Barnai v. Wal-Mart Stores, Inc.

2023 IL App (1st) 220900, 227 N.E.3d 753
CourtAppellate Court of Illinois
DecidedAugust 18, 2023
Docket1-22-0900
StatusPublished
Cited by4 cases

This text of 2023 IL App (1st) 220900 (Barnai v. Wal-Mart Stores, Inc.) 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
Barnai v. Wal-Mart Stores, Inc., 2023 IL App (1st) 220900, 227 N.E.3d 753 (Ill. Ct. App. 2023).

Opinion

2023 IL App (1st) 220900

FIFTH DIVISION August 18, 2023

No. 1-22-0900

IN THE APPELLATE COURT OF ILLINOIS FIRST JUDICIAL DISTRICT

) MARILYN BARNAI, as Administrator of the Estate ) Appeal from the Circuit Court of of Frank Barnai, Deceased, ) Cook County. ) Plaintiff, ) ) v. ) No. 18 L 7102 ) WAL-MART STORES, INC.; INTERNATIONAL ) CONTRACTORS, INC.; and NULINE ) TECHNOLOGIES, INC., ) ) Defendants ) ) (Marilyn Barnai, as Administrator of the Estate of ) Frank Barnai, Deceased, as Assignee of the ) Contribution Claims of Wal-Mart Stores, Inc., ) International Contractors, Inc., And Nuline ) Honorable James N. O’Hara, Technologies, Inc., Third-Party Plaintiff- ) Judge Presiding. Appellee/Cross-Appellant; Summit Fire Protection ) Company, Third-Party Defendant-Appellant and ) Cross-Appellee; Wausau Underwriters Insurance ) Company, as Subrogee of Frank Barnai, Intervenor ) and Cross-Appellee). )

PRESIDING JUSTICE DELORT delivered the judgment of the court, with opinion. Justices Lyle and Navarro concurred in the judgment and opinion. 1-22-0900

OPINION

¶1 BACKGROUND

¶2 This is the fourth time this complex personal injury dispute has come before this court. We

summarize the past procedural history only as necessary to provide context for the limited issues

now before us.

¶3 Frank Barnai 1 sued Wal-Mart Stores, Inc. (Walmart), International Contractors, Inc. (ICI),

and Nuline Technologies, Inc. (Nuline), after he was injured while working at a Walmart store

construction site in 2007. Walmart, ICI, and Nuline, in turn, filed contribution claims against

Barnai’s employer, Summit Fire Protection Company (Summit). Barnai settled with Walmart, ICI,

and Nuline for $5,073,463.71. The settlement expressly assigned each of the settling defendants’

contribution claims to Barnai.

¶4 Barnai then proceeded to trial against Summit, not as an employee suing his employer, but

rather as assignee of the contribution claims against Summit, for the purpose of allocating fault

among them for the gross settlement. After a jury trial on those assigned contribution claims,

Summit was found 52% liable for plaintiff’s injuries, ICI 38% liable, and Walmart, 10%. Nuline

was voluntarily dismissed before the trial and was not listed on the verdict form. Around the same

time, the circuit court entered an order finding that Summit’s workers’ compensation insurer,

Wausau Underwriters Insurance Company (Wausau)—which had intervened into Barnai’s

lawsuit—had a net recoverable workers’ compensation lien of $1,938,586. Rather than requiring

that amount to be turned over immediately, the court directed that Barnai’s attorneys hold certain

settlement proceeds in escrow pursuant to section 5 of the Workers’ Compensation Act (820 ILCS

1 Frank Barnai was the plaintiff who filed the original lawsuit. Upon his death, Marilyn Barnai, Frank’s wife and the administrator of his estate, was substituted as plaintiff. For the sake of clarity and simplicity, we shall refer to both individuals as “Barnai” or plaintiff.

2 1-22-0900

305/5 (West 2014) (Act)) pending further order of the court. The escrowed amount was slightly

higher than the lien.

¶5 Summit appealed after the first jury trial, but we dismissed that appeal for lack of

jurisdiction. See Barnai v. Wal-Mart Stores, Inc., No. 1-15-2773 (2017) (unpublished summary

order under Illinois Supreme Court Rule 23(c)) (Barnai I). In Summit’s second appeal, we

(1) vacated the circuit court’s order finding the settlement was made in good faith, (2) vacated the

jury’s verdict, and (3) remanded the matter for a new trial and settlement hearing. We determined

that the circuit court could not properly determine whether the settlement was in good faith without

knowing how the three settling defendants allocated fault among them and that a new trial was

necessary so that the jury could include Nuline in its allocation of fault. See Barnai v. Wal-Mart

Stores, Inc., 2017 IL App (1st) 171940 (Barnai II).

¶6 On remand, the circuit court again found the settlement with Walmart, ICI, and Nuline was

made in good faith. The matter proceeded to a second jury trial on the contribution claims against

Summit, after which the jury found Summit 92.5% at fault, ICI 7.5% at fault, and Walmart and

Nuline 0% at fault. Summit again appealed, contending that (1) the assignments of contribution

actions against Summit to plaintiff were invalid, (2) Nuline’s assigned contribution cause of action

was time barred, (3) the court erred in finding that the settlement was made in good faith,

(4) Summit was entitled to a setoff, and (5) the court erred in excluding Barnai’s judicial

admissions. Barnai v. Wal-Mart Stores, Inc., 2021 IL App (1st) 191306, ¶ 2 (Barnai III). This

court reversed the circuit court’s order granting plaintiff’s motion for leave to file a third amended

complaint, which had revived Nuline’s contribution claim against Summit. We also held that

Barnai was precluded from any recovery on the settlement amount of $950,000 that was made on

behalf of Nuline. In addition, we held that Summit was entitled to a setoff for amounts paid by its

3 1-22-0900

insurer, Interstate Fire and Casualty Company, to the settlement. As a result, we reduced the money

judgment against Summit to $3,098,750. We otherwise affirmed the judgment of the circuit court.

Id. ¶ 62.

¶7 After this court issued its mandate in Barnai III, Summit tendered $3,391,691.36 to Barnai,

believing that sum satisfied the judgment against it. The tender was split among three checks, two

from Liberty Mutual Insurance, as Summit’s commercial general liability insurer, and one from

Allianz Global, Summit’s excess insurer. Summit and Barnai disagreed regarding whether this

tender satisfied the outstanding judgment.

¶8 For its part, Summit determined its tender amount by first subtracting the workers’

compensation lien of $1,938,586 from the original judgment and only then computing statutory

judgment interest on the much smaller remainder, $1,160,164. In its cover letter accompanying the

tender, Summit’s attorneys stated that it computed interest only on the balance remaining after

deducting the workers’ compensation lien pursuant to Camp v. Star Erection Service, Inc., 186 Ill.

App. 3d 481 (1989). Barnai rejected this tender, believing that she was owed $516,461.64 more,

or $3,908,153. In contrast to Summit, she contended that statutory judgment interest first accrued

on the whole $3,098,750 judgment and that the workers’ compensation lien should only be

subtracted from the higher amount resulting after adding accrued interest to date.

¶9 To resolve this dispute, Barnai filed a motion to satisfy judgment and to disburse workers’

compensation funds that had been escrowed pursuant to an earlier court order. Summit filed a

competing petition to compel the release of the judgment against it. On May 19, 2022, the circuit

court issued an order resolving both motions. The court agreed with Barnai’s interest computation.

It found that Summit owed Barnai interest on the entire amount of the judgment, rather than on the

difference between the judgment and the amount of the workers’ compensation lien. In reaching

4 1-22-0900

that holding, the circuit court stated that whether the same insurer both insured the main judgment

and was owed the workers’ compensation lien was relevant under the applicable case law (which

we discuss below).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Nationstar Mortgage LLC v. Larkins
2025 IL App (1st) 241941-U (Appellate Court of Illinois, 2025)
In re The Former Marriage of Girard
2023 IL App (1st) 231361-U (Appellate Court of Illinois, 2023)
Lavery v. Department of Financial & Professional Regulation
2023 IL App (1st) 220900 (Appellate Court of Illinois, 2023)

Cite This Page — Counsel Stack

Bluebook (online)
2023 IL App (1st) 220900, 227 N.E.3d 753, Counsel Stack Legal Research, https://law.counselstack.com/opinion/barnai-v-wal-mart-stores-inc-illappct-2023.