In re Liquidation of Legion Indemnity Corporation

              FOURTH DIVISION
FILED: March 29, 2007
No. 1-05-4069
IN RE LIQUIDATION OF LEGION ) Appeal from the
INDEMNITY CORPORATION ) Circuit Court of
) Cook County, Illinois.
)
(GE Frankona Reinsuranc Company Ltd., and )
ERC Frankona Reinsurance (III), Ltd., ) No. 02 CH 6695
)
Plaintiffs and Counterdefendants-Appellees, ) Honorable Patrick E. McGann,
) Judge Presiding.
v. ))
Legion Indemnity Company, in Liquidation )
)
Defendant and Counterplaintiff-Appellant). )
JUSTICE MURPHY delivered the opinion of the court:
This case is before us on appeal of the trial court’s order of summary judgment in favor of
plaintiffs GE Frankona Reinsurance Company, Ltd., and ERC Frankona Reinsurance (III), Ltd.,
foreign insurance companies based in the United Kingdom known collectively as Eagle Star
(Eagle Star). During the course of liquidation proceedings of defendant Legion Indemnity
Company (Legion Indemnity), an Illinois insurance company, Eagle Star sought declaratory
judgment from the trial court to declare its rights with respect to the calculation and reporting of
balances it was owed. Based on a written agreement between Eagle Star and Legion Insurance
Company (Legion Insurance), a Pennsylvania insurance company, and Legion Indemnity
(collectively known, and referred to here, as Legion Companies) and the findings of the