Lambright v. The Ill. Workers' Comp. Comm'n
| Decision Date | 16 December 2022 |
| Docket Number | 4-21-0666WC |
| Citation | 2022 IL App (4th) 210666 WCU |
| Parties | ELSIE LAMBRIGHT and ELSIE LAMBRIGHT d/b/a LAMBRIGHT DISTRIBUTORS, Appellees, v. THE ILLINOIS WORKERS' COMPENSATION COMMISSION, et al. (Illinois State Treasurer, as Ex-Officio Custodian of the Injured Workers' Benefit Fund and Adlai V. Miller, Appellants). |
| Court | United States Appellate Court of Illinois |
This order was filed under Supreme Court Rule 23(b) and is not precedent except in the limited circumstances allowed under Rule 23(e)(1).
Appeal from the Circuit Court of Douglas County.No. 20-MR-5 Honorable Richard Broch, Judge, Presiding.
ORDER
¶ 1 Held: (1) "Payment Contract" entered into to settle a notice of non-compliance action filed by the Commission for the failure to maintain workers' compensation insurance coverage was not dispositive of whether widow of deceased business owner held an ownership interest in deceased husband's business on the date of claimant's work accident; (2) the Illinois Workers' Compensation Commission's finding that widow of deceased business owner held an ownership interest in deceased husband's business on the date of claimant's work accident was against the manifest weight of the evidence; and (3) in the absence of a final award for benefits from the Commission against claimant's employer the trial court properly dismissed the Illinois State Treasurer, as Ex-Officio Custodian of the Injured Workers' Benefit Fund, as a party. Affirmed.
¶ 3 Claimant, Adlai V. Miller, appeals from an order of the circuit court of Douglas County that set aside a decision of the Illinois Workers' Compensation Commission (Commission) awarding him benefits pursuant to the Workers' Compensation Act (Act) (820 ILCS 305/1 et seq. (West 2012)) and dismissed the Illinois State Treasurer (Treasurer), as Ex-Officio Custodian of the Injured Workers' Benefit Fund (Fund), as a party in this case. For the reasons set forth below, we affirm the judgment of the circuit court.
¶ 5 In January 2012, Vernon Lambright (Vernon) hired claimant to work for Lambright Distributors, a manufacturer of refrigeration units. On June 29, 2012, claimant was operating a forklift to unload a refrigerator unit from the back of a pickup truck when the forklift tipped over. As claimant attempted to exit the overturned forklift, a steel plate sliced into his right ankle. Claimant sustained a comminuted fracture to his distal tibia and fibula. Medical complications eventually led to a below-the-knee amputation of claimant's right leg.
¶ 6 On July 30, 2012, claimant filed an application for adjustment of claim seeking benefits from Lambright Distributors for the injuries he sustained on June 29, 2012. After claimant filed his application for adjustment of claim it was discovered that Lambright Distributors did not have workers' compensation insurance coverage on the date of the alleged work accident. The lack of insurance coverage coupled with Vernon's subsequent death resulted in claimant amending his application for adjustment of claim multiple times. The following table provides a timeline of the events relevant to this appeal:
DATE
EVENT
June 29, 2012
Claimant is injured.
Claimant files his initial application for adjustment of claim, naming Lambright Distributors as the employer/respondent.
Claimant and Vernon sign a “Mutual Release” to “resolve all disputes between them arising out of a forklift accident which occurred on June 29th, 2012.”
Claimant files an amended application for adjustment of claim, naming Lambright Distributors and the State Treasurer and Ex-Officio Custodian of the Injured Workers' Benefit Fund as the employer/respondents.
Vernon dies. Vernon is survived by his wife, Elsie Lambright (Elsie), and several children, including Harold Lambright (Harold).
Elsie signs a “Payment Contract” to settle a notice of non-compliance action filed by the Commission for the failure to maintain workers' compensation insurance coverage. The Payment Contract designates “Vernon Lambright (deceased) and Elsie Lambright, individually and as owner of Trailer Refrigeration, Inc. and as owner of Lambright Distributors” as the “Employer.”
Claimant files a second amended application for adjustment of claim, naming Vernon M. Lambright, Vernon M. Lambright d/b/a Lambright Distributors, Lambright Distributors, and the State Treasurer and Ex- Officio Custodian of the Injured Workers' Benefit Fund as the employers/respondents.
Claimant files a third amended application for adjustment of claim, naming Lambright Distributors, Harold Lambright, Harold Lambright d/b/a Lambright Distributors, Vernon Lambright, Vernon Lambright d/b/a Lambright Distributors, and the Illinois State Treasurer and Ex- Officio Custodian of the Injured Workers' Benefit Fund as the employers/respondents.
Claimant files a fourth amended application for adjustment of claim, naming Lambright Distributors Harold Lambright, Harold Lambright d/b/a Lambright Distributors, Vernon Lambright (deceased), Elsie Lambright, Elsie Lambright d/b/a Lambright Distributors, Trailer Refrigeration, Inc., Elsie Lambright d/b/a Trailer Refrigeration, Inc., and the Illinois State Treasurer and Ex-Officio Custodian of the Injured Workers' Benefit Fund as employers/respondents.
¶ 7 The matter was heard by arbitrator Christina Hemenway on January 16, 2019. Prior to the arbitration hearing, claimant filed a petition for attorney fees and penalties pursuant to sections 16, 19(k), and 19(1) of the Act (820 ILCS 305/16, 19(k), 19(1) (West 2012)). In addition, Elsie, Harold, and Trailer Refrigeration filed a motion to dismiss. They argued that any alleged claim against them is barred by section 6(d) of the Act (820 ILCS 305/6(d) (West 2012)) because claimant did not file his application against them within the applicable statute of limitations. The arbitrator took the motion to dismiss with the case.
¶ 8 At the beginning of the arbitration hearing, the arbitrator announced that the Treasurer was represented by a lawyer from the Attorney General's office and the remaining respondents, with the exception of Vernon, were represented by attorney Brent Holmes. The arbitrator noted that Vernon had no representation at the hearing. In response, Holmes commented that Vernon had died on June 1, 2015, and no estate had been opened for him. Holmes stated that he cannot represent a deceased person and that he does not purport to represent "Vernon Lambright, doing business as Lambright Distributors." Thereafter, the following evidence relevant to the issues raised on appeal was presented at the arbitration hearing.
¶ 9 Claimant testified that on the date of the accident he worked" [f]or Vernon Lambright" at Lambright Distributors. Claimant stated that he began working for Lambright Distributors in January 2012 after Vernon asked him to drive trucks for the business. According to claimant, Vernon would not drive automobiles himself because, as a member of the Amish community, driving was against his personal beliefs. Claimant further testified that after driving a truck for two months, he began working in the shop. His work in the shop consisted of a variety of mechanic-type and warehouse duties, including, but not limited to (1) operating gasoline-powered vacuum pumps, (2) cleaning and refurbishing refrigeration units, (3) changing valves, (4) loading and unloading trucks, and (5) operating "SkyTraks" and forklifts. Lambright Distributors supplied all tools and equipment used in the performance of claimant's work duties. At the time claimant worked for Lambright Distributors, the business had four or five other employees, including members of the Lambright family.
¶ 10 Claimant testified that when he arrived at work each day, Vernon gave him instructions on what to do. Vernon also instructed claimant regarding his work hours. Claimant reported the hours he worked to Vernon. Claimant testified that he received his paycheck from Vernon and that Vernon signed each paycheck he received. Claimant identified several paystubs from his employment, which were admitted into evidence. Claimant observed that the name "Lambright Distributors" was printed at the top of each paystub. The following language appeared at the bottom of each paystub: "Lambright Distributors, 35E CR 200N, Arthur, IL 61911, VERNON LAMBRIGHT." Claimant's W-2 form for 2012 was also admitted into evidence. On the W-2 form, the employer's name and address were listed as "Vernon Lambright, Lambright Distributors, 35E CR 200N, Arthur, IL 61911."
¶ 11 On cross-examination by Holmes, claimant agreed that he worked for Vernon, that Lambright Distributors was Vernon's business, and that Vernon was the sole owner of Lambright Distributors. Claimant stated that he never worked for Elsie, Harold, or Trailer Refrigeration. Claimant further testified on cross-examination that on February 26, 2013 following the amputation of his right leg, he and Vernon signed a document entitled "Mutual Release." Claimant noted that the first paragraph of the Mutual Release stated that he and Vernon wished "to resolve all disputes between them arising out of a forklift accident that occurred on June 29th, 2012." In relation to signing the Mutual Release, claimant again acknowledged that Vernon was his employer on the date of the accident. Claimant noted that Elsie also signed the Mutual Release as a witness to Vernon's...
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