The city of Chicago invoked the Local Governmental and Governmental Employees Tort Immunity Act when American Family Mutual Insurance Co. sued as subrogee for $12,670 based on alleged “breach of bailment contract.”American Family’s response to the city’s motion to dismiss relied on Section 2-101(a) of the Tort Immunity Act, which says: “Nothing in this act affects the liability, if any, of a local public entity or public employee, based on … contract.”A swindler used counterfeit …