Barba v. The Village of Bensenville

2015 IL App (2d) 140337, 29 N.E.3d 1187
CourtAppellate Court of Illinois
DecidedMarch 25, 2015
Docket2-14-0337
StatusUnpublished
Cited by6 cases

This text of 2015 IL App (2d) 140337 (Barba v. The Village of Bensenville) 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
Barba v. The Village of Bensenville, 2015 IL App (2d) 140337, 29 N.E.3d 1187 (Ill. Ct. App. 2015).

Opinion

2015 IL App (2d) 140337 No. 2-14-0337 Opinion filed March 25, 2015 ______________________________________________________________________________

IN THE

APPELLATE COURT OF ILLINOIS

SECOND DISTRICT ______________________________________________________________________________

JACK BARBA, ) Appeal from the Circuit Court ) of Du Page County. Plaintiff-Appellant and Cross-Appellee, ) ) v. ) No. 10-L-29 ) THE VILLAGE OF BENSENVILLE, ) ) Defendant-Appellee and ) Cross-Appellant ) ) Honorable (Bensenville Fire Protection District No. 2, ) Patrick J. Leston, Defendant-Appellee). ) Judge, Presiding. ______________________________________________________________________________

JUSTICE HUTCHINSON delivered the judgment of the court, with opinion. Justices Hudson and Birkett concurred in the judgment and opinion.

OPINION

¶1 Plaintiff, Jack Barba, appeals from the trial court’s order dismissing his claims for breach

of contract, granting him summary judgment for promissory estoppel but with a limited damages

award of $322 (we round all amounts to the nearest dollar or thousand dollars), and granting him

partial attorney fees against defendants, the Village of Bensenville (the Village) and Bensenville

Fire Protection District No. 2 (the District). The Village cross-appeals the $322 award as well as

the award of attorney fees. For the reasons that follow, we affirm in part, reverse in part, and

remand. 2015 IL App (2d) 140337

¶2 I. BACKGROUND

¶3 This case comes before us on both defendants’ motions to dismiss and Barba’s motion for

summary judgment. The determinations made by the trial court at summary judgment—namely,

that the Village made an enforceable promise to Barba and that he relied on that promise when

he retired—do not affect our review of the dismissed breach-of-contract claims. We set forth the

facts as follows.

¶4 Barba began his service as a firefighter for the Village in February 1978. Over the years,

Barba rose to the position of lieutenant and eventually became the chief of the department in

1994. After a departmental reorganization in 2005, Barba became “Chief of the Fire Prevention

Bureau” (essentially, the Village fire marshal). In this new position, Barba continued to receive

the same compensation and benefits with no limit on his accrued vacation and sick time.

Throughout his employment, Barba participated in the firefighters’ pension fund, which was

managed by the Village.

¶5 In November 2006, the citizens of Bensenville voted for a referendum to abolish the

Village fire department and to replace it with their membership in a municipal fire protection

district. This led to the creation of the District as a unit of municipal government. Following the

vote, the Village and the District began work on an intergovernmental agreement (IGA) under

which the District would absorb the Village fire department’s personnel, equipment, and

responsibilities, beginning May 1, 2007. Under the terms of the IGA and section 4-106.1(b) of

the Illinois Pension Code (the Pension Code) (40 ILCS 5/4-106.1(b) (West 2010)), on that date

the District would also assume responsibility for the management of the Village’s firefighters’

pension fund.

-2- 2015 IL App (2d) 140337

¶6 With the transition in the offing, Barba, who was 52 years old and eligible for retirement

(40 ILCS 5/4-109(a) (West 2010) (age 50 or more)), told the Village manager that he intended to

retire with 30 years’ service credit toward his pension. However, at that point in 2007, he had

only 29 years of service. On February 9, 2007, Barba met with the Village manager and the

Village’s attorneys to discuss the boundaries of the new fire protection district. At some point,

one of the attorneys told Barba that his retirement would be “covered” because a provision in the

final IGA would protect his 30-year pension.

¶7 On February 16, 2007, Barba gave notice to the Village that he intended to work for

several months and then use a portion of his accrued time so that he could retire with 30 years’

credit in February 2008. On February 22, 2007, Barba was invited to attend a meeting of the

District’s board to discuss his retirement. The chief of the Village fire department, Michael

Spain, was also present. At that meeting, the attorney for the District, Karl Ottosen, informed

Barba that, if he elected to remain with the fire department after the transition, the District would

employ him, but only at a lieutenant’s rank and at a lieutenant’s salary. Barba declined, in part

because this option would negatively impact his firefighter’s pension, which would be

determined by his salary “at the date of retirement” (40 ILCS 5/4-109(a) (West 2010)). Ottosen

then recommended that, in view of Barba’s many years of loyal public service, the Village

should simply raise Barba’s salary during his final month of employment and then Barba could

retire when the District assumed operations on May 1. The raise would enable Barba to retire at

a chief’s salary with his “full 30,” including a cost-of-living increase for his final year of service

(see 40 ILCS 5/4-109.1 (West 2010)).

¶8 Thereafter, Barba hired an attorney and, throughout April and May, Barba’s counsel

wrote letters to the Village outlining the agreement between Barba, the Village, and the District.

-3- 2015 IL App (2d) 140337

The agreement was as follows. With respect to his pension, Barba’s salary during the year prior

to his retirement was $88,000. As noted, he was due for a cost-of-living increase for his final

year, which would have raised his salary to $92,000. However, because Barba was retiring with

less than 30 years of service, the multiplier for his pension formula would have been calculated

at 72.5% rather than 75% (see 40 ILCS 5/4-109(c) (West 2010)). Accordingly, to ensure that

Barba retired with his “full 30,” his salary would be raised to $96,000 on the date of his

retirement to offset the difference for the purpose of calculating his pension ($88,000 x 0.75 ≈

$96,000 x 0.725). This would result in a one-time increase of $322 to Barba’s final paycheck as

an active firefighter. In addition, the Village would pay Barba approximately $84,000 for his

accumulated vacation and sick time and would continue his insurance coverage through February

2008.

¶9 On April 30, 2007, the Village and the District executed the final IGA. Section 6 of the

IGA provided that all Village fire department personnel would become employees of the District

on May 1, with one exception:

“One sworn member of the Fire Department, Chief Jack Barba, will retire on or

before the Effective Date. The Village will adjust Chief Barba’s compensation for

pension purposes in an amount sufficient to assure that Chief Barba will enjoy a

retirement benefit equal to that which he would have enjoyed ha[d] he continued to serve

at his present rank until February[ ] 2008, which would have been his 30th year of

service. In addition, the Village will be responsible for directly compensating Chief

Barba for his accumulated sick leave and vacation time. The District and the Village

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