Major defense ruling finding the workers compensation exclusive remedy provision in Section 5 extends immunity from civil lawsuits to an employer’s joint venture from the Illinois Supreme Court.
Editor’s comment: In Ioerger v. Halverson Construction Company, Inc., (No. 105912, 105917 cons. December 18, 2008), the Illinois Supreme Court majority reversed the Appellate Court and ruled the Court erred when it reversed trial court’s grant of summary judgment to construction defendants. The Court noted the various construction defendants were members of a joint venture and joint venture itself.
The ruling follows from an April 2000 accident in which four ironworkers fell from a platform that collapsed while suspended above the Illinois River. One of the workers died and the other three were injured, court records show. The injured workers and the estate of the deceased received workers compensation benefits under joint venture coverage. Under the joint venture, the two companies agreed to share profits, losses and liabilities resulting from their work on the bridge, court records show.
The workers alleged negligence among other claims in their civil suit, but the trial court ruled the Illinois Workers Compensation Act’s exclusive remedy provision affords immunity to the joint venture. The Appellate Court overturned that finding.
The Illinois Supreme Court, however, cited language in the joint venture addressing how the two companies would cooperate in handling workers’ comp and other labor costs. The Court ruled because the joint venture was obligated to reimburse the respective member companies for workers’ compensation premiums and wages paid by plaintiffs’ employer, the joint venture itself and all other member firms who were similarly situated enjoyed an agency relationship with Plaintiffs’ employer.
Accordingly, the exclusive remedy provision of Section 5 of Workers’ Compensation Act applies to confer immunity from the personal injury litigation on Defendants. Please note all injured workers and decedent’s family were entitled to and received substantial workers’ compensation benefits. The ruling means the workers and decedent’s estate were not allowed to proceed with separate litigation against the joint venture.
We assume this may result in more joint ventures being started and operated in construction settings. Please send your thoughts and comments.
