Mahoney v. Industrial Commission

843 N.E.2d 317, 218 Ill. 2d 358, 300 Ill. Dec. 59, 2006 Ill. LEXIS 13
CourtIllinois Supreme Court
DecidedJanuary 20, 2006
Docket100239
StatusPublished
Cited by5 cases

This text of 843 N.E.2d 317 (Mahoney v. Industrial Commission) is published on Counsel Stack Legal Research, covering Illinois Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mahoney v. Industrial Commission, 843 N.E.2d 317, 218 Ill. 2d 358, 300 Ill. Dec. 59, 2006 Ill. LEXIS 13 (Ill. 2006).

Opinion

JUSTICE KILBRIDE

delivered the judgment of the court, with opinion.

Chief Justice Thomas and Justices Freeman, McMorrow, Fitzgerald, Garman, and Karmeier concurred in the judgment and opinion.

OPINION

In this worker’s compensation case, we decide whether the site of a contract of hire is the sole determining factor for applying the Illinois Workers’ Compensation Act (Act) (820 ILCS 305/1 et seq. (West 2002)) to an employment injury sustained by a worker outside this state. Robert Mahoney, who was hired in Illinois, sustained two separate injuries while working for United Airlines (United) at its Orlando, Florida, facility. He filed applications for adjustment of his claims with the Illinois Industrial Commission (Commission), now known as the Illinois Workers’ Compensation Commission (see 820 ILCS 305/13 (West 2004)) seeking benefits under the Act. After the claims were consolidated for hearing, an arbitrator denied benefits. The Commission affirmed and adopted the arbitrator’s decision. On judicial review, the circuit court of Cook County confirmed the Commission’s decision. The appellate court reversed. 355 Ill. App. 3d 267.

On denial of rehearing, all of the justices filed a statement that the case involved a substantial question warranting consideration by this court. We allowed United’s petition for leave to appeal. 177 Ill. 2d R. 315. We granted the Illinois Trial Lawyers Association leave to file an amicus curiae brief in support of Mahoney’s position. 155 Ill. 2d R. 345. We now affirm the appellate court.

BACKGROUND

The arbitrator’s findings of fact are undisputed. Robert Mahoney was hired by United Airlines on January 6, 1969, to work as a ramp serviceman at O’Hare International Airport in Chicago, Illinois. He worked for United continuously in Illinois until 1993, when, following his divorce, he voluntarily applied for transfer to United’s facility at Orlando International Airport in Orlando, Florida. Mahoney had the necessary seniority to choose among many locations throughout the United States.

There was no interruption between Mahoney’s last day of work in Chicago and the beginning of his work the next day in Orlando. He has worked continuously in ramp service for United at Orlando until the present time.

Mahoney continues to reside in Orlando, where he purchased a home in 1984. He remarried in Florida. He has a Florida driver’s license, pays taxes in Florida, and pays no taxes in Illinois. Although he has the right, he has never sought to relocate back to Illinois or to any other state.

Since his transfer, Mahoney has returned to Illinois approximately three times for training sessions and has also returned for family visits. When he returned to Illinois, he stayed in local hotels. He has not been injured in Illinois.

Mahoney sustained compensable injuries in Orlando, Florida, on March 19, 1999, and January 2, 2001. He received temporary total disability benefits consistent with the Florida Workers’ Compensation Act, and medical treatment for his injuries was provided near his home in Orlando.

Mahoney filed applications for adjustment of his claims for both injuries in Illinois. On Mahoney’s motion, the cases were consolidated for hearing. The arbitrator found no Illinois jurisdiction. The arbitrator noted that Mahoney relied exclusively on the fact that he was initially hired in Illinois as the basis for asserting Illinois jurisdiction. Rather than finding that fact solely determinative, the arbitrator also considered: (1) the continuity of employment between the time of contract and the time of injury; (2) whether the transfer was voluntary; (3) the length of time between the departure from Illinois and the injury; and (4) the significance of Mahoney’s contacts with Illinois following his departure.

The arbitrator found Mahoney had no employment relationship with United in Illinois because neither the accident nor his resulting treatment occurred here and he voluntarily transferred to Florida from Illinois for personal reasons six years before the first accident. Accordingly, the arbitrator found no persuasive reason for the Commission to accept jurisdiction, and Mahoney’s claims were denied.

The Commission affirmed and adopted the arbitrator’s decision, finding the jurisdiction issue controlled by Carroll v. Industrial Comm’n, 205 Ill. App. 3d 885 (1990), and United Airlines v. Industrial Comm’n, 252 Ill. App. 3d 972 (1993) (hereinafter, Rankins). On judicial review, the circuit court confirmed the decision in a written order, finding it was not against the manifest weight of the evidence and not clearly erroneous.

The appellate court reversed. 355 Ill. App. 3d 267. The court held the plain language of the Act “clearly states that site of the contract for hire is the exclusive test for determining the applicability of the Act to persons whose employment is outside Illinois where the contract of hire is made within Illinois.” (Emphasis in original.) 355 Ill. App. 3d at 269. The court noted that this court’s decision in Youngstown Sheet & Tube Co. v. Industrial Comm’n, 79 Ill. 2d 425 (1980), established a bright-line rule for future courts. If the employment contract is made in Illinois, a claimant injured in another state is covered under the Act. Conversely, if the contract of hire is not made in Illinois, there is no coverage for injuries incurred outside the state. 355 Ill. App. 3d at 271.

The appellate court reasoned United Airlines, Inc. v. Industrial Comm’n, 96 Ill. 2d 126 (1983) (hereinafter, Walker), involving a fact situation nearly identical to the present case, is directly apposite. The appellate court noted that in light of Walker, this court interpreted the Act to provide jurisdiction when the contract of hire was made in Illinois, even if the employee permanently transferred to another state and the injury occurred several years after the transfer. 355 Ill. App. 3d at 272. Therefore, the appellate court held that the “situs of the contract is the sole determinate of jurisdiction under the Act for a person whose employment is outside Illinois where the contract of hire is made within Illinois.” 355 Ill. App. 3d at 274. The court “overruled” Carroll and Rankins, the appellate precedent relied on by the Commission, to the extent those cases deviated from its announced holding. 355 Ill. App. 3d at 274.

ANALYSIS

Section 2 of the Act imposes liability on employers for injuries to employees arising out of and in the course of employment. 820 ILCS 305/2 (West 2002). Section 1(b)(2) of the Act defines “employee” as:

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Cite This Page — Counsel Stack

Bluebook (online)
843 N.E.2d 317, 218 Ill. 2d 358, 300 Ill. Dec. 59, 2006 Ill. LEXIS 13, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mahoney-v-industrial-commission-ill-2006.