delivered the opinion of the court:
Thе plaintiff, William F. Page, brought an action in the circuit court of Douglas County against the defendants, Gene Hibbard and Freda Brookmeyer, to recover for personal injuries sustained in an automobile collision which occurred in the course of his employment by the Illinois Department оf Law Enforcement (Department). The Department intervened in the action, claiming a lien under section 5(b) of the Workers’ Compensation Act (Act) (Ill. Rev. Stat. 1985, ch. 48, par. 138.5(b)) on the' ground that it had paid the plaintiff $42,495.39 in workers’ compensation benefits and that under section 5(b) it was entitled to be reimbursed out of any judgment or settlement that the plaintiff obtained from the defendants. When the plaintiff and his wife, Barbara, who was not a party to the action, agreed upon a settlement with' the defendants for $24,000, the Department filed a motion for summary judgment, claiming that its lien attached to thе entire amount of the settlement. The trial court denied the motion, holding that Barbara Page was entitled to one-half of the settlement proceeds and that th.o- Ueoartment should be awarded the balance. The appellate
On May 2, 1981, while acting in his employment as a trooper of the Illinois Department of Law Enforcement, the plaintiff, William Page, was injured when a car driven by the defendant, Gene Hibbard, collided with his patrol car. The plaintiff brought an action in the circuit court of Douglas County against Hibbard and the owner of the car Hibbard was driving, Freda Brookmeyer. The Department intervened in the action, claiming the described lien in the amount of $42,495.39 on the proceeds of any settlement or judgment the plaintiff might obtain from the defendants. The Department alleged that it had paid the plaintiff that amount in workers’ compensation benefits as a result of his injury in the accident, and that pursuant to section 5(b) it had a right to be reimbursed for those payments out of any reсovery the plaintiff might secure from the defendants.
Section 5(b) of the Workers’ Compensation Act provides in part:
“(b) Where the injury or death for which compensation is payable under this Act was caused under circumstances creating a legal liability for damages on the part оf some person other than his employer to pay damages, then legal proceedings may be taken against such other person to recover damages notwithstanding such employer’s payment of or liability to pay compensation under this Act. In such case, howevеr, if the action against such other person is brought by the injured employee or his personal representative and judgment is obtained and paid, or settlement is made with such other person, either with or without suit, then from the amount received by such employee or personal reрresentative there shall be paid to the employer the amount of compensation paidor to be paid by him to such employee or personal representative including amounts paid or to be paid pursuant to paragraph (a) of Section 8 of this Act.
* * *
If thе injured employee or his personal representative agrees to receive compensation from the employer or accept from the employer any payment on account of such compensation, or to institute proceedings to recover the same, the employer may have or claim a lien upon any award, judgment or fund out of which such employee might be compensated from such third party.” Ill. Rev. Stat. 1985, ch. 48, par. 138.5(b).
The plaintiff and his wife, Barbara, who was not a party to the action, reached a settlemеnt with the defendants under which they agreed to release the defendants from all claims arising from the collision, including Mrs. Page’s claim for loss of consortium, in consideration for $24,000, the limits of the defendants’ liability insurance policy. In the terms of the release, $12,000 was designated as payment for Mrs. Page’s claim for loss of consortium, $6,000 as payment for Mr. Page’s pain and suffering and the balance as payment to Mr. Page for “all other elements of damage.” The Department consented to the release (see Ill. Rev. Stat. 1985, ch. 48, par. 138.5(b)) but objected to the proposеd distribution of the proceeds and filed a motion for summary judgment, claiming that it should be awarded the entire $24,000. The Department claimed that its lien attached to the entire recovery, notwithstanding the terms of the release.
The circuit court denied the Department’s motion, holding that Mrs. Pagе was entitled to $12,000 in consideration of the release of her claim for loss of consortium. The court rejected the plaintiff’s assertion that he was entitled to $6,000 for pain and suffering pursuant to the terms of the release and awarded the Department the remaining $12,000. (The plaintiff had аgreed that the
The plaintiff contends that the appellate court erred in holding that thе Department’s lien attached to all of the settlement proceeds. He argues that an employer’s right to be reimbursed for compensation paid under the Act to an injured employee is limited to that part of the employee’s recovery from the third-party tortfeаsor that represents payment for those elements of damages that are compensable under the Act, such as lost wages or medical expenses (see Ill. Rev. Stat. 1985, ch. 48, par. 138.8). Therefore, he contends, because the Department is not required under the Act to compensate him for pain and suffering or his spouse for loss of consortium, the Department cannot properly claim a lien on that part of the settlement proceeds that were intended to compensate him and his wife for those damages.
In construing statutory provisions, it is axiomatic that the court must “ascertain and give effect to the legislative intent.” (People v. Maya (1985),
We hold, as the majority of courts have held in interpreting similar provisions in workers’ compensation statutes, that an employer who has paid compensation to an injured employee under the Act is entitled to be reimbursed from the entire third-party recovery by the employee, though some or all of the recovery is comрensation for damages which are not compensable under the Act, such as pain and suffering. See 2A A. Larson, The Law of Workmen’s Compensation §74.35, at 14—476 (1982).
We consider, however, that the appellate court erred in holding that the Department was entitled to be reimbursed from that рortion of the settlement proceeds which compensated Mrs. Page for loss of consortium. The statute grants the employer a right of reimbursement out of “the amount received by such employee” in an action “brought by the injured employee or his personal
The plaintiff contends that permitting the Department to be reimbursed out of that part of the third-party recovery which was intended to compensate him for pain and suffering violates his due process and equal protection rights under the Constitution of the United States and the Constitution of Illinois. The plaintiff asserts that since he can receive no compensation for pain and suffering under the Act, the State cannot constitutionally
“By the Workmen’s Compensation Act, the legislature required the employer to give up certain defenses and required the employee to give up certain recoverable elements of damage of a common-law negligence action; and this we have held many times is a reasonable exercise of the legislature’s police power for the promotion of thegeneral welfare. [Citations.] This court has never considered one to have such a vested right in the common-law rules governing negligence actions as to preclude the legislature from substituting a statutory remedy of this type for the common-law remedy.” ( 9 Ill. 2d at 412 .)
See also Duley v. Caterpillar Tractor Co. (1969),
Under section 5(b) of the Workers’ Compensation Act, the Department is entitled to reimbursement for the workers’ compensation benefits it paid to the plaintiff out of that portion of the plaintiff’s third-pаrty recovery that was designated as compensation for pain and suffering but not out of that portion allocated to Mrs. Page’s claim for loss of consortium.
The Department contends further that its right to reimbursement cannot be measured by an agreement between the plaintiff аnd the third-party tortfeasor as to what part of the settlement shall be considered to be the recovery for loss of consortium. It says, citing Dearing v. Perry (Ind. App. 1986),
Reversed in part; affirmed in part; cause remanded.
