(820 ILCS 310/5) (from Ch. 48, par. 172.40)
Sec. 5. Liability inclusive; third-party liability. (a) Except as provided in Section 1.1, there is no common law or statutory right to recover
compensation or damages from the employer, his insurer, his broker, any
service organization retained by the employer, his insurer or his broker
to provide safety service, advice or recommendations for the employer or
the agents or employees of any of them for or on account of any injury
to health, disease, or death therefrom, other than for the compensation
herein provided or for damages as provided in Section 3 of this Act.
This Section shall not affect any right to compensation under the
"Workers' Compensation Act".
No compensation is payable under this Act for any condition of
physical or mental ill-being, disability, disablement, or death for
which compensation is recoverable on account of accidental injury under
the "Workers' Compensation Act".
(b) Where the disablement or death for which compensation is payable
under this Act was caused under circumstances creating a legal liability
for damages on the part of some person other than his employer to pay
damages, then legal proceedings may be taken against such other person
to recover damages notwithstanding such employer's payment of or
liability to pay compensation under this Act. In such case, however, if
the action against such other person is brought by the employee with a disability
or his personal representative and judgment is obtained and paid or
settlement is made with such other person, either with or without suit,
then from the amount received by such employee or personal
representative there shall be paid to the employer the amount of
compensation paid or to be paid by him to such employee or personal
representative, including amounts paid or to be paid pursuant to
paragraph (a) of Section 8 of this Act.
Out of any reimbursement received by the employer, pursuant to this
Section the employer shall pay his pro rata share of all costs and
reasonably necessary expenses in connection with such third party claim,
action or suit, and where the services of an attorney at law of the
employee or dependents have resulted in or substantially contributed to
the procurement by suit, settlement or otherwise of the proceeds out of
which the employer is reimbursed, then, in the absence of other
agreement, the employer shall pay such attorney 25% of the gross amount
of such reimbursement.
If the employee with a disability or his personal representative agrees to
receive compensation from the employer or accept from the employer any
payment on account of such compensation, or to institute proceedings to
recover the same, the employer may have or claim a lien upon any award,
judgment or fund out of which such employee might be compensated from
such third party.
In such actions brought by the employee or his personal
representative, he shall forthwith notify his employer by personal
service or registered mail, of such fact and of the name of the court in
which the suit is brought, filing proof thereof in the action. The
employer may, at any time thereafter join in the action upon his motion
so that all orders of court after hearing and judgment shall be made for
his protection. No release or settlement of claim for damages by reason
of such disability or death, and no satisfaction of judgment in such
proceedings, are valid without the written consent of both employer and
employee or his personal representative, except in the case of the
employers, such consent is not required where the employer has been
fully indemnified or protected by court order.
In the event the employee or his personal representative fails to
institute a proceeding against such third person at any time prior to 3
months before such action would be barred at law the employer may in his
own name, or in the name of the employee or his personal representative,
commence a proceeding against such other person for the recovery of
damages on account of such disability or death to the employee, and out
of any amount recovered the employer shall pay over to the injured
employee or his personal representative all sums collected from such
other person by judgment or otherwise in excess of the amount of such
compensation paid or to be paid under this Act, including amounts paid
or to be paid pursuant to paragraph (a) of Section 8 of this Act, and
costs, attorney's fees and reasonable expenses as may be incurred by
such employer in making such collection or in enforcing such liability.
(Source: P.A. 101-6, eff. 5-17-19.)
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