Taylor v. Pekin Insurance Company

State: Illinois

Docket No: 105158 Rel

Case Date: 11/20/2008

Preview:Docket No. 105158.

IN THE SUPREME COURT OF THE STATE OF ILLINOIS

BILLY TAYLOR, Appellee, v. PEKIN INSURANCE COMPANY, Appellant. Opinion filed November 20, 2008.

JUSTICE BURKE delivered the judgment of the court, with opinion. Chief Justice Fitzgerald and Justices Freeman, Thomas, Kilbride, Garman, and Karmeier concurred in the judgment and opinion.

OPINION This case involves the application of section 5(b) of the Workers' Compensation Act (820 ILCS 305/5(b) (West 2006)), which grants an employer a lien on an employee's recovery against a third-party tortfeasor, up to the amount of the workers' compensation benefits paid to the employee. The second paragraph of section 5(b) requires the employer to pay the employee's attorney an attorney fee totaling 25% of the amount of the lien recovered by the employer. At issue here is whether the 25% fee provision applies where the employee has received benefits under the uninsured-motorist provision of his employer's automobile liability policy. We hold section 5(b) does not apply to the factual circumstances in the instant case.

BACKGROUND On August 4, 1999, plaintiff Billy Taylor was driving a vehicle in the course of his employment with Herr Funeral Home (Herr) when he was struck by James Gentry, an uninsured motorist. Herr insured its vehicles under an automobile liability policy issued by defendant Pekin Insurance Company (Pekin). Pekin also acted as Herr's workers' compensation insurance carrier. Plaintiff filed a claim under the Workers' Compensation Act (Act) and received $162,588.33 in workers' compensation benefits. Plaintiff then filed a claim under the uninsured-motorist provision of Herr's automobile policy. The parties chose arbitrators, who entered an award in favor of plaintiff in the amount of $250,000. Pekin delivered a check to plaintiff for $87,411.67

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