2021 IL App (1st) 200254
Ill. App. Ct.2021Background:
- Bulley & Andrews, LLC (Bulley LLC) contracted with South Riverside to be construction manager and was required to obtain insurance, including workers’ compensation covering the contractor, subcontractors, and anyone directly or indirectly employed by them.
- Bulley LLC procured a workers’ compensation policy (naming Bulley & Andrews Concrete Restoration, LLC — Bulley Concrete — among insureds) with a $250,000 deductible.
- Donovan Munoz, an employee of Bulley Concrete, injured his back on the project while moving waterlogged blankets placed over freshly poured concrete.
- Bulley LLC paid over $76,000 of Munoz’s medical bills pursuant to the policy and its contractual obligation to provide workers’ compensation coverage.
- Munoz sued Bulley LLC for negligence; Bulley LLC moved to dismiss under section 2‑619 asserting the Workers’ Compensation Act’s exclusive remedy barred the suit because Bulley LLC had a preexisting legal obligation and paid benefits.
- The circuit court granted dismissal with prejudice; Munoz appealed and the appellate court affirmed.
Issues:
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Bulley LLC is immune under the Workers’ Compensation Act’s exclusive remedy despite not being Munoz’s direct employer | Munoz: Bulley Concrete was his employer; Bulley LLC is not his employer, so the Act’s exclusive remedy does not bar his tort suit | Bulley LLC: Contractually obligated to procure/pay workers’ compensation for subcontractors and actually paid Munoz’s benefits, so the Act bars the tort suit | Court: Affirmed dismissal — Bulley LLC entitled to exclusive-remedy immunity because it had a preexisting legal/contractual obligation to provide/pay workers’ compensation and bore the cost |
Key Cases Cited
- Laffoon v. Bell & Zoller Coal Co., 65 Ill. 2d 437 (Ill. 1976) (general contractor not an injured worker’s employer for Act purposes merely because it paid benefits)
- Ioerger v. Halverson Construction Co., 232 Ill. 2d 196 (Ill. 2008) (party with a preexisting legal obligation to furnish workers’ compensation benefits may invoke Act immunity)
- Burge v. Exelon Generation Co., 2015 IL App (2d) 141090 (Ill. App. 2015) (payment of benefits alone is insufficient; must show a preexisting legal obligation to pay or reimburse)
- Folta v. Ferro Engineering, 2015 IL 118070 (Ill. 2015) (describes the Act’s exclusive-remedy "quid pro quo" framework)