Pierce v. Tee-Pak, Inc.

553 N.E.2d 1104, 196 Ill. App. 3d 544, 143 Ill. Dec. 118, 1990 Ill. App. LEXIS 463
CourtAppellate Court of Illinois
DecidedApril 5, 1990
Docket4-89-0562, 4-89-0669 cons.
StatusPublished
Cited by4 cases

This text of 553 N.E.2d 1104 (Pierce v. Tee-Pak, 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
Pierce v. Tee-Pak, Inc., 553 N.E.2d 1104, 196 Ill. App. 3d 544, 143 Ill. Dec. 118, 1990 Ill. App. LEXIS 463 (Ill. Ct. App. 1990).

Opinion

JUSTICE McCULLOUGH

delivered the opinion of the court:

This consolidated appeal concerns applications for judgment pursuant to section 19(g) of the Workers’ Compensation Act (Act) (Ill. Rev. Stat. 1987, ch. 48, par. 138.19(g)). Plaintiffs’ applications were dismissed on the basis that at the time checks were tendered by the employers and accepted by the plaintiffs, case law did not permit the award of additional interest pursuant to section 2 — 1303 of the Civil Practice Law (Ill. Rev. Stat. 1987, ch. 110, par. 2—1303). Further, the circuit court determined that retroactive application of current case law was not permitted. On appeal, plaintiffs argue the recent decisions on this matter apply retroactively to their claims for interest, and sanctions under section 19(g) are appropriate in their actions. For the reasons that follow, we reverse the trial court but deny plaintiffs’ request for sanctions.

The facts of each case will be cited separately. On June 20, 1982, plaintiff Norma Stephenson was found totally disabled by the arbitrator as a result of a work-related injury on July 23, 1980, and awarded $180 per week for life. On review, the Industrial Commission (Commission) affirmed the arbitrator. On further review to the circuit court of Vermilion County and to this court, the decision was affirmed. (General Electric Co. v. Industrial Comm’n (4th Dist. 1985), No. 4—84—0654WC (unpublished order under Supreme Court Rule 23).) The appellate court mandate issued on January 16,1986.

In her section 19(g) application filed on January 19, 1989, Stephenson alleged the compensation accrued to June 20, 1982, was $2,605.93; and interest of $564.13 on this amount pursuant to section 19(n) of the Act (Ill. Rev. Stat. 1987, ch. 48, par. 138.19(n)) was calculated from June 21, 1982, to January 28, 1986, the date Stephenson’s employer, General Electric, tendered a check to Stephenson in the total amount of $37,547.25. The application alleged the compensation accrued from June 21, 1982, to January 28, 1986, was $33,865.69. Stephenson asked for interest on $33,865.69 pursuant to section 2— 1303 and calculated this interest to be $5,355.88. Stephenson alleged the check tendered by General Electric on January 28, 1986, included $36,471.62 for compensation and $1,075.63 in interest. Stephenson also asked for $14,668.43 in sanctions against General Electric pursuant to section 19(g).

On January 29, 1982, Bob Pierce was found totally disabled by the arbitrator from a work-related injury on April 20, 1978, and awarded $213.72 per week for specified periods before the arbitrator’s decision up to April 1, 1980, and from April 23, 1980, for life. On review, the Commission affirmed the arbitrator. On further review to the circuit court of Vermilion County and to this court, the decision was affirmed. (Tee-Pak, Inc. v. Industrial Comm’n (1986), 141 Ill. App. 3d 520, 490 N.E.2d 170.) The appellate court mandate issued on April 4,1986.

In his section 19(g) application filed on January 19, 1989, Pierce alleged the compensation accrued to January 29, 1982, was $24,272.48. Pierce stated interest on this amount pursuant to section 19(n) is $6,192.43, calculated from January 29, 1982, to May 1, 1986, the date Pierce’s employer, Tee-Pak, tendered a check to Pierce in the total amount of $75,058.39. In the application, Pierce alleged the compensation accrued from January 29, 1982, to May 1, 1986, was $47,384.77. Pierce asked for interest on $47,384.77 pursuant to section 2 — 1303 and calculated this interest to be $9,071.45. Pierce stated the check tendered on May 1, 1986, included $71,657.25 for compensation and $3,401.14 for interest. Pierce also asked for $17,880.22 in sanctions against Tee-Pak pursuant to section 19(g).

Both General Electric and Tee-Pak filed motions to dismiss the respective applications. Tee-Pak alleged the interest issue was only recently decided by the courts and these recent cases have no retroactive application to this appeal. General Electric alleged the application was without merit and had no basis in law.

On June 16, 1989, the trial court dismissed Pierce’s application. The trial court reasoned that court decisions addressing interest under section 2 — 1303 were not rendered until after the time of tender on May 1, 1986, and further that these decisions could not be applied retroactively.

Similarly, on July 31, 1989, the trial court dismissed Stephenson’s application. The trial court found Stephenson recalculated the interest due her after Ballard v. Industrial Comm’n (1988), 172 Ill. App. 3d 41, 526 N.E.2d 675, was issued in 1988. The trial court found Ballard could not be applied retroactively and sanctions were precluded because there was a genuine dispute as to whether any amounts were owing from General Electric after January 28, 1986. The cases were consolidated on October 5, 1989, by order of this court.

Plaintiffs argue the trial court erred in determining that recent case law addressing the interest issue may not be applied retroactively to plaintiffs’ cases. Both argue their acceptance of checks in 1986 does not bar their right to apply for additional interest in 1989 under section 19(g) and the trial court’s reliance on their acceptance is misplaced. Pierce argues that between May 1, 1986, and December 1988, he demanded further interest, which Tee-Pak refused to pay.

Courts have inherent power to determine whether their decision should be prospectively or retroactively applied. (Larrance v. Human Rights Comm’n (1988), 166 Ill. App. 3d 224, 230, 519 N.E.2d 1203, 1207-08.) Whether a rule will be applied prospectively will depend on whether the decision establishes a new principle of law,

“ ‘either by overruling clear past precedent on which litigants may have relied [citation], or by deciding an issue of first impression whose resolution was not clearly foreshadowed.’ (Board of Commissioners of Wood Dale Public Library District v. County of Du Page (1984), 103 Ill. 2d 422, 426-27 [, 469 N.E.2d 1370, 1372.]” (Elg v. Whittington (1987), 119 Ill. 2d 344, 357, 518 N.E.2d 1232, 1238.)

As a general rule, a decision will be applied retrospectively unless the court expressly declares that its decision is a clear break with past precedent or practice. (Larrance, 166 Ill. App. 3d at 230, 519 N.E.2d at 1208.) It has been held that judicial interpretation of a statute does not necessarily constitute a change in the law. People v. Crete (1986), 113 Ill. 2d 156, 497 N.E.2d 751 (language in section 5 — 8—1(c) of the Unified Code of Corrections (Ill. Rev. Stat. 1983, ch. 38, par. 1005—8—1(c)) regarding reduction or modification of sentences by the trial court is mandatory, not permissive, and is applied retroactively).

In the present case, the cases which the plaintiffs argue should be applied retroactively are Ballard, 172 Ill. App.

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Bluebook (online)
553 N.E.2d 1104, 196 Ill. App. 3d 544, 143 Ill. Dec. 118, 1990 Ill. App. LEXIS 463, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pierce-v-tee-pak-inc-illappct-1990.