Borrowman V. Prastein

The claimant and his employer settled his workers’ compensation claim for $230,000.00. At the time the case was settled, claimant was pursuing a medical malpractice claim that related to the work related injury. Upon settlement of the medical malpractice claim, the employer filed a Motion to Adjudicate the Lien in Circuit Court. The Circuit Court held that the employer was entitled to be reimbursed $175,000.00 from the medical malpractice settlement. On appeal, the claimant argued that the Defendant was not entitled to reimbursement because the settlement contract concluded all issues for $230,000.00. The Appellate Court agreed finding that the employer’s failure to retain its lien rights in the settlement contract amounted to a waiver of its rights under Section 5(b).

Here is the information for this case: 356 Ill.App.3d 546, 826 N.E.2d 600, 292 Ill.Dec. 459 (4th Dist. 2005)