Little Company of Mary Hospital v. Industrial Commission

628 N.E.2d 537, 256 Ill. App. 3d 1036, 195 Ill. Dec. 73
CourtAppellate Court of Illinois
DecidedNovember 29, 1993
DocketNo. 1-92-2242WC
StatusPublished
Cited by7 cases

This text of 628 N.E.2d 537 (Little Company of Mary Hospital v. Industrial 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
Little Company of Mary Hospital v. Industrial Commission, 628 N.E.2d 537, 256 Ill. App. 3d 1036, 195 Ill. Dec. 73 (Ill. Ct. App. 1993).

Opinions

JUSTICE RAKOWSKI

delivered the opinion of the court:

The employee, Julia Velasco (claimant), filed an application for adjustment of claim pursuant to the Workers’ Compensation Act (Act) (Ill. Rev. Stat. 1983, ch. 48, par. 138.1 et seq.) against Little Company of Mary Hospital (employer) alleging that she sustained a work-related injury. Following a hearing, the claimant agreed to withdraw her section 19(b) petition because of the employer’s agreement that it would advance six months of temporary total disability (TTD) as an advance against permanency or TTD and payment of outstanding medical expenses. At a subsequent hearing six months later, claimant requested penalties because the advance was not made. The arbitrator found that: (1) the claimant was entitled to TTD benefits; (2) the claimant was permanently partially disabled (PPD) to the extent of 40% of a person under section 8(d)(2); (3) there was a causal connection between the incident of June 30, 1982, and the claimant’s present condition of ill-being; and (4) the employer’s delay in payment was intentional and frivolous. Penalties were assessed in the amount of 50% of the TTD award pursuant to section 19(k). The arbitrator also awarded penalties under section 19(1) and attorney fees under section 16.

Upon review to the Industrial Commission (Commission), the employer delivered a check for $10,000 as payment for six months of TTD. The Commission affirmed and modified. The Commission found the employer to be entitled to a credit for compensation paid, that the claimant was entitled to receive penalties under section 19(k), attorney fees under section 16, and additional medical expenses. The circuit court confirmed.

We affirm.

The claimant was employed as a housekeeper for the employer for about four years. She was injured on June 30, 1982, while trying to push a broken electric bed onto an elevator. She felt a pulling, pinching, burning pain in her left lower back and sought medical treatment immediately. Rest and physical therapy were prescribed. She returned to her regular work duties on August 15, 1982, but left work again on August 17, 1982, and returned for medical help. Physical therapy was prescribed again. An EMC, a CAT scan, a myelogram, and a roentgenogram of the spinal cord were performed.

She saw Dr. Bosch in December 1982. He admitted her to the hospital in January 1983 where she stayed for nine days. She was given a diskogram, a roentgenogram of an intervertebral disk, and underwent chemonucleolysis (a disk is injected in an effort to dissolve it). Dr. Bosch diagnosed a herniated nucleus pulposus at L4-L5 and continued to treat claimant until January 1984.

In June 1983, at the employer’s request, she saw Dr. Reider. Dr. Reider noted that her condition prevented her from doing manual labor, but not sedentary work. He recommended a conservative exercise program.

The claimant began treatment with Dr. Medina in January 1984. He admitted her to the hospital in March where she stayed for five days. Upon her discharge, she underwent physical therapy for four months. On October 30,1985, he released her to work as of November 4, 1985, with no restrictions.

Claimant worked at her regular job from December 2,1985, until March 16, 1987. On March 20, 1987, Dr. Medina admitted her to the hospital where she underwent an EMG, CAT scan, and therapy. Dr. Medina diagnosed her with lumbosacral radiculopathy and discharged her.

In April 1987 claimant began treatment with Dr. Smith. In May 1987, he admitted claimant to the hospital for a myelogram. In June 1987, he performed lumbar fusion surgery. The claimant was released to light duty as of May 1, 1988.

Claimant returned to light duty May 1, 1988. She has continuing problems with her back.

The employer raises two issues on appeal: (1) whether the imposition of penalties for 50% of the entire TTD award was excessive and should be reduced; and (2) whether the Commission’s finding of causal connection between the accident of June 30, 1982, and the subsequent surgery in June 1987 is against the manifest weight of the evidence.

I

Section 19(k) states:

"In case where there has been any unreasonable or vexatious delay of payment or intentional underpayment of compensation, or proceedings have been instituted or carried on by the one liable to pay the compensation, which do not present a real controversy, but are merely frivolous or for delay, then the Commission may award compensation additional to that otherwise payable under this Act equal to 50% of the amount payable at the time of such award. Failure to pay compensation in accordance with the provisions of Section 8, paragraph (b) of this Act, shall be considered unreasonable delay.” (Emphasis added.) (Ill. Rev. Stat. 1987, ch. 48, par. 138.19(k).)

The question of whether section 19(k) penalties are to be calculated on the entire amount of the award or only that part that remains unpaid at the time of the penalty hearing was squarely addressed in Moore v. Industrial Comm’n (1989), 188 Ill. App. 3d 31, 543 N.E.2d 1062.

In Moore, after awarding TTD and PPD the arbitrator found that the employer was entitled to a credit for an amount previously paid to claimant. Upon review to the Commission, the employer attempted for the first time to obtain an additional credit for another previous payment. The' Commission rejected this claim and affirmed the arbitrator’s decision. Because the employer did not pay claimant the amount it had attempted to claim as a credit before the Commission, the claimant filed a petition for penalties under section 19(k) and section 16. The Commission granted an award equal to 50% of the entire original PPD award. The circuit court reduced the penalty so that the amount represented 50% of the amount of the PPD compensation which remained unpaid by the employer.

In reversing the circuit court’s decision to apply the penalty to only that portion of PPD which remained unpaid, the Moore court adopted Professor Larson’s position that " 'once a penalty is imposed for failure to pay a type of benefit, the penalty is calculated on the entire amount of that type of benefits, including amounts which had been paid before the occurrence of the unreasonable delay.’ ” (Moore, 188 Ill. App. 3d at 36, quoting 3 A. Larson, Workmen’s Compensation § 83.41(d) (1989).) The Moore court also pointed out that if the penalties were assessed on only the unpaid balance at the time of the penalty hearing, the claimant would be awarded nothing if an employer intentionally underpaid a benefit award, forced a claimant to seek penalties, but, prior to the hearing for penalties, paid the remainder of the award.

In an attempt to distinguish Moore, the employer sub judice points out that when it agreed to advance TTD, a determination had not been made as to liability. As such, according to the employer, it did not ignore a Commission award as was the case in Moore. The employer characterizes the agreement as a contract between the parties.

We find the argument to be without merit.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Navistar International Transportation Corp. v. Industrial Commission
771 N.E.2d 35 (Appellate Court of Illinois, 2002)
Navistar Intern. Transp. v. Indus. Com'n
771 N.E.2d 35 (Appellate Court of Illinois, 2002)
Zitzka v. Industrial Commission
767 N.E.2d 405 (Appellate Court of Illinois, 2002)
Paz v. Commonwealth Edison
Appellate Court of Illinois, 2000
Roodhouse Envelope Co. v. Industrial Commission
658 N.E.2d 838 (Appellate Court of Illinois, 1995)

Cite This Page — Counsel Stack

Bluebook (online)
628 N.E.2d 537, 256 Ill. App. 3d 1036, 195 Ill. Dec. 73, Counsel Stack Legal Research, https://law.counselstack.com/opinion/little-company-of-mary-hospital-v-industrial-commission-illappct-1993.