Lake Motor Freight, Inc. v. Randy Trucking, Inc.

455 N.E.2d 222, 118 Ill. App. 3d 626, 74 Ill. Dec. 192, 1983 Ill. App. LEXIS 2379
CourtAppellate Court of Illinois
DecidedSeptember 30, 1983
Docket82-2515
StatusPublished
Cited by11 cases

This text of 455 N.E.2d 222 (Lake Motor Freight, Inc. v. Randy Trucking, Inc.) 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
Lake Motor Freight, Inc. v. Randy Trucking, Inc., 455 N.E.2d 222, 118 Ill. App. 3d 626, 74 Ill. Dec. 192, 1983 Ill. App. LEXIS 2379 (Ill. Ct. App. 1983).

Opinion

JUSTICE LORENZ

delivered the opinion of the court:

Plaintiff appeals from a judgment which dismissed its cause of action for contribution from an alleged joint tortfeasor, and we are presented with .two questions of law.

1. Can a tortfeasor who settles a claim filed against it by the employee of a third-party obtain contribution from the employer under “An Act in relation to contribution among joint tortfeasors” (the Contribution Act) (Ill. Rev. Stat. 1981, ch. 70, par. 301 et seq.) even though the employer is immunized from common law and statutory liability to the employee under section 5(a) of the Workers’ Compensation Act (Ill. Rev. Stat. 1981, ch. 48, par. 138.5(a))?

2. Under sections 2(c) and (e) of the Contribution Act (Ill. Rev. Stat. 1981, ch. 70, pars. 302(c), (e)), is it possible for a release given to a named tortfeasor to extinguish the liability of an alleged tortfeasor who is not specifically named in the release?

The answer to the first question is no, and the answer to the second question is yes. We accordingly affirm in part and reverse in part.

The following allegations are taken from the complaint and are material to our decision.

On March 14, 1980, there was a multivehicle collision on the Dan Ryan Expressway involving trucks owned and operated by plaintiff (Lake Motor Freight, Inc.) and defendant (Randy Trucking, Inc.). Among the individuals injured by this accident were Martin R. McGovern, an employee of Randy Tracking, and Robert A. Brudnicki, the operator of a third vehicle. Bradnicki and McGovern filed negligence actions against plaintiff, and these claims were settled, respectively, for $7,500 and $24,500.

In settling their claims, Bradnicki and McGovern each signed a release which states, in part, that the sums listed above were paid by plaintiff “to the undersigned and their attorney by or on behalf of all other persons, firms or corporations liable or who might be claimed to be liable or who may have contributed as a cause to any injuries which are the subject matter of this release including Lake Motor Freight, Inc. ***.”

The complaint further alleges that one of the causes of the accident was defendant’s negligence, and it seeks recovery “for all amounts paid in settlement above [plaintiff’s] pro rata share of liability.”

Ruling on a defense motion, the circuit court entered a judgment dismissing the cause of action on the ground that “Lake Motor Freight, Inc., does not have a right of contribution against Randy Trucking, Inc., since the releases executed by Martin McGovern and Robert Brudnicki do not extinguish the liability of Randy Trucking, Inc.”

Opinion

Defendant initially argues that it is not liable to plaintiff under the Contribution Act for the settlement with its employee, McGovern, because, by operation of section 5(a) of the Workers’ Compensation Act (Ill. Rev. Stat. 1981, ch. 48, par. 138.5), it is not “subject to liability in tort” for McGovern’s injuries — a precondition to liability under the Contribution Act. (See Ill. Rev. Stat. 1981, ch. 70, par. 302(a).) For the reasons given below, we agree with defendant.

When an employee’s injury is compensable under the Workers’ Compensation Act, section 5(a) of the Act provides that the employee has “[n]o common law or statutory right to recover damages from the employer ***.” (Ill. Rev. Stat. 1981, ch. 48, par. 138.5(a).) However, the supreme court held, in Skinner v. Reed-Prentice Division Package Machinery Co. (1977), 70 Ill. 2d 1, 374 N.E.2d 437, that when an employee is injured by joint tortfeasors and one of the tortfeasors files an action seeking contribution from the employer, “The fact that the employee’s action against the employer is barred by the Workmen’s Compensation Act (Ill. Rev. Stat. 1975, ch. 48, pars. 138.5, 138.11) would not preclude the [joint tortfeasor’s] third-party action against the employer for indemnification (Miller v. DeWitt [1967], 37 Ill. 2d 273[, 226 N.E.2d 630]) and should not serve to bar its action for contribution.” 70 Ill. 2d 1, 15-16.

The General Assembly enacted the Contribution Act after Skinner was decided (1979 Ill. Laws 2347), and section 2(a) of the Act provides a right of contribution only in cases “where 2 or more persons are subject to liability in tort arising out of the same injury to person or property, or the same wrongful death ***.” (Emphasis added.) (Ill. Rev. Stat. 1981, ch. 70, par. 302(a).) Therefore, when an alleged tortfeasor settles a claim, the claimant’s employer is not subject to liability under the Contribution Act unless the employer is “subject to liability [to the employee] in tort.” Ill. Rev. Stat. 1981, ch. 70, par. 302(a).

We find that when an injury is compensable under the Workers’ Compensation Act, the employer is not “subject to liability in tort” for the employee’s injury, and the employer is not liable for contribution under the Contribution Act. Not only does section 5(a) of the Workers’ Compensation Act immunize an employer from common law and statutory liability for injuries which are covered by the Act, but when an injured employee seeks compensation under the Act, “[t]he liability of the employer, instead of being a liability in tort, is a liability imposed by law, and is rather in the nature of an implied contract by reason of the relation of the parties or the existence of an obligation or duty.” (Keller v. Industrial Com. (1932), 350 Ill. 390, 397, 183 N.E. 237.) In other words, as a result of this “statutory duty — this obligation imposed by law — there was implied in law a promise to perform it which was contractual in its nature.” 350 Ill. 390, 398.

Since section 5(a) immunizes an employer from common law and statutory liability for a compensable injury, and proceedings under the Workers’ Compensation Act are “contractual in its nature” (350 Ill. 390, 398), an employer is not “subject to liability in tort” for compensable injuries, and in such cases there is no right to contribution against an employer under the Contribution Act. Although the Illinois Contribution Act “makes no reference to the Skinner problem [of contribution against an employer for a compensable injury] its language clearly does not support contribution on the Skinner facts. It authorizes contribution where two or more persons are subject to liability in tort arising out of the same injury.” (2A A. Larson, The Law of Workmen’s Compensation sec. 76.39, at 14— 624 (1982).) It therefore appears that the Contribution Act was intended to modify what has been called the Skinner decision’s “almost complete failure to give any weight to the component of exclusiveness of the compensation remedy.” (2A A. Larson, The Law of Workmen’s Compensation sec. 76.39, at 14 — 625 (1982).) See also Horan, Contribution in Illinois: Skinner v. Reed-Prentice and Senate Bill 308, 61 Chi. Bar. Rec. 331, 332 (1980).

Our decision on this issue is reinforced by rulings in other jurisdictions.

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Bluebook (online)
455 N.E.2d 222, 118 Ill. App. 3d 626, 74 Ill. Dec. 192, 1983 Ill. App. LEXIS 2379, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lake-motor-freight-inc-v-randy-trucking-inc-illappct-1983.