Illinois Ex Rel. Secretary of the Department of Transportation v. DeLong's Inc.

57 F. Supp. 2d 639, 1999 U.S. Dist. LEXIS 10949, 1999 WL 515971
CourtDistrict Court, C.D. Illinois
DecidedJuly 15, 1999
Docket99-3026
StatusPublished

This text of 57 F. Supp. 2d 639 (Illinois Ex Rel. Secretary of the Department of Transportation v. DeLong's Inc.) is published on Counsel Stack Legal Research, covering District Court, C.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Illinois Ex Rel. Secretary of the Department of Transportation v. DeLong's Inc., 57 F. Supp. 2d 639, 1999 U.S. Dist. LEXIS 10949, 1999 WL 515971 (C.D. Ill. 1999).

Opinion

OPINION

RICHARD MILLS, District Judge.

Because the essential nature and effect of this proceeding establish that the State of Illinois is the real party in interest, Defendant’s removal of this case cannot be founded upon diversity of jurisdiction.

Accordingly, Plaintiffs motion to remand is allowed.

I. BACKGROUND

Charles W. Wandling is a resident of the State of Illinois and works for the Illinois Department of Transportation (“IDOT”). DeLong’s, Inc., is a Missouri corporation *640 which transacts business within the State of Illinois selling structural steel to IDOT to be used on its bridge projects.

On January 14, 1997, Wandling, on behalf of IDOT, went to DeLong’s Jefferson City, Missouri, plant to inspect the facility. While waiting outside of the inspector’s office, Wandling leaned back in the chair in which he was seated, and the chair collapsed. As a result of this accident, Wan-dling suffered physical injuries to his left hip. Due to his injuries, Wandling was unable to return to work, and thus, IDOT paid Wandling $64,531.13 under the Illinois Workers’ Compensation Act. 820 ILCS 305/1 et seq.

On January 7, 1999, Plaintiff filed a Complaint in' Illinois state court against Defendant seeking reimbursement for the money paid to Wandling under the Illinois Workers’ Compensation Act. 820 ILCS 301(b). On February 11, 1999, Defendant filed a notice of removal, seeking to remove this case from state to federal court based upon diversity of jurisdiction. 28 U.S.C. § 1332. On February 17, 1999, United States Magistrate Judge Byron G. Cudmore gave Plaintiff until February 26, 1999, to file any objections which it had to the removal. Plaintiff filed an objection to the removal and a motion to remand on February 25, 1999, to which Defendant filed a response on March 12, 1999. Thus, the issue is now ripe for adjudication.

Plaintiff argues that because the State of Illinois is the real party in interest in this case and because the State cannot be a citizen for purposes of diversity of jurisdiction, this case cannot be removed to this Court based upon diversity of jurisdiction. In addition, Plaintiff asserts that 28 U.S.C. § 1445(c) prohibits the removal of this case from state court because it is a civil action begun in an Illinois state court which is based upon a right created by the Illinois Workers’ Compensation Act. Accordingly, Plaintiff asks the Court to remand this case to the state court in which it originally commenced.

Defendant argues that, contrary to Plaintiffs assertions, Charles W. Wan-dling, not the State, is the real party in interest in this case. Defendant asserts that 820 ILCS 305/5(b), ie., the statute upon which Plaintiffs Complaint relies, creates in the employer a right which is akin to the common law right of subrogation. As a subrogee, Defendant asserts that the State can have no greater rights than Wandling and that the State has merely stepped into Wandling’s shoes. Because the State merely possesses a sub-rogation right from Wandling, Defendant claims that Wandling is the real party in interest and that diversity of jurisdiction exists because it is a citizen of Missouri and Wandling is a citizen of Illinois.

Furthermore, Defendant argues that Plaintiffs claim is a negligence claim, not a workers’ compensation claim. As such, Defendant asserts that 28 U.S.C. § 1445(c) is inapplicable. Accordingly, Defendant asks the Court to deny Plaintiffs objection to removal and motion to remand.

II. ANALYSIS

A. 28 U.S.C. § lU5(c)

Title 28 U.S.C. § 1445(c) provides that “[a] civil action in any State court arising under the workmen’s compensation laws of such State may not be removed to any district court of the United States.” Here, the Court finds that Plaintiffs claim does not arise under Illinois’ Workers’ Compensation Act. The Court agrees with Defendant that this case is analogous to Spearman v. Exxon Coal, USA, Inc., 16 F.3d 722 (7th Cir.1994) (Rovner, J. dissenting). In Spearman, the United States Court of Appeals for the Seventh Circuit held that a retaliatory discharge claim did not arise under Illinois’ Workers’ Compensation Act. Id. at 726. In so holding, the Seventh Circuit explained that although the workers’ compensation law served as the background for the plaintiffs retaliatory discharge claim, simply because the “workers’ compensation law is a premise of the tort does not mean that the tort ‘arises *641 under’ the workers’ compensation laws....” Id. at 725. Because a retaliatory discharge claim “lacks the no-fault element of workers’ compensation laws” and because a retaliatory discharge claim “may be adjudicated without any inquiry into the meaning of the workers’ compensation laws,” the tort is not barred by 28 U.S.C. § 1445(c) from being removed to federal court. Id. at 724-25.

Likewise, negligence (which is the tort involved in the instant case) lacks the no-fault element of Illinois’ Workers’ Compensation Act and may be adjudicated without any inquiry or interpretation of the Act. Although Plaintiffs Complaint is premised upon 820 ILCS 30%(b), Plaintiffs claim is actually a negligence claim, not a workers’ compensation claim, and therefore, the claim is not barred by 28 U.S.C. § 1445(c) from being removed to this Court. Moreover, although Judge Rovner filed a vigorous dissent in Spearman and although many federal district courts have disagreed with the Spearman majority, e.g., Lackey v. Gateway Homes, Inc., 944 F.Supp. 870, 872 n. 2 (N.D.Ala.1996), Spearman is still the law in this circuit, and therefore, this Court is bound by its holding.

Finally, the Court notes that Plaintiffs assertion that its claim arises under Illinois’ Workers’ Compensation Act is belied by its Complaint. In the caption on the face of its Complaint, Plaintiff clearly asserts that the Complaint is being filed in the law division of the Sangamon County circuit court as a negligence action. In addition, the Complaint itself attempts to set forth the elements necessary to maintain a negligence cause of action. Accordingly, the Court finds that the removal of this case is not barred by 28 U.S.C.

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Bluebook (online)
57 F. Supp. 2d 639, 1999 U.S. Dist. LEXIS 10949, 1999 WL 515971, Counsel Stack Legal Research, https://law.counselstack.com/opinion/illinois-ex-rel-secretary-of-the-department-of-transportation-v-delongs-ilcd-1999.