McNamee v. Federated Equipment & Supply Co., Inc.McNamee v. Federated Equipment & Supply Co., Inc.
Lead Opinion
delivered the opinion of the court:
In Kotecki v. Cyclops Welding Corp.,
In this case, the question presented for review is whether the Kotecki cap limits a public employer’s third-party contribution liability to the amount of benefits paid to an injured firefighter under article XXII, division 3, of the Illinois Pension Code (
BACKGROUND
The City of Chicago (the City) moved to dismiss this issue pursuant to section 2 — 619(a)(9) of the Code of Civil Procedure (
The several complaints allege the following pertinent facts. In 1993, the Chicago fire department accepted a “Life Cube” from the product’s American distributor, defendant Federated Equipment & Supply Company, Inc. (hereinafter, Federated, also referred to in the record as FEDESCO). The Life Cube’s German manufacturer, defendant Deutsche Schlauchtboot Fabrik Hans Scheibert GmbH & Company, K.G. (hereinafter, DSB), had placed a German-language label on the рroduct warning that it was to be used solely to catch jumping or falling persons in emergency rescue situations and was not to be used for exercise, training, or sport jumping.
Federated replaced the Life Cube’s German-language warning label with a label, in English, warning that the product was to be used exclusively in emergency rescue situations. Federated also provided the fire department with literature containing various product information, instructions, and warnings. One warning repeated that the Life Cube was intended for use solely in emergency rescue operations in which there were no other means of egress and descent.
On November 22, 1993, Steven McNamee (decedent) was a fire department cadet firefighter at the Chicago Fire Academy. As part of a training exercise, decedent was ordered to jump from a height onto the Life Cube. Decedent jumped, but the product failed to properly support him, causing him to be fatally injured.
Decedent’s estate eventually filed a fourth-amended complaint in the circuit court of Cook County against DSB, Federated, and other corporations related to Federated. The complaint contains survival and wrongful-death counts, alleging negligence and product liability.
Federated then brоught a third-party contribution action against the City, pursuant to the Joint Tortfeasor Contribution Act (Contribution Act) (
The City moved to dismiss the third-party claims for unlimited contribution. See
The circuit court denied the City’s motion to dismiss, holding that the Kotecki cap did not limit the City’s third-party contribution liability to decedent’s Pension Code benefits. The circuit court subsequently certified the following question for interlocutory review (see 155 Ill. 2d R. 308):
“What limits on liability, if any, are there on the City of Chicago where it is sued as a third party defendant under the Contribution Act [citation], where the City paid and continues to pay benefits pursuant to the Pension Code [citations] to the plaintiff whose decedent was a firefighter.”
The appellate court upheld the circuit court. The appellate court held that “there
We allowed the City’s petition for leave to appeal. 166 Ill. 2d R. 315(a). We subsequently granted the Illinois Municipal League and the Illinois Governmental Association of Pools leave to file amicus curiae briefs in support of the City. 155 Ill. 2d R. 345. We now reverse the judgments below and remand the cause to the circuit court for further proceedings.
DISCUSSION
The City argues that Pension Code
Workers’ Compensation Act
“No common law or statutory right to recover damages from the employer *** for injury or death sustained by any employee while engaged in the line of his duty as such employee, other than the compensation herein provided, is available to any employee who is covered by the provisions of this Act *** or any one otherwise entitled to recover damages for such injury.”820 ILCS 305/5(a) (West 1996).
Section 11 of the Act further provides in pertinent part: “The compensatiоn herein provided, together with the provisions of this Act, shall be the measure of the responsibility of any employer *** for accidental injuries sustained by any employee arising out of and in the course of the employment according to the provisions of this Act ***.”
This court has explained the purposes of the Workers’ Compensation Act as follows:
“ ‘Pursuant to the statutory scheme implemented by the Act, the employee gave up his common law rights to sue his employer in tort, but recovery for injuries arising out of and in the course of his employment became automatic without regard to any fault on his part. The employеr, who gave up the right to plead the numerous common law defenses, was compelled to pay, but his liability became fixed under a strict and comprehensive statutory scheme, and was not subjected to the sympathies of jurors whose compassion for fellow employees often led to high recovery. [Citation.] This trade-off between employer and employee promoted the fundamental purpose of the Act, which was to afford protection to employees by providing them with prompt and equitable compensation for their injuries.’ ” Mitsuuchi v. City of Chicago,125 Ill. 2d 489 , 494 (1988), quoting Kelsay v. Motorola, Inc.,74 Ill. 2d 172 , 180-81 (1978); see M. Bilandic, Workers’ Compensation, Strict Liаbility, and Contribution in Illinois: A Century of Legal Progress?, 83 Ill. B.J. 292 (1995); 1 T. Angerstein, Illinois Workmen’s Compensation §§ 8, 9, 14, 15, 31 (rev. ed. 1952); 2 T. Angerstein, Illinois Workmen’s Compensation § 951 (rev. ed. 1952).
We note that
“an employee who has received compensation under the Act is required to reimburse the employer from any recovery the employee receives from a third party legally responsible for the employee’s injuries. The obligation is to reimburse for the full amount of benefits paid or payable by the employer and a lien in favor of the employer is provided upon any recovery by the employee for the amount of the benefits. [820 ILCS 305/5(b) (West 1996).] The employee is entitled to retain only that portion of a recovery from the tortfeasor which exceeds the benefits received under the Act from the employer.” Ullman v. Wolverine Insurance Co.,48 Ill. 2d 1 , 7 (1970).
In Kotecki, this court balanced these competing interests by holding that the third party may obtain contribution from the employer, but limited to the employer’s workers’ compensation liability. Kotecki,
Pension Code
Article XXII, division 3, of the Pension Code authorizes a municipality to enact an ordinance providing death and medical benefits for police officers and firefighters who are injured or killed while performing their duties.
Pension Code
“Whenever any city or village enаcts an ordinance pursuant to this Division, no common law or statutory right to recover damages against such city or village for injury or death sustained by any policeman or fireman while engaged in the line of his duty as such policeman or fireman, other than the payment of the allowances of money and of the medical care and hospital treatment provided in such ordinance, shall be available to any policeman or fireman who is covered by the provisions of such ordinance *** or to anyone who would otherwise be entitled to recover damages for such injury or death.”40 ILCS 5/22— 307 (West 1996).
As is readily apparent, the language of Pension Code
Kotecki
We agree with the City that Pension Code
“On the basis of аnalogy the interpretation of a doubtful statute may be influenced by language of other statutes which are not specifically related, but which apply to similar persons, things, or relationships. By referring to other similar legislation, a court is able to learn the purpose and course of legislation in general, and by transposing the clear intent expressed in one or several statutes to a similar statute of doubtful meaning, the court not only is able to give effect to the probable intent of the legislature, but also to establish a more uniform and harmonious system of law.” 2B N. Singer, Sutherland on Statutory Construction § 53.03, at 233 (5th ed. 1992).
Illinois courts have long recognized that the system for the compensation of injured, police officers and firefighters under article XXII, division 3, of the Pension Code is analogous to that established by the Workers’ Compensation Act. Mitsuuchi,
The appellate court did not consider these holdings to be relevant to the present case.
In addition to the largely identical language in these sections of the Pension Codе and the Workers’ Compensation Act, the purpose and operation of both statutes are identical. Both statutory schemes provide compensation on a no-fault basis to employees injured in the scope of their duties. In return, both statutory schemes sharply limit rights of action. And both statutes provide the employer with a statutory lien on a portion of the damages that an employee might obtain from a third party. So as the employer in Kotecki was entitled to the liability limitation that the Workers’ Compensation Act provided as a trade-off for the no-fault compensation scheme, the City is entitled to the Pension Code’s liability limitation because it participates in the no-fault compensation scheme under article XXII, division 3, of the Pension Code.
The appellate court stated several reasons to avoid this natural conclusion. These reasons are unpersuasive.
The appellate court noted that the liability limitation of Pension Code
First, citing the Contribution Act, the appellate court reasoned that a third-party contribution plaintiff does not “recover damages for such injury,” but rather is entitled to an apportionment of damages based on his or her pro rata share of the common liability.
The appellate court also noted that the current version of the Pension Code (1963 Ill. Laws 161) predates the availability of contribution among tortfeasors in Illinois (see Skinner v. Reed-Prentice Division Package Machinery Co.,
The appellate court’s interpretation of Pension Code
The appellate court’s conclusion that the liability limitation of Pension Code
The appellate court next found “crucial differences” between the plain language of the Pension Code and the Workers’ Compensation Act. To the appellate court, these differences were sufficient to preclude an application of Kotecki to article XXII, division 3, of the Pension Code.
The appellate court first noted that the Workers’ Compensation Act contains section 11, which provides that “[t]he compensation herein provided *** shall be the measurе of the responsibility of any employer.”
The appellate court’s dissection of-the Workers’ Compensation Act was erroneous. Generally, a court determines the legislative intent in enacting a statute by examining the entire statute and by construing each material part or section of the legislation together, and not each part or sеction alone. Castaneda v. Illinois Human Rights Comm’n,
The plain language of
We note that this court and commentators long have spoken of
The appellate court also misapprehended the plain language of Pension Code
The appellate court also concluded that a municipality’s lien rights under the Pension Code were so different from those under
The appellate court surmised that a private employer’s liability under the Workers’ Compensation Act could be much broader than a municipality’s limited lien under Pension Code
We conclude that the difference in the lien rights of
CONCLUSION
In sum, we answer the certified questiоn as follows. The benefit scheme in article XXII, division 3, of the Pension Code operates similarly to the workers’ compensation scheme:
“In the ordinary case, when an employee sustains injuries in the course of employment, the employer pays workers’ compensation benefits to the employee regardless of fault. If the employee thereafter successfully sues a third-party tortfeasor for his injuries, the employer has the right to recover workers’ compensation payments it made to the employee from the award the employee receives from the third-party tortfeasor. If the third pаrty brings a contribution action against the employer, the amount of contribution the employer must pay is limited to ‘an amount no greater than’ its workers’ compensation liability. (Kotecki v. Cyclops Welding Corp. (1991),146 Ill. 2d 155 , 157.) Ultimately, a negligent employer pays out no more than the amount it is obligated to pay under the workers’ compensation statute.” Schrock v. Shoemaker,159 Ill. 2d 533 , 542-43 (1994).
The statutory limit of the City’s liability is the “payment of the allowances of money and of the medical care and hospital treatment provided in [the City’s pension] ordinance” enacted pursuant to article XXII, division 3, of the Pension Code (
For the foregoing reasons, the judgments of the appellate court and the circuit court of Cook County are reversed, and the cause remanded to the circuit court for further proceedings consistent with this opinion.
Judgments reversed; cause remanded.
Dissenting Opinion
dissenting:
At issue in this case is the extent of the City of Chicago’s liability when it is sued as a third-party defendant in a contribution action related to a wrongful death suit brought on behalf of a firefighter killed in the line of duty. The majority opinion holds that the City of Chicago’s liability in contribution is limited to the amount of death and medical benefits it has paid to the firefighter’s survivors under the Illinois Pension Code (
The essence of the dilemma is this. If the City of Chicago (the City) is liable in contribution, the City might be forced to pay its employee, albeit indirectly through a third-party tortfeasor, an amount in excess of its liability under the Pension Code. If the City is not liable in contribution, a third-party stranger to the employee-employer relationship is made to bear the burden of a full common law judgment despite the possibility of greater fault on the part of the City. Thus, the third-party tortfeasor wоuld in effect be subsidizing the City’s pension system in a proportion greater than its own fault.
The City has an obvious interest in limiting its liability to the death and medical benefits required under the Pension Code. The employee has an interest in receiving full benefits under the Pension Code and, to the extent that a third party caused him injury, a common law recovery from that third party. In contrast, the third party’s interest is identical to that of any other joint tortfeasor, i.e., to limit its liability to no more than established fault. The majority’s answer to this quandary is to allow the third party to seek contribution from the City, but only to the extent of the death and medical benefits paid to the firefighter under the Pension Code. This rule, however, works a real inequity on the third party to the extent that it is forced to bear the burden of the plaintiffs recovery in an amount greater than its proportionate fault. The injured employee receives his assured compensation under the Pension Code as a substitute for a tort recovery against his employer, and the City limits its liability and is immune from suit from its employees. The only problem is that the third party — a stranger to the employee-employer bargain embodied in the Pension Code — must write the check for the difference.
Of course, the majority responds that this was precisely the same situation presented in Kotecki, the only difference being that Kotecki involved a private employer and this case involves a public employer. There are, however, two additional differences. First, the Kotecki holding rests on express language in the Workers’ Compensation Act to the effect that the statutory benefits provided thereunder were intended to be the full measure of an employer’s liability. Kotecki,
The Pension Code by its terms controls only the rights between the public employer and its employee. The right to contribution among tortfeasors was not even recognized at the time that the legislature adopted the Pension Code. See 1963 Ill. Laws 161 (adopting the Illinois Pension Code); Skinner v. Reed-Prentice Division Package Machinery Co.,
This situation requires legislation. It is ill-advised for a court to speculate about legislative intentions when the statute’s drafters were without the first notion of the current controversy. By attributing a nonexistent intent to the legislature that passed the Pension Code, the majority has “usurped the proper role and authority of the Illinois legislature.” Kotecki,
JUSTICE NICKELS joins in this dissent.