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Illinois Tool Works12/31/2003
ity of Chicago paid the plaintiff $400,000 and assigned to the plaintiff its right to contribution against AAA Tree Service. Claudy, 169 Ill. 2d at 41. In addition, the workers' compensation lien in that matter was $102,876.09. Claudy, 169 Ill. 2d at 41.
The circuit court in Claudy then dismissed the contribution action against AAA Tree Service, which led to the appeal. Two issues were present before the supreme court: (1) whether a third-party complaint was assignable; and (2) whether there was a viable contribution action for the City of Chicago to assign to the plaintiff. The supreme court found that it did not have to decide the propriety of the assignment of the right to contribution because it found that the City of Chicago did not pay in excess of its pro rata share of the common liability:
" e observe that the record discloses that in reaching a settlement agreement the city and plaintiff agreed that $500,000 represented the plaintiff's damages. Thus, it necessarily follows that $500,000 is the common liability for purposes of the Contribution Act. 740 ILCS 100/2(b) (West 1992)." Claudy, 169 Ill. 2d at 43.
However, ITW argues that what is most relevant to the case at bar is the supreme court's calculation of each defendant's pro rata share of responsibility in Claudy:
"Had the city paid plaintiff the entire $500,000 common liability and then pursued its contribution action against the employer, the most the city could have hoped to recover from the employer in its contribution action would be $100,000, the amount of the workers' compensation award. In light of the contribution limitations of Kotecki, $500,000 less the maximum contribution of $100,000 from the employer constitutes the city's effective pro rata share. (Kotecki, 146 Ill. 2d at 165.) Of course, $500,000 less the anticipated contribution amount of $100,000 equals $400,000, the amount paid by the city to the plaintiff in full settlement of plaintiff's suit against the city.
Insofar as the city did not pay in excess of its effective pro rata share, it necessarily follows that it had no right to contribution to assign in the first place. (740 ILCS 100/2(b) (West 1992) ('right of contribution exists only in favor of a tortfeasor who has paid more than his pro rata share of the common liability').) Because the city had no right to contribution to assign, the purported assignment in the settlement agreement was void ab initio." Claudy, 169 Ill. 2d 44-45.
In a footnote, the supreme court elucidated its reasoning:
"If the city had paid plaintiff the whole $500,000 and then sought contribution from the employer, it would have been entitled to $100,000, but no more, so long as the contribution jury determined that the employer was at least 20% responsible for plaintiff's injuries, an assumption both plaintiff and the city shared in their negotiations. Indeed, while the city may ultimately be liable for in excess of $400,000 under this scenario, under no circumstances would its effective pro rata share be less than $400,000." Claudy, 169 Ill. 2d at 44 n.1.
ITW argues that while the circumstances in Claudy are not precisely similar to the case sub judice, it asserts that the supreme court made it clear than in determining a potential pro rata share of contribution to the defendant, the Kotecki cap serves to limit the percentage of liability that can be attributable to the Armando Lucas's employer. In other words, in Claudy, the plaintiff's employer could never be apportioned a pro rata share of liability in excess of 20% of the $500,000 settlement a
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