Hoth v. American States Insurance

753 F. Supp. 703, 1990 U.S. Dist. LEXIS 14175, 1990 WL 212339
District Court, N.D. Illinois·Decided October 22, 1990·No. 89 C 3658·Published·Cited by 1 cases

Opinion

MEMORANDUM OPINION

BRIAN BARNETT DUFF, District Judge.

Plaintiffs, Maureen and John Hoth, have brought this 7 count action against American States Insurance (“ASI”) based upon several theories of liability. The first two counts of this complaint allege that Maureen Hoth was discharged in retaliation for her filing of a workers’ compensation claim. Counts 3 and 4 are also based on a theory of retaliatory discharge, and allege that John Hoth was terminated as a result of ASI discovering that he intended to testify on behalf of his wife in her workers’ compensation action. Counts 5, 6, and 7 are John Hoth’s action for defamation in connection with certain statements and internal memorandum concerning John’s purchase of a salvage automobile from ASI, and the reasons for his termination. Jurisdiction is based upon diversity of citizenship, and Illinois law will be applied. Defendant now moves for summary judgment on all 7 counts of the complaint.

FACTS

In August of 1984, Maureen Hoth, an at will employee for ASI, suffered an injury to her back. This injury occurred during the course of her employment with ASI. As a result, Maureen was unable to return to work until October 1, 1984. After returning to work for two weeks, Maureen discovered that due to her prior injury, she was still unable to perform her job. During the period of her disability, Maureen was receiving temporary disability payments under the Illinois Workers’ Compensation Act, Ill.Rev.Stat. Ch. 48, § 138.1 et seq. However, in January of 1985, her disability payments were stopped.

Throughout this time period, Maureen was having difficulty receiving her benefits. At one point, the company began proceedings to terminate her. This decision was reversed by Sam Brandon, ASI’s director of employee relations, after he received a letter confirming Maureen’s continuing disability. Furthermore, the defendant initially balked at paying Maureen’s claim under workers’ compensation. The defendant insisted on paying Maureen under the company’s short term disability program. (“STD”). Although the defendant claims that the action was always treated as a workers’ compensation action, it is apparent that ASI preferred that initially she be paid under the STD plan.

In November of 1984, Maureen filed a workers’ compensation claim with the Illinois Industrial Commission. In January of 1985, she was examined by an independent doctor, hired by ASI, to determine whether she was able to return to work. His examination revealed that Maureen was in fact able to return to work. There is also evidence that ASI had on file Maureen’s doctor’s report dated January 31, 1985, which indicated that she was still disabled. The report also brought into question the independent doctor’s examination. Nevertheless, during the winter of 1985, ASI made several demands for Maureen to return to work or prove that she was still disabled. According to ASI, these demands were not met and Maureen was terminated in April of 1985.

John Hoth was also an employee at will for ASI. He had worked for the company for 16 years, and his most recent position was Division Claims Manager. He claims to have witnessed the accident that had disabled Maureen.

John had become increasingly unhappy with the way Maureen’s claim was being handled. Sometime in December of 1988, he informed his supervisor, Ben Rice, that he had witnessed Maureen’s accident and that he would testify on her behalf at her *706 workers’ compensation hearing. Although there is conflicting evidence, it is apparent that at the very least Rice informed him that testifying was not a wise thing for him to do. John Hoth, in his deposition, stated that Rice informed him that if he testified he could be jeopardizing his position with the company.

Around the same time, an investigation was being conducted concerning John’s purchase of a salvage automobile from ASI. 1 Sandy Navarro, an investigator employed by the defendant, searched John’s office and discovered a claim file for the salvage car purchased by John. She proceeded to write an internal memorandum which John claims contained certain defamatory statements regarding his purchase of the automobile.

In January of 1989, John was terminated. The reason given for this was that he violated company policy when he purchased the salvage automobile. Subsequent to his termination, Ben Rice informed certain employees that John had been discharged because he violated company policy when he purchased the salvage automobile. John claims that this statement was defamatory. According to John, when he questioned Rice about being terminated for purchasing the salvage car, Rice responded that the reasons for his termination go deeper than that.

DISCUSSION

Defendant moves for summary judgment of all counts under Federal Rule Civ.P. 56. Under this rule, the court must construe the facts most favorably to the nonmovant. The moving party must clearly establish the absence of a triable issue of fact. Celotex Corp. v. Catrett, 477 U.S. 317, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). To counter this, the nonmovant must establish some evidence in which a reasonable jury could return a verdict in his favor. Anderson v. Liberty Lobby Inc., 477 U.S. 242, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986).

The plaintiffs bring the first four counts of this action pursuant to a theory of retaliatory discharge. The first two of these counts are Mrs. Hoth’s action based on her dismissal for filing a workers’ compensation claim. The first count alleges retaliatory discharge and the second count alleges willful and wanton retaliatory discharge. The court will first address the summary judgment action against Mrs. Hoth’s retaliatory discharge claims.

MAUREEN HOTH’S ACTIONS

Illinois has long recognized an employee’s right to bring an action for retaliatory discharge, when the discharge is based on that employee’s exercise of his rights to file a workers’ compensation claim. Kelsay v. Motorola Inc., 74 Ill.2d 172, 23 Ill.Dec. 559, 384 N.E.2d 353 (1978). The first two counts of this case concern the rather narrow issue of retaliation for the filing of a workers’ compensation claim.

In order to successfully maintain this action, the plaintiff must establish three elements:

1. Plaintiff was an employee of the defendant prior to her injury.
2. Plaintiff exercised or threatened to exercise her rights under the workers’ compensation act.
3. The termination was causally related to the filing of a claim or stated intent to pursue a claim pursuant to the act.

Mercil v. Federal Express Corp., 664 F.Supp. 315 (N.D.Ill.1987); Horton v. Miller Chemical Co., 776 F.2d 1351, 1356 (7th Cir.1985).

In order for Mrs. Hoth to prevail in this action, she must establish the three elements stated above.

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Hoth v. American States Insurance, 753 F. Supp. 703, 1990 U.S. Dist. LEXIS 14175, 1990 WL 212339 (N.D. Ill. 1990).

753 F. Supp. 703 (Hoth v. American States Insurance) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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