Skzubel v. Illinois Workers' Compensation Commission

927 N.E.2d 1247, 401 Ill. App. 3d 263, 340 Ill. Dec. 236, 2010 Ill. App. LEXIS 379
CourtAppellate Court of Illinois
DecidedMay 4, 2010
Docket01-09-0442WC
StatusPublished
Cited by2 cases

This text of 927 N.E.2d 1247 (Skzubel v. Illinois Workers' Compensation 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
Skzubel v. Illinois Workers' Compensation Commission, 927 N.E.2d 1247, 401 Ill. App. 3d 263, 340 Ill. Dec. 236, 2010 Ill. App. LEXIS 379 (Ill. Ct. App. 2010).

Opinion

JUSTICE HUDSON

delivered the opinion of the court:

Claimant, Agnes Skzubel, filed an application for adjustment of claim seeking benefits under the Workers’ Compensation Act (Act) (820 ILCS 305/1 et seq. (West 2002)). The arbitrator denied the claim, finding claimant had not proved that she was an employee of respondent Four M Distributors, Inc., within the meaning of the Act. Respondent Chicago Sun-Times was also named as a statutory employer in accordance with section 1(a)(3) of the Act (820 ILCS 305/ 1(a)(3) (West 2002)); however, the arbitrator found no such relationship existed based entirely upon his finding that claimant was not an employee of Four M. The arbitrator found all other issues moot. The Workers’ Compensation Commission (Commission) (with one commissioner dissenting) affirmed, adopting the decision of the arbitrator. The Commission also stated, “In addition to the Arbitrator’s findings, the Commission finds [claimant] fails [sic] to prove accident.” Claimant sought judicial review. In her initial petition before the trial court, she did not address the Commission’s finding regarding her failure “to prove accident.” Accordingly, the trial court found this issue waived. The trial court also found that the Commission’s decision regarding claimant’s employment status was not contrary to the manifest weight of the evidence. It therefore confirmed the Commission’s decision. Claimant now appeals to this court. For the reasons that follow, we reverse in part, vacate in part, and remand for further proceedings.

BACKGROUND

Four M is in the business of distributing newspapers to stores and vendors for the Sun-Times. It maintains a distribution center in Schaumburg. Four M’s contract with the Sun-Times required it to deliver dry, readable, and complete newspapers to their destinations by 6:30 a.m. Four M also prepared and distributed bills and collected payments from subscribers. The Sun-Times would relay customers’ special delivery instructions to Four M.

Four M purports to use independent contractors to deliver newspapers. It enters into a contract with people who deliver newspapers for it. Delivery drivers service a specific route, which Four M may amend at any time without notice. The contract states that a driver is not an employee. The driver uses his or her own vehicle. Though the rate per paper the driver is to receive is set in the contract, Four M may change it without notice to the driver. Four M may terminate the agreement at any time, but the driver must give seven days’ notice to cancel the agreement.

New drivers are provided with a “suggested route.” These “suggestions” are written down for new drivers. A driver may deviate from the route so long as newspapers are delivered by the required time. David Mazza, Four M’s president, explained that he wrote out the instructions because he sometimes had to “cover” a route if a driver was sick or had car problems.

Claimant testified that she applied for work with Four M after reading an advertisement in a local newspaper. She spoke to Vito Crave, who told her to come in for an interview. She did so, and they discussed the terms of her employment. Claimant testified that she did not speak to anyone besides Crave before commencing work and that they operated pursuant to a verbal agreement. She did not sign a contract of any sort.

Claimant’s immigration status was pending at the time she commenced work. Mazza testified that he never spoke with her and that he could not recall whether it was her or her husband who initially contacted Four M. Claimant was given a contract, which her husband signed. She explained that her husband signed the contract because she could not yet legally work. Four M issued paychecks in her husband’s name. Her husband never performed any work for Four M.

Claimant worked for Four M every day for almost two years. She worked exclusively for Four M, and she never sought to acquire any of her own customers. She did not advertise or hold herself out as an independent courier. In accordance with Four M’s instructions, each newspaper was placed in a plastic bag. Four M would provide additional special instructions in the morning. Instructions might include directions to place a paper on the porch or in the driveway. Occasionally, Four M would give claimant “last minute” instructions for certain deliveries. Four M compensated drivers for the cost of gasoline. Claimant also collected payments for Four M, for which she was paid a flat rate per day.

The arbitrator determined that claimant was not an employee of Four M. He focused primarily on the facts that claimant’s husband signed the contract with Four M and that paychecks were issued in his name. The arbitrator noted that there was no evidence of any payments from claimant’s husband to her. Accordingly, the arbitrator reasoned, “Without any evidence of payment there is no evidence of a contractual relationship.” Inexplicably, the arbitrator also noted that there was a question regarding whether claimant was an independent contractor and recounted claimant’s activities at Four M. However, the arbitrator never made a ruling on this question after recounting the evidence or otherwise addressed the significance of claimant’s activities, instead relying exclusively on the fact that the employment contract was signed by claimant’s husband and that his name appeared on the paychecks issued by Four M. The arbitrator also found that since claimant was not an employee of Four M, the Sun-Times could not be a statutory employer.

A majority of the Commission adopted the decision of the arbitrator. Without providing any explanation whatsoever, the Commission also stated, “In addition to the Arbitrator’s findings, the Commission finds [Claimant] fails to prove accident.” One commissioner dissented. He noted that, despite the fact that claimant’s husband had signed the contract, Four M was well aware that it was claimant who was working for it. He also noted that Four M “was duplicitous in allowing [claimant] to work despite her immigration status,” and given its participation in the sham agreement which allowed her to work, “it waived the argument that she was not the named contractor.” The dissenting commissioner also recounted the factors used in assessing whether a relationship constitutes employment. He specifically noted the degree of control Four M exercised over claimant’s work as well as the fact that claimant’s job was an essential component of Four M’s business. He concluded that the relationship between Four M and claimant was employment.

The trial court confirmed the decision of the Commission. It stated that, though it agreed with the dissenting commissioner, there was sufficient evidence in the record to support the majority’s decision. In the course of the proceedings before the trial court, the Sun-Times argued that the Commission’s finding that claimant had not proven an employment-related accident was not against the manifest weight of the evidence. As claimant did not attack this finding in her opening brief, the trial court found claimant had waived it. Curiously, the trial court also “barred [claimant] from raising this issue on appeal” (we are unaware of any authority which would allow the trial court to limit the issues of which this court may take cognizance).

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Cite This Page — Counsel Stack

Bluebook (online)
927 N.E.2d 1247, 401 Ill. App. 3d 263, 340 Ill. Dec. 236, 2010 Ill. App. LEXIS 379, Counsel Stack Legal Research, https://law.counselstack.com/opinion/skzubel-v-illinois-workers-compensation-commission-illappct-2010.