Hagemann v. Illinois Workers' Compensation Commission

941 N.E.2d 878, 399 Ill. App. 3d 197, 347 Ill. Dec. 9, 2010 Ill. App. LEXIS 376
CourtAppellate Court of Illinois
DecidedApril 30, 2010
Docket3-08-0989WC
StatusPublished
Cited by8 cases

This text of 941 N.E.2d 878 (Hagemann v. Illinois Workers' Compensation Commission) 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
Hagemann v. Illinois Workers' Compensation Commission, 941 N.E.2d 878, 399 Ill. App. 3d 197, 347 Ill. Dec. 9, 2010 Ill. App. LEXIS 376 (Ill. Ct. App. 2010).

Opinion

JUSTICE HOLDRIDGE

delivered the opinion of the court:

Dennis Hagemann filed an application for adjustment of claim against William Sherman III, doing business as Sherman Grain Farms, seeking workers’ compensation benefits for injuries he sustained on May 12, 2003, while driving a semi-tractor trailer to haul grain. Sherman moved to dismiss the application, arguing that his business fell under the agricultural enterprise exemption of the Workers’ Compensation Act (Act) (820 ILCS 305/3(19) (West 2008)). The arbitrator granted the motion to dismiss, and Hagemann appealed to the Illinois Workers’ Compensation Commission (Commission), which affirmed the arbitrator’s dismissal.

Hagemann then filed an appeal in the Knox County circuit court, and Sherman moved to dismiss the appeal, or in the alternative to transfer venue to La Salle County. Regarding the motion to dismiss, Sherman argued that Hagemann failed (1) to comply with provisions of the Act necessary for perfecting an appeal in the circuit court, and (2) to exercise due diligence to obtain service of process per Supreme Court Rule 103(b) (177 Ill. 2d R. 103(b)). The matter proceeded to a hearing where Sherman withdrew his request for a transfer of venue and the circuit court denied his motion to dismiss. The court did, however, make the requisite finding for permissive interlocutory appeal under Supreme Court Rule 308(a) (155 Ill. 2d R. 308(a)). We denied Sherman’s ensuing application for leave to appeal.

After further proceedings below, the circuit court confirmed the Commission’s decision that Sherman’s business fell under the agricultural enterprise exemption, warranting dismissal of Hagemann’s claim for workers’ compensation benefits. Hagemann then filed the instant appeal challenging the Commission’s decision, and Sherman cross-appealed the denial of his motion to dismiss the circuit court appeal.

BACKGROUND

Sherman filed his motion to dismiss the workers’ compensation claim pursuant to subsection 2 — 619(a)(1) of the Code of Civil Procedure (735 ILCS 5/2 — 619(a)(1) (West 2008)), which allows involuntary dismissal for lack of subject matter jurisdiction. The evidence on this issue is confined to two affidavits — one from Sherman in support of his motion to dismiss, and the other from Hagemann in opposition to the motion.

Sherman’s affidavit reads:

“1.1, WILLIAM SHERMAN III, am the sole proprietor of a business known as SHERMAN GRAIN FARMS, 271 N. 20th Road, Tónica, IL 61370.
2. SHERMAN GRAIN FARMS now employs three full-time employees — myself; my wife, Beth Sherman; and James Taliani, who was hired in April of 2004. In the fall of 2003, I had another seasonal employee named Gene Birkenbuel. For the 12 months preceding May 12, 2003, SHERMAN GRAIN FARM had only Beth Sherman and I as full-time employees.
3. SHERMAN GRAIN FARMS is an agricultural enterprise, to wit, a family farm raising grain crops in Tonica, Illinois. As an extension of such agricultural enterprise, SHERMAN GRAIN FARMS hauls grain to and from mills and trucks feed for livestock for other farmers, in addition to trucking grain produced by SHERMAN GRAIN FARMS. The grain hauling portion of our agricultural enterprise constitutes less tha[n] 33 1 /s% of our business. During the twelve months preceding May 12, 2003, the grain hauling portion of our agricultural enterprise constituted approximately 20% to 25% of our business.
4. On a seasonal basis, SHERMAN GRAIN FARMS uses the services of individuals holding commercial drivers licenses to drive trucks to haul grain. SHERMAN GRAIN FARMS considers such individuals to be independent contractors who work on a compensation schedule based not on the number of days or hours worked, but rather on a percentage of the trucking value of the loads hauled by the driver on a schedule set by the individual driver. Usually such percentage is 25% as was paid to Petitioner, DENNIS HAGE-MANN, in cash without the withholding for any taxes, FICA, or Medicare. DENNIS HAGEMANN, Steve Hagemann, Robert Birkenbuel, and Ken Ladson were the only such individuals who drove trucks in this manner during the 12 months preceding May 12, 2003.
5. Even if all four independent contractors whose services were retained to drive grain trucks for SHERMAN GRAIN FARMS during the 12 months preceding May 12, 2003, were considered to be employees instead of independent contractors, and even if each of those four worked every day of each quarter (which they did not), SHERMAN GRAIN FARMS would still have employed less than 400 working days of agricultural labor per quarter during the 12 months preceding May 12, 2003, exclusive of the working hours of my wife, Beth Sherman.
6. I did not carry worker’s compensation insurance or have in place a plan of self-insurance on May 12, 2003. At that time, I did not believe that I had any employees to whom the Worker’s Compensation Act would apply and did not believe such insurance coverage to be necessary to my agricultural business operations. At no time prior to May 13, 2003, did I elect under Section 1 of the Worker’s Compensation Act to have such Act apply to my agricultural operations. Although I now have worker’s compensation insurance which applies to my employee, James Taliani, I did not acquire such insurance until hiring Gene Birkenbuel in the fall of 2003.
7. If called as a witness, I would testify to the above.” Hagemann’s affidavit reads:
“1. I, DENNIS HAGEMANN, was an employee of a business known as SHERMAN GRAIN FARMS on May 12, 2003.
2.1 was hired by SHERMAN GRAIN FARMS, upon obtaining my commercial driver’s license, to transport grain from one grain mill in central Illinois to another.
3. My transportation of the grain as an employee of SHERMAN GRAIN FARMS had no relation to the Sherman family farm, as I did not transport grain to the family farm or from the family farm.
4.1 did not perform any of my job duties on the Sherman family farm and I did not assist in or engage in any farm work.
5. My employment consisted of driving a truck owned by SHERMAN GRAIN FARMS to transport grain, usually from FASCO grain mill in Mendota to other grain mills in the area or vice versa. I did not travel to SHERMAN GRAIN FARMS to pick up the truck each day. Rather, the truck was kept at FASCO grain mill in Mendota, Illinois.
6. The grain I transported was produced by many farmers, not solely SHERMAN GRAIN FARMS. Much of the grain that I transported was not grain produced by SHERMAN GRAIN FARMS.
7. While employed by SHERMAN GRAIN FARMS, I had no knowledge that Mr. Sherman had elected not to provide workers’ compensation coverage for his trucking employees.
8.

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Bluebook (online)
941 N.E.2d 878, 399 Ill. App. 3d 197, 347 Ill. Dec. 9, 2010 Ill. App. LEXIS 376, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hagemann-v-illinois-workers-compensation-commission-illappct-2010.