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Local 705 International Brotherhood of Teamsters Health & Welfare Fund v. Five Star Managers, L.L.C.

Case Date: 07/28/2000
Court: 1st District Appellate
Docket No: 1-99-3394 Rel

SECOND DIVISION
 August 15, 2000

No. 1-99-3394

LOCAL 705 INTERNATIONAL
BROTHERHOOD OF TEAMSTERS
HEALTH & WELFARE FUND,

                    Plaintiff-Appellant,

          v.

FIVE STAR MANAGERS, L. L. C.,

                    Defendant-Appellee.

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)		 Appeal from the
Circuit Court of
Cook County.

 

No. 98 CH 7109

Honorable
Albert Green,
Judge Presiding

JUSTICE GORDON delivered the opinion of the court:

This appeal arises from a suit for declaratory judgmentbrought by plaintiff Local 705 International Brotherhood ofTeamsters Health & Welfare Fund (H&W) against its insurer,Connecticut Specialty Insurance Company (Connecticut Specialty),and its insurer's agent, Five Star Managers, L.L.C. (Five Star). The suit seeks declarations that H&W is entitled to coverage forlosses totaling more than $20 million incurred pursuant to asettlement agreement reached in an underlying suit brought byH&W's sister fund, the Local 705 International Brotherhood ofTeamsters Pension Fund (the Pension Fund), against H&W. Pursuantto Five Star's section 2-615 (735 ILCS 5/2-615 (West 1992))motion to dismiss, the trial court dismissed Five Star from thesuit, leaving Connecticut Specialty as the remaining defendant. This appeal is taken by plaintiff from the decision dismissingFive Star. For the reasons set forth below, we affirm thatdismissal.

BACKGROUND

On November 4, 1997, the Pension Fund brought suit againstH&W in the U.S. District Court for the Northern District ofIllinois, seeking recovery of $16,511,985 which it claimed wasimproperly transferred from the Pension Fund to H&W between 1991and 1995 in violation of fiduciary duties imposed by the EmployeeRetirement Income Security Act, 29 U.S.C.A.