Bradley v. The City of Marion Illinois

2015 IL App (5th) 140267
Appellate Court of Illinois·Decided March 10, 2015·No. 5-14-0267, 5-14-0279 cons.·Unpublished·Cited by 1 cases

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

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).

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.

¶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.

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 best position to resolve the contested issues.

¶9 The court, therefore, dismissed the plaintiff's complaint and the declaratory judgment count in the defendants' counterclaim. The court stayed any further proceedings on the defendants' breach of contract counterclaim pending further proceedings before the Commission. The court made a finding pursuant to Illinois Supreme Court Rule 304(a) (eff. Feb. 26, 2010) that there is no just reason for delaying an appeal of the dismissal order. The plaintiff appealed, and the defendants cross- appealed.

¶ 10 On appeal, all of the parties request this court to reverse the circuit court's order and remand for further proceedings on their respective requests for declaratory judgments. For the following reasons, we affirm the circuit court's dismissal order due to a lack of subject matter jurisdiction over the parties' controversy.

¶ 11 ANALYSIS

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

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