Byington v. Department of Agriculture

764 N.E.2d 576, 327 Ill. App. 3d 726, 261 Ill. Dec. 961, 2002 Ill. App. LEXIS 107
CourtAppellate Court of Illinois
DecidedFebruary 13, 2002
Docket2-00-1467
StatusPublished
Cited by8 cases

This text of 764 N.E.2d 576 (Byington v. Department of Agriculture) 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
Byington v. Department of Agriculture, 764 N.E.2d 576, 327 Ill. App. 3d 726, 261 Ill. Dec. 961, 2002 Ill. App. LEXIS 107 (Ill. Ct. App. 2002).

Opinion

JUSTICE GEIGER

delivered the opinion of the court:

The plaintiffs, Alan and Gene Byington, d/b/a Byington Brothers, filed a complaint for administrative review in the circuit court of Carroll County after defendant Illinois Department of Agriculture (the Department) found that they were not entitled to recovery under the Grain Code (240 ILCS 40/1 — 1 et seq. (West 1998)). The trial court reversed the decision of the Department and entered a judgment in favor of the plaintiffs in the amount of $85,642.91. The Department and defendant Conley Grain Company now appeal from the decision of the trial court, arguing that the plaintiffs’ claim does not fall within the scope of the Grain Code. We affirm.

The instant controversy arose from the economic failure of Hahnaman-Albrecht, a licensed grain dealer and Class I grain warehouseman. See 240 ILCS 40/1 — 10(b) (West 1998). On February 13, 1997, the Department conducted a routine examination of Hahnaman-Albrecht’s records and found a working capital deficiency of nearly $5 million. Consequently, on February 27, 1997, the Department suspended Hahnaman-Albrecht’s grain dealer and warehouse-, man licenses. The Department then sent Hahnaman-Albrecht notice of a revocation hearing. On March 6, 1997, prior to the revocation hearing, Hahnaman-Albrecht voluntarily surrendered its grain licenses.

On March 7, 1997, Conley Grain was licensed by the Department as a grain dealer and Class I grain warehouseman. On that same day, Conley Grain entered into a successor agreement, acquiring all of Hahnaman-Albrecht’s grain assets and obligations. See 240 ILCS 40/ 1 — 10(b) (West 1998). However, on March 13, 1997, Conley Grain surrendered its grain dealer and warehouse licenses.

Sometime after March 13, 1997, the plaintiffs filed a claim with the Department, seeking compensation pursuant to section 25 — 10 of the Grain Code (240 ILCS 40/25 — 10 (West 1998)). The plaintiffs contended that Conley Grain owed them for grain delivered to Hahnaman-Albrecht.

On July 21, 1998, the Department held an administrative hearing. The following evidence was introduced at the hearing. Alan Byington testified that in 1996 and 1997 the plaintiffs had sold 110,279 bushels of corn to Hahnaman-Albrecht and that they should have been paid $196,538.28 for the corn. Byington testified that they were paid only $95,771.92, leaving a balance of $100,756.36 still due. Alan Byington identified weight tickets documenting the delivery of 110,279 bushels of corn to Hahnaman-Albrecht. Alan Byington testified that when Hahnaman-Albrecht surrendered its licenses arid was succeeded by Conley Grain, Hahnaman-Albrecht still owed the plaintiffs $100,756.36. Alan Byington maintained that Conley Grain did not pay this amount before surrendering its licenses.

Gerald Franks testified that he was a warehouse examiner for the Department. After Hahnaman-Albrecht surrendered its licenses, Franks examined Hahnaman-Albrecht’s books to determine if any outstanding grain claims existed. Franks testified that, according to Hahnaman-Albrecht’s records, the plaintiffs had been paid in full.

David Von Holten testified that he was an operations manager for Hahnaman-Albrecht. Von Holten testified that the discrepancy in Hahnaman-Albrecht’s records and the plaintiffs’ records stemmed from a contract dispute that arose between the parties in September 1995. Von Holten identified two unsigned contracts. According to these contracts, the plaintiffs had agreed to sell Hahnaman-Albrecht 50,000 bushels of corn at a future date. Subsequently, the price of corn rose and the plaintiffs denied entering into the contracts. When the plaintiffs refused to honor the contracts, Hahnaman-Albrecht purchased 50,000 bushels of corn on the Board of Trade at a higher price. Hahnaman-Albrecht charged the price difference of $72,725 against the plaintiffs’ account. In 1996 and 1997, the plaintiffs continued to sell corn to Hahnaman-Albrecht. Before paying the plaintiffs for these sales however, Hahnaman-Albrecht deducted the disputed amount.

Von Holten also testified that it was customary for Hahnaman-Albrecht to take oral orders from sellers. Von Holten testified that it was Hahnaman-Albrecht’s procedure to mail a copy of the contract to the seller the day after receiving an oral order, as a written confirmation of the order. Von Holten testified that, if the contracts were not returned signed after four weeks, a Hahnaman-Albrecht manager would hand deliver the contracts.

Gerald Lessman testified that he was a manger for Hahnaman-Albrecht. In April or May 1996, Lessman hand delivered the two September 1995 contracts to the plaintiffs, along with five other contracts. Lessman testified that Alan Byington denied placing the September 1995 orders and refused to sign those two contracts.

On December 19, 1998, the Department’s hearing officer denied the plaintiffs’ claim for compensation under the Grain Code. In denying the plaintiffs’ claim, the hearing officer found that the Department did not have jurisdiction because the claim involved a contract dispute. Additionally, the hearing officer found that, notwithstanding the jurisdictional issue, the plaintiffs had entered into the disputed contracts and were responsible for Hahnaman-Albrecht’ s cost in acquiring the 50,000 bushels of corn elsewhere.

On January 25, 1999, the plaintiffs filed a motion to reconsider with the Director of the Department. On December 1999, the director affirmed the order of the hearing officer. The director found that the plaintiffs had received written confirmation of their oral order within a reasonable time and, therefore, the disputed contracts were enforceable pursuant to section 2 — 201 of the Uniform Commercial Code (Commercial Code) (810 ILCS 5/2 — 201 (West 1998)).

On January 7, 2000, the plaintiffs filed an action for administrative review in the circuit court of Carroll County, naming both the Department and Conley Grain as defendants. On November 20, 1999, the trial court reversed the decision of the Department, finding that the disputed contracts violated the statute of frauds and that both Hahnaman-Albrecht and Conley Grain had left indebtedness to the plaintiffs upon their failure. Pursuant to the Grain Code, the trial court awarded the plaintiffs 85% of the unpaid amount due them, which equaled $85,642.91. See 240 ILCS 40/25 — 10(e) (West 1998). Conley Grain filed a timely notice of appeal. The Department subsequently joined in the appeal.

The defendants’ first argument is that the Department lacked jurisdiction over the plaintiffs’ claim. The defendants argue that the plaintiffs’ claim did not fall within the provisions of the Grain Code, as it involved a contract dispute rather than a claim against a failed grain licensee.

The term “jurisdiction,” although not strictly applicable to an administrative body, may be used to designate the authority of the administrative body to act. Armstead v. Sheahan, 298 Ill. App. 3d 892, 894-95 (1998).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Modrytzkji v. The City of Chicago
2015 IL App (1st) 141874 (Appellate Court of Illinois, 2015)
J&J Ventures Gaming, LLC v. Wild, Inc.
2015 IL App (5th) 140092 (Appellate Court of Illinois, 2015)
Irvington Elevator Company v. Heser
2012 IL App (5th) 110184 (Appellate Court of Illinois, 2012)
Mitchell v. Department of Corrections
Appellate Court of Illinois, 2006
Ferrari v. Illinois Dept. of Human Rights
815 N.E.2d 417 (Appellate Court of Illinois, 2004)
Ferrari v. Illinois Department of Human Rights
Appellate Court of Illinois, 2004

Cite This Page — Counsel Stack

Bluebook (online)
764 N.E.2d 576, 327 Ill. App. 3d 726, 261 Ill. Dec. 961, 2002 Ill. App. LEXIS 107, Counsel Stack Legal Research, https://law.counselstack.com/opinion/byington-v-department-of-agriculture-illappct-2002.