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Sheppard v. Rebidas12/9/2004
ponded to Sheppard's petition by claiming that the settlement contracts that it had entered with Sheppard were negotiated and resolved in "unity," such that the $50,000, though allocated in the settlement agreements to the October 17 accident, gave rise to a lien with regard to the December 21 accident. Sentry asserted:
"It will be demonstrated by [Sheppard's] own admission and in the facts at bar that [Sentry's] lien in the subject action pursuant to Section 5 includes the $50,000 permanent partial disability payment since said payment was made as a result of a surgical procedure on or about June 19, 2001, which is attributable to the December 21, 2000 accident rather than the October 17, 2000 accident."
On July 14, 2003, the parties settled part of their dispute, with Sheppard agreeing to reimburse Sentry for $19,523,37 in medical expenses. However, the dispute as to whether Sentry retained a $50,000 lien remained. The court held a hearing on the matter and considered the following evidence.
Kelly Kumm testified via evidence deposition that she was assigned to handle Sheppard's workers' compensation claims. Kumm further testified that, after negotiating with Dworkin, she authorized Sheppard's claims to be settled together for $50,000. She received the contracts from Dworkin in separate mailings months apart. On cross-examination, Kumm admitted that at the time that she handled the Sheppard matter, she understood the procedures by which workers' compensation claims were resolved in Illinois . Kumm stated that she was familiar with the type of settlement contract she signed on July 31, 2002, before she signed it. Kumm acknowledged that the contract, which was made in relation to the December 21 accident, neither made reference to the October 17 accident nor allocated payments for temporary total disability. The total amount of the settlement was $1. Kumm admitted that she was fully familiar with the significance of the settlement contract when she signed it.
Attorney Bradley Dworkin testified that he represented Sheppard in his workers' compensation cases. Sheppard's cases were settled through lump-sum settlement contracts and negotiations with the adjuster, Kumm, and were later approved by the Illinois Industrial Commission. Dworkin testified that the $50,000 settlement was for a single claim, and that the other two claims were settled for $1 each. Dworkin denied that the claims for the October 17 accident and the December 21 accident were settled together for $50,001. According to Dworkin, the different dates that appear next to Kumm's signatures on the two documents indicated to him that the contracts were negotiated at separate times. Dworkin further testified that the three claims were never consolidated before the Illinois Industrial Commission.
Sentry sought to admit into evidence a letter from Sheppard's counsel to Sentry's counsel indicating that they had settled the issue regarding the medical expenses for $19,523.37. Sentry withdrew the letter when Sheppard's counsel objected to its admission. Finding that the letter was relevant, the court nevertheless admitted it without objection from Sentry. The parties stipulated to the admission of the three settlement contracts.
On October 9, 2003, upon considering the evidence presented at trial, the trial court determined that Sentry did not have a lien on the settlement of the third-party action. The court found that the parties' dispute regarding the medical bills had been resolved, as evidenced by the letter between their attorneys. With regard to the alleged $50,000 lien, the court found that the claims had been settled and that Sentry was bound by the terms of the settlement contract.
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