Illinois state fund not responsible for payment of penalties, attorney's fees
The arbitrator and the Illinois Workers' Compensation Commission do not have authority to assess penalties and attorney's fees against the State Injured Workers' Benefit Fund. The fund's payment of penalties and attorney's fees would be contrary to the legislative intent and language of Section 4(c) of the WCA.
Case name: Walker v. Capitol Transport Inc., 16ILWCLB139 (Ill.W.C.Comm.2008).
Walker, an over-the-road truck driver, suffered serious injuries in a motor vehicle accident while delivering a load from California to Chicago. The Illinois Workers' Compensation Commission found that the employer clearly acted in an unreasonable and vexatious manner in not payng benefits. The employer did not pay benefits because it did not have workers' compensation insurance coverage. The State Injured Workers' Benefit Fund did not dispute that penalties and attorney's fees were warranted against the employer. Rather, the fund argued that it should not be liable because penalties and fees are not "benefits." The Illinois Workers' Compensation Commission agreed that the fund was not responsible for payment of penalties or attorney's fees, and as such would be contrary to the legislative intent and language of Section 4(c). Walker still has a valid award against the employer, and he can enforce that award for penalties and attorney's fees in the Circuit Court.
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