American Health Care Providers, Inc. v. County of Cook

638 N.E.2d 772, 265 Ill. App. 3d 919, 202 Ill. Dec. 904
CourtAppellate Court of Illinois
DecidedAugust 9, 1994
Docket1-93-0751
StatusPublished
Cited by40 cases

This text of 638 N.E.2d 772 (American Health Care Providers, Inc. v. County of Cook) 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
American Health Care Providers, Inc. v. County of Cook, 638 N.E.2d 772, 265 Ill. App. 3d 919, 202 Ill. Dec. 904 (Ill. Ct. App. 1994).

Opinion

JUSTICE HARTMAN

delivered the opinion of the court:

Plaintiff, American Health Care Providers, Inc., doing business as American HMO (American HMO), appeals from an order granting defendants’ motions to dismiss counts I through IV of its second amended complaint (complaint), raising as issues whether (1) count I states a cause of action for a violation of the Cook County Minority Business Enterprises Ordinance § 10 — 43.1 et seq. (1990) (MBEO); (2) Cook County (County) must procure its contracts for employee health care programs through certain competitive bidding procedures; (3) count III sufficiently states a cause of action for misappropriation of public funds; and (4) count IV sufficiently states a cause of action for equitable relief. For reasons that follow, we affirm.

Defendant County, a home rule unit of government, sought to obtain health care coverage for its employees at a reduced cost while providing a high level of benefits. The County hired defendant William S. Singer as a consultant, who, acting for the County, delivered a request for proposals (RFP) to American HMO and 25 other companies. The RFP generally requested price quotations on several different types of health care plans, advised the bidders that the County had "the right to accept or reject any or all proposals or any portion thereof,” and contained a provision which stated that "[t]he contract or contracts will be awarded by the County Board in its discretion.” Without questioning these conditions, American HMO submitted its proposal to Singer in July 1991, as did several defendants. Singer elected to conduct negotiations with parties other than American HMO to develop the health care contracts eventually entered into by the County. The final contracts were awarded to defendants Chicago HMO Ltd. and Chicago Health Multi Option Insurance Ltd. (jointly Chicago HMO); and Humana Health Plan, Inc., and Humana Insurance Company (jointly Humana). The procurement process used by the County in securing the new contracts indisputably did not constitute competitive bidding. Significantly, American HMO had been providing health care benefits to the County for over seven years and had enrolled some 500 County employees in its plan under contracts with the County which had been negotiated in essentially the same manner as the present contracts, without protest. American HMO is a minority-owned business (MBE) as defined by the County’s MBEO; Chicago HMO and Humana are not. 2

American HMO’s complaint contains six counts, only the first four of which are at issue in this appeal. Count I alleges that the County violated the MBEO in several ways. Count II alleges that the County failed to bid competitively the new contract's. Count III alleges that the County misappropriated public funds by failing to bid competitively the new contracts. Count IV, entitled "Equity,” repeats the other allegations.

In its various prayers for relief, American HMO requested the circuit court to void the new contracts; order the County to re-award the contracts in accordance with the MBEO or through competitive bidding; enjoin Chicago HMO, Humana, and the other defendant health care companies from receiving future contracts from the County; and award American HMO 25% of the County’s health care contracts. Alternatively, American HMO sought $8 million in compensatory damages and $40 million in punitive damages.

The several defendants each filed a motion to dismiss counts I through IV pursuant to sections 2 — 615 or 2 — 619 of the Civil Practice Law (735 ILCS 5/2 — 615, 5/2 — 619 (West 1992) (section 2 — 615 or section 2 — 619)), all of which were granted. As to those counts, the circuit court also denied American HMO leave to amend and found no just reason to delay appeal of the claims made therein.

To overcome a motion to dismiss, facts must be asserted which establish a duty, a breach of that duty, and resulting injury. (Bell v. Village of Midlothian (1980), 90 Ill. App. 3d 967, 969, 414 N.E.2d 104.) The standard of review on appeal from a section 2 — 615 motion to dismiss is whether the complaint sufficiently states a cause of action. (McCormick v. Kruk (1991), 220 Ill. App. 3d 449, 451, 581 N.E.2d 73.) Generally, a section 2 — 619 motion is properly allowed only when it raises affirmative matter which negates plaintiff’s cause of action completely or when it refutes crucial conclusions of law or conclusions of material fact that are unsupported by allegations of specific facts. Health Employees Labor Program v. County of Cook (1992), 236 Ill. App. 3d 93, 97, 603 N.E.2d 591.

Both section 2 — 615 and section 2 — 619 motions based on affirmative matter admit as true, for purposes of the motions, all well-pleaded facts and reasonable inferences that could be drawn from those facts (Duncan v. Rzonca (1985), 133 Ill. App. 3d 184, 190, 478 N.E.2d 603 (section 2 — 615); Faerber Electrical Co. v. International Telephone & Telegraph Corp. (1984), 123 Ill. App. 3d 704, 707, 463 N.E.2d 820 (section 2 — 619)), but not conclusions of law or conclusions of fact unsupported by specific facts (Groenings v. City of St. Charles (1991), 215 Ill. App. 3d 295, 299, 574 N.E.2d 1316 (section 2 — 615); Bell Fuels, Inc. v. Lockheed Electronics Co. (1985), 130 Ill. App. 3d 940, 943, 474 N.E.2d 1312 (section 2 — 619)). Additionally, in ruling on a section 2 — 619 motion, the circuit court may consider pleadings, discovery documents and affidavits submitted by the parties. (Gaudynski v. Corbett (1980), 81 Ill. App. 3d 910, 914-15, 401 N.E.2d 1218.) Disputed questions of law are reviewed de nova. In re Marriage of Skinner (1986), 149 Ill. App. 3d 788, 791, 501 N.E.2d 311.

I

American HMO initially contends the circuit court erred in ruling that its complaint states no cause of action against the County for a violation of the MBEO.

•1 The MBEO’s general provisions declare it the public policy of Cook County to promote the economic development of MBEs and female-owned businesses (WBEs), to have those businesses participate in the County’s procurement process, and to provide those businesses increased opportunities for access to the County’s procurement process. (MBEO § 10 — 43.1.) A contract compliance administrator (CCA) shall implement a program called the Cook County Affirmative Action/Procurement Program.

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Bluebook (online)
638 N.E.2d 772, 265 Ill. App. 3d 919, 202 Ill. Dec. 904, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-health-care-providers-inc-v-county-of-cook-illappct-1994.