Bradley v. The City of Marion Illinois

2015 IL App (5th) 140267
CourtAppellate Court of Illinois
DecidedMarch 10, 2015
Docket5-14-0267, 5-14-0279 cons.
StatusUnpublished
Cited by1 cases

This text of 2015 IL App (5th) 140267 (Bradley v. The City of Marion Illinois) 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
Bradley v. The City of Marion Illinois, 2015 IL App (5th) 140267 (Ill. Ct. App. 2015).

Opinion

NOTICE 2015 IL App (5th) 140267 Decision filed 03/10/15. The text of this decision may be NOS. 5-14-0267, 5-14-0279 cons. changed or corrected prior to the filing of a Peti ion for Rehearing or the disposition of IN THE the same.

APPELLATE COURT OF ILLINOIS

FIFTH DISTRICT ________________________________________________________________________

PATTON BRADLEY, ) Appeal from the ) Circuit Court of Plaintiff and Counterdefendant-Appellant ) Williamson County. and Cross-Appellee, ) ) v. ) No. 13-MR-82 ) THE CITY OF MARION, ILLINOIS, and ) THE ILLINOIS PUBLIC RISK FUND, ) ) Honorable Defendants and Counterplaintiffs- ) Brad K. Bleyer, Appellees and Cross-Appellants. ) Judge, presiding. ________________________________________________________________________

JUSTICE STEWART delivered the judgment of the court, with opinion. Justices Schwarm and Moore concurred in the judgment and opinion.

OPINION

¶1 The plaintiff, Patton Bradley, filed a complaint for a declaratory judgment against

his employer, the City of Marion, Illinois, and its workers' compensation insurer, the

Illinois Public Risk Fund (collectively referred to as the defendants). The defendants

filed a counterclaim for declaratory judgment. The plaintiff and the defendants asked the

circuit court to decide whether the plaintiff could seek additional benefits under the

Illinois Workers' Compensation Act (the Act) (820 ILCS 305/1 et seq. (West 2012)),

following the plaintiff's settlement of a third-party tort claim that arose from the 1 workplace accident. The circuit court, sua sponte, held that it lacked subject matter

jurisdiction to decide the controversy. Both the plaintiff and the defendants appeal the

circuit court's ruling. We affirm.

¶2 BACKGROUND

¶3 The complaint and counterclaim stem from a work-related vehicle accident in

which a third party was at fault. As a result of the accident, the plaintiff filed a claim

with the Illinois Workers' Compensation Commission (the Commission) seeking workers'

compensation benefits under the Act and also filed a third-party lawsuit in federal court

against the driver of the vehicle who caused the accident. The defendants paid the

plaintiff workers' compensation benefits and intervened in the plaintiff's federal lawsuit to

protect their lien against any funds the plaintiff recovered against the third party. 1

¶4 In August 2012, the plaintiff settled his third-party claim against the driver for

$650,000, and the defendants were reimbursed $190,112.89 for benefits they had paid on

behalf of the plaintiff because of his injuries. That amount represented 75% of the total

lien amount they claimed. On October 19, 2012, the defendants signed a release of lien

in conjunction with the settlement. At the time of this third-party settlement, the

claimant's workers' compensation claim was still pending. The plaintiff moved to

1 Section 5(b) of the Act (820 ILCS 305/5(b) (West 2012)) "grants an employer a

lien on an employee's recovery against a third-party tortfeasor, up to the amount of the

workers' compensation benefits paid to the employee." Taylor v. Pekin Insurance Co.,

231 Ill. 2d 390, 391-92, 899 N.E.2d 251, 252 (2008).

2 voluntarily dismiss his workers' compensation claim, which the Commission granted on

November 7, 2012. On December 12, 2012, the plaintiff refiled the compensation claim.

¶5 A dispute arose between the plaintiff and the defendants concerning the effect of

the settlement of the third-party lawsuit and the release of lien signed by the defendants.

The defendants maintained that the plaintiff's settlement of the third-party claim included

a waiver of any further claim to workers' compensation benefits from the defendants.

The plaintiff, however, maintained that he is entitled to pursue additional workers'

compensation benefits and that the defendants waived their right to any further credit for

such benefits from the $650,000 settlement. This dispute resulted in the plaintiff filing

the complaint for declaratory judgment and the defendants filing the counterclaim for

declaratory judgment, each party requesting the circuit court to resolve this dispute.

¶6 In his complaint for declaratory judgment, the plaintiff cited section 23 of the Act,

which states that an employee cannot waive the amount of compensation which may be

payable to the employee except after approval by the Commission. 820 ILCS 305/23

(West 2012). The plaintiff requested the circuit court to declare that he did not waive his

right to recover additional compensation benefits under the Act as a result of his

settlement of the third-party lawsuit because the Commission has not approved any

waiver. The plaintiff also requested the court to declare that the release of lien signed by

the defendants precluded them from any further reimbursement or credit from his

settlement with the third-party tortfeasor should he be awarded additional workers'

compensation benefits.

3 ¶7 In their counterclaim, the defendants alleged a count for breach of contract and a

count requesting a declaratory judgment. The defendants alleged that during the

settlement conference in the federal third-party lawsuit, the parties agreed that the

settlement of that case would include a settlement and closure of the pending workers'

compensation claim, effectively closing out the benefits under the Act that would be

payable to the plaintiff by the defendants. According to the defendants, this agreement

was memorialized both during the conference call with the federal magistrate and in

subsequent correspondence between the parties' attorneys. The defendants alleged that

they agreed to accept a fraction of their total lien amount in exchange for the plaintiff's

waiver of any future rights to benefits under the pending workers' compensation claim.

In their declaratory judgment count, they requested the circuit court to establish that the

settlement of the federal case extinguished all avenues of recovery for the plaintiff

stemming from the vehicle accident, including any further benefits under the Act. 2

¶8 At a pretrial hearing, the circuit court, sua sponte, raised an issue concerning its

jurisdiction to address the merits of the parties' dispute. The circuit court stated that the

issues concern whether the plaintiff can continue to seek benefits in a pending workers'

2 The defendants' counterclaim also included a count III, purporting to be a third-

party complaint against Moorman Farms, Inc., as a necessary party. Moorman Farms,

Inc., was a defendant in the plaintiff's federal lawsuit and was a party to the settlement of

that case.

4 compensation claim or whether his right to further compensation benefits was waived

pursuant to the settlement reached in the third-party proceeding. The court believed that

the issue of whether the plaintiff can continue to pursue workers' compensation benefits

in a pending claim involves "weighing credibility of witnesses and applying applicable

law pursuant to the [Act]." The circuit court believed that the Commission was in the

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Related

Bradley v. City of Marion Illinois
2015 IL App (5th) 140267 (Appellate Court of Illinois, 2015)

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