Palmer v. FREIGHTLINER, LLC

889 N.E.2d 1204, 383 Ill. App. 3d 57, 321 Ill. Dec. 644, 2008 Ill. App. LEXIS 531
CourtAppellate Court of Illinois
DecidedJune 4, 2008
Docket1-06-2076
StatusPublished
Cited by5 cases

This text of 889 N.E.2d 1204 (Palmer v. FREIGHTLINER, LLC) 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
Palmer v. FREIGHTLINER, LLC, 889 N.E.2d 1204, 383 Ill. App. 3d 57, 321 Ill. Dec. 644, 2008 Ill. App. LEXIS 531 (Ill. Ct. App. 2008).

Opinion

JUSTICE CUNNINGHAM

delivered the opinion of the court:

Plaintiff, Wayne Palmer, filed a lawsuit in the circuit court of Cook County against Zelda Moreno, individually, and as an agent of Freight-liner, LLC, for damages sustained in a fall at Freightliner’s facility in Wood Dale, Illinois. Freightliner and Zelda Moreno appeal the trial court’s granting of third-party defendant ADT Security Services, Inc.’s motion for a good-faith finding and the court’s application of Ohio law. On appeal, Moreno and Freightliner argue that the trial court erred by holding that Ohio law applies, thereby granting ADT immunity from this lawsuit. For the following reasons, we reverse the circuit court.

BACKGROUND

Plaintiff, Wayne Palmer, an Ohio resident, was a security system installer for ADT Security Systems, Inc. (ADT). Palmer was assigned to ADT’s Broadview Heights, Ohio, office, but occasionally worked in other offices in surrounding states. In December 2002, Palmer volunteered to work in the Addison, Illinois, office to install a security system at defendant Freightliner, LLC’s Wood Dale, Illinois, facility. Freightliner is a Delaware corporation with its headquarters in Portland, Oregon. Freightliner negotiated the contract at ADT’s Addison, Illinois, facility for installation and monitoring of a security system.

On December 2, 2002, Palmer and his coworker Jason Koproski reported to the ADT Addison, Illinois, office and later began work at Freightliner’s parts and distribution center in Wood Dale, Illinois. Palmer and Koproski were introduced to a few Freightliner personnel at the jobsite. They surveyed the area and then began installing the security system. The men began installing cable and contact points around overhead loading dock doors. After completing work in the north bay, the men began work in the south bay. The men leaned their ladder against the dock doors. The ladder was vertically extended over 20 feet into the air. While Palmer was near the top of the ladder tying cable, a Freightliner employee, Zelda Moreno, began to open the dock doors. Moreno claims that she did not see or know Palmer was working on the door. Palmer fell from the ladder and sustained various injuries.

On February 13, 2004, Palmer filed a complaint for negligence in the circuit court of Cook County against Moreno, individually, and as an agent of Freightliner. Moreno and Freightliner filed a third-party complaint for contribution against Palmer’s employer, ADT. Palmer also filed a workers’ compensation claim in Ohio for injuries sustained from his fall. ADT subsequently entered into a settlement agreement with Palmer for $7,500 through Ohio workers’ compensation benefits system. ADT then filed a motion for a good-faith finding and dismissal from the Cook County lawsuit filed by Palmer against Moreno and Freightliner. ADT argued that under Ohio law it was immune from further liability because it paid Palmer workers’ compensation benefits, thereby discharging its obligation for the employment-related injury that gave rise to Palmer’s lawsuit in Cook County. Freightliner and Moreno disputed the applicability of Ohio law and contended that under the choice of law analysis, all significant contacts, including the fact that the accident took place in Illinois, made Illinois law applicable.

The trial court held that Ohio had the most significant relationship with the occurrence and the parties and therefore Ohio contribution laws applied. The court examined Kabak v. Thor Power Tool Co., 106 Ill. App. 2d 190, 245 N.E.2d 596 (1969), Malatesta v. Mitsubishi Aircraft International, Inc., 275 Ill. App. 3d 370, 655 N.E.2d 1093 (1995), and Vickrey v. Caterpillar Tractor Co., 146 Ill. App. 3d 1023, 497 N.E.2d 814 (1986). The trial court held that these cases were instructive and explained that a significant factor in its examination was the effect of the plaintiff’s underlying workers’ compensation claim on the various parties. The trial court, quoting Kabek, 106 Ill. App. 2d at 200, 245 N.E.2d at 601, held that “in complying with the Ohio Workers’ Compensation Act, [ADT] ha[d] the substantive right to look to Ohio law to determine whether it ha[d] any further obligation on account of the work-connected injury.” The trial court found that Ohio law applied and that ADT’s settlement with Palmer on his Ohio workers’ compensation claim was made in good faith. The effect of the trial court’s good-faith finding and its application of Ohio law was dismissal of the third-party contribution action brought by Moreno and Freightliner against ADT. Thereafter, the court entered an order dismissing ADT from the lawsuit. Freightliner and Moreno appealed.

ANALYSIS

On appeal, Freightliner and Moreno argue that the trial court erred in applying Ohio law and finding that ADT’s settlement of Palmer’s Ohio workers’ compensation claim was made in good faith. Freightliner and Moreno claim that the trial court’s reliance on Kabak, Malatesta, and Vickrey was misplaced because each of those cases is factually distinguishable from the case at bar. They contend that, unlike those cases, in the instant case, ADT’s payment of workers’ compensation benefits under Ohio law was the only significant occurrence that took place in Ohio. They argue that Illinois law should apply because it has the most significant relationship with the occurrence and the parties. ADT, on the other hand, argues that the trial court correctly relied on Kabak, Malatesta, and Vickrey. ADT contends that the most significant contact analysis should focus on the employment relationship of the injured employee including the place of employment and the state in which the employee seeks workers’ compensation benefits.

At issue is whether Illinois law or Ohio law applies to this case for the narrow issue of contribution. Although neither party disputes the applicability of Illinois law to the underlying cause of action for negligence, it is important to highlight the narrow scope of the conflict of laws question in this case and to distinguish between that narrow issue and the general applicability of Illinois law.

Under the Joint Tortfeasor Contribution Act (the Act) (740 ILCS 100/1 et seq. (West 2006)), parties that are subject to tort liability arising from the same injury share the payment of damages. BHI Corp. v. Litgen Concrete Cutting & Coring Co., 346 Ill. App. 3d 300, 306, 804 N.E.2d 707, 712 (2004). If a tortfeasor has settled with a plaintiff under the Act, the tortfeasor is then released from all liability for contribution to all other tortfeasors. BHI Corp., 346 Ill. App. 3d at 306, 804 N.E.2d at 712. The Act only requires that a tortfeasor settle with a plaintiff in good faith. Johnson v. United Airlines, 203 Ill. 2d 121, 128, 784 N.E.2d 812, 818 (2003).

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Bluebook (online)
889 N.E.2d 1204, 383 Ill. App. 3d 57, 321 Ill. Dec. 644, 2008 Ill. App. LEXIS 531, Counsel Stack Legal Research, https://law.counselstack.com/opinion/palmer-v-freightliner-llc-illappct-2008.