Home -> Law Blog Directory -> Disability Law Blogs -> Doherty & Progar Workers' Comp

OR PHONE (866) 635-1838 for Bankruptcy Help, (866) 635-6190 for Divorce,
(866) 635-2689 for Personal Injury or (866) 635-9402 for Criminal Defense

Find a Local Lawyer

Bankruptcy (866) 635-1838
Divorce (866) 635-6190
Personal Injury (866) 635-2689
Criminal Defense (866) 635-9402

Disability Law

: Doherty & Progar Workers' Comp

Settlement Agreement Did Not Waive Employer's Workers' Compensation Lien

By Michael Progar

ADVERTISEMENTS

In Gallagher v. Lenart, 226 Ill.2d 208, 874 N.E.2d 43 (2007), the Illinois Supreme Court held that the "full and final settlement of all claims" language contained in a workers' compensation settlement agreement did not operate as a waiver of the employer's lien under Section 5(b) of the Workers' Compensation Act. The court adopted an explicit-waiver rule requiring that any waiver of the workers' compensation lien must be explicitly stated, overruling Borrowman v. Prastein, 356 Ill.App.3d 546, 826 N.E.2d 600 (2005).

In connection with the settlement, however, the parties had also entered into a resignation agreement, which included a resolution of "any existing or potential disputes or claims arising out of Employee's relationship and separation with employer." Similarly, the court concluded that the language of the resignation agreement contained no specific reference to the employer's workers' compensation lien, and therefore was not sufficiently explicit to effectuate a waiver of the lien.

Full post as published by Doherty & Progar Workers' Comp on September 13, 2007 (boomark / email).