Reservation of Rights Presumed Under Contract Law

An employer is not required to include an affirmative reservation of rights in a settlement agreement when there is nothing in the agreement to suggest an intent to waive the right to a lien under section 5(b), an Illinois 2nd District Appellate Court decided. The court ruled in Harder v. Kelly and Illinois Central Railroad Co., 2-06-0404, 1/11/07, that it chose to adapt the reasoning of the 3rd District Appeals Court in the Gallagher decision. The 3rd District Court in that case decided that an employer that intervened in its employee's personal-injury lawsuit settlement was entitled ...