Augustine v. Industrial Commission

607 N.E.2d 229, 239 Ill. App. 3d 561, 180 Ill. Dec. 335, 1992 Ill. App. LEXIS 1875
CourtAppellate Court of Illinois
DecidedNovember 18, 1992
Docket3-91-0207WC
StatusPublished
Cited by7 cases

This text of 607 N.E.2d 229 (Augustine v. Industrial Commission) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Augustine v. Industrial Commission, 607 N.E.2d 229, 239 Ill. App. 3d 561, 180 Ill. Dec. 335, 1992 Ill. App. LEXIS 1875 (Ill. Ct. App. 1992).

Opinion

JUSTICE H. LEWIS

delivered the opinion of the court:

The Illinois Industrial Commission (hereafter referred to as the Commission) appeals the judgment of the circuit court and presents issues pertaining solely to its award of attorney fees to the claimant’s counsel. The claimant, Richard F. Griffin, was rendered permanently and totally disabled as the result of a fall on March 5, 1983. As a consequence of his injuries, the claimant has a profound neurological deficit, including paralysis of all four extremities, impaired pulmonary and respiratory function, and inability to eat or speak. The employer, Pabst Brewing Company, at no time disputed that the claimant was permanently and totally disabled.

Claimant’s counsel, Robert L. Silberstein, negotiated a structured settlement for the claimant with the employer’s insurer and negotiated his own fee with the insurer separately. This settlement contract, including the proposal with respect to counsel’s fees, was presented to the Commission for its approval. The proposed settlement provided for the following payments to the claimant during his lifetime: $315,000 to be paid each year with a 3% annual cost of living increase and special allocations of $215,000 immediately; $1,200,000 in the 16th year; $2,100,000 in the 21st year; $3,500,000 in the 26th year; and $3 million in the 31st year. It is undisputed that the life expectancy of the claimant, who was 41 years old at the time of the accident, is markedly reduced as a consequence of Ms virtually total paralysis that renders him highly susceptible to infection and respiratory, bladder, and kidney dysfunction. The terms of this proposed settlement contract provided further that claimant’s counsel would receive attorney fees in the amount of $4,202 per month at a 3% annualized cost of living increase for counsel’s lifetime with 30 years guaranteed. Following a hearing, in an order dated August 6, 1986, Commissioner Barbara Sherman found that the parties failed to show that the settlement was in the claimant’s best interest and, accordingly, rejected the settlement contract.

Upon judicial review, in an order entered March 10, 1988, the circuit court ruled that the Commissioner’s decision of August 6, 1986, rejecting the proposed settlement was an abuse of discretion and against the manifest weight of the evidence. The circuit court remanded the cause to the Commission with directions that in the event another settlement contract was presented for consideration, it was to be considered in the light of the circuit court’s findings that the prior rejection was an abuse of discretion and against the manifest weight of the evidence.

Another settlement contract was presented to the Commission. In a decision dated April 11, 1988, following a hearing upon remand, the Commission found this settlement contract to be in the best interest of the claimant and his employer. The settlement approved by the Commission for the claimant provided more benefits to him than the prior, rejected proposed settlement had done. In its decision the Commission stated that “the parties have agreed that the [stated] allocations and such predetermined amount represent and stand for a full, final and complete compromise settlement of all claims for compensation for any and all alleged injuries and disabilities, either temporary or permanent.” In this decision the Commission retained jurisdiction of the claim for the purpose of fixing the claimant’s attorney fees.

In a 16-page decision dated January 13, 1989, the Commission addressed the matter of attorney fees, finding that claimant’s counsel seeks a fee of $700,000 and awarding claimant’s counsel fees as follows:

“[Claimant’s] attorney is entitled to receive 20% of 364 weeks at a permanent total disability rate of $327.23, or $23,822.34[,] in recognition of the fact that while no dispute existed as to the extent of [claimant’s] disability, substantial time and effort have been required of Mr. Silberstein in resolving disputes arising pursuant to [section] 8(a) of the [Workers’ Compensation] Act [Ill. Rev. Stat. 1983, ch. 48, par. 138.8(a)]. In further consideration of the time and effort required in resolving these disputes and obtaining a settlement in [claimant’s] interest, the Commission awards [claimant’s] attorney further fees of $18,750.00, representing 150 hours at a rate of $125.00 per hour. [Claimant] is to receive credit against this fee award in the amount of $17,153.01 for fees already received by his attorney. [Claimant’s] attorney is therefore entitled to now receive from [claimant] the net amount of $25,419.33.”

In this decision the Commission described the settlement agreement proposed in March of 1988 and approved by it in its decision of April 11, 1988, as follows:

“In March 1988, the parties presented a settlement contract which provided essentially that [claimant] would receive a first installment of $758,350.00, that thereafter he would receive $343,350.00 per year compounding at the annual rate of 3% throughout the remainder of his life, and that in addition thereto, [claimant] would receive $200,000.00 after 5 years, $445,000.00 after 8 years, $1,450,000.00 after 13 years, $2,600,000.00 after 18 years, and $4,100,000.00 after 23 years, and $6,100,000.00 after 28 years. The foregoing payments would be payable only for and during the life of Richard Griffin, and payments would cease upon his death.”

Proposed in that settlement, but not approved, were the following terms pertaining to claimant’s attorney fees, which were described by the Commission in its decision of January 13,1989, as follows:

“Respondent and [claimant’s attorney] separately negotiated [claimant’s] attorney’s fee as part of the settlement agreement to provide that Attorney Robert Silberstein would be paid $3,612.00 per month, compounding at the annual rate of 3%, for life, with payments guaranteed for 30 years. An additional $100,000.00 would be paid after the first five years.”

In this decision the Commission found further that, in order to obtain Commission approval of the settlement petition pursuant to remand, the parties had agreed to pay to the claimant the amount of $700,000, which was the amount the insurer had previously agreed to pay as Robert Silberstein’s attorney fee, and to reserve the question of attorney fees and expenses for later determination by the Commission. The amount of $700,000 includes $600,000 as the purchase price of an annuity for Robert Silberstein.

In this same decision the Commission expressed its view as follows:

“[R]ead in its entirety, [section] 16a [Ill. Rev. Stat. 1983, ch. 48, par. 138.16a] evinces a legislative determination that attorneys’ fees should be limited in Workers’ Compensation claims, and the provisions relating to attorneys’ fees should be strictly construed. This is particularly so in that prior to September 15, 1980, no such limitations on attorneys’ fees were included in the Act. Where an attorney seeks fees beyond those provided by statute the burden is on the attorney to prove entitlement to further fees. On the basis of the maximum weekly compensation rate for an accident occurring on March 5, 1983, the highest possible attorneys’ fee with specific statutory authorization could not exceed $32,497.92 (20% of 364 weeks at $446.40 per week).

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Cite This Page — Counsel Stack

Bluebook (online)
607 N.E.2d 229, 239 Ill. App. 3d 561, 180 Ill. Dec. 335, 1992 Ill. App. LEXIS 1875, Counsel Stack Legal Research, https://law.counselstack.com/opinion/augustine-v-industrial-commission-illappct-1992.