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Penalties Anyone? Or, Justice Finally Served

Friday, January 6th, 2012

I recently obtained the following decision from the workers’ compensation division of the Illinois Appellate Court:

http://www.state.il.us/court/Opinions/WorkersComp/2011/November/3100807WC.pdf

The background of the case is that Peter Ferracuti won a permanent total disability award for our client, along with payment of all medical bills and off-work benefits.  The Arbitrator also awarded penalties against the employer for how they behaved during the claim.  The Commission upheld the award but reversed the Arbitrator on penalties.  The employer never appealed the Commission’s decision but we appealed on the penalties.  The employer then refused to pay our client any of the underlying award she was owed, including the weekly permanent disability benefits, for over two years while the original penalties issue was on appeal.  The employer’s attorney argued that until the total case was over it did not have to pay anything.

The Appellate Court strongly disagreed.  The bottom line from this case is that the employer is going to be liable for over $100,000 in penalties for non-payment.   Insurance companies play too many games and it is good to see when a flag finally gets thrown.   Hopefully the outcome will discourage other employers and insurance companies from repeating the same behavior.

– Thomas M. Strow, Attorney

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