Liberty Mutual Insurance v. Williams MacHine & Tool Co.

In this indemnity action, plaintiff, Liberty Mutual Insurance Company, as subrogee for its insured, Charles Machine Works, Inc. (hereinafter Charles), sued defendant, Williams Machine & Tool Co., seeking reimbursement for monies paid in settlement of suits instituted against Charles by American Glass Company (hereinafter American) and its employees. A jury in the circuit court of Cook County returned a verdict in favor of plaintiff for $69,800. The Appellate Court for the First District affirmed (21 Ill. App. 3d 510) and we granted leave to appeal.

Plaintiff settled the suits against Charles…