1-6-2021; The Great Pandemic of 2020 Continues--Will There Be An Extension of the Rebuttable Presumption?; Tracking the End of the Pandemic--GET SHOTS!!!; Passages and more

Synopsis: The Great Pandemic of 2020 Continues. Update on IL WC Rebuttable Presumption for First Responders from John P. Campbell, Jr., J.D.

 

Editor’s Comment: Our IL Governor briefly extended the Emergency Proclamation through January 10th and may do so again until the vaccine(s) stem the tide of Covid-19 infections. The question for Workers’ Compensation observers is whether the rebuttable presumption of work-related infection carries into the new year.

 

Our research came across an updated Corona Virus Disaster Proclamation dated 12/11/20; according to the proclamation, it is to be in effect for 30 days or through January 10th. We can expect similar proclamations to be issued while Illinois and other states struggle to control Corona Virus spread and implement the vaccine to achieve herd immunity. We all look forward to the day these emergency proclamations end and we can ditch the masks and take in a ball game. In the interim, what does all this mean for workers’ compensation claims or more specifically, claims of workplace Covid-19 infection under the Occupational Disease Act?

 

Even though the Emergency Proclamation was extended to  January 10th, we did not read anything in the Proclamation which addressed last year’s amendment to the Occ Disease Act and specifically, there is nothing (yet) to suggest the rebuttable presumption of workplace exposure will extend beyond December 31, 2020. Pursuant the amended Statute from last year:

 

(4) The rebuttable presumption created in this subsection applies to all cases tried after the effective date of this amendatory Act of the 101st General Assembly and in which the diagnosis of COVID-19 was made on or after March 9, 2020 and on or before December 31, 2020.

 

It is our reasoned impression that this bracketed timeframe for the rebuttable presumption of workplace exposure/diagnosis was designed to coincide with the Governor’s original disaster proclamation. However, the Statute language cited above compels a hard end to this rebuttable presumption with the arrival of this New Year. We reckon the Petitioner’s Bar will argue for an extension of this presumption but until our IL State General Assembly acts, we will argue no such rebuttable presumption continues to exist for any alleged Covid workplace infection or diagnosis in 2021.

 

Please note, this can change with the stroke of a pen, in retroactive fashion by our State Legislature, just as it did last year. For this reason, it is critical for employers to remain vigilant in compliance with CDC and IDPH recommendations for PPE use and increased precautions to limit spread of Covid-19 in the workplace in order to rebut the presumption of workplace exposure.

 

This article was researched and written by John P. Campbell, Jr. Feel free to contact John about its content at JCampbell@keefe-law.com. Please also reply or otherwise contact the defense attorneys at KCBA for further guidance on building your defense to work-place Covid-19 claims.

 

 

Synopsis: Tracking the End of the Great Pandemic of 2020—Get the Shots!! It Will Be Certain to End and We Can Burn the Masks!

 

Editor’s comment: There is no current issue more important to U.S. Business and the Workers’ Comp Community. I again urge everyone of you to demand the vaccine for you and your work-place and use it when it is available to you and your work-force. As I have advised, if your workers refuse, I don’t recommend discipline or termination—if you aren’t sure why, send a reply.

As of today, At least 4,836,469 people in the United States have received a dose of a Covid-19 vaccine, according to the Centers for Disease Control and Prevention, far short of the goal federal officials set to give at least 20 million people their first shots before the end of December 2020. If you do the math, at present, around 1% of U.S. citizens have been vaccinated. We have to do better, everyone!

The U.S. government said Tuesday that it had delivered more than 17 million doses to States, territories and federal agencies. There is more to come as vaccine manufacturers continue to work hard to get their product to market. The shipments, which came after a record-setting race to develop, study and approve a vaccine, have marked a turning point in the global Pandemic when deaths and cases continue to set records.

U.S. Federal health officials recently acknowledged the vaccine rollout had had a slower-than-expected start and said they did not have a clear understanding as to why only a portion of the doses shipped across the nation had made it into our arms. The C.D.C. reported 429,066 people in nursing homes and long-term-care centers had been given shots through a federal program, though more than 3.2 million doses had been distributed for those facilities. Deaths in those facilities have accounted for more than a third of the total coronavirus deaths in the country for most of the Pandemic.

Federal regulators have given emergency approval to vaccines developed by Pfizer-BioNTech and Moderna. Both vaccines require patients to receive two doses spaced about 21 days apart. In addition to allocating vaccines to States, territories and some federal agencies, the C.D.C. also distributes doses to three small countries that have special agreements with the U.S. government: Palau, Micronesia and the Marshall Islands.

Most of the first vaccines have been given to front-line medical workers and nursing home residents. The C.D.C. said that its data might lag. This table shows how many shots have been distributed and given in the five States KCB&A covers:

Name

Pct. of people given a shot

Doses distributed

Shots given

Doses used

Iowa

1.9%

120,175

60,137

50%

Indiana

1.5%

355,825

100,487

28%

Illinois

1.4%

538,300

176,586

33%

Wisconsin

1.2%

266,675

67,398

25%

Michigan

1.0%

478,800

99,040

21%

Source: Centers for Disease Control and Prevention

Every State was granted an amount of the vaccine roughly in proportion to its population. Some states, like Alaska, North Dakota and Utah, are supposed to receive supplements for tribal governments that have elected to receive their vaccines through the state, rather than through the federal Indian Health Service.

According to the federal data, South Dakota, West Virginia and North Dakota had administered the most doses per capita among states, and Kansas had administered the fewest.

The work to distribute the vaccine comes at one of the darkest points of the pandemic. More than 355,000 people in the United States have died after contracting the virus. The numbers reflect a national rollout of first doses that began in December — the first step toward protecting residents from a virus that continues to devastate the country.

“Watchers”—the Phenomenon of Folks that are Worried/Afraid to Insure They Are Protected via and/or from the vaccine. What I Am Hearing From Clients and Friends--I don’t want the shots—it hurts and might injure me more!

Do you like dining in the cold? Do you enjoy having to go back to your car to get the dopey mask? Do you understand hundreds of millions across the globe will receive the shots and will be rendered healthy and safe?

I have a number of friends and readers who are not willing to get the vaccine to insure they can’t be infected and, at some point, not infect others. Please note one of the oddest issues of Covid-19 is you can have the disease and not have any symptoms or know you might be spreading it. If you get the shot, odds are you aren’t going to get Covid-19 and at some point, won’t be able to transmit the disease you can’t get to others.

Most  “watchers” are waiting due to concerns a COVID-19 vaccine is tied to confidence in testing and development process. There is no question those who would get COVID-19 vaccine are more trusting of human testing and drug development process.

I have extensively researched it and I cannot locate a single fatality due to the use of any vaccine currently approved or otherwise in development. Across the globe, hundreds of thousands of people have been tested.

Overall, 19% of the U.S. public has a great deal of confidence the research and development process in the U.S. will produce a safe and effective vaccine for COVID-19, while another 45% say they have a fair amount of confidence. About a third (35%) say they have not too much or no confidence in this process.

Among those who say they would definitely or probably get a vaccine, more than eight-in-ten express either a great deal (30%) or a fair amount (54%) of confidence in the research and development process. By contrast, 55% of those not planning to get a coronavirus vaccine say they have not too much or no confidence at all in this process.

I want to go to a restaurant and eat at a table inside. I want to throw away the dopey masks and have my kid safely at a schoolroom being a kid. We are all in this together, folks!!!—please get your shots and press others to do so too.

I appreciate your thoughts and comments. Please post them on our award-winning blog.

 

Synopsis: Passages

 

Editor’s comment: I/We salute former Arbitrator Anthony (Tony) Erbacci who decided to take his pension rather than continue doing solid work as an IL WC Arbitrator. I didn’t always get the nod from him in contested claims but I can always say, he carefully listened and was a consummate professional. He will be missed.

 

The defense team at KCB&A also salutes the passing of Attorney Arthur Phillips, may he rest in peace. He was a fixture at the IL WC Commission for decades. He was a past President of the Illinois Workers' Compensation Lawyers Association and was highly regarded for both his legal acumen and his quick wit. Art was well regarded by those who practiced with him, including me. He was a solid advocate for his clients. Mr. Phillips was an Eagle Scout and a veteran of the U.S. Army.

 

Synopsis: Looking for New WC Defense Business in the Midst of the Great Pandemic!

 

Editor’s comment: As we start the New Year, the amazing defense team to KCB&A is looking for great clients who need defense help in the five States we handle—IL, IN, IA, WI and MI.

 

We are the only defense firm I know of that has adjunct Law Professors who taught workers’ comp law to lots of lawyers, risk managers and claims handlers and others.

 

We have strong recommendations for physicians/surgeons, nurse case management, surveillance operatives and others to fit the needs of your claims.

 

We are approved for defense work with all major WC insurance carriers.

 

We close defense files faster than any other firm I have ever seen—if you can tell us how to close files even faster, we will do it!

 

If you have interest in being represented by the top WC legal defense firm in the States listed above, send a reply or call Gene Keefe at 312 907 8226.

12-28-2020; PART TWO--Trying to make sense of COVID -19 Vaccinations--Ending the Great Pandemic of 2020; Comments from Gene to Another IL WC Blogger and more

Synopsis: PART TWO--Trying to Make Sense of Covid-19 Vaccinations—Ending the Great Pandemic of 2020. Last Blog of 2020!!!

 

Editor’s comment: More Simple Common Sense Thoughts From Gene Keefe for U.S. Risk/HR managers, claims handlers and all our readers of the KCB&A Update.

 

  1. Please note Dr. Fauci and everyone in the world of “pandemic-a” are sure we can live with masks and gloves and washing our hands for years to come if we don’t buy into the vaccines.

  2. There are some folks that I can only characterize as “anti-vaxxers” who are worried if you get a shot, you might turn into the Hulk, Frankenstein or a werewolf. There is no evidence anywhere that indicates your genes or DNA will change if you get the shots.

  3. Learn about “Operation Warp Speed.” For all of our readers, we can and will attack this virus and end the Great Pandemic of 2020, I am hoping by no later than April Fool’s Day.

  4. Details on OWS or Operation Warp Speed are online at https://www.hhs.gov/coronavirus/explaining-operation-warp-speed/index.html

  5. Our government is spending literally 10’s of Billions to get safe vaccines out to every American who will use one. I salute my sister Ellen who already got the first vaccine shot and is going to get the next in about three weeks. Yes, her arm was sore and she got over it!!!

  6. Current U.S. population is about 328M. We have almost 19M cases of Covid-19 and about 320K deaths. Americans have to get together, like we did after we were attacked at Pearl Harbor and sign up and stop this craziness. Get two shots!!!

  7. We need every American to join in Operation Warp Speed to get the word out to family and friends—everyone needs to get the vaccine as soon as it is available to you.

  8. I am sure from reading about thousands of test cases--if you get the vaccine, you are going to be immune at a 19 out of 20 rate at least. Thousands of test cases were analyzed and considered.

  9. Please expect lots of government officials and other folks in the public eye to get the vaccination. Lots of folks—that I call “watchers” may wait a month to be “safe” and insure they aren’t the first—that is fine but plan for the first shot in a month and get it!!

  10. I told my readers: “Immune” means you can’t get Covid-19 from others and they can’t get it from you. I want to apologize and confirm I have been advised by Scott G, one of my great readers that we need to keep the masks and gloves and washing stuff until the Feds tell us to stop. Someone in the medical industry is going to give us the “all clear” and we need to wait and listen for it!

  11. You should strongly encourage EVERYONE in your workforce to get the shots, so all of your co-workers can’t get the virus.

  12. You aren’t getting COVID-19 bugs injected into you if you get the vaccine—you are getting a very complex drug to kill and make you immune from the COVID-19 bug.

  13. COVID-19 vaccines will not cause you to test positive on COVID-19 viral tests, which are used to see if you have a current infection.

  14. If your body develops an immune response, which is the goal of vaccination, there is a possibility you may test positive on some antibody tests—you want to test positive for antibodies! Antibody tests indicate you had a previous infection and that you may have some level of protection against the virus.

  15. Due to the severe health risks associated with COVID-19 and the fact that re-infection with COVID-19 is possible, people may be advised to get the COVID-19 vaccine even if they have been sick and treated for COVID-19 before. At this time, experts do not know how long someone is protected from getting sick again after recovering from a bout with COVID-19. The immunity someone gains from having an infection, called natural immunity, varies from person to person. Some early evidence suggests natural immunity may not last very long. The CDC won’t know how long immunity produced by vaccination lasts until there is more data on how well it works. Until then, they are recommending EVERYONE 16 and over get the shot. (Pregnant ladies are supposed to talk to your doctor first).

  16. Why two shots? Well, after the first shot, the scientists feel you are safe from Covid-19 in a week or so but the second shot greatly improves your lasting immunity. Yes, lots of folks skip the second shot which leaves them less safe. Don’t take a chance and be in the headlines. Get both shots and be super-safe!

  17. About 15% of folks experience soreness, fatigue, mild issues the day after the shots. Consider planning for a day off—or get the injection on a Friday!

 

Please, please get on this. We have to stop the craziness in Washington and around the globe. If we don’t get together, the concept of herd immunity may take us into 2023 or 2024 with masks and gloves and a sick and sorry economy.

 

Can We Force or Fire a Worker to Insure They Get the Shots?

 

I told you last time and I am telling you again, as a veteran lawyer, I vote no. If you force or fire workers who won’t get the shots, they can

 

  • File an EEOC or IDHR beef against your company.

  • Directly sue in Circuit Court In Illinois or

  • Go through the EEOC or IDHR process that may result in a “right to sue” letter from the Feds or State.

 

If your company ends up in court in a fight over this issue, one of the unusual aspects of such litigation is, if Claimant is awarded a couple of bucks, you can owe all of their attorney’s fees and costs. Plaintiff attorney’s fees in such claims can be well into the hundreds of thousands of dollars. For that reason and various other reasons, I don’t feel comfortable telling clients and potential clients it is a good idea to fight with their workers to force them to be vaccinated.

 

The vaccines are coming soon to a hospital or drug store near you. Sign up yourself. Put up signs or lapel pins or whatever you have to do to let the “watchers” know you got the shots and you are still tough and fair in handling your WC claims.

 

Remember if you don’t get the shot, you can eat outside in the cold and crab about the sanctity of your DNA and whatever. I appreciate your thoughts and comments. Please post them on our award-winning blog.

 

 

Synopsis: Gene’s Comments on Another IL WC Great Blogger’s Concepts for The Trade.

 

Editor’s comment: A reader recently sent Attorney Mike Helfand’s blog from a year ago this coming week. Mike is a solid and devoted advocate for injured workers. I wanted to share my thoughts on some of his concepts for you. Woodruff, Johnson & Evans is also doing a great blog and is a solid source for everyone on all sides to read.

1. Illinois work comp is a no fault law. You don’t have to show anyone was negligent if you get hurt on the job. Gene’s thoughts—there are cases where your workers can’t figure out how they got injured—that may result in denial. There are also cases where the workers unreasonably endanger themselves, resulting in denial. While I agree with Mike for the most part, the burden remains with the IL worker to document a work-related event.

2. It’s a felony for an employer not to have workers comp insurance if they do business in Illinois and have employees. Gene’s thoughts—please memorize this statement. Mike is completely accurate. There are criminal charges and massive fines for operating a company in Illinois without WC insurance coverage. If you need help or want to discuss, send a reply.

3. You are eligible for work comp the moment you start working. Gene’s thoughts—Mike is right, I have one client who got mad about a short-termer who filed a claim, it isn’t a defense that the worker has only been around for a short time. Please don’t shoot the messenger!

4. If you need medical treatment, 100% of your care needs to be paid for. No co-pays or out of pocket expenses. Gene’s thoughts—some day the business community in IL may want to revisit this but right now, Mike’s right.

5. You get to choose your own doctor for treatment. Gene’s thoughts—Mike’s right, “ish.” I suggest all the IL claims adjusters who read this consider UR and IME’s to slow the unfettered level of medical care in some IL WC claims. I have one claim where Claimant got “trigger point” shots—what a complete hoot… Please UR requests for trigger point shots and discograms and medial branch blocks and other medical silliness.

6. Lawyer fees in almost every case cannot exceed 20% of what is recovered for you. Gene’s thoughts—yep.

7. Almost every case is worth something. Gene’s thoughts, as I said above, someday IL WC has to have a filing fee or something to slow the idea of having Claimant lawyers file completely hogwash claims and then try to get high nuisance value for baseless stuff.

8. What your case is worth depends on how severe your injury is, the treatment you have, your wages, your recovery, your age, the future treatment you might need and many other things. Gene’s thoughts—Mike is right a year ago and right now.

9. Once you settle, you typically lose your right to more medical care. Gene’s thoughts--That is how IL WC works. Mike is again correct.

10. If you go to trial and win, you get medical benefits as relates to that injury for life. Gene’s thoughts—see number 9 above.

I appreciate your thoughts and comments. Please post them on our award-winning blog.

12-14-2020; Trying to Make Sense of COVID -19 Vaccinations--Ending the Great Pandemic of 2020; IL WC Subro Reversal in "Litigation Hellhole" to Protect and Preserve Subro Concept and more

Synopsis: Trying to Make Sense of Covid-19 Vaccinations—Ending the Great Pandemic of 2020.

 

Editor’s comment: A Dozen Simple Common Sense Thoughts for U.S. Risk/HR managers, claims handlers and all our readers of the KCB&A Update.

 

  1. If you get the vaccine, you are going to be immune at a 19 out of 20 rate at least. Thousands of test cases were analyzed and considered.

  2. Please expect lots of government officials and other folks in the public eye to get the vaccination. Lots of folks may wait a month to be “safe” and insure they aren’t the first—that is fine but plan for the first shot in a month and get it!!

  3. “Immune” means you can’t get Covid-19 from others and they can’t get it from you! You need to continue precautions for a week or two after getting the first shot.

  4. You should strongly encourage EVERYONE in your workforce to get the shots, so all of your co-workers can’t get the virus and they can’t give it to others.

  5. The United States has already had 16M+ cases of COVID-19 with approximately 300K deaths—we can end this in about 60-90 days if we can, as a country, get folks to use these very-effective vaccines.

  6. You aren’t getting COVID-19 bugs injected into you if you get the vaccine—you are getting a very complex drug to kill and make you immune from the COVID-19 bug.

  7. COVID-19 vaccines will not cause you to test positive on COVID-19 viral tests, which are used to see if you have a current infection.

  8. If your body develops an immune response, which is the goal of vaccination, there is a possibility you may test positive on some antibody tests—you want to test positive for antibodies! Antibody tests indicate you had a previous infection and that you may have some level of protection against the virus.

  9. Due to the severe health risks associated with COVID-19 and the fact that re-infection with COVID-19 is possible, people may be advised to get the COVID-19 vaccine even if they have been sick and treated for COVID-19 before. At this time, experts do not know how long someone is protected from getting sick again after recovering from a bout with COVID-19. The immunity someone gains from having an infection, called natural immunity, varies from person to person. Some early evidence suggests natural immunity may not last very long. The CDC won’t know how long immunity produced by vaccination lasts until there is more data on how well it works. Until then, they are recommending EVERYONE 16 and over get the shot. (Pregnant ladies are supposed to talk to your doctor first).

  10. Receiving this mRNA vaccine will not alter your DNA—if you are being told that, the person saying it has no idea what they are talking about. Same for claiming there are “microchips” in the vaccine—what a hoot!!!

  11. Why two shots? Well, after the first shot, the scientists feel you are safe from Covid-19 in a week or so but the second shot greatly improves your lasting immunity. Yes, lots of folks skip the second shot which leaves them less safe. Don’t take a chance and be in the headlines. Get both shots and be super-safe!

  12. About 15% of folks experience soreness, fatigue, mild issues the day after the shots. Consider planning for a day off—or get the injection on a Friday!

 

My vote is every U.S. employer should engage in a program to encourage and cajole and inspire your workers to get the shots. Pay for the cost of the medicines if you have to. Bring vaccines and administering nurses or other medical personnel to your work places to make it easy on your workers. Have the company president and top managers get the shot to encourage others. Go back in a couple of weeks to encourage those who aren’t sure or want to wait.

 

Can We Force or Fire a Worker to Insure They Get the Shots?

 

As a veteran lawyer, I vote no. If you force or fire workers who won’t get the shots, they can

 

  • File an EEOC or IDHR beef against your company.

  • Directly sue in Circuit Court In Illinois or

  • Go through the EEOC or IDHR process that may result in a “right to sue” letter from the Feds or State.

 

If your company ends up in court in a fight over this issue, one of the unusual aspects of such litigation is, if Claimant is awarded a couple of bucks, you can owe all of their attorney’s fees and costs. Plaintiff attorney’s fees in such claims can be well into the hundreds of thousands of dollars. For that reason and various other reasons, I don’t feel comfortable telling clients and potential clients it is a good idea to fight with your workers to force them to be vaccinated.

For employees less likely to become infected or to infect others, employers should consider using the “carrot” approach rather than the “stick” approach. Such workers can and should be incentivized to be vaccinated as soon as possible. Suggested incentives can take the form of a reduction in health insurance premiums, cash bonus, time off work or something else of value to them. It may also be a good idea for your managers to let these employees know that, eventually, all of its workers may be required to be vaccinated to insure a safe and Covid-free workplace. For those employees who initially refuse the vaccine, employers should know passage of just a few weeks or a month will likely help so they can watch how public figures and friends react following inoculation. Once these recalcitrant employees see that their vaccinated co-workers, friends, and the vast majority of Americans (including former Presidents and their sports and entertainment idols) have suffered no significant ill-effects from the vaccine, then many of them will agree to be vaccinated. Of course, there may always be some employees who still refuse. It is a tough call to fire such workers for the reasons above—I vote no.

 

Please Learn About and Use V-SAFE

 

V-SAFE is a smartphone-based tool that uses text messaging and web surveys to provide personalized health check-ins after you receive a COVID-19 vaccination. Through V-SAFE, you can quickly tell CDC if you have any side effects after getting the COVID-19 vaccine. Depending on your answers, someone from CDC may call to check on you and get more information. Please register—for more info, go to this safe link: https://www.cdc.gov/coronavirus/2019-ncov/vaccines/safety/vsafe.html

 

Does the Employer Have WC Liability for Sickness/Injury Claims As a Result of the Shots?

 

As I have advised in the past, Illinois has an odd provision in our OccDisease Act that may mandate WC/OD coverage for sicknesses coming from the injections. Other states don’t appear to have such legislation.

 

In my view, I recommend you and your company try to be nice and pay for what you can to avoid creating an unnecessary WC/OD fight over what should be no more than a day or two of lost time. It might be a bigger issue if the worker has an unexpected allergic reaction to the injections—that is going to be hard to predict. But if we all take a responsible approach to the end of the pandemic, we are going to be asked to pay claims that technically might be defended. I feel many hearing officers across the U.S. are going to want employers to take care of their workers and I join with them to ask you to do so.

 

As you read this, there have been no reported deaths as a result of testing of any of the vaccines by Pfizer/BioNTech, Moderna or AstraZeneca. Most of the side effects of the three vaccines during testing have been mild and transitory. Why fight minor claims at the very end of this crisis? Let’s get healthy, dump the masks soon and go back to being a prosperous society!

 

I appreciate your thoughts and comments. Please post them on our award-winning blog.

 

Synopsis: Southern IL “Hellhole” Circuit Court Treats WC Intervenor as Party to Third-Party Claim and Gets Appellate “Smack Down.”

Editor’s comment: Please note the 5th District Courts in Illinois are wildly pro-Plaintiff Attorney and also hilariously anti-business. The American Tort Reform Association outlines their research on their website. If you want to read more about it, go to this safe link: http://www.judicialhellholes.org/hellhole/2020-2021/cook-madison-st-clair-counties-illinois/

What I find surprising is the Appellate Court in that area also seems to be very pro-Plaintiff Attorney but every now and then, they pull one back.

This decision reversed what I assure our readers was an “anti-business” action by the Circuit Court. The employer was seeking recovery of a WC lien in the amount of about $130,000.00. The estimated cost of discovery was about $200,000—this projected discovery cost was not contested by Plaintiff. Plaintiff’s counsel wanted to allow all plaintiffs in that area to make demands for expensive and extensive discovery on intervenors to fend them off and allow “double-recovery” where a WC claimant could get their medical, lost time and permanency benefits and not have to pay anything back if there was a substantial recovery in third party litigation. One purpose of subro is to prevent double-recovery. We salute the Appellate Court for maintaining the intent and purpose of subrogation recovery in IL WC and third-party actions.

In a recent decision in Burdess v. Cottrell, Inc., 2020 IL App (5th) 190279, issued Dec. 1, 2020, the Fifth District Appellate Court ruled an Illinois Circuit Court committed error when it found an intervening workers’ compensation insurer in contempt for failing to comply with various discovery orders in an underlying tort suit filed by an injured employee against a third party. The Appellate Court accurately ruled under section 5(b) of the Workers’ Compensation Act [820 ILCS 305/5(b)], intervenors were allowed a very limited role in such litigation. For that reason the appellate court concluded the insurer did not become an active “party” to the underlying litigation by simply intervening to protect its lien. As a result, most of the trial court’s discovery orders pertaining to the insurer were improper and the trial court’s sanctions for the insurer’s failure to comply with the discovery orders was also improper.

Legal Background

In April 2016, Plaintiffs, a husband and wife filed a seven-count complaint against Defendants, Cottrell, Inc., General Motors, LLC, and Auto Handling Corporation, seeking damages for work-related injuries Plaintiff sustained on April 28, 2014, when he fell from the deck of a vehicle transportation rig working for Jack Cooper Transport. In July 2018, the WC insurer, Continental Indemnity Co. sought to intervene for the purpose of securing their employer’s/insureds lien as provided in section 5(b) of the IL WC Act. The Circuit Court granted Continental’s motion for leave to file a petition to intervene, without objection. Continental subsequently entered its appearance as intervenor.

Soon thereafter, Plaintiffs’ counsel issued written interrogatories to Continental and a request for production of documents. Continental objected, contending its role as an intervenor was greatly limited. It acknowledged it was subject to the subpoena power of the circuit court and accordingly produced an electronic file containing materials related to the underlying workers’ compensation claim of the husband, along with an itemization of the workers’ compensation benefits—these benefits comprised the WC lien.

Plaintiffs moved to compel discovery and for sanctions for Continental’s failure to comply with the discovery requests. Thereafter, the Circuit Court entered an order granting Plaintiffs’ motion to compel, overruling Continental’s objections, ordering Continental to fully respond to the discovery within 14 days, and denying Plaintiffs’ request for sanctions. Subject to the nonparty objection, Continental answered 15 of the 16 interrogatories. Continental responded to 45 of the 48 requests to produce and asserted additional objections.

Continental asserted production requests required it to comb through thousands of claim files to determine which claims were similar to the injuries suffered by Plaintiff, a task that would require 1.5 hours per file to review and redact the protected information, for a total of 4950 hours at a cost of $50 per hour for a skilled individual, totaling over $200,000.

The Circuit Court denied Continental’s motion to quash to the extent that it sought to relieve Continental of the obligation to produce workers’ compensation claim forms and reports of injuries completed by supervisors and/or drivers and injury reports filled out by drivers and/or supervisors for injuries. Treating the matter as one of “friendly contempt,” the Circuit Court observed Continental’s refusal to comply with the order to produce the information, held Continental in contempt of court, and imposed a penalty of only $25 for its noncompliance. The purpose of “friendly contempt” was to allow the matter to be appealed for a ruling that I am outlining right now.

Fifth District Appellate Court’s Opinion

The Appellate Court held an intervenor such as Continental was not a “party” to the underlying litigation, that section 5(b) allowed for, but did not require intervention, and after intervention was allowed by a trial court, the intervening insurer was not allowed to participate in the trial. The Appellate Court ruling indicated the record reflected Continental’s purpose in filing its motion for friendly contempt was not to cause undue delay or to dishonor the court.

Insurer Had No Direct Stake in the Outcome

The Court stressed that because Continental was not a party to the underlying litigation, it was not subject to the discovery mandates. In short, for Continental or Jack Cooper Trucking to provide discovery was meaningless. As a result, the circuit court’s discovery orders were improper, as were the minimal but actual sanctions imposed in one of the orders. The Court found the sum of $200,000 to produce the workers’ compensation claims as requested by Plaintiffs was “substantial and disproportionate” to Continental’s lien amount of $128,897.79.

Based on the foregoing, the Court reversed the Circuit Court’s discovery orders in relevant part. Moreover, because the discovery orders were improper, the Court also reversed the order holding Continental in contempt of court for violating the discovery orders.

 

I appreciate your thoughts and comments. Please post them on our award-winning blog.