Gonzalez v. Evanston Fuel & Material Co.

637 N.E.2d 691, 202 Ill. Dec. 152, 265 Ill. App. 3d 520, 1994 Ill. App. LEXIS 1075
CourtAppellate Court of Illinois
DecidedJune 30, 1994
Docket1-93-0984
StatusPublished
Cited by8 cases

This text of 637 N.E.2d 691 (Gonzalez v. Evanston Fuel & Material Co.) 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
Gonzalez v. Evanston Fuel & Material Co., 637 N.E.2d 691, 202 Ill. Dec. 152, 265 Ill. App. 3d 520, 1994 Ill. App. LEXIS 1075 (Ill. Ct. App. 1994).

Opinion

PRESIDING JUSTICE HOFFMAN

delivered the opinion of the court:

The plaintiff, Hector Gonzalez, appeals from an order of the circuit court of Cook County that allowed the defendants, Evanston Fuel & Material Company and Kenneth Nelson, to apply a workers’ compensation lien against a jury verdict in the plaintiff’s favor. The defendants were assigned the lien as part of a settlement of their contribution claim against the plaintiff’s employer. We consider: (1) whether an employer’s lien for workers’ compensation benefits paid to an injured employee is assignable; and (2) whether the defendants could apply the lien against the jury verdict. For the following reasons, we affirm.

The plaintiff sustained serious injuries while acting in the course of his employment with Olga Adams Construction, Inc. (employer). As a result of those injuries, the plaintiff received approximately $73,000 in workers’ compensation benefits from his employer.

The plaintiff filed an action on September 8, 1987, alleging that he sustained injuries as a result of the defendants’ negligence. The defendants answered the plaintiff’s complaint denying its material allegations and filed a third-party complaint for contribution against the plaintiff’s employer.

Before trial, the defendants settled their contribution claim against the plaintiff’s employer. Pursuant to the terms of the settlement, the defendants paid the plaintiff’s employer $26,000 and dismissed their contribution claim in exchange for an assignment of the employer’s $73,000 workers’ compensation lien. An order dismissing the defendants’ third-party complaint for contribution was entered on November 18, 1992.

The plaintiff's action against the defendants was tried before a jury which returned a verdict in favor of the plaintiff for $150,000 on November 24, 1992. After judgment was entered on the verdict, the defendants asserted that they would apply the workers’ compensation lien assigned to them by the plaintiff’s employer, less attorney fees and expenses, in partial satisfaction of the plaintiff’s judgment.

The plaintiff filed a motion on December 17, 1992, requesting the trial court to disallow what he termed a setoff of the lien against the verdict or, in the alternative, to limit the setoff to the $26,000 the defendants actually paid his employer. The trial judge initially ruled that the defendants could only setoff the amount that they had paid for the lien against the verdict; however, on reconsideration, the judge denied the plaintiff’s motion, the effect of which was to allow the defendants to apply the full amount of the workers’ compensation lien, less attorney fees and expenses, in partial satisfaction of the judgment entered against them. The plaintiff filed a timely notice of appeal.

OPINION

In urging reversal, the plaintiff argues that: (1) the Workers’ Compensation Act (820 ILCS 305/1 et seq. (West 1992)) prohibits an employer from assigning its lien for workers’ compensation benefits; and (2) the Joint Tortfeasor Contribution Act (Contribution Act) (740 ILCS 100/0.01 et seq. (West 1992)), precludes the defendants from applying the lien in partial satisfaction of the judgment entered against them. For the following reasons, we disagree with both arguments.

el In support of his argument under the Workers’ Compensation Act, the plaintiff relies upon section 21 of the Act, which provides in pertinent part:

"No payment, claim, award or decision under this Act shall be assignable or subject to any lien, attachment or garnishment, or be held liable in any way for any lien, debt, penalty or damages ***.” (820 ILCS 305/21 (West 1992).)

The plaintiff contends that section 21 prohibits an employer from assigning its lien for benefits paid to an injured employee.

m2 When the employer in this case paid workers’ compensation benefits to the plaintiff, a lien in the amount of the benefits paid arose in the employer’s favor against any compensation which the plaintiff might receive from a third party liable in damages for the same injury. (See 820 ILCS 305/5(b) (West 1992).) The lien is intended to reimburse the employer for the compensation benefits paid to the employee. Foster v. Devilbiss Co. (1988), 174 Ill. App. 3d 359, 529 N.E.2d 581.

In construing section 21 of the Workers’ Compensation Act, we must look to the language used in the statute as the best indicator of legislative intent, and the words must be given their plain and ordinary meaning. (In re Estate of Callahan (1991), 144 Ill. 2d 32, 43, 578 N.E.2d 985.) When the intent of the statute can be ascertained from the language used, it must be given effect without resorting to other rules of statutory construction. (Henry v. St. John’s Hospital (1990), 138 Ill. 2d 533, 541, 563 N.E.2d 410.) When construing a statute, a court should also consider the purposes to be achieved by the law. Callahan, 144 Ill. 2d at 43.

•3 The plain language of section 21 does not relate to whether an employer’s lien for workers’ compensation benefits is assignable. The section only refers to whether a "payment, claim, award or decision” is assignable. (820 ILCS 305/21 (West 1992).) An employer’s lien for workers’ compensation benefits is not a payment, claim, award, or decision as used in the section. It is apparent from the language of the section that the prohibition of the assignment of payments, claims, awards, or decisions was intended to protect the employee and insure that he receives the workers’ compensation benefits to which he is entitled. (Lasley v. Taswell Coal Co. (1921), 223 Ill. App. 462, 463.) As a result, section 21 does not support the plaintiff’s argument that the Workers’ Compensation Act prohibits an employer from assigning its lien.

In Foster, which the defendants rely on, the appellate court tacitly approved an assignment of a workers’ compensation lien under circumstances similar to the present case although it did not directly address the issue. The defendant in Foster brought a third-party contribution claim against the plaintiff’s employer, and as part of a settlement, the employer assigned its workers’ compensation lien to the defendant. On appeal from a jury verdict in the plaintiff’s favor, the court allowed the defendant to apply the full amount of the lien, less statutory fees and costs, against the verdict.

The Workers’ Compensation Act does not prohibit an employer from assigning its lien. The employer’s assignment of a workers’ compensation lien does not affect the employee’s recovery from a third party who may be liable for the injury; whether the lien is held by the employer or assigned to another, the employee’s net recovery from the third party is the same.

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Cite This Page — Counsel Stack

Bluebook (online)
637 N.E.2d 691, 202 Ill. Dec. 152, 265 Ill. App. 3d 520, 1994 Ill. App. LEXIS 1075, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gonzalez-v-evanston-fuel-material-co-illappct-1994.