Nos. 105912, 105917 cons.    Ioerger v. Halverson Construction Co.

      Appellate citation: 377 Ill. App. 3d 223.

       JUSTICE KARMEIER delivered the judgment of the court, with opinion.

      Chief Justice Fitzgerald and Justices Freeman, Thomas, Garman, and Burke concurred in the judgment and opinion.

      Justice Kilbride dissented, with opinion.

      A joint venture consisting of two companies, Midwest Foundation and Halverson Construction, secured work on the McCluggage Bridge over the Illinois River in Peoria. An accident occurred in 2000 in which four Midwest employees fell into the river. Three were injured and one was killed.

      The joint venture agreement provided that workers’ compensation insurance would be handled by Midwest, which would obtain the insurance and pay for it. For this, it would be reimbursed by the joint venture. Midwest secured the insurance and paid the premiums. After the accident, benefits were paid.

      Suit was filed in the circuit court of Peoria County by the three injured individuals and on behalf of the decedent. It was undisputed that the workers’ compensation benefits paid had been these plaintiffs’ exclusive remedy as to Midwest. However, they named Halverson and the joint venture as defendants, claiming that the employers’ immunity provided by workers’ compensation law did not apply to these two defendants. The circuit court granted summary judgment in favor of the defendants, but the appellate court reversed.

      In this decision, the Illinois Supreme Court agreed with the circuit court and affirmed it. Noting that an employers’ workers’ compensation immunity extends to its agents, that joint ventures are governed by the law of partnership, and that partners are agents of the partnership and of one another for purposes of the business, the supreme court held that Halverson was Midwest’s agent and was thus entitled to invoke the same immunity as was afforded to Midwest. Likewise, the joint venture, which was inseparable from its constituent entitles, was entitled to the same immunity as Midwest and Halverson. This result is not affected by the timing of reimbursement to Midwest for paying premiums.