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Dratewska-Zator v. Rutherford
996 N.E.2d 1151
Ill. App. Ct.
2013
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Background

  • In 2006 Dratewska-Zator was injured at work; her employer lacked workers’ compensation insurance, so the Illinois Injured Workers’ Benefit Fund (Fund) and the State Treasurer (ex officio custodian) were brought in as parties.
  • The Illinois Workers’ Compensation Commission (Commission) issued a final award in June 2011 awarding disability and medical benefits; the employer and Treasurer did not appeal.
  • The Commission later sent a letter and a partial payment, explaining the Department of Healthcare and Family Services (HFS) had paid the claimant’s medical bills and was directly reimbursed by the Fund; claimant received some payments but disputed the medical-expense portion.
  • Dratewska-Zator sued in circuit court: Count I sought judgment under 820 ILCS 305/19(g) against the Treasurer for the unpaid award; Counts II–III sought writs of mandamus against the Commission Chair and Commissioners to force payment of 100% of the award.
  • Defendants moved to dismiss under 735 ILCS 5/2-615 and 2-619: Treasurer argued sovereign immunity and that the Commission controls Fund disbursements; Chair/Commission argued failure to exhaust administrative remedies and lack of a clear right to the relief (risk of double recovery).
  • The trial court dismissed the amended complaint with prejudice; the appellate court affirmed, holding Count I barred by sovereign immunity and Counts II–III failed to allege a clear right to mandamus relief.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether Count I (judgment under §19(g)) is barred by sovereign immunity §19(g)’s “except in the case of a claim against the State” only applies to state employees; claimant can get a court judgment against the Treasurer to collect Fund monies State Lawsuit Immunity Act and §19(g) mean this is an action against the State; Fund disbursements are governed by §4(d) and the Commission’s annual pro rata determinations; judgment would interfere with State functions Dismissed: Claim against Treasurer is barred by sovereign immunity (action is against the State and relief would interfere with State functions)
Whether mandamus (Counts II–III) can compel Commission to pay full award Claimant has a right to full payment where Fund has sufficient monies for eligible claimants; Commission’s reimbursement to HFS was improper Commission has discretion and has already reimbursed HFS; awarding the claimant the same medical payments would create double recovery; claimant alleges no continuing liability for medical bills Dismissed: Mandamus denied — plaintiff failed to allege specific facts showing a clear right to the relief requested (risk of double recovery)
Whether section 4(d) Fund structure permits entry of judgment under §19(g) §4(d) does not convert Fund into State coffers for immunity purposes; claimant entitled to speedy §19(g) judgment §4(d) treats the Fund like State funds and requires annual pro rata disbursement; §19(g) judgment would conflict with statutory scheme Dismissed: Court held §4(d) and §19(g) conflict and §19(g) exception applies; judgment would control State action contrary to §4(d) scheme
Whether administrative-exhaustion doctrine bars mandamus Not necessary; claim is for ministerial payment Commission: administrative remedies and Commission’s exclusive jurisdiction under §18 Court did not reach exhaustion issue because mandamus failed on the clear-right requirement

Key Cases Cited

  • Healy v. Vaupel, 133 Ill. 2d 295 (court uses Healy factors to determine whether action is against the State)
  • Jinkins v. Lee, 209 Ill. 2d 320 (whether relief would control State action and implicate sovereign immunity)
  • State Building Venture v. O’Donnell, 239 Ill. 2d 151 (sovereign immunity protects State coffers and functions)
  • Ahlers v. Sears, Roebuck Co., 73 Ill. 2d 259 (purpose and limited scope of §19(g) entry of judgment)
  • Wilson v. Hoffman Group, Inc., 131 Ill. 2d 308 (Illinois law forbids double recovery)
  • Field v. Rollins, 156 Ill. App. 3d 786 (distinguished: garnishment/mandamus against fund administrator differs from seeking a judgment against the State)
Read the full case

Case Details

Case Name: Dratewska-Zator v. Rutherford
Court Name: Appellate Court of Illinois
Date Published: Sep 13, 2013
Citation: 996 N.E.2d 1151
Docket Number: 1-12-2699
Court Abbreviation: Ill. App. Ct.