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Kearns v. Industrial Comm'n

Case Date: 03/06/2000
Court: Industrial Commission
Docket No: 1-98-0522WC

Kearns v. IC, Nos. 1-98-0522WC & 1-98-4243WC cons.

1st District, March 6, 2000

Industrial Commission Division

THOMAS KEARNS,

Appellant,

v.

THE INDUSTRIAL COMMISSION et al.

(Thomas Hlady, d/b/a Frank Goodness, Appellee).

 Appeal from the Circuit Court of Cook County.

Nos. 97-L-50571, 98-L-50183

Honorable John Ward, Joanne L. Lanigan, Judge, Presiding.

JUSTICE COLWELL delivered the opinion of the court:

Claimant, Thomas Kearns, obtained an arbitration award against respondent, Thomas Hlady d/b/a Frank Goodness, for injuries Kearns sustained while working for Hlady. Kearns subsequently filed with the Industrial Commission (Commission) a motion for attorney fees and penalties under sections 16 and 19(k) of the Workers Compensation Act (Act) (820 ILCS 305/16, 19(k) (West 1994)), alleging that Hlady unreasonably and vexatiously refused to pay the award. The Commission, however, found that Hlady's Chapter 7 bankruptcy discharge provided him with reasonable basis not to pay the award. In 97-L-50571, the circuit court of Cook County confirmed the Commission's decision, and Kearns appeals. Kearns also appeals from the circuit court's determination in 98-L-50183 that Kearns' workers' compensation claim against Hlady was discharged by the bankruptcy order.

We agree that Kearns' claim was discharged by the bankruptcy order and therefore affirm the orders of the circuit court.

I. FACTUAL AND PROCEDURAL BACKGROUND

Thomas Hlady was the sole proprietor of a fast food restaurant named Frank Goodness. On August 25, 1988, while working at the restaurant, Kearns was cut with a knife and sustained injuries to his left thumb. He filed an application for adjustment of claim on April 3, 1989, alleging that he suffered severed nerves, veins and tendons in his left hand as a result of the incident. On May 24, 1989, Kearns' attorney sent a certified letter to Hlady notifying him of the pending claim and of a June 6, 1989, arbitration hearing. The letter was sent to Hlady at 5206 West 159th Street, Oak Forest, Illinois, which was the restaurant's address. The return receipt of the letter was signed by "Mary Dwyer" and was dated June 2. Hlady, however, denies ever receiving the letter.

On November 6, 1989, Hlady filed for bankruptcy under Chapter 7 of the United States Bankruptcy Code (11 U.S.C.