Burgess v. Brooks

871 N.E.2d 78, 374 Ill. App. 3d 545, 312 Ill. Dec. 678, 2007 Ill. App. LEXIS 547
Appellate Court of Illinois·Decided May 21, 2007·No. 5-06-0273·Published·Cited by 3 cases

Opinion

PRESIDING JUSTICE WELCH

delivered the opinion of the court:

On February 27, 2003, the plaintiff, Jim Burgess, Jr., was driving a car while on duty with the Illinois Secretary of State Police when he was “rear-ended” by a car being driven by Tashonda Brooks. Burgess filed a claim for workers’ compensation benefits against his employer, the State of Illinois. Burgess and the State entered into a settlement agreement that was approved by the Illinois Industrial Commission on August 23, 2004. The terms of the settlement agreement included the following language: “This is a compromise settlement of a disputed claim,” and “Each party waives any right to ever reopen this claim under any section of the [Workers’ Compensation] Act.” Burgess received $19,138.48 in settlement of his workers’ compensation claim.

Thereafter, on February 25, 2005, Burgess filed a complaint in the circuit court of St. Clair County against Brooks, alleging that her negligence had caused the accident and his resulting injuries. On April 20, 2005, the State filed a petition to intervene based upon section 5(b) of the Workers’ Compensation Act (the Act) (820 ILCS 305/5(b) (West 2004)), which allows an employer to join in an action by an employee to recover damages from another party in cases where the employee has received workers’ compensation benefits. Leave to intervene was granted on July 29, 2005, and the State’s complaint in intervention was filed that date. The State sought to protect and preserve its lien and right to reimbursement of amounts paid to Burgess in settlement of the workers’ compensation claim from any amounts recovered by Burgess from Brooks.

Burgess’s complaint against Brooks was submitted to arbitration. Ultimately, after finding that the parties had participated in the arbitration in good faith, the arbitrators found in favor of Burgess and against Brooks and awarded Burgess damages in the amount of $19,000.

On January 20, 2006, Burgess filed a motion to determine the amount of the State’s lien pursuant to section 5(b) of the Act, in which he argues that the State had waived any such lien or right of reimbursement by virtue of the language in the settlement agreement which provided, “Each party waives any right to ever reopen this claim under any section of the Act.” The State objected to the motion, arguing that it had not waived its lien by virtue of the above-quoted language in the settlement agreement.

On April 10, 2006, the circuit court of St. Clair County ruled that the language contained in the settlement agreement did constitute a waiver of the State’s workers’ compensation lien under section 5(b) of the Act. On April 19, 2006, pursuant to Supreme Court Rule 304(a) (210 Ill. 2d R. 304(a)), the circuit court found that there was no just reason for delaying the enforcement or appeal of the order. The State’s notice of appeal was filed May 10, 2006.

On appeal, the State argues that the circuit court erred in construing the settlement agreement as containing a waiver of the State’s workers’ compensation lien because the quoted language refers only to Burgess’s claim for benefits and not to the State’s independent statutory right to assert a hen, that the right of the State to assert a lien is implied in the settlement contract, and that any waiver of the State’s lien must be explicit. The only question before us on appeal is the propriety of the circuit court’s construction of the settlement contract entered into between Burgess and the State and whether it effectively waived the State’s lien. This is a question of law, which we review de novo. In re Foreman, 365 Ill. App. 3d 608, 611 (2006).

In construing a settlement agreement, we must start with the plain and ordinary meaning of the language of the contract, unless the language is ambiguous. In re Estate of Powless, 315 Ill. App. 3d 859, 863 (2000). In the case at bar, neither party argues that the settlement agreement is ambiguous; they simply disagree on its meaning. It is the duty of this court to construe and enforce the agreement as written. In re Estate of Powless, 315 Ill. App. 3d at 863.

The State argues that the quoted language from the settlement agreement refers only to Burgess’s right to reopen the claim for benefits and does not refer to the State’s independent right to assert its statutory lien. We see no reason to accept the State’s argument, and we find it to be contrary to the plain and ordinary meaning of the language of the agreement. We believe that the settlement agreement was meant to dispose of all matters of dispute between the parties and resolve all issues relating to Burgess’s claim for benefits, including the State’s right to assert a lien. We find no language in the settlement agreement, and particularly in the language specifically at issue, which indicates that the parties intended that the language applied only to Burgess’s right to reopen his claim for benefits and not to the State’s right to “reopen this claim” by asserting its right to a hen. The settlement agreement provides, “Each party waives any right to ever reopen this claim under any section of the Act.” (Emphasis added.) We believe that this language refers to both parties and involves a waiver of any and all rights to reopen the matter under any and all sections of the Act, including section 5(b). From this language it seems clear to us that Burgess gave up his right to seek additional workers’ compensation benefits and the State gave up its right to assert a lien against any amounts recovered by Burgess from a third party. We note that the record demonstrates that although Burgess had not filed his action against Brooks at the time of the workers’ compensation settlement, the State was aware of the circumstances of Burgess’s accident and the potential of an action against Brooks. Accordingly, at the time it entered into the settlement agreement, the State was in a position to knowingly and intentionally waive its right to a lien or to seek reimbursement in the event of such an action.

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Burgess v. Brooks, 871 N.E.2d 78, 374 Ill. App. 3d 545, 312 Ill. Dec. 678, 2007 Ill. App. LEXIS 547 (Ill. Ct. App. 2007).

871 N.E.2d 78 (Burgess v. Brooks) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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