Plaintiff filed a breach of contract claim seeking to recover the costs of medical services and treatment the plaintiff provided to defendant’s employee. Plaintiff alleged that it was the intended third-party beneficiary to a settlement contract entered into by the employee and his employer pursuant to the Workers’ Compensation Act. Defendant filed a motion to dismiss and requested sanctions under SCR 137. The circuit court granted the motion to dismiss but denied the request for sanctions. Plaintiff appealed the dismissal and defendant cross-appealed the denial of sanctions. The appellate court affirmed, finding that prior court precedent established that the language of the Act does not permit health care providers to seek payment pursuant to a workers’ compensation award, judgment, or settlement. The appellate court further found that there was an insufficient record to consider the denial of sanctions. (McHANEY and VAUGHAN, concurring)
Illinois Appellate Court
Civil Court
Third Party Beneficiaries