Aliano v. Sears, Roebuck & Co.

2015 IL App (1st) 143367, 48 N.E.3d 1239, 400 Ill. Dec. 799, 2015 Ill. App. LEXIS 994
CourtAppellate Court of Illinois
DecidedDecember 30, 2015
Docket1-14-3367
StatusUnpublished
Cited by17 cases

This text of 2015 IL App (1st) 143367 (Aliano v. Sears, Roebuck & Co.) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Aliano v. Sears, Roebuck & Co., 2015 IL App (1st) 143367, 48 N.E.3d 1239, 400 Ill. Dec. 799, 2015 Ill. App. LEXIS 994 (Ill. Ct. App. 2015).

Opinion

2015 IL App (1st) 143367

SIXTH DIVISION Opinion Filed: December 30, 2015

No. 1-14-3367 ______________________________________________________________________________

IN THE

APPELLATE COURT OF ILLINOIS

FIRST DISTRICT

MARIO ALIANO, ) Appeal from the ) Circuit Court of Plaintiff-Appellee, ) Cook County ) v. ) No. 14 L 000366 ) SEARS, ROEBUCK AND CO., ) Honorable ) Thomas More Donnelly, Defendant-Appellant. ) Judge, Presiding. ______________________________________________________________________________

JUSTICE HOFFMAN delivered the judgment of the court, with opinion. Presiding Justice Rochford and Justice Delort concurred in the judgment and opinion.

OPINION

¶1 Sears, Roebuck and Co. (Sears) appeals from a $3.10 judgment entered by the circuit court

in favor of the plaintiff, Mario Aliano, on his claim brought pursuant to the Consumer Fraud and

Deceptive Business Practices Act (Consumer Fraud Act) (815 ILCS 505/1 et seq. (West 2008))

and the circuit court's subsequent award of $157,813.53 in attorney fees pursuant to section 10a(c)

of the Consumer Fraud Act (815 ILCS 505/10a(c) (West 2008)). For the reasons which follow,

we affirm the $3.10 judgment entered in favor of the plaintiff, reverse the award of $157,813.53 in

attorney fees, and remand the matter for further proceedings. No. 1-14-3367

¶2 On April 23, 2009, the plaintiff filed a five-count class-action complaint, alleging, inter

alia, that Sears wrongfully collected sales tax on the entire sale price of digital-to-analog television

converter boxes (converter boxes), despite the fact that a portion of the retail price of the devices

was subsidized by federally-funded coupons (NTIA Coupons) which are exempt from Illinois

sales tax. Although the complaint was amended several times, the matter proceeded on plaintiff's

class-action claims until October 27, 2011, when he withdrew his motion for class certification,

and the matter was transferred to the municipal department of the circuit court for further

proceedings on the plaintiff's individual Consumer Fraud Act claim.

¶3 On January 10, 2013, the matter was tried, and on July 16, 2013, the circuit court issued a

17-page written order containing its findings of fact and conclusions of law and entering a

judgment in favor of the plaintiff in the amount of $3.10. On July 31, 2013, the plaintiff filed a

fee petition seeking $252,402.08 in attorney fees and costs. The circuit court conducted a hearing

on the plaintiff's fee petition on September 4, 2014, and on October 6, 2014, entered an order

awarding the plaintiff attorney fees in the amount of $157,813.53. This appeal followed.

¶4 In urging reversal of the underlying $3.10 judgment, Sears argues that the circuit court

erred both in entering a judgment in favor of the plaintiff in the absence of a finding that he was

deceived by any alleged misrepresentation by one of its sales associates, and in holding that its

"collection of excess sales tax from Plaintiff is a de jure deceptive practice violation of the

[Consumer Fraud Act]." We reject both arguments.

¶5 Section 10a(a) of the Consumer Fraud Act authorizes a private right of action for "[a]ny

person who suffers actual damage as a result of a violation of [the] Act." 815 ILCS 505/10a(a)

(West 2008). The elements of a claim under the Consumer Fraud Act are: (1) a deceptive act or

practice by the defendant; (2) the defendants intent that the plaintiff rely on the deception; (3) the

occurrence of the deception in the course of conduct involving trade or commerce; and (4) actual

-2- No. 1-14-3367

damages to the plaintiff proximately caused by the deception. Avery v. State Farm Mutual

Automobile Insurance Co., 216 Ill. 2d 100, 180 (2005). When, as in this case, a claim brought

pursuant to the Consumer Fraud Act is based upon a misrepresentation, the plaintiff must prove

that he was actually deceived in order to establish the element of proximate cause. Avery, 216 Ill.

2d at 199. However, in order to recover based upon a misrepresentation, a plaintiff need not

establish scienter as even innocent misrepresentations may be actionable under the Consumer

Fraud Act. Duran v. Leslie Oldsmobile, Inc., 229 Ill. App. 3d 1032, 1039 (1992).

¶6 Certain of the facts giving rise to the plaintiff's Consumer Fraud Act claim are not in

dispute. In January of 2008, the National Telecommunications and Information Administration

of the United States Department of Commerce began administering a federally-funded program

enabling each household in the country to receive two NTIA Coupons that could be used for the

purchase of eligible converter boxes which enable analog televisions to receive digital signals.

Upon purchasing a qualifying converter box, an individual could present a NTIA Coupon to the

retailer and receive a credit against the purchase price of up to $40. The retailer would then be

reimbursed by the federal government for the lesser of $40 or the purchase price of the converter

box.

¶7 On July 1, 2008, the Illinois Department of Revenue issued an information bulletin,

informing all Illinois retailers that NTIA Coupons were exempt from Illinois sales tax and that

retailers were only to charge sales tax on the net sale price of a converter box after the value of a

NTIA Coupon was applied to reduce the retail price of the device. The record establishes that

Sears learned of the information bulletin in July of 2008.

¶8 On April 9, 2009, the plaintiff applied for, and thereafter received, two NTIA Coupons.

On April 19, 2009, he purchased a qualifying converter box from Sears at its Oak Brook store and

presented a NTIA Coupon at the time of the purchase. The retail price of the converter box which

-3- No. 1-14-3367

the plaintiff purchased was $59.99. The Sears sales associate who handled the transaction

calculated the sales tax based upon the full retail price, resulting in a sales tax charge of $4.65.

After adding $4.65 in sales tax to the $59.99 retail price of the converter box, the sales associate

then subtracted the $40 value of the plaintiff's NTIA Coupon from the $64.64 gross price and

charged the plaintiff $24.64. The plaintiff paid Sears the $24.64 calculated by its sales associate.

Had the sales tax on the transaction been calculated as directed in the Illinois Department of

Revenue's information bulletin, the $40 value of the plaintiff's NTIA Coupon should have been

subtracted from the $59.99 retail price of the converter box and sales tax charged only upon the

$19.99 remainder. If calculated properly, the plaintiff should only have been charged $1.55 in

sales tax, not $4.65. The miscalculation resulted in the plaintiff being overcharged $3.10 in sales

tax.

¶9 The plaintiff testified that he paid $24.64 for the converter box in reliance upon Sears's

sales associate's representation that he owed that sum. He stated that, at the time that he

purchased the converter box, he did not know that sales tax should not have been charged on the

$40 value of the NTIA Coupon which he tendered. According to the plaintiff, had he known that

Sears charged him too much for sales tax on the transaction, he would not have paid it.

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2015 IL App (1st) 143367, 48 N.E.3d 1239, 400 Ill. Dec. 799, 2015 Ill. App. LEXIS 994, Counsel Stack Legal Research, https://law.counselstack.com/opinion/aliano-v-sears-roebuck-co-illappct-2015.