Court Opinion

ID: 9958347
Source: CourtListenerOpinion
Date Created: 2024-04-08 22:04:18.813717+00
Date Added: 2024-06-11T08:18:12.939958
License: Public Domain

2024 IL App (1st) 230996
                                              No. 1-23-0996
                                        Opinion filed April 8, 2024
                                                                                  FIRST DIVISION
     ______________________________________________________________________________

                                                  IN THE
                                 APPELLATE COURT OF ILLINOIS
                                            FIRST DISTRICT
     ______________________________________________________________________________
     PROXY SAUNDERS, as Independent Administrator for            )
     the Estate of Yvette Saunders, Deceased,                    )
                                                                 )
                          Plaintiff-Appellant,                   )
                                                                 )
         v.                                                      )
                                                                 )     Appeal from the
     SYMPHONY BEVERLY, LLC, an Illinois Limited                  )     Circuit Court of
     Liability Company d/b/a Symphony at 87th Street;            )     Cook County.
     MAESTRO CONSULTING SERVICES, LLC, an Illinois               )
     Limited Liability Company; LIFELINE AMBULANCE,              )     No. 19 L 9473
     LLC, an Illinois Limited Liability Company; OAK             )
     LAWN RESPIRATORY AND REHABILITATION                         )     The Honorable
     CENTER, LLC, an Illinois Limited Liability Company;         )     Karen L. O’Malley,
     INFINITY HEALTHCARE MANAGEMENT, LLC, an                     )     Judge Presiding.
     Illinois Limited Liability Company; OAK LAWN                )
     REALTY, LLC, an Illinois Limited Liability Company;         )
     VALERIE PERKOVIC; and AMBREN QURESHI,                       )
                                                                 )
                          Defendants,                            )
                                                                 )
     (Lifeline Ambulance, LLC, Defendant-Appellee).              )

                PRESIDING JUSTICE FITZGERALD SMITH delivered the judgment of the court,
     with opinion.
                Justices Lavin and Pucinski concurred in the judgment and opinion.

                                                 OPINION

¶1      Following the settlement of this case, which involved claims for wrongful death and personal
     No. 1-23-0996

     injury of a decedent, the plaintiff, Proxy Saunders, as Independent Administrator for the Estate of

     Yvette Saunders, Deceased, filed a motion under section 2-2301 of the Code of Civil Procedure

     (735 ILCS 5/2-2301 (West 2022)) seeking entry of judgment, costs, and interest against two

     settling defendants, Symphony Beverly, LLC, d/b/a Symphony at 87th Street (Symphony), and

     Lifeline Ambulance, LLC. The trial court denied that motion, reasoning that an order from the

     probate division approving a bond or other security required to administer the settlement and

     distribution was necessary before the defendants were required to tender settlement checks to the

     plaintiff. The plaintiff appeals this order, as well as an order denying a motion to reconsider. We

     affirm the judgment of the trial court.

¶2                                             I. BACKGROUND

¶3        In 2019, the plaintiff filed this action in the law division of the circuit court of Cook County

     against Symphony, Lifeline Ambulance, and nine additional defendants not involved in this

     appeal. Generally, the third amended complaint at law alleged that, prior to her death, Yvette

     Saunders had suffered falls and infections while a nursing-home resident at Symphony, which

     ultimately caused her death. It also alleged that Lifeline Ambulance delayed in transporting her

     for medical treatment, which also contributed to her injuries and death. The complaint asserted

     claims for personal injury to Yvette Saunders that survived her death (survival claims), as well as

     claims on behalf of her husband and next-of-kin under the Wrongful Death Act (740 ILCS

     180/0.01 et seq. (West 2018)) (wrongful death claims).

¶4        On August 11, 2022, the plaintiff filed a motion to approve a settlement totaling $195,000

     (with $100,000 to be paid by Symphony, $40,000 to be paid by Lifeline Ambulance, and $55,000

     to be paid by defendant Oak Lawn Respiratory and Rehabilitation Center, LLC). On August 18,

     2022, the trial court entered an order approving the settlement as fair and reasonable. However,

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     that order did not adjudicate liens, determine attorney compensation or expenses, or determine the

     net amounts distributable under the settlement. See Cook County Cir. Ct. R. 6.5(1)(a) (Sept. 29,

     2011). Accordingly, the plaintiff later filed a second motion that sought approval of the same

     settlement and to address these additional matters.

¶5        On February 17, 2023, the trial court entered a second order approving the above settlement

     as fair and reasonable, allowing attorney fees and litigation expenses, and adjudicating the liens

     and Medicare reimbursement. In that order, the trial court also allocated the settlement equally

     between the wrongful death claims and the survival claims, and it set forth the distribution of the

     proceeds for the wrongful death claims according to agreed degrees of dependency. The order also

     included a provision at paragraph 14 stating as follows:

                  “14. This order shall be effective only after the entry in the Probate Division of an

            order approving the bond or other security required to administer the settlement and

            distribution provided for in this order. The distribution shall be administered and accounted

            for in the Probate Division.”

     Finally, the action was dismissed with prejudice as to all defendants. The trial court retained

     jurisdiction to enforce the settlement.

¶6        On March 21, 2023, the plaintiff filed a motion under section 2-2301 of the Code of Civil

     Procedure (735 ILCS 5/2-2301 (West 2022)), alleging that over 30 days had passed since February

     17, 2023, and that the defendants had failed to pay the settlement moneys owed. In the motion, the

     plaintiff asserted that on October 14, 2022, a signed release had been sent to all defendants along

     with a letter from the plaintiff’s counsel agreeing to hold the full amount needed to satisfy all

     claimed liens in his client fund pending resolution of all liens. See id. § 2-2301(c)(2)(ii), (d). The

     motion also asserted that the “ ‘the court order approving the settlement’ ” had been entered on

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       February 17, 2023. See id. § 2-2301(b). The motion requested entry of judgment in the amount set

       forth in the release, plus costs and interest. See id. § 2-2301(e).

¶7          On March 23, 2023, Lifeline Ambulance filed a separate motion requesting that the trial court

       clarify whether its order of February 17, 2023, required the defendants to tender settlement checks

       prior to the plaintiff obtaining an order from the probate division as contemplated by paragraph 14

       of that order. The motion by Lifeline Ambulance stated that the plaintiff had not yet taken action

       in the probate division to finalize the settlement, nor had the probate division entered an order

       approving the settlement.

¶8          On March 30, 2023, the trial court entered an order denying the plaintiff’s motion for relief

       under section 2-2301. That order reiterated that the February 17, 2023, order was effective only

       after entry in the probate division of an order approving the bond or other security required to

       administer the settlement and distribution provided for in that order. It further ordered the

       defendants to tender settlement checks within 30 days after entry of an order in the probate division

       approving the settlement and distribution, along with the tendering of all settlement documents by

       the plaintiff.

¶9          On April 27, 2023, the plaintiff filed a motion to reconsider the order of March 30, 2023. In

       pertinent part, the plaintiff argued that section 2-2301 controlled over the procedures adopted by

       the circuit court of Cook County for the disposition of actions involving wrongful death claims

       and survival claims. No written response was filed. On May 4, 2023, the trial court entered an

       order denying the plaintiff’s motion to reconsider. That order further directed the plaintiff to

       “initial any modifications made to the release” and to “provide a corrected version of the hold

       harmless letter within seven (7) days.” The plaintiff thereafter filed a notice of appeal.

¶ 10                                              II. ANALYSIS

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¶ 11        On appeal, the plaintiff argues that the trial court erred by denying relief under section 2-

       2301 of the Code of Civil Procedure. Id. § 2-2301. The plaintiff argues that the trial court

       misinterpreted that statute by conditioning the defendants’ requirement to tender settlement checks

       upon the plaintiff’s obtaining of an order from the probate division approving a bond or other

       security required to administer the settlement and distribution. The plaintiff argues that by doing

       so, the trial court improperly added a requirement not enumerated in the statute.

¶ 12        Preliminarily, Lifeline Ambulance urges this court to affirm on the basis that the record on

       appeal is insufficient to show that the plaintiff complied with all other requirements of section 2-

       2301. Specifically, it points out that the order of May 4, 2023, suggests that the plaintiff had failed

       to submit a finalized release or a hold-harmless letter as of that date. While we agree with Lifeline

       Ambulance that the record on appeal is likely inadequate to support the full relief requested by the

       plaintiff, we decline to affirm based on an insufficient record alone. The argument raised by the

       plaintiff is one that warrants consideration by this court.

¶ 13        The plaintiff’s argument implicates principles of statutory interpretation. The primary

       objective of statutory interpretation is to ascertain and give effect to legislative intent. Accettura v.

       Vacationland, Inc., 2019 IL 124285, ¶ 11. The most reliable indicator of the legislature’s intent is

       the statutory language itself, given its plain and ordinary meaning. Id. In interpreting that statutory

       language, words and phrases must not be considered in isolation. Relf v. Shatayeva, 2013 IL

       114925, ¶ 23. Instead, the language of each section of the statute must be examined in light of the

       statute as a whole and interpreted in conjunction with other statutes touching upon the same or

       related subjects. Id. (citing Carter v. SSC Odin Operating Co., 2012 IL 113204, ¶ 37). The court

       may also consider the reason for the law, the problems sought to be remedied, the purposes to be

       achieved, and the consequences of interpreting the statute one way or another. Chapman v.

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       No. 1-23-0996

       Chicago Department of Finance, 2023 IL 128300, ¶ 28. Issues involving statutory interpretation

       are reviewed de novo. Id.

¶ 14        Section 2-2301 of the Code of Civil Procedure (735 ILCS 5/2-2301 (West 2022)) establishes

       procedures for the timely exchange of releases and other documents needed to finalize and pay

       settlements in personal injury, property damage, wrongful death, and tort actions involving claims

       for money damages. Subsections (a) through (e) of that statute provide:

                   “(a) In a personal injury, property damage, wrongful death, or tort action involving a

              claim for money damages, a release must be tendered to the plaintiff by the settling

              defendant within 14 days of written confirmation of the settlement. Written confirmation

              includes all communication by written means.

                   (b) In a personal injury, property damage, wrongful death, or tort action involving a

              claim for money damages in which the law requires court approval of a settlement, the

              plaintiff shall tender to the defendant a copy of the court order approving the settlement.

                   (c) In a personal injury, property damage, wrongful death, or tort action involving a

              claim for money damages in which there is a known third-party right of recovery or

              subrogation interest (including attorney’s liens, healthcare provider liens, or rights of

              recovery claimed by Medicare, the Centers for Medicare and Medicaid Services, the

              Illinois Department of Healthcare and Family Services, or private health insurance

              companies), the plaintiff may protect the third-party’s right of recovery or subrogation

              interest, where applicable, by tendering to the defendant:

                           (1) A signed release of the attorney’s lien.

                           (2) Either:

                                   (i) a signed release of a healthcare provider lien; or

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No. 1-23-0996

                       (ii) a letter from the plaintiff’s attorney agreeing to hold the full

                  amount of the claimed lien in the plaintiff’s attorney’s client fund account

                  pending final resolution of the lien amount; or

                       (iii) an offer that the defendant hold the full amount of the claimed

                  right to recovery pending final resolution of the amount of the right of

                  recovery; or

                       (iv) documentation of any other method of resolution of the liens as

                  agreed by the parties.

                (3) Either:

                       (i) documentation of the agreement between the plaintiff and

                  Medicare, the Centers for Medicare and Medicaid Services, the Illinois

                  Department of Healthcare and Family Services, or the private health

                  insurance company as to the amount of the settlement that will be accepted

                  in satisfaction of right of recovery; or

                       (ii) a letter from the plaintiff’s attorney agreeing to hold the full

                  amount of the claimed right to recovery in the plaintiff’s attorney’s client

                  fund account pending final resolution of the amount of the right to recovery;

                  or

                       (iii) an offer that the defendant hold the full amount of the claimed

                  right to recovery pending final resolution of the amount of the right of

                  recovery; or

                       (iv) documentation of any other method of resolution of the liens as

                  agreed by the parties.

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       No. 1-23-0996

                    (d) A settling defendant shall pay all sums due to the plaintiff within 30 days of tender

              by the plaintiff of the executed release and all applicable documents in compliance with

              subsections (a), (b), and (c) of this Section.

                    (e) If, after a hearing, the court having jurisdiction over the parties finds that timely

              payment has not been made by a defendant pursuant to subsection (d) of this Section,

              judgment shall be entered against that defendant for the amount set forth in the executed

              release, plus costs incurred in obtaining the judgment and interest at the rate specified under

              Section 2-1303 of this Code, calculated from the date of the tender by the plaintiff under

              subsection (d) of this Section.” Id. § 2-2301(a)-(e).

¶ 15        The plaintiff argues that, according to the above statutory framework, the defendants’ duty

       to issue settlement checks within 30 days was triggered by the plaintiff’s tendering of (1) the

       executed release, (2) applicable lien documentation, and (3) the order of February 17, 2023, which

       stated that the settlement is “fair and reasonable and approved.” The plaintiff argues that the trial

       court misinterpreted section 2-2301 by conditioning her right to receive the settlement funds on a

       fourth requirement—the entry of an order from the probate division approving the bond or other

       security required to administer and distribute the settlement. The plaintiff argues that nothing in

       the plain language of section 2-2301 contemplates the approval of a bond or other security as a

       component of the approval of a settlement. The plaintiff asserts that bond requirements have their

       place in the administration and distribution of settlement proceeds in decedents’ estates, but

       conditioning the payment of a settlement on the securing of a bond impermissibly adds a factor to

       the enumerated requirements for prompt payment in section 2-2301.

¶ 16        We reject the plaintiff’s argument that the trial court erred or misinterpreted section 2-2301

       by conditioning the defendants’ obligation to pay the settlement funds upon the plaintiff obtaining

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       an order from the probate division approving a bond or other security required to administer the

       settlement and distribution provided for in its order approving settlement. Although we recognize

       that section 2-2301 does not expressly address the requirement that a plaintiff acting as the

       representative of a decedent’s estate obtain court approval of a bond prior to receiving the proceeds

       of a settlement, such requirement is addressed by certain provisions of the Probate Act of 1975

       (Probate Act) (755 ILCS 5/1-1 et seq. (West 2022)).

¶ 17        Section 2-12(a) of the Probate Act requires that every individual undertaking the duties of a

       representative shall file in and have approved by the court a bond. Id. § 12-2(a). Section 12-5(a)

       of the Probate Act establishes the amount of that bond, requiring it to be for an amount that is

       either double or 1½ times the value of the personal estate, depending on the type of surety involved.

       Id. § 12-5(a). Section 12-5(b) of the Probate Act then establishes the requirement for filing and

       obtaining court approval of a bond reflective of the amount of an anticipated settlement:

                    “For the purpose of fixing the amount of the bond, a cause of action for wrongful

              death of the decedent or for personal injury to the ward is considered of the value of $500,

              but unless excused by the court from doing so, it is the duty of the representative to file in

              and have approved by the court a bond for an amount not less than double the amount likely

              to come into his hands as the proceeds of the judgment or settlement if individuals act as

              sureties and not less than 1½ times the amount likely to come into his hands as the proceeds

              of the judgment or settlement if a surety company acts as surety.” Id. § 12-5(b).

¶ 18        As the representative of a decedent’s estate in this case, the plaintiff has a duty under section

       12-5(b) of the Probate Act “to file in and have approved by the court a bond for an amount” that,

       depending on the surety, is either double or 1½ times the amount “likely to come into [her] hands

       as the proceeds of the *** settlement.” Id. This requirement is phrased in a way that makes clear

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       that the duty is to file in and obtain court approval of the bond before the settlement proceeds

       “come into [the representative’s] hands.” Id.

¶ 19        These provisions of the Probate Act have long been part of Illinois law, and we presume that

       the General Assembly was aware of them in 2014 when it enacted section 2-2301. See Illinois

       Native American Bar Ass’n v. University of Illinois, 368 Ill. App. 3d 321, 327-28 (2006) (“We

       presume the legislature is aware of all previous enactments when it enacts new legislation.”).

       Further, obtaining an order from the probate division approving a bond or other security in

       connection with a settlement is not an onerous requirement. In most cases, it can be accomplished

       well within 30 days of an order otherwise approving the settlement. Accordingly, we do not find

       this requirement to be inconsistent with either the plain language of section 2-2301 or its purpose

       of ensuring that settlements are satisfied promptly. The fact that section 2-2301 does not expressly

       address this topic does not indicate to us that the General Assembly intended that a plaintiff acting

       as representative of a decedent’s estate can receive settlement proceeds without an appropriate

       bond being approved by the court.

¶ 20        Given this interpretation, we also reject the argument raised by the plaintiff that section 2-

       2301 is in conflict with the requirements of Rule 6.5 of the Circuit Court of Cook County (Cook

       County Cir. Ct. R. 6.5 (eff. Sept. 29, 2011)), which sets forth procedures to finalize a settlement in

       cases involving actions for wrongful death or for personal injury brought by a representative on

       behalf of a decedent’s estate. 1 Rule 6.5(1)(a) contemplates that the judge hearing the case (i.e., in

       the law division or municipal department) makes the finding approving the settlement as fair and

       reasonable, as well as other findings concerning liens, attorney fees, and distributions. Cook

               1
                 The role of the probate division in actions for wrongful death or personal injury to a decedent is
       also addressed in Rule 12.15 of the Circuit Court of Cook County (Cook County Cir. Ct. R. 12.15 (eff. Sept.
       29, 2011)).

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       No. 1-23-0996

       County Cir. Ct. R. 6.5(1)(a) (eff. Sept. 29, 2011). Rule 6.5(1)(e) and (f) provide as follows:

                    “(e) The order approving the settlement *** shall provide that the amount

              distributable to the representative appointed by the Probate Division as an asset of the

              decedent’s estate or for distribution under the Wrongful Death Act shall be paid only upon

              the presentation of an order entered in the Probate Division authorizing the representative

              to receive the distributable amount and approving the bond or other security required in the

              connection therewith.

                    (f) Upon the entry of the order approving the settlement ***, the representative shall

              file a petition in the Probate Division requesting the entry of an order authorizing the

              representative to accept the distributable amount and fixing and approving the bond or

              other security required pursuant to the settlement ***. A copy of the order of the judge

              hearing the case shall be attached to the petition.” Cook County Cir. Ct. R. 6.5(1)(e), (f)

              (eff. Sept. 29, 2011).

¶ 21        The above subparagraphs of Rule 6.5 exist in part to ensure that parties settling an action

       brought by a representative of a decedent’s estate comply with the requirement of section 12-5(b)

       of the Probate Act to obtain court approval of a bond in the requisite amount before such settlement

       proceeds come into the hands of the representative. 755 ILCS 5/12-5(b) (West 2022). As we have

       held that this requirement is not inconsistent with section 2-2301, we likewise conclude that Rule

       6.5 is not in conflict with the requirements of section 2-2301.

¶ 22        Finally, the plaintiff makes a brief argument in support of treating the portion of the

       settlement allocated to the wrongful death claims differently than the portion allocated to the

       survival claims, for purposes of conditioning payment of the settlement on the probate division’s

       approval of a bond. The plaintiff cites the principle that amounts recovered in actions under the

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       No. 1-23-0996

       Wrongful Death Act are not true assets of a decedent’s estate or subject to the provisions of the

       Probate Act. See Carter, 2012 IL 113204, ¶¶ 39, 42. However, for purposes of applying section 2-

       2301 of the Code of Civil Procedure (735 ILCS 5/2-2301 (West 2022)), we find no basis for

       treating portions of a settlement allocated to wrongful death claims differently than portions

       allocated to survival claims, where all such claims are brought by a plaintiff acting in the capacity

       of the representative of the decedent’s estate under authority derived from the Probate Act. Where

       a plaintiff relies on the Probate Act as the source of authority to prosecute the claim, the

       requirements of obtaining court approval of a bond prior to receiving a settlement applies to

       wrongful death claims. See 755 ILCS 5/12-5(b) (West 2022).

¶ 23                                           III. CONCLUSION

¶ 24        For the foregoing reasons, the judgment of the trial court is affirmed.

¶ 25        Affirmed.

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No. 1-23-0996

                Saunders v. Symphony Beverly, LLC, 2024 IL App (1st) 230996

Decision Under Review:        Appeal from the Circuit Court of Cook County, No. 19-L-9473;
                              the Hon. Karen L. O’Malley, Judge, presiding.

Attorneys                     Yao O. Dinizulu, of Dinizulu Law Group, Ltd., of Chicago, for
for                           appellant.
Appellant:

Attorneys                     Michael Resis and Lew R.C. Bricker, of Amundsen Davis, LLC,
for                           of Chicago, for appellee.
Appellee:

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