidents" that plaintiff's coworkers reported. He opined that defendants negligently designed the jack's brake system by failing to preclude the possibility of someone inverting the cam. He offered a "technologically and economically feasible" alternative lock nut design that would require a key to adjust the cam. He also opined that defendants should have included on-machine instructions with embedded warnings that explained how to properly position the cam.

¶ 11 Pacheco concluded that the cam's inverted position "had the effect of causing the brake to be applied when the steering tiller was higher in the lower braking range than it should have been." However, his findings from examining the jack refuted this conclusion. Pacheco found that the tiller's travel arc-the total range in which an operator could physically position the tiller-totaled 74.2 degrees (i.e. , any range between 15 to 15.8 degrees and 89.2 to 90 degrees). He also found that the lower brake arc totaled 10 degrees. Because an operator cannot physically position the tiller below a 15-degree angle, Pacheco's lower brake arc ranged from 15 degrees to 25 degrees. Finally, Pacheco concluded that the upper brake arc totaled just 1.5 degrees (approximately 88 to 90 degrees). According to Pacheco's findings, the inverted cam could not activate the brakes unless plaintiff positioned the tiller below 25 or above 88 degrees-well past the threshold for each designed brake range (34 degrees and 80 degrees, respectively). In other words, the inverted cam made the brakes less likely to activate.

¶ 12 II. The Pallet Jack's History

¶ 13 The manufacturer, which is not a party to this lawsuit, produced the jack in 1999. Millipore, plaintiff's employer, bought it new the same year. Defendants are the manufacturer's wholly-owned subsidiaries and distributors. Millipore hired Calumet to periodically maintain the jack. During discovery, Millipore and Calumet failed to produce any service records from 1999 through most of 2008. The record lacks any evidence indicating what service or alterations Millipore and Calumet performed for nearly a decade after Millipore purchased the jack.

¶ 14 The jack came with two manuals, an operating manual and a service manual. The operating manual specifically prohibits operators from repairing or modifying the jack: "Without specific training and express authorization the driver is not allowed to perform any repairs or modifications on the [jack]. Under no circumstances must the driver change the setting of switches or safety installations, or render them ineffective." The operating manual also states that only "expert personnel of the manufacturer" may perform maintenance on the jack. The maintenance personnel may not modify it in any way. They also must "recommission" the jack after performing maintenance. Before "recommissioning" the jack, maintenance personnel must "check the brake for correct function."

¶ 15 Plaintiff claims that defendants failed to produce the correct service manual during discovery. Joern Soukup, a Jungheinrich employee, testified about the service manual's contents. He stated that the manual "provides expert personnel with the specific manner in which the tiller handle must be positioned for correct function." The manual indicates that the upper braking range requires the operator to position the tiller between 80 and 90 degrees; the lower braking range requires the operator to position the tiller between 15 and 34 degrees.

¶ 16 Soukup also testified that the manufacturer employed several processes to ensure the brake system operated properly before shipment. First, the manufacturer used special equipment to secure the tiller at a 39-degree angle. Then, an employee used a 24-millimeter wrench to correctly position the cam while tightening the nut. A 24-millimeter wrench cannot fit around the cam if it is not positioned properly. Next, the manufacturer performed a "lamp test" where it wired an electronic device into the brake switch to ensure the brake operated within the proper ranges. Finally, the manufacturer tested each jack's brakes at least three times before shipment: on the assembly line, after assembly, and during a documented final inspection before shipment.

¶ 17 Defendants' expert, Michael Rogers, opined that the manufacturer correctly positioned the cam, and it remained properly positioned when the jack left defendants' control. He based his opinion on Soukup's description of the manufacturer's procedures. He also observed that using a 24-millimeter wrench made it impossible to invert or misalign the cam. Rogers and Pacheco agreed that patterns of uneven wear and tear on the roller switch and cam ("witness marks") suggested that the cam was previously properly positioned.

¶ 18 III. Procedural History

¶ 19 On September 20, 2016, defendants filed a combined motion for summary judgment. Despite her lack of evidence indicating that defendants inverted the cam, plaintiff maintained that the brake system design was defective because it did not prevent operators and other third parties from inverting the cam. Plaintiff also claimed that defendants should have foreseen that someone could and would invert the cam. On January 11, 2017, the trial court granted defendants' motion. The court determined that plaintiff failed to show that defendants could reasonably foresee the cam modification when they designed the jack. The court also determined that plaintiff failed to provide any evidence that the inverted cam caused plaintiff's injury. We agree with the trial court's judgment.

¶ 20 ANALYSIS

¶ 21 We review trial courts' orders granting summary judgment de novo . Horwitz v. Holabird & Root , 212 Ill. 2d 1, 8, 287 Ill.Dec. 510, 816 N.E.2d 272 (2004). Summary judgment is appropriate where "the pleadings, depositions, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law." 735 ILCS 5/2-1005(c) (West 2016). Parties opposing summary judgment must present evidence sufficient to establish a genuine issue of material fact or that the moving party is not entitled to judgment as a matter of law. Performance Food Group Co., LLC v. ARBA Care Center of Bloomington, LLC , 2017 IL App (3d) 160348, ¶ 18, 416 Ill.Dec. 757, 86 N.E.3d 1042. We review the trial court's judgment, not its reasoning, and we may affirm on any basis supported by the record. Hope v. Hope , 398 Ill. App. 3d 216, 220, 338 Ill.Dec. 375, 924 N.E.2d 581 (2010).

¶ 22 Plaintiff appears to abandon her negligence claims on appeal. Plaintiffs who raise negligence claims "must do more than simply allege a better design for the product; [they] must plead and prove evidence of a standard of care by which to measure a defendant's design and establish a deviation from that standard." Blue v. Environmental Engineering, Inc. , 215 Ill. 2d 78, 96, 293 Ill.Dec. 630, 828 N.E.2d 1128 (2005). Plaintiff's brief fails to mention such a standard of care or reference evidence tending to show that defendants deviated from it. Instead, plaintiff focuses on a single defective condition (the inverted cam) and defendants' liability for its existence. This is a strict products liability argument.

¶ 23 Under Illinois law, a plaintiff bringing a strict products liability action must prove the following elements: (1) an unreasonably dangerous product condition that resulted from manufacturing or its design, (2) the existence of the condition existed when the product left the defendant's control, and (3) the condition having proximately caused plaintiff's injuries. Mikolajczyk v. Ford Motor Co. , 231 Ill. 2d 516, 543, 327 Ill.Dec. 1, 901 N.E.2d 329 (2008).

¶ 24 In the trial court proceedings, plaintiff presented no evidence that defendants inverted the cam before selling the jack to Millipore in 1999. In fact, no party has disclosed evidence regarding the cam's positioning or the jack's maintenance prior to 2008. The trial court determined that plaintiff failed to prove that defendants could reasonably foresee the defect or that it proximately caused plaintiff's injury. On appeal, plaintiff argues that the record sufficiently establishes that the jack's design was defective and proximately caused her injuries. We address her arguments below.

¶ 25 I. Defective Design

¶ 26 Plaintiff advances two arguments in support of her design defect claim. First, she claims that inverting the cam did not substantially modify the jack's design; the defective design existed before the jack left defendants' control. Alternatively, plaintiff argues that defendants should have foreseen operators' modifications and other third parties' negligent acts or omissions. She claims that defendants remain liable for such foreseeable events. We reject both arguments.

¶ 27 A. Modification

¶ 28 Plaintiff argues that a person "modifies" a product only if he or she removes, adds, or substitutes the product's parts or alters how operators use it. Based on this definition, plaintiff argues that the inverted brake cam cannot constitute a "modification" that absolves defendants' liability. No evidence indicated that someone removed, added, or substituted the jack's parts. Nor did any evidence indicate that the inverted cam required plaintiff to operate the jack differently than its design intended.

¶ 29 We reject plaintiff's definition because "alteration, modification or change" is already defined by statute as "an alteration, modification or change that was made in the original makeup characteristics, function or design of a product or in the original recommendations, instructions and warnings given with respect to a product including the failure properly to maintain and care for the product." 735 ILCS 5/13-213(a)(1) (West 2016). Courts have characterized alterations that do not add, remove, or substitute parts as modifications in products cases. See Masters v. Hesston Corp. , 291 F.3d 985, 989-90 (7th Cir. 2002) (misaligning a twine tube while rewelding it to a hay baler); Davis v. Pak-Mor Manufacturing Co. , 284 Ill. App. 3d 214, 217-18, 219 Ill.Dec. 918, 672 N.E.2d 771 (1996) (rewiring a garbage truck's switch); Gowler v. Ferrell-Ross Co. , 206 Ill. App. 3d 194, 200, 150 Ill.Dec. 646, 563 N.E.2d 773 (1990) (disabling a lever);

Kempes v. Dunlop Tire & Rubber Corp. , 192 Ill. App. 3d 209, 215, 139 Ill.Dec. 259, 548 N.E.2d 644 (1989) (cutting into a golf ball). The statutory definition clearly contemplates all unintended changes to a product's original components and all deviations from the manufacturer's recommended maintenance.

¶ 30 Section 213(a)(1)'s definition coincides with the well-settled principle that manufacturers are not insurers. Hunt v. Blasius , 74 Ill. 2d 203, 211, 23 Ill.Dec. 574, 384 N.E.2d 368 (1978). Because manufacturers are not insurers, the law does not automatically attribute defects caused by unintended alterations to the product's design or manufacturing. For example, an automobile's wheel might become unreasonably dangerous if the driver loosens the lug nuts. Although the driver did not add, substitute, or remove parts, or alter the way in which he or she drove the automobile, the manufacturer never intended for the wheel to function with loosened lug nuts. On the other hand, if the driver pushes a button or operates a lever to adjust the driver's seat or steering wheel, no modification occurs; the manufacturer clearly intended the seat and steering wheel to adjust based on the driver's physical stature. See, e.g. , Stehl v. Brown's Sporting Goods, Inc. , 236 Ill. App. 3d 976, 177 Ill.Dec. 267, 603 N.E.2d 48 (1992).

¶ 31 In lockstep with the statutory definition and principles of products liability law, we find that the inverted brake cam constituted a modification in this case. We now must determine whether defendants could reasonably foresee this modification.

¶ 32 B. Foreseeability

¶ 33 Plaintiff argues that defendants remain liable because they could reasonably foresee, as a matter of law, that operators could and would modify the jack's braking system, including the cam. Plaintiff also argues that a question of facts exists as to whether defendants could foresee Calumet's or some other nonoperator's negligence. It is important to note that plaintiff presented no evidence showing who inverted the brake cam-an operator or other Millipore employee, a Calumet agent, or some other third party.

¶ 34 We summarily reject plaintiff's argument that defendants remain liable if Calumet or another nonoperator third party negligently inverted the brake cam. Plaintiff cites no law supporting this proposition. Whether defendants could foresee that some professional might negligently service the jack or alter its original design is irrelevant. In retrospect, almost anything is foreseeable. Majumdar v. Lurie , 274 Ill. App. 3d 267, 271, 210 Ill.Dec. 720, 653 N.E.2d 915 (1995) (citing Mieher v. Brown , 54 Ill. 2d 539, 544, 301 N.E.2d 307 (1973) ). We reiterate that "[p]roducts liability does not make the manufacturer an insurer of all foreseeable accidents which involve its product." Hunt , 74 Ill. 2d at 211, 23 Ill.Dec. 574, 384 N.E.2d 368. It is conceivable that expert maintenance personnel or service companies like Calumet might negligently maintain a product or alter its functionality. However, the law does not deem manufacturers forever liable for such negligence beyond their control. See Kirby v. General Motors Corp. , 10 Ill. App. 3d 92, 96, 293 N.E.2d 345 (1973). Manufacturers have no duty to design foolproof products immune from all possible accidents. Flaugher v. Sears, Roebuck & Co. , 61 Ill. App. 3d 671, 676, 18 Ill.Dec. 873, 378 N.E.2d 337 (1978).

¶ 35 In some cases, however, manufacturers must anticipate modifications that operators can easily effect. DeArmond v. Hoover Ball & Bearing , 86 Ill. App. 3d 1066, 1071, 42 Ill.Dec. 193, 408 N.E.2d 771 (1980). The two factors relevant to this analysis are whether operators could easily modify the product and whether the manufacturer should reasonably anticipate that operators would modify the product for some particular reason. See id. ; Woods v. Graham Engineering Corp. , 183 Ill. App. 3d 337, 342, 132 Ill.Dec. 6, 539 N.E.2d 316 (1989) ; Foster v. Devilbiss Co. , 174 Ill. App. 3d 359, 363, 124 Ill.Dec. 600, 529 N.E.2d 581 (1988).

¶ 36 Plaintiff argues that defendants could reasonably foresee that operators could modify the brake cam; an operator without any specific expertise could access the cam by using common tools such as screwdrivers and wrenches. Plaintiff also claims that an operator would foreseeably maintain the jack's brake system as the operating manual requires.

¶ 37 Plaintiff's argument lacks a necessary ingredient-proof that an operator inverted the cam. Unlike in DeArmond and Foster , plaintiff presented no evidence that an operator modified the product. Whether defendants should have reasonably foreseen that an operator could and would invert the cam is irrelevant if an operator did not invert the cam.

¶ 38 Even if we assume, arguendo , that an operator inverted the cam, plaintiff's argument still fails. Although we agree that operators can use common tools such as screwdrivers and wrenches to access the cam, plaintiff presents no evidence that operators typically understand the interacting functions of the tiller handle, cam, and switch roller. Nor does plaintiff provide any evidence that operators' regular job duties include adjusting or maintaining the jack's braking system.

¶ 39 In fact, the operating manual specifically prohibits operators from performing maintenance on the jack. The manual states: "Without specific training and express authorization the driver is not allowed to perform any repairs or modifications on the jack. Under no circumstances must the driver change the setting of switches or safety installations, or render them ineffective." Clearly, defendants intended to prohibit operators from maintaining or modifying the jack's braking system. Defendants could not reasonably foresee that operators would ignore this express and unambiguous direction.

¶ 40 The trial court correctly determined that plaintiff failed to present sufficient evidence to survive summary judgment. Plaintiff cannot prove that defendants inverted the brake cam or that they should have reasonably foreseen that someone would later invert the cam during a repair, thus rendering the design defective. We agree with the trial court's determination.

¶ 41 II. Proximate Cause

¶ 42 Although our holding above is sufficient to affirm summary judgment, we briefly address plaintiff's proximate cause argument. Although proximate cause is typically a question of fact, a court may determine the issue as a matter of law if the evidence shows that plaintiff "would never be entitled to recover." Abrams v. City of Chicago , 211 Ill. 2d 251, 257-58, 285 Ill.Dec. 183, 811 N.E.2d 670 (2004). Proximate cause incorporates two elements-cause in fact and legal cause. Id. at 258, 285 Ill.Dec. 183, 811 N.E.2d 670.

¶ 43 Plaintiff argues that her deposition testimony provided sufficient evidence to survive summary judgment. She testified that the jack "would automatically stop" and "jerk" operators. On the date of her injury, plaintiff pulled the machine behind her with her right arm. She positioned her right hand and the tiller handle just above her waist. As she walked forward, the jack "suddenly stopped" and pulled her shoulder. In her brief, plaintiff contends that her injury "occurred as a result of the [jack] stopping suddenly when plaintiff operated the machine for its intended purpose; pulling it behind her within the proper 'F' range." She claims that her testimony sufficiently shows that the allegedly defective design, which permitted the inverted cam, caused the jack to brake erratically or suddenly stop.

¶ 44 Plaintiff's testimony fails to satisfy the "cause in fact" element. Her own expert shoots this argument out of the water. Her expert's findings do not indicate that the inverted cam caused the jack to stop erratically; instead, they revealed that the inverted cam decreased the upper and lower braking ranges. This means that the alleged defect increased the "F" range within which operators could freely move the jack. Although plaintiff testified that the jack suddenly stopped, no factual findings or even expert opinions support plaintiff's argument that the alleged defect caused the sudden stop. "The existence of proximate cause cannot be established by speculation, surmise, or conjecture." Majetich v. P.T. Ferro Construction Co. , 389 Ill. App. 3d 220, 224, 329 Ill.Dec. 515, 906 N.E.2d 713 (2009).

¶ 45 Plaintiff also failed to present sufficient evidence that she positioned the tiller within the "F" range when she sustained her injury. She testified that she pulled the jack behind her and positioned her right hand and the tiller handle just above her waist. The jack's braking system engages based on the tiller's angle, not its height. Plaintiff failed to present evidence demonstrating the angle at which she positioned the tiller handle when she sustained her injury. Without demonstrating that she, in fact, positioned the tiller within the "F" range, rather than the lower braking range, plaintiff cannot recover in this case.

¶ 46 We agree with the trial court that plaintiff failed to present sufficient evidence demonstrating that the inverted cam caused her injuries. We affirm the trial court's judgment.

¶ 47 CONCLUSION

¶ 48 For the foregoing reasons, we affirm the judgment of the Kankakee County circuit court.

¶ 49 Affirmed.

Justices McDade and Wright concurred in the judgment and opinion.


source: Caselaw Access Project

license: Public Domain

text:
    DOMINICK'S FINER FOODS, Plaintiff-Appellant, v. INDIANA INSURANCE COMPANY, the Netherlands Insurance Company -A Stock Company, Monterrey Security Consultants, Inc., and Safety Service Systems Security, Inc., Defendants.
    (Indiana Insurance Company, The Netherlands Insurance Company -A Stock Company, Defendants-Appellees)
    Monterrey Security Consultants, Inc., Third-Party Plaintiff, v. Scottsdale Insurance Company, Third-Party Defendant.
    No. 1-16-1864
    Appellate Court of Illinois, First District, FOURTH DIVISION.
    March 1, 2018
    Brian O'Gallagher and Kristina M. Beck, of Cremer, Spina, Shaughnessy, Jansen & Siegert, LLC, of Chicago, for appellant.
    Michael McCann, of Falkenberg Fieweger & Ives LLP, of Chicago, for appellees.
   JUSTICE ELLIS delivered the judgment of the court, with opinion.

¶ 1 This appeal involves a dispute over insurance coverage, after a young woman was killed and a man was injured in a shooting that took place in a parking lot outside Dominick's Finer Foods (Dominick's) on the northwest side of Chicago. When Dominick's was sued by the decedent's estate, it tendered its defense to insurers Netherlands Insurance Company (Netherlands) and Indiana Insurance Company (Indiana) and later sought indemnification as well. The insurers denied coverage, and Dominick's filed suit for a declaration of coverage and damages for the insurers' alleged bad-faith conduct.

¶ 2 After Dominick's and Netherlands filed cross-motions for summary judgment, the trial court ruled in favor of Netherlands and against Dominick's on all counts. The trial court entered language pursuant to Illinois Supreme Court Rule 304(a) (eff. Feb. 26, 2010), allowing an immediate appeal of these claims, while other litigation involving other parties continued in the trial court.

¶ 3 We hold that Netherlands owed Dominick's a duty to defend and indemnify under the relevant language of the insurance policy. We thus reverse the grant of summary judgment in favor of Netherlands and remand this case for the entry of summary judgment in favor of Dominick's on the issue of coverage. But we affirm the trial court's grant of summary judgment in favor of Netherlands on the claims of bad faith under section 155 of the Illinois Insurance Code ( 215 ILCS 5/155 (West 2014) ) because even if we ultimately disagree with the insurers' interpretation of the insurance policy, we do not find their position to have been unreasonable, and a bona fide dispute over coverage existed.

¶ 4 I. BACKGROUND

¶ 5 The entire background of this case is somewhat complicated, involving a lot of moving parts-various parties and different insurance policies-so we will limit our background to what is relevant to this appeal.

¶ 6 On September 6, 2004, a shooting occurred in the parking lot outside of a Dominick's supermarket on the 3300 block of West Belmont Avenue. The shooting claimed the life of Crystal Mustafov and injured Jose Ramirez. The shooters initially confronted the victims inside Dominick's before following them into the parking lot.

¶ 7 The Dominick's store in question was a tenant of the Kennedy Plaza Shopping Center, which was owned by a trio of entities: Kennedy Plaza Associates LLC, Kennedy Plaza BK, and Kennedy Plaza RL, LLC (collectively, Kennedy Plaza).

¶ 8 Less than a month later, a lawsuit was filed by the estate of Crystal Mustafov, which we will call the "Gallo litigation" after the named plaintiff. The Gallo complaint was amended several times, the other individual injured in the shooting (Ramirez) was added as a plaintiff, and the litigation was stayed for several years pending the outcome of criminal proceedings. The defendants ultimately included Dominick's, Kennedy Plaza, and security companies that performed work at that location.

¶ 9 In the sixth amended complaint in the Gallo litigation, both Gallo and Ramirez alleged that Dominick's "possessed, operated and controlled a food store and adjacent parking lot" at 3300 West Belmont; that Dominick's had a "duty * * * to ensure the safety of [its] patrons and invitees"; and that Dominick's breached that duty by negligently failing to supervise or otherwise protect "store patrons and invitees" such as Mustafov and Ramirez from harm.

¶ 10 Kennedy Plaza had purchased a commercial general liability (CGL) insurance policy from Netherlands (Kennedy policy), in effect at the time of the shooting, which insured against claims for bodily injury, property damage, or "personal and advertising injury." It is undisputed that Dominick's was an additional insured on the policy, and that the additional insurance covered not only the Dominick's store but the adjacent parking lot where the shooting occurred. The relevant portion states as follows:

"I. ADDITIONAL INSURED-BY CONTRACT, AGREEMENT OR PERMIT
1. Paragraph 2. Under SECTION II-WHO IS AN INSURED is amended to include as an insured any person or organization when you and such person or organization have agreed in writing in a contract, agreement or permit that such person organization [sic ] can be added as an additional insured on your policy to provide insurance such as is afforded under this Coverage Part. Such person or organization is an additional insured only with respect to liability arising out of:
a. Your ongoing operations performed for that person or organization; or
b. Premises or facilities owned or used by you . * * *
2. This endorsement provision I. does not apply:
a. Unless the written contract or agreement has been executed, or permit has been issued, prior to the 'bodily injury', 'property damage' or 'personal and advertising injury', * * * *
* * *
d. To 'bodily injury', 'property damage' or 'personal and advertising injury arising out of any act, error or omission that results from the additional insured's sole negligence or wrongdoing.' " (Emphasis added.)

¶ 11 Relying on the policy language, Dominick's tendered its defense of the Gallo litigation to Netherlands, which denied coverage.

¶ 12 The Gallo litigation proceeded. The seventh amended complaint added the various entities we have collectively referred to as "Kennedy Plaza" for the first time as defendants, claiming that Kennedy Plaza owned and operated the parking lot, had a duty to secure and protect that lot, and breached its duty, resulting in the shootings that occurred.

¶ 13 Kennedy Plaza settled out of the Gallo litigation in January 2010 for $40,000. That left Dominick's and two security companies as remaining defendants. In March 2013, by which time a twelfth amended complaint was pending, the remaining defendants settled the litigation, with Dominick's contributing $1.3 million to the settlement.

¶ 14 About a year after settling, Dominick's sued Netherlands, claiming that it had a duty to defend and indemnify Dominick's and asserting a bad-faith claim under section 155 of the Illinois Insurance Code ( 215 ILCS 5/155 (West 2014) ).

¶ 15 After cross-motions for summary judgment, the trial court agreed with Netherlands that Dominick's was not entitled to coverage under the policy. The court rejected Dominick's estoppel argument as well. And the court found the section 155 claim time-barred. The court thus entered summary judgment on all counts directed against Netherlands in its favor.

¶ 16 There are other parties, other claims, and other insurance policies involved in this lawsuit that remain pending below. None of them concern this appeal. The trial court entered language pursuant to Rule 304(a), finding no just reason to delay enforcement of or appeal from this order, and thus the order is properly before us on appeal.

¶ 17 II. ANALYSIS

¶ 18 We review the entry of summary judgment de novo . Pence v. Northeast Illinois Regional Commuter R.R. Corp ., 398 Ill. App. 3d 13, 16, 337 Ill.Dec. 1003, 923 N.E.2d 854 (2010). De novo review is independent of the trial court's decision; we need not defer to the trial court's judgment or reasoning. Motorola Solutions, Inc. v. Zurich Insurance Co. , 2015 IL App (1st) 131529, ¶ 114, 393 Ill.Dec. 173, 33 N.E.3d 917. Summary judgment is proper only where the pleadings, depositions, and admissions on file, together with the affidavits, if any, show that there is no genuine issue of material fact, and that the moving party is entitled to judgment as a matter of law.

Mashal v. City of Chicago , 2012 IL 112341, ¶ 49, 367 Ill.Dec. 223, 981 N.E.2d 951. The construction of an insurance policy is also a question of law subject to de novo review. Rich v. Principal Life Insurance Co. , 226 Ill. 2d 359, 370-71, 314 Ill.Dec. 795, 875 N.E.2d 1082 (2007).

¶ 19 The first questions relate to coverage-whether Netherlands had a duty to defend Dominick's in the underlying Gallo litigation and to indemnify Dominick's for all or part of the $1.3 million Dominick's paid to settle that litigation. We begin with the duty to defend.

¶ 20 A. Duty to Defend

¶ 21 The duty to defend is broader than the duty to indemnify. Pekin Insurance Co. v. Wilson , 237 Ill. 2d 446, 456, 341 Ill.Dec. 497, 930 N.E.2d 1011 (2010). To determine whether an insurer has a duty to defend, the court examines the allegations in the underlying complaint. United States Fidelity & Guaranty Co. v. Wilkin Insulation Co. , 144 Ill. 2d 64, 73, 161 Ill.Dec. 280, 578 N.E.2d 926 (1991). If the underlying complaint alleges facts within or potentially within the policy coverage, the insurer must defend the insured. Id.

¶ 22 Both "[t]he underlying complaints and the insurance policies must be liberally construed in favor of the insured." Id. at 74, 161 Ill.Dec. 280, 578 N.E.2d 926. If a provision is subject to more than one reasonable interpretation, it is ambiguous, and "[a]ll doubts and ambiguities must be resolved in favor of the insured." Id. An insurer cannot refuse to defend "unless it is clear from the face of the underlying complaints that the allegations fail to state facts which bring the case within, or potentially within, the policy's coverage." (Emphasis in original.) Id. at 73, 161 Ill.Dec. 280, 578 N.E.2d 926. This rule holds true "even if the allegations are groundless, false, or fraudulent." Id. If there are several theories alleged in that complaint, the insurer has the duty to defend all of them, even if only one theory falls within potential coverage. Id.

¶ 23 At the time Dominick's tendered its defense of the Gallo litigation to Netherlands, the sixth amended complaint was pending. In the general allegations of the complaint, the plaintiffs alleged that:

* Dominick's "possessed, operated and controlled a food store and adjacent parking lot" at 3300 West Belmont;
* Dominick's was aware of gang activity and other criminal activity in the past near that store, including "armed robberies, assault and batteries, car jackings, narcotic sales and incidents of gang graffiti;"
* on the day in question, two individuals, who were members of a local gang, "confronted and threatened" plaintiff Ramirez while inside the Dominick's store;
* these two gang members were carrying "a loaded handgun" inside the store at that time; and
* these two gang members followed Ramirez into the parking lot area, "where they continued to confront and threaten" plaintiff Ramirez and plaintiff's decedent, Mustafov, ultimately resulting in the shooting.

¶ 24 In count IV, which adopted those allegations, Gallo alleged the following against Dominick's:

"16. That it then and there became the duty of [Dominick's] to ensure the safety of their patrons and invitees.
17. That in addition, [Dominick's] voluntarily assumed the duty to provide safety and security services to its patrons and invitees by hiring [specific security companies, also named defendants] to provide security services and retained supervision and control over these security companies.
18. That [Dominick's] breached its duty of care in one or more of the following particulars:
a. Negligent and carelessly hired one or more security contractors when it knew or should have known the security contractors had been disciplined and/or were on probation with the Illinois Department of Professional Regulation for failure to properly license and train its employees;
b. Negligently and carelessly hired and continued to employ one or more of its security contractors when it knew or should have known that the security contractors failed to obtain the proper licensing from the State of Illinois;
c. Negligently and carelessly hired one or more security contractors when it knew or should have known that the security contractors and their employees lacked the appropriate training, experience, registration cards and equipment to protect store patrons and invitees;
d. Negligently and carelessly failed to warn its patrons and invitees of ongoing gang activity within the store premises and parking lot when it knew or should have known of the numerous prior criminal and gang activities that occurred on the aforesaid premises;
e. Negligently and carelessly failed to properly supervise security operations within the store and parking lot; and
f. Otherwise negligently and carelessly failed to protect store patrons and invitees when they knew or should have known of prior gang and criminal activities taking place at the store location and parking lot."

¶ 25 The other plaintiff, the surviving victim Ramirez, pleaded the identical allegations against Dominick's in count XI.

¶ 26 As shown above, the plaintiffs asserted two different theories of liability against Dominick's. The first, as alleged in paragraph 16 of the complaint quoted above, was a straight premises-liability theory, based on Dominick's status as the owner or occupier (in this case, occupier or lessee) of the premises.

¶ 27 A duty of care, owed by an owner/occupier of land to entrants onto the land, is imposed by law from two sources. First, that duty has always been imposed at the common law. See Ward v. K Mart Corp. , 136 Ill. 2d 132, 141, 143 Ill.Dec. 288, 554 N.E.2d 223 (1990) (discussing "the scope of the landowner's or occupier's duty owed to entrants upon his premises" at common law). As lessee of the property, Dominick's " 'acquire[d] an estate in the land, and bec[ame] for the time being both owner and occupier, subject to all of the responsibilities of one in possession, to those who enter upon the land and those outside of its boundaries.' " Rowe v. State Bank of Lombard , 125 Ill. 2d 203, 221, 126 Ill.Dec. 519, 531 N.E.2d 1358 (1988) (quoting Prosser and Keeton on the Law of Torts § 63, at 434 (W. Page Keeton et al. eds., 5th ed. 1984) ). Though a landowner typically owes no common-law duty to protect others from criminal activity on its land, a "special relationship" imposing such a duty "has been recognized where the parties are in a position of * * * business invitor and invitee." Id. at 215-16, 126 Ill.Dec. 519, 531 N.E.2d 1358. The Gallo complaint alleged that relationship.

¶ 28 That legal duty is also imposed under the Premises Liability Act. See 740 ILCS 130/2 (West 2014) (providing that duty owed "by an owner or occupier of any premises" to entrants onto premises "is that of reasonable care under the circumstances"); see also Ward , 136 Ill. 2d at 142, 143 Ill.Dec. 288, 554 N.E.2d 223 (noting that Premises Liability Act made only modest changes to common law, primarily abolishing distinction between legal duty owed to "invitees" versus "licensees").

¶ 29 The second theory alleged, as indicated in paragraph 17 of the complaint quoted above, was a theory of voluntary undertaking-that Dominick's voluntarily assumed a duty to protect patrons and invitees by hiring security companies to patrol the parking lot. See Wakulich v. Mraz , 203 Ill. 2d 223, 241, 271 Ill.Dec. 649, 785 N.E.2d 843 (2003) (voluntary undertaking is assumption of duty of ordinary care not otherwise imposed by law). That duty is not imposed by law; it is one that a defendant voluntarily assumes and must do with reasonable care. See id. at 241-42, 271 Ill.Dec. 649, 785 N.E.2d 843 ; Pippin v. Chicago Housing Authority , 78 Ill. 2d 204, 209-10, 35 Ill.Dec. 530, 399 N.E.2d 596 (1979) (though housing authority "had no independent duty to protect against criminal acts on its premises," it could be held liable for negligent performance of voluntary undertaking); Lavazzi v. McDonald's Corp. , 239 Ill. App. 3d 403, 408-09, 179 Ill.Dec. 1013, 606 N.E.2d 845 (1992) (though defendant had "no independent duty in Illinois or at common law," "[l]iability can arise from the negligent performance of a voluntarily undertaken duty"); Jackson v. Hilton Hotels Corp. , 277 Ill. App. 3d 457, 467, 214 Ill.Dec. 31, 660 N.E.2d 222 (1995) ("A duty may be imposed upon defendants who would otherwise not owe a duty where they have undertaken to perform some act and have done so negligently."), abrogated on other grounds by LaFever v. Kemlite Co. , 185 Ill. 2d 380, 235 Ill.Dec. 886, 706 N.E.2d 441 (1998).

¶ 30 We now compare those allegations in the complaint to the relevant language in the insurance policy. A truncated version of what we quoted in more detail above provides the relevant language regarding the coverage Dominick's would be provided as an additional insured on the Kennedy policy:

"Such person or organization is an additional insured only with respect to liability arising out of:
a. Your ongoing operations performed for that person or organization; or
b. Premises or facilities owned or used by you . * * *" (Emphasis added.)

¶ 31 It is undisputed that the reference to "you" is to Kennedy Plaza. It is also undisputed that the plaza property-the property on which the Dominick's store rested, as well as the parking lot-were owned by Kennedy Plaza, and that the additional-insured coverage of Dominick's extended to both the store and parking lot.

¶ 32 Dominick's argues that Netherlands owed a duty to defend under either prong listed in the policy-clause a, for liability "arising out of" Kennedy Plaza's "operations" performed for Dominick's, or clause b, for liability "arising out of premises" or facilities owned by Kennedy. We will focus first on the clause, clause b.

¶ 33 In determining whether Netherlands had the duty to defend this lawsuit on behalf of Dominick's based on this clause b, the question is whether either theory of recovery asserted in the Gallo complaint could be potentially interpreted as imposing "liability" on Dominick's "arising out of [the] premises."

¶ 34 We begin by noting that "Illinois courts have held that the phrase ' "arising out of" [in an insurance policy] is both broad and vague, and must be liberally construed in favor of the insured.' " Burlington Northern Ry. Co. v. Illinois Emcasco Insurance Co. , 158 Ill. App. 3d 783, 787, 110 Ill.Dec. 599, 511 N.E.2d 776 (1987) (quoting Maryland Casualty Co. v. Chicago & North Western Transportation Co. , 126 Ill. App. 3d 150, 154, 81 Ill.Dec. 289, 466 N.E.2d 1091 (1984) ); see also Illinois Founders Insurance Co. v. Smith , 231 Ill. App. 3d 269, 275, 172 Ill.Dec. 780, 596 N.E.2d 59 (1992) (same); Dash Messenger Service, Inc. v. Hartford Insurance Co. , 221 Ill. App. 3d 1007, 1012, 164 Ill.Dec. 313, 582 N.E.2d 1257 (1991) (same); Consolidated R. Corp. v. Liberty Mutual Insurance Co. , 92 Ill. App. 3d 1066, 1068-69, 48 Ill.Dec. 485, 416 N.E.2d 758 (1981) (same). When that language has been found in an additional-insured policy, it has been interpreted in favor of coverage. See Burlington Northern Ry. Co. , 158 Ill. App. 3d at 787, 110 Ill.Dec. 599, 511 N.E.2d 776 ; Maryland Casualty Co. , 126 Ill. App. 3d at 154, 81 Ill.Dec. 289, 466 N.E.2d 1091 ; Consolidated R. Corp. , 92 Ill. App. 3d at 1068-69, 48 Ill.Dec. 485, 416 N.E.2d 758.

¶ 35 The phrase " '[a]rising out of' has been held to mean 'originating from,' 'having its origin in,' 'growing out of' and 'flowing from.' " Maryland Casualty Co. , 126 Ill. App. 3d at 154, 81 Ill.Dec. 289, 466 N.E.2d 1091 (quoting Western Casualty & Surety Co. v. Branon , 463 F.Supp. 1208, 1210 (E.D. Ill. 1979) ). Other synonyms include " 'connected with' or 'incidental to.' " Consolidated R. Corp. , 92 Ill. App. 3d at 1069, 48 Ill.Dec. 485, 416 N.E.2d 758 (citing Lynch Special Services v. Industrial Comm'n , 76 Ill. 2d 81, 86, 27 Ill.Dec. 738, 389 N.E.2d 1146 (1979) ).

¶ 36 The word " 'liability' " means " 'the quality or state of being liable,' " and " '[l]iable' " is defined as " 'bound or obligated according to law or equity.' " Young v. Allstate Insurance Co. , 351 Ill. App. 3d 151, 158, 285 Ill.Dec. 921, 812 N.E.2d 741 (2004) (quoting Webster's Third New International Dictionary 1302 (1993) ). "Liability" is a broad term, the condition of being legally responsible to a plaintiff, based on the relevant law and facts, usually resulting in monetary damages, sometimes injunctive relief. In the context of a personal-injury claim such as in the Gallo litigation, a defendant is "liable" in tort for personal injuries suffered by a plaintiff if the plaintiff can prove that the defendant owed plaintiff a duty of care, that the defendant breached that duty, and that the plaintiff suffered injuries that were proximately caused by the breach of duty. Buerkett v. Illinois Power Co. , 384 Ill. App. 3d 418, 422, 323 Ill.Dec. 430, 893 N.E.2d 702 (2008).

¶ 37 With these general principles and definitions in mind, as we will explain below, we believe that the allegations in the Gallo complaint triggered Netherlands's duty to defend for two reasons.

¶ 38 1. Premises-Liability Theory

¶ 39 As discussed previously, one of the theories of recovery alleged in the complaint was a premises-liability claim. The sixth amended complaint alleged that the plaintiffs were invitees who entered the Dominick's store; two armed individuals (at least one of them was armed) confronted and threatened Ramirez inside the Dominick's store proper; the individuals then followed Ramirez out of the store into the parking lot; and they shot Mustafov fatally and wounded Ramirez. Based on the fact that Dominick's "possessed, operated and controlled a food store and adjacent parking lot," plaintiffs alleged that "it then and there became the duty of [Dominick's] to ensure the safety of their patrons and invitees."

¶ 40 In our view, the premises-liability theory fell within the coverage language for "liability arising out of [the] premises." The sole basis for imposing a legal duty on Dominick's under this premises-liability theory was its relationship to the "premises"-its status as the occupier of the property, on whom both the common law and the Premises Liability Act impose a duty of care. See 740 ILCS 130/2 (West 2014) ; Ward , 136 Ill. 2d at 141, 143 Ill.Dec. 288, 554 N.E.2d 223. The "premises" is thus directly and indispensably tied to the alleged legal duty on the part of Dominick's in this case, and duty is a required element of its ultimate "liability" to the plaintiffs in the Gallo litigation. See Buerkett , 384 Ill. App. 3d at 422, 323 Ill.Dec. 430, 893 N.E.2d 702 (duty is required element of negligence claim).

¶ 41 Liberally comparing the policy against the complaint, we do not find it unreasonable in the least to conclude that the "liability" of Dominick's in the Gallo litigation has "its origin in," is "growing out of," is "flowing from" ( Maryland Casualty Co. , 126 Ill. App. 3d at 154, 81 Ill.Dec. 289, 466 N.E.2d 1091 ) or is "connected with" or "incidental to" ( Consolidated R. Corp. , 92 Ill. App. 3d at 1069, 48 Ill.Dec. 485, 416 N.E.2d 758 ) the premises. Because it is a reasonable interpretation favoring coverage, it is one we must adopt. The allegations of the premises-liability theory thus fell within the coverage provision for "liability arising out of the premises."

¶ 42 We find support for our conclusion in the only case cited by the parties involving this identical policy language, and which also occurred, as here, in the context of an additional-insured provision. In Consolidated R. Corp. , 92 Ill. App. 3d at 1067, 48 Ill.Dec. 485, 416 N.E.2d 758, Consolidated Rail (Con Rail) leased to its subsidiary, Pennsylvania Truck Lines (PTL), a parcel of land known as Roselake Yards, where PTL would perform various services to assist Con Rail's "piggyback" operation. PTL procured liability insurance and named Con Rail as an additional insured. Id. The policy provided, in serial endorsement 4, that Con Rail was an additional insured " 'only with respect to [its] liability arising out of * * * (b) the premises owned, maintained or controlled by [Con Rail]' " (Emphases added.) Id. at 1068, 48 Ill.Dec. 485, 416 N.E.2d 758.

¶ 43 Eleven PTL employees were injured while working on that piggyback operation on or near the Roselake Yards property, and each of them sued Con Rail for personal injuries. Id. at 1067, 48 Ill.Dec. 485, 416 N.E.2d 758. Con Rail tendered the defense of the suits to its insurer, which assumed the defense of the first two lawsuits but refused to defend others. Id.

¶ 44 This court held that the insurer had a duty to defend under provision (b) quoted above (as well as other provisions). The court noted the broad interpretation that courts have given to the language "arising out of" and reasoned that "[e]ach injury was 'incident to' work related duties 'connected with' the Roselake premises owned by Con Rail." Id. at 1069, 48 Ill.Dec. 485, 416 N.E.2d 758. The court found that "this causal connection alone is sufficient to invoke coverage" under provision (b). Id. The court found that each of the underlying personal-injury complaints "alleged facts which were potentially covered by" provision (b), because "[t]hey asserted Con Rail's status as lessor of the yards in which the injuries occurred." Id. at 1070, 48 Ill.Dec. 485, 416 N.E.2d 758.

¶ 45 Just as Con Rail was alleged to be responsible by virtue of its status as lessor/owner for injuries occurring on or near the premises, so too was Dominick's alleged to be responsible in the Gallo complaints for acts occurring on the premises it occupied.

¶ 46 The decision in Maryland Casualty Co. , 126 Ill. App. 3d 150, 81 Ill.Dec. 289, 466 N.E.2d 1091, which Dominick's emphasizes as a decision involving "liability arising out of" language, also supports our decision, though the relevant policy language was somewhat different. There, Chicago and North Western Transportation Co. (CNW) managed a train station in downtown Chicago and leased three separate newsstands to Demos News, Inc. (Demos). Id. at 152, 81 Ill.Dec. 289, 466 N.E.2d 1091. A Demos employee, reporting to work early in the morning, was grabbed from behind as she was about 10 feet from her employer's door, whereupon she was dragged into a stairwell, knocked unconscious, and sexually assaulted. Id. She sued CNW for negligently maintaining and controlling the terminal. Id.

¶ 47 CNW was an additional insured under a CGL policy Demos purchased that covered CNW " 'only with respect to liability arising out of the ownership, maintenance or use of that part of the premises designated below leased to [Demos].' " Id. at 153, 81 Ill.Dec. 289, 466 N.E.2d 1091. The insurer sought a declaration that it had no duty to defend CNW in the underlying lawsuit, arguing that the sexual assault did not occur on any of the premises leased to Demos. Id. at 154, 81 Ill.Dec. 289, 466 N.E.2d 1091.

¶ 48 The court first noted the breadth and vagueness of the phrase "arising out of" and reasoned that, liberally construed, it suggested only " 'but for' causation, not necessarily proximate causation," between the words it connects. Id. The court also noted that the word "premises" has been held to include " 'private approaches and other areas necessary or incidental to an insured's operations.' " Id. at 155, 81 Ill.Dec. 289, 466 N.E.2d 1091 (quoting Allstate Insurance Co. v. Gutenkauf , 103 Ill. App. 3d 889, 894, 59 Ill.Dec. 525, 431 N.E.2d 1282 (1981) ). Ultimately, the court held that, "by construing the policy liberally in favor of the insured-a procedure necessitated by the ambiguity of the 'arising out of' language-the instant injuries appear to have arisen from the operation and use of the leased premises, since they would not have been sustained 'but for' the victim's employment on those premises" and the fact that she was "about to commence her employer's operation when she was assaulted." Id. The court found it foreseeable that "employees of Demos would necessarily and customarily use the nonleased portions of the terminal in order to go about their employer's business." Id. at 154, 81 Ill.Dec. 289, 466 N.E.2d 1091.

¶ 49 Maryland Casualty Co. , which broadly interpreted the phrase "liability arising out of the premises," is consistent with our holding here. Netherlands is quick to point out that the language there was different, which is correct, but it cuts in a different direction than Netherlands would advocate. The language in Maryland Casualty Co. was " 'liability arising out of the ownership, maintenance or use of that part of the premises.' " (Emphasis added.) Id. at 153, 81 Ill.Dec. 289, 466 N.E.2d 1091. It was narrower, not broader, than the language we are considering, which contains no similar qualifier-"liability arising out of the premises." So if anything, the difference in policy language in Maryland Casualty Co. provides greater, not less, support for our conclusion.

¶ 50 Netherlands raises several reasons why our interpretation of "liability arising out of the premises" is incorrect, which we will consider in turn.

¶ 51 First, Netherlands raises what amounts to a floodgates argument-that this interpretation would lead to "nearly unlimited" coverage. "Conceivably," says Netherlands, "Dominick's might fire an employee in the parking lot," "might discriminate against a customer based on race or age" there, or "might wrongfully use someone's logo" on the premises-and all of those acts, under this interpretation, would be covered under the policy.

¶ 52 Not so. In fact, these examples provide the perfect frame of reference for why the interpretation we adopt is reasonable. In those examples given above, even if those events happened to occur on the "premises," the "liability" of Dominick's for those acts would have nothing whatsoever to do with the premises. A claim for wrongful termination would not base "liability" on the premises at 3300 West Belmont Avenue but, rather, on the store's status as an employer and its violation of some state or federal employment law. It would make no difference, from a "liability" standpoint, whether a Dominick's official fired the employee inside the store, in the parking lot, at a coffee shop down the street, by e-mail, or at a visit to the employee's home.

¶ 53 If Dominick's misappropriated another company's logo, any "liability" it might incur would not be imposed by virtue of its status as owner/occupier of the premises, but rather on the fact that it misused a logo in violation of some law governing misappropriation or infringement. That misappropriation could happen in a television commercial, in a mailer, or on a poster stapled to a tree several miles away from a Dominick's store-the location would make no difference on the question of liability.

¶ 54 But a premises-liability claim is based on nothing more than the relationship of Dominick's to the premises as the owner or occupier, and the legal duties that arise as a result. The "premises" is a necessary and indispensable part of the liability alleged. So we do not think that our interpretation-that a premises-liability claim falls within the phrase "liability arising out of the premises"-is so open-ended that any conceivable lawsuit brought against Dominick's would be covered by Netherlands.

¶ 55 Netherlands also argues that "the phrase 'arising out of the premises' in an insurance policy means that the loss occurred due to some defect in the premises," and because no such defect was alleged regarding the premises here, the complaint did not implicate coverage. That was the circuit court's reasoning, too-that a defect in the premises is required.

¶ 56 Reading "liability arising out of the premises" as requiring a defect in the premises is not an unreasonable interpretation, at least in a vacuum. The problem for Netherlands is that if we find our interpretation reasonable, and it favors coverage, it is the interpretation we must adopt, even if the insurer proffers a reasonable interpretation of its own that denies coverage. See United States Fidelity & Guaranty Co. , 144 Ill. 2d at 74, 161 Ill.Dec. 280, 578 N.E.2d 926 ; see also Outboard Marine Corp. v. Liberty Mutual Insurance Co. , 154 Ill. 2d 90, 108-09, 180 Ill.Dec. 691, 607 N.E.2d 1204 (1992).

¶ 57 In any event, we disagree with Netherlands and the circuit court that Illinois law interprets "liability arising out of the premises" as only referring to defects in the premises. Netherlands cites cases in support of that position, two of which the circuit court cited, but we find those cases distinguishable, as they involved different language in different kinds of policies under different circumstances.

¶ 58 In Reis v. Aetna Casualty & Surety Co. , 69 Ill. App. 3d 777, 780, 25 Ill.Dec. 824, 387 N.E.2d 700 (1978), an employee named Phillips allegedly consumed alcohol and prescription drugs at the home of Reis, a superior at the corporation, and later reported to work intoxicated. Recognizing his intoxication, Reis sent Phillips home. Id. On the drive home, Phillips's car collided with another car, killing plaintiff's decedent. Id. at 781, 25 Ill.Dec. 824, 387 N.E.2d 700. The estate sued Reis for allowing Phillips to consume drugs and alcohol before work and for negligently sending him home from work when he was unfit to drive a car. Id. at 780-81, 25 Ill.Dec. 824, 387 N.E.2d 700. Reis tendered her defense to her homeowner's insurer, Aetna, which disputed coverage. Id. at 781-82, 25 Ill.Dec. 824, 387 N.E.2d 700.

¶ 59 The vast majority of the Reis opinion was devoted to a different issue than ours-whether an exclusion for "business pursuits" applied, given that the negligence allegedly occurred, at least in part, at Reis's place of business. See id. at 786-88, 25 Ill.Dec. 824, 387 N.E.2d 700. Once this court rejected that argument, it proceeded to the question relevant to us, the applicability of an exclusion whose language was never quoted verbatim in the opinion, something this court discussed in one paragraph, the entirety of which follows:

"The insurer belatedly has raised the contention that an exclusion of liability coverage and medical payments coverage, where the bodily injury arose out of any premises other than an insured premises , limits coverage to Reis's apartment. The inconsistency of this contention is demonstrated by the fact that the policy expressly provides medical payments coverage for accidents on the insured premises or elsewhere . The cited exclusion only applies to injuries arising out of the premises themselves, presumably such accidents as falling glass. The injury here did not arise out of any premises and the exclusion is clearly inapplicable." (Emphases added and in original.) Id. at 788, 25 Ill.Dec. 824, 387 N.E.2d 700.

¶ 60 As that paragraph demonstrates, the court in Reis was required to reconcile the broad coverage language for accidents "on the insured premises or elsewhere " (emphasis in original) ( id. ) with the exclusion of coverage that, apparently, excluded coverage "where the bodily injury arose out of any premises other than an insured " (emphasis added) ( id. ). Since the phrase "the insured premises or elsewhere" quite obviously covered locations beyond the insured premises itself, some sense had to be made out of the exclusion, which arguably, and contradictorily, limited coverage only to the insured premises. If the exclusion were read as broadly as Aetna urged, the exclusion would have altogether erased the words "or elsewhere" from the policy's broad coverage provision. Thus, in an effort to reconcile the exclusion with the coverage language, the court determined that the exclusion language must be read narrowly to only cover situations where the noninsured premises, itself , was responsible for the injuries-"presumably such accidents as falling glass" on the noninsured premises. Id.

¶ 61 From that, Netherlands says that the phrase "liability arising out of the premises" can only mean liability resulting from a defect in the premises. We find Reis readily distinguishable in several ways.

¶ 62 First, Reis construed a policy exclusion, which must be interpreted narrowly, as the court there recognized and which our courts have repeatedly held. See id. at 787, 25 Ill.Dec. 824, 387 N.E.2d 700 (noting that exclusions to coverage " 'are properly construed most strongly against the insurer' "); see also Outboard Marine Corp. , 154 Ill. 2d at 119, 180 Ill.Dec. 691, 607 N.E.2d 1204 (rule of construction interpreting ambiguous terms strictly against insurer and in favor of coverage is "especially true with respect to exclusionary clauses").

¶ 63 Second, as we have just discussed above, the court in Reis properly reasoned that the language of the exclusion, if read as the insurer urged, would have so materially altered the broad coverage language as to render it almost unrecognizable as a homeowner's insurance policy, which "is not a policy providing limited coverage only applicable on the designated premises;

rather, it is designed to be a broad type of coverage protecting the insured nearly everywhere." Reis , 69 Ill. App. 3d at 785, 25 Ill.Dec. 824, 387 N.E.2d 700. In our case, in contrast, there is no other language in the policy that materially conflicts with, if not wholly contradicts, the language we are reviewing, so there is no need to harmonize seemingly incompatible provisions.

¶ 64 Third and just as importantly, the policy language in Reis was different. The language-not quoted verbatim by the court-apparently excluded coverage "where the bodily injury arose out of any premises other than an insured." (Emphasis added.) Id. at 788, 25 Ill.Dec. 824, 387 N.E.2d 700. In our case, the question is whether the "liability arose out of the premises." That is a meaningful difference. "Injury" is a much more specific word than "liability."

¶ 65 The notion of an injury arising out of the premises could reasonably, if not automatically, conjure the image of something particular about the premises, something defective about the property, playing a role in the injury. The "injury" is part of the occurrence itself. It is part of the physical sequence of events, the result of the slip-and-fall or accident or, here, the altercation that occurred on the property. Saying that an injury "arises out of the premises" ties the "premises" to the occurrence itself.

¶ 66 On the other hand, as we discussed previously, "liability" is a far broader concept. "Liability" certainly includes the concept of an injury; a defendant cannot be held "liable" unless the plaintiff proves that he or she suffered an injury. Buerkett , 384 Ill. App. 3d at 422, 323 Ill.Dec. 430, 893 N.E.2d 702. But liability includes much more than that; it includes all of the underlying conduct and circumstances, and whether the plaintiff has proven that those facts satisfy the elements of a legal claim imposed by statute or the common law against a particular defendant. In the context before us, "liability" in tort requires that plaintiff prove not only an injury, but also the imposition of a legal duty of care, a breach of that duty, and a proximate causation between the breach of duty and the plaintiff's injuries. Id. A defendant's duty of care is just as essential to holding Dominick's liable as the "injury" is. In our view, if the basis for imposing a duty "arises out of the premises," as it clearly does here, that is enough to say that the "liability" of Dominick's arises out of the premises, regardless of how the injury occurred.

¶ 67 So it would not surprise us that the language "bodily injury arising out of the premises" might be read more narrowly than "liability arising out of the premises." Even if Reis were not otherwise distinguishable because it considered an exclusion, and because the court was required to harmonize incompatible provisions, the language Reis considered was materially different.

¶ 68 For the same reasons we have just given, we are not persuaded by Netherlands's citation to Economy Fire & Casualty Co. v. Green , 139 Ill. App. 3d 147, 93 Ill.Dec. 656, 487 N.E.2d 100 (1985), a case that is nearly identical to Reis in all material respects and, indeed, relied heavily on Reis .

¶ 69 There, a mother filed suit against various defendants after her child was hit by a car. Id. at 148, 93 Ill.Dec. 656, 487 N.E.2d 100. The defendants filed a counterclaim against the mother for contribution, claiming that the mother's negligence, in whole or in part, caused the boy's injuries. Id. The mother tendered her defense to the insurers that issued her homeowner's policy (Badger) and her automobile liability policy. Id.

¶ 70 The homeowner's policy language read as follows:

" '[Badger] agrees to pay on behalf of the Insured all sums which the Insured shall become legally obligated to pay as damages because of bodily injury or property damage, to which this insurance applies, caused by an occurrence .' " (Emphasis added.) Id. at 151, 93 Ill.Dec. 656, 487 N.E.2d 100.

¶ 71 Badger denied coverage, relying on the following exclusion in the policy, quite similar to the one in Reis : " 'This policy does not apply * * * to bodily injury * * * arising out of any premises, other than an insured premises, owned, rented or controlled by any Insured.' " Id. at 151-52, 93 Ill.Dec. 656, 487 N.E.2d 100. Badger argued that the child was hit by a car on the street, and thus the "bodily injury" did not "arise out of" any insured premises, and the exclusion applied.

¶ 72 This court found the exclusion inapplicable. Relying on Reis , the court echoed Reis 's reasoning that homeowner's policies are generally intended to provide liability coverage beyond the designated insured premises, "protecting the insured nearly everywhere." (Internal quotation marks omitted.) Id. at 152, 93 Ill.Dec. 656, 487 N.E.2d 100. The very broad coverage language was consistent with that norm, insuring against damages for any bodily injury " 'caused by an occurrence.' " Id. This court reasoned that, when a homeowner's policy contains such broad coverage language " 'and contains no other provision describing what coverage is provided, the insurer is liable for any accident for which the insured may be legally liable unless coverage is expressly excluded.' " Id. at 153, 93 Ill.Dec. 656, 487 N.E.2d 100.

¶ 73 The exclusion had the effect of severely curtailing that broad coverage provision. Id. Noting that Reis considered "a homeowner's policy containing provisions similar to those involved here" ( id. at 152, 93 Ill.Dec. 656, 487 N.E.2d 100 ), the court adopted Reis 's conclusion, without additional commentary, that the exclusion only applied when a bodily injury arose from a defect in the premises. Id. at 153, 93 Ill.Dec. 656, 487 N.E.2d 100. Because the child was hit by a car in the street, and no defect in the street was alleged, the exclusion was inapplicable, and Green was entitled to coverage. Id.

¶ 74 For the same reasons we have distinguished Reis , we do not believe that Green guides our decision here.

¶ 75 Like Reis and Green , another case cited by Netherlands, Economy Fire & Casualty Co. v. Second National Bank of Danville , 91 Ill. App. 3d 406, 408, 46 Ill.Dec. 712, 414 N.E.2d 765 (1980), involved a policy exclusion in a homeowner's policy, with the same language. The coverage language was identical to that in Green , covering the insured against all liability for damages caused by an "occurrence." Id. The exclusion was identical, too, excluding liability for " 'bodily injury * * * arising out of any premises, other than an insured premises, owned, rented or controlled by any Insured.' " Id. Because of the difference in language, the difference in types of policies, and the fact that the court was considering an exclusion, we again find that decision distinguishable.

¶ 76 For the reasons we have given, primarily the significant difference in policy language, we likewise find distinguishable other case law cited by Netherlands, which turned on terms such as "use" and "accident." See, e.g. , American Country Insurance Co. v. Chicago Carriage Cab Corp. , 2012 IL App (1st) 110761, ¶¶ 8, 13, 26, 30, 364 Ill.Dec. 295, 976 N.E.2d 573 (in duty-to-indemnify action, cab driver was not covered in negligent-entrustment suit for " ' "bodily injury" * * * caused by an "accident" and resulting from the ownership, maintenance or use of a covered "auto" ' " when driver lent cab to his nonlicensed friend, who then picked up passenger who was beaten and robbed inside cab; robbery inside cab was not "accident" or traditional "use" of automobile); Mount Vernon Fire Insurance Co. v. Heaven's Little Hands Day Care , 343 Ill. App. 3d 309, 313-14, 320, 277 Ill.Dec. 366, 795 N.E.2d 1034 (2003) (exclusion in policy for " ' "bodily injury" * * * arising out of the ownership, maintenance [or] use' " of car did not apply, and thus insured was entitled to coverage, when car was not being "used" when child was left inside, unattended); State Farm Mutual Automobile Insurance Co. v. Pfiel , 304 Ill. App. 3d 831, 833, 837, 237 Ill.Dec. 677, 710 N.E.2d 100 (1999) (when parents' son killed girl inside their car, parents were not covered in underlying negligent-entrustment suit for "bodily injury * * * caused by accident resulting from the ownership, maintenance or use of your car"; son's stabbing of girl while parked in forest preserve was not part of traditional, legitimate "use" of car, nor could murder be plausibly construed as "accident").

¶ 77 So we disagree with Netherlands and the circuit court that the case law requires a defect in the premises before a lawsuit can be interpreted as alleging "liability arising out of the premises." We think it is reasonable, at the very least, to interpret a premises-liability claim as falling within coverage for "liability arising out of the premises."

¶ 78 2. Unsafe Condition

¶ 79 Second, even if we were inclined to adopt some form of defective-premises requirement, as urged by Netherlands, we do not believe our conclusion would change. Netherlands casts this case as involving criminal acts of third parties, with the "premises" having no more relevance than serving as the situs of the shooting, the mere ground they stood on. But there is another way to view this case that is at least reasonable, if not more so-that both the voluntary-undertaking and premises-liability theories allege an unsafe premises.

¶ 80 Again, the Gallo complaint alleged that Dominick's had been beset in the past with "armed robberies, assault and batteries, car jackings, narcotic sales and many incidents of gang graffiti" of which Dominick's was or should have been aware-enough so, at least, that Dominick's had hired store security. The complaint alleged that Dominick's either voluntarily undertook a duty to keep the premises safe for its patrons and invitees, or that it owed one under the common law, given its possession and control of the premises. And ultimately, what Dominick's is accused of doing is not keeping its premises safe for its patrons and invitee.

¶ 81 If a plaintiff twisted her ankle in a pothole in the lot, slipped on a patch of ice by the store, or tripped on the store's sidewalk as a result of poor overhead lighting, even Netherlands would agree that lawsuits based on these "defective" conditions would trigger coverage. What is the material difference between the premises being slippery and being unsafe? From being poorly lit versus being poorly secured? How are nonfunctioning security cameras so different than nonfunctioning overhead lights? In each of those cases, there is something hazardous about the "premises" that the owner/occupier failed to remedy, resulting in injury.

¶ 82 Viewed in this light, we do not find it unreasonable to view the allegations of the Gallo complaint, under either theory of recovery asserted, liberally construed, as alleging "liability," having "its origin in," "growing out of," "flowing from" ( Maryland Casualty Co. , 126 Ill. App. 3d at 154, 81 Ill.Dec. 289, 466 N.E.2d 1091 ), "connected with," or "incidental to" ( Consolidated R. Corp. , 92 Ill. App. 3d at 1069, 48 Ill.Dec. 485, 416 N.E.2d 758 ) the premises.

¶ 83 For these reasons, we hold that the Gallo complaint, under either theory of recovery asserted, alleged facts that triggered Netherlands's duty to defend Dominick's.

¶ 84 B. Duty to Indemnify

¶ 85 Dominick's also claims that Netherlands owed a duty to indemnify Dominick's for its settlement payment to the underlying plaintiffs. The indemnification question is ripe for determination, as Dominick's has already incurred liability in the Gallo litigation, settling the suit for $1.3 million. Outboard Marine Corp. , 154 Ill. 2d at 127, 180 Ill.Dec. 691, 607 N.E.2d 1204.

¶ 86 An insurer's duty to indemnify is narrower than its duty to defend its insured. Id. We no longer ask whether the allegations of the complaint fall, or potentially fall, within the scope of coverage. At this stage, "the duty to indemnify arises if the insured's activity and the resulting loss or damage actually fall within the * * * policy's coverage." (Emphasis in original.) Id. at 128, 180 Ill.Dec. 691, 607 N.E.2d 1204.

¶ 87 At the time of settlement, a twelfth amended complaint was pending. The plaintiffs had upgraded some of their allegations with the benefit of discovery, including that:

* Dominick's possessed and controlled not only the premises but also the camera security system there;
* Dominick's was aware of prior criminal activity in and around its store and had a manual "to outline procedures to follow during certain criminal activities;"
* the Dominick's security staff witnessed the confrontation between the gang members and Ramirez within the store but did not intervene;
* the internal security cameras captured the two gang members entering the store;
* the cameras located on the outside walls of the store were not working;
* after the in-store confrontation, the two gang members left the store but waited outside by the doors at the southeast entrance, standing directly below one more of the nonfunctioning security cameras; and
* the gang members stood in precisely the location where the security staff was supposed to "stand post" to "monitor for suspicious activity and assist store visitors as they traveled through that entrance and the adjacent parking lot."

¶ 88 Those additions aside, the twelfth amended complaint continued to allege both voluntary-undertaking and premises-liability theories against Dominick's, and no other theories.

¶ 89 Dominick's, of course, did not admit liability when it settled, and thus obviously did not admit to being guilty of any breach of duty, much less that any duty existed in the first place, by operation of law or by voluntary assumption. But because we have found that either theory of liability would trigger coverage, there is no need to parse between covered and noncovered claims to determine which of them was the " 'primary focus' " of the lawsuit. Rosalind Franklin University of Medicine & Science v. Lexington Insurance Co. , 2014 IL App (1st) 113755, ¶ 81, 380 Ill.Dec. 89, 8 N.E.3d 20 (if both covered and noncovered claims are settled, duty to indemnify arises if covered claims were " 'primary focus of litigation' "); see also Federal Insurance Co. v. Binney & Smith, Inc. , 393 Ill. App. 3d 277, 288-89, 332 Ill.Dec. 448, 913 N.E.2d 43 (2009).

¶ 90 For all the reasons previously given, the failure by Dominick's to keep the premises safe-in violation of either its common-law duty, its voluntarily-assumed duty, or both-actually resulted in "liability arising out of the premises." Netherlands owed Dominick's a duty to indemnify.

¶ 91 In light of our holding, we do not need to decide whether Netherlands should be estopped from denying coverage.

¶ 92 C. Section 155 Sanctions

¶ 93 Finally, Dominick's seeks damages under section 155 of the Illinois Insurance Code ( 215 ILCS 5/155 (West 2014) ), claiming that Netherlands's conduct in denying them a defense and indemnification was vexatious and unreasonable. Whether conduct is vexatious and unreasonable is determined by examining the totality of the circumstances. Rosalind Franklin , 2014 IL App (1st) 113755, ¶ 110, 380 Ill.Dec. 89, 8 N.E.3d 20. "Neither the length of time, the amount of money involved, nor any other single factor taken by itself is dispositive." Id.

¶ 94 "[S]ection 155 fees and penalties are not awarded simply because the insurer refuses to settle or was unsuccessful in litigation." Id. Where there is a bona fide dispute concerning coverage, the assessment of costs and statutory sanctions is inappropriate, even if the court later rejects the insurer's position. State Farm Mutual Automobile Insurance Co. v. Smith , 197 Ill. 2d 369, 380, 259 Ill.Dec. 18, 757 N.E.2d 881 (2001) ; Dark v. United States Fidelity & Guaranty Co. , 175 Ill. App. 3d 26, 31, 124 Ill.Dec. 681, 529 N.E.2d 662 (1988).

¶ 95 Though we have disagreed with Netherlands's interpretation of the policy language at issue, we do not believe that its position was so unreasonable as to warrant damages under section 155. There is a difference between disagreeing with a party's position and finding that position so untenable as to be unreasonable and evidence of bad faith. We have held that Netherlands's position was too narrow to be the only reasonable construction of the policy, in light of the broad language "arising out of" and the broad term "liability," but it does not follow that Netherlands's position was, itself, unreasonable. The fact that an able and experienced trial judge agreed with Netherlands is further evidence that Netherlands's arguments and conduct do not warrant sanctions.

¶ 96 Thus, we need consider whether this claim was time-barred, as the circuit court ruled. Summary judgment was properly entered on this bad-faith claim, because a bona fide dispute over coverage existed.

¶ 97 III. CONCLUSION

¶ 98 In sum, we reverse the grant of summary judgment in favor of Netherlands on the issues of duty to defend and duty to indemnify. We remand this cause for the entry of summary judgment in favor of Dominick's on these coverage questions. We affirm the entry of summary judgment in favor of Netherlands on the section 155 claim. We likewise remand for any further proceedings, if necessary.

¶ 99 Affirmed in part, reversed in part, and remanded.

Presiding Justice Burke and Justice McBride concurred in the judgment and opinion.

      Before adding Netherlands as a defendant below, Dominick's first sued Indiana, the insurer to whom it tendered its defense-and on whose stationery the denial letter was written. Netherlands has since assured us that Netherlands, who issued the policy in question, is the proper party, and that Indiana is merely its affiliate. Out of an abundance of caution, Dominick's continues to refer to the insurers collectively as "IIC/NIC." We are not asked to resolve any dispute over which party is the proper insurer. And for our purposes, it does not matter. Our analysis is concerned with the language of the insurance policy, not which of the insurers is responsible for that policy. For the remainder of our analysis, we will refer to the insurer as Netherlands, with the obvious caveat that we offer no opinion on which of these two insurance companies is ultimately responsible for that policy.