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Knell O’Connor Danielewicz Workers’ Compensation Case Result

Case Name:   Michael Mrkvicka v. Rockford College

Venue:  Rockford – Arbitrator Akemann

Handling Attorney:  Bradley C. Knell

IWCC No.:  06 WC 043059

Circuit Court No:  08 L 12183

D/A:  8/30/06

Please allow this letter to serve as our Final Litigation Report.  In addition, we have calculated the savings realized from our recent global settlement with Mr. Mrkvicka for $32,500.00 (for loss of 10% man as a whole).  This global settlement represents a $217,500.00 savings over Mr. Mrkvicka’s original demand of $250,000.00, as well as our potential trial exposure. 

Mr. Mrkvicka began his settlement negotiations by demanding $250,000.00 for settlement of his work comp claim for the following:

1.  25% man as a whole, which equals $75,000.00;

2.  Payment of medical bills previously covered by Blue Cross Blue Shield $120,421.76;

3.  An unspecified amount of future medical care and attorneys’ fees ($54,579).

In response to this demand, we filed a Civil Fraud Complaint against the petitioner and proceeded to prepare to try the workers’ compensation case.  Through the course of further negotiations, and as we pursued both the civil fraud claim and the workers’ compensation case, Mr. Mrkvicka lowered his demand to only include 25% man as a whole ($75,000.00), plus co-pay of the medical bills of $120,000.00 ($20,000.00), in exchange for us dismissing our Civil Fraud Action.

We rejected that offer, and the petitioner countered by requesting 15% man as a whole (approximately $45,000.00) and a dismissal of the fraud action. 

During our final stages of negotiations, we were finally able to get the petitioner down to $32,500.00 (10% man as a whole) for all issues.  We believe this represents a significant savings in several regards:

1.  We cut off TTD on April 15, 2008 (Dr. Skaletsky IME).  We have not paid any TTD since then.  We are also saving the potential future TTD exposure from the date of cut off to the present time.  Total past and future TTD savings (96 weeks):  $82,361.28.

2.  We will use disputed settlement language which will place all of the $120,421.76 in medical and surgical bills on Blue Cross Blue Shield with no possibility for subrogation against us.  Mr. Mrkvicka will be using the proceedings of his $32,500.00 settlement to pay off his $20,000.00 co-pay (which he tried to get us to pay in prior negotiations).  If we tried this case and lost, of course, we would have been faced with the payment of over $120,421.76 in medical bills. 

3.  We will avoid future litigation costs and fees.  We estimated litigating both the Workers’ Compensation and a Civil Fraud Action would have been over $30,000.00.  We believe that the Civil Fraud case alone, which is currently pending before the Appellate Court, would have cost another $10,000.00 considering the substantial time that was required to prepare an Appellate Reply Brief and appear before the Appellate Court for oral arguments.  The workers’ compensation exposure would have been at least $10,000.00 in order to take depositions of the treating and IME doctor.  To try the case would have been at least $10,000.00 at the arbitration level alone. 

4.  The potential man as a whole savings.  The petitioner was alleging that he was entitled to 25% man as a whole, which was $75,000.00, but we ended up paying $32,500.00 – a savings on permanency alone of $42,500.00.

5.  The overall savings on this matter realized is $275,283.04. 

We hope that you are happy with this settlement as we are.  It was a pleasure working with you.  Once the settlement contracts are approved, we will forward the same to your attention for payment.

Very truly yours,

Knell O’Connor Danielewicz, P.C.

Bradley C. Knell