BENTON – Former lawyer Tom Lakin and Geico Casualty agreed to remand their coverage dispute from U.S. district court to Madison County after Lakin promised not to seek more than $75,000 in damages.
Lakin and Geico jointly moved for remand on April 15, stipulating that their agreement would bind a Madison County judge.
They filed the motion three weeks after Senior District Judge Phil Gilbert denied a remand motion that Geico opposed.
Gilbert found the amount in controversy exceeded $75,000, the minimum for federal jurisdiction.
Rodney Caffey of Godfrey filed the suit in Madison County last November on behalf of John Doe, seeking $50,000 for a crash with an underinsured motorist.
John Doe also sought statutory damages for unreasonable and vexatious delay in settling his claim, plus attorney fees and costs.
Geico removed the suit to district court in December, asserting diverse citizenship and arguing that the claim exceeded $75,000.
A footnote identified Lowell T. Lakin as holder of the policy at issue.
In January, Caffey amended the complaint and named his client.
Caffey moved for remand and attached an affidavit from Lakin stating his claim didn’t exceed $74,000.
Geico opposed the motion and proposed that if Gilbert granted it, he should limit the damages that a Madison County judge could award.
In February, Caffey advised Gilbert that he anticipated a binding stipulation.
That didn’t matter to Gilbert, who ruled that events after removal don’t negate establishment of an amount sufficient for jurisdiction at the time of removal.
He found that not even an irrevocable promise would justify remand if federal jurisdiction existed at the time of removal.
He found that under federal and Illinois rules, a prayer for relief does not limit the awardable relief. He further found the maximum potential statutory award was $30,000, bringing the amount in controversy to $80,000 plus unspecified attorney fees.
He set bench trial next February.
Geico counsel John Gilligan of Chicago, having won the jurisdictional contest, changed his position after he and Caffey filled four paragraphs with promises.
They stipulated that Lakin expressly, knowingly, and voluntarily agreed to limit damages for the entire claim and which could ever be sought to an amount not to exceed $75,000, inclusive of statutory damages, costs, penalties, and attorney fees.
They defined the entire claim as all allegations including breach of contract, vexatious and unreasonable refusal, and conduct of Geico adjusters and counsel.
They stipulated that Lakin would not seek any additional compensatory, actual and consequential damages above $75,000 in the aggregate in federal or state court for breach of contract.
They stipulated that Lakin would never attempt to execute as against Geico for collection purposes above the amount of $75,000; that their agreement would bind Lakin, his counsel, and all members, employees, staff, attorneys, and agents of counsel’s firm; that it would bind Lakin’s heirs, legatees, executors, legal representatives, administrators, and assigns; that it would bind any new counsel Lakin might retain and that it would bind the trial judge and that it could not be amended, vacated, revoked, or disputed.
Lakin once led the most successful injury firm in Madison County.
In 2008, in Gilbert’s court, he pleaded guilty of distributing cocaine and maintaining a drug house.
Gilbert sentenced him for six years.