LEOPOLD ., COHEN IRON Co. ACORPORATION, Claimant, v. STATE OF ILLINOIS, Respondent
Case summary
Claimant deposited $500 with the Illinois Industrial Commission as a self-insurer guarantee under the Workmen's Compensation Act. The money was converted by a Commission employee. The court awarded $500, following precedent in J. Roy Browning v. State of Illinois.
Statutes cited: Illinois Revised Statutes 1941, Chap. 48, par. 172.26
Cases cited: Pinkerton's Nat. Detective Agency vs. Fidelity & Deposit Co., 138 Fed. 2d. 469; J. Roy Browning vs. State of Illinois, No. 3788
AI-generated summary from the opinion text — may contain errors. The opinion text and PDF above are the official record.
Headnotes
- ILLINOIS INDUSTRIAL COMMISSION-WORKXEN’S COMPENSATION ACT’ agreement whereby clainaaitt deposited with Illinois Industrial Commission certain Sums of mone? as provided for in Workmen’s Compensation
- Act-in order t o qualify as a self-insurer under said Act-money so deposited converted b v . Chief Security Examiner o f said Commission ’ , t o his own use- claimant subseqzcently insured with responsible company-when award for refiind o f deposit mazJ be made. Where it a p pears that claimant, in order to be able to do business in the State, entered into an agreement with the Illinois Industrial Commission whereby they deposited wiJh it certain sums of money, in order to qualify as self-insurers, as provided in the Workmen’s Compensation Act, and said claimant subsequently insured with a responsible corn:. pany, an award for the refund of the money deposited with the Industrial Commission is proper and justified, even though the said deposit had been converted by the Chief Security Examiner to his own use. The same question was presented to this Court and decided in the case of J. Roy Browning vs. *StUte,.ante, this volume, and what was said there is applicable to this case.
The cla-imant, Leopold Cohen Iron Company, is en[*163]163 I .
gaged in the scrap iron business, and operates under the Workmen’s Compensation Act of this State. On January 28, 1935, the claimant made an agreement with tbe 111;- nois Industrial ‘Commission, by the terms of which claimant deposited with the Illinois, Industrial Commis-, sion One Hundred Dollars ($100.00) in cash, and agreed to deposit the further sum of Fifty Dollars ($50.00) per month. The agreement was executed pursuant to the provisions of the Workmen’s Compensation Act’ to qualify claimant as a self insurer. The moneys so deposited were to be held by the Illinois Industrial Commission as a guarantee for the payment of any sums found by process of law to be due to the employees of the claimant under the Workmen’s Compensation Act.
The agreement further provided that the moneys would be surrendered to claimant upon presentation to the Illinois Industrial Commission of a certificate or a statement signed by the Illinois Industrial Commission and the claimant that no payments were due or unpaid from the claimant to its employees or others under the Workmen’s Compensation Act. l A total of Five Hundred’ Dollars ($500.00) was deposited by the claimant with the Commission; the receipt of the moneys was duly acknowledged by the Commission; and all the moneys were paid to L. J. O’Connell, then Chief Sekurity Examiner for the Commission.
On April 7,1942, claimant was advised by the Illinois Industrial Commission that said L. J. O’Connell had converted the money of the claimant, as well as that of other self-insurers, to his own use. Claimant, having at that time insured itself in a responsible carrier of insurance against compensation claims, and having made the necessary proof of such insurance to the Commission, demanded the return of the Five Hundred Dollars [*164] ($500.00). The money not .having been returned to ’ claimant, claim was filed herein on July 23, 1945, seeking an award for the amount of the deposit.
On October 15, 1946, testimony was taken before Commissioner John *L.East, Jr. The facts were not controverted, and were amply supported by documentary evidence introduced by the claimant. . The deposit ‘of money by claimant with the Industrial Commission was, an involuntary transaction, required by the law of Illinois before claimant could do business in this- state. (Illinois Revised Statutes 1941, Chap. 48, par. 172.26) The Industrial Commission was authorized by law to enter into the contract with the claimant (Pinkerton’s Nat. Detective Age my vs. Fidelity a2 Deposit Co., 138 Fed. 2d. 469. In the case of J . Roy Browning us. State of Illinois, No. 3788, ante,.a claim based on facts very similar, claimant was granted an award. That case is controlling here.
An award is therefore entered in favor of the claimant in the sum of Five Hundred Dollars ($500.00).