Cronholm v. Board of Trustees of the Lockport Fire Protection District Firefighters' Pension Fund

2016 IL App (3d) 150122, 56 N.E.3d 1080
CourtAppellate Court of Illinois
DecidedJune 14, 2016
Docket3-15-0122
StatusUnpublished
Cited by1 cases

This text of 2016 IL App (3d) 150122 (Cronholm v. Board of Trustees of the Lockport Fire Protection District Firefighters' Pension Fund) 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
Cronholm v. Board of Trustees of the Lockport Fire Protection District Firefighters' Pension Fund, 2016 IL App (3d) 150122, 56 N.E.3d 1080 (Ill. Ct. App. 2016).

Opinion

2016 IL App (3d) 150122

Opinion filed June 14, 2016 _____________________________________________________________________________

IN THE

APPELLATE COURT OF ILLINOIS

THIRD DISTRICT

ROBERT CRONHOLM, ) Appeal from the Circuit Court ) of the 12th Judicial Circuit, Plaintiff-Appellee, ) Will County, Illinois. ) v. ) ) BOARD OF TRUSTEES OF THE ) LOCKPORT FIRE PROTECTION ) DISTRICT FIREFIGHTERS’ PENSION ) Appeal No. 3-15-0122 FUND AND ROBERT MONDRELLA, ) Circuit No. 14-MR-843 in His Official Capacity as President of the ) Board of Trustees of the Pension Fund, ) ) Defendants-Appellants, ) ) (The Lockport Township Fire Protection ) District, Todd Randich, Arthur Jacobs, ) Honorable Michael Lopina, and John O’Connor, ) John C. Anderson, Intervening Defendants). ) Judge, Presiding.

_____________________________________________________________________________

PRESIDING JUSTICE O’BRIEN delivered the judgment of the court, with opinion. Justice Wright concurred in the judgment and opinion. Justice Schmidt dissented, with opinion. _____________________________________________________________________________

OPINION

¶1 The defendant Board of Trustees of the Lockport Township Fire Protection District

Firefighters’ Pension Fund (Board) appealed a circuit court’s order reversing a Board decision ordering the repayment of pension benefits for a period during which the Board determined that

plaintiff Robert Cronholm reentered into active service as a firefighter.

¶2 FACTS

¶3 Cronholm retired as fire chief of the Lockport Fire Department on October 31, 2009.

Prior to that, on October 9, 2009, Cronholm submitted an application to the Lockport Township

Firemen’s Pension Fund for regular retirement benefits under section 4-109 of the Illinois

Pension Code (40 ILCS 5/4-109 (West 2010)) to begin on November 1, 2009. By letter dated

October 12, 2009, the Lockport Township Fire Protection District (District) was advised by

counsel that hiring Cronholm as a chief administrator would not constitute reentry into active

service. Thereafter, on October 15, 2009, the Board approved Cronholm’s application. On that

same day, the District’s attorney proposed a new administrative job description, the chief

administrator. On October 26, 2009, Cronholm entered into a 3-year employment contract to be

the chief administrator with the District. He began that employment on November 1, 2009.

¶4 The Board requested an advisory opinion from its regulator, the Illinois Department of

Insurance (DOI), pursuant to section 1A-106 of the Pension Code (40 ILCS 5/1A-106 (West

2010)) regarding whether Cronholm’s work as the chief administrator of the fire department

constituted a reentry into active service under section 4-117 of the Pension Code (40 ILCS 5/4-

117 (West 2010)). The DOI responded in a letter dated November 30, 2009, concluding that the

fire chief and chief administrator were substantially the same position and would qualify as

reentry into service for Cronholm. The DOI opined that the “work of controlling and

extinguishing fires” in section 4-106(a) of the Pension Code did not require the individual to “go

to the site of the fire and begin working to extinguish the fire.”

2 ¶5 In response to the DOI’s letter, the District crafted a new job description, “administrator”

and planned to hire a fire chief. By letter dated March 12, 2010, the DOI stated that the new

position as administrator would not qualify as reentry into service. The assistant Fire Chief,

David Skoryi, was appointed as the new fire chief on March 18, 2010.

¶6 On May 19, 2010, firefighters with the District, who participated in the Lockport

Township Firemen’s Pension Fund, filed a declaratory judgment action, alleging that the Board

breached its fiduciary duties by ruling that Cronholm did not reenter active service. In that case,

we reversed the circuit court’s order dismissing the action, finding that there was no final

administrative decision, and remanded to the circuit court so that the Board could hold a hearing

and issue a final administrative decision regarding whether Cronholm reentered active service.

Randich v. Lockport Township Firefighters' Pension Board, 2012 IL App (3d) 120032-U. On

remand, the Board conducted an evidentiary hearing to determine whether Cronholm reentered

active service under section 4-117 of the Pension Code.

¶7 At the hearing, Cronholm testified that he remained in the same office, the fire chief’s

office, on November 1, 2009. He switched offices with Skoryi after Skoryi was appointed fire

chief in March 2010. As chief administrator, Cronholm no longer responded to fire calls, nor

investigated fires, nor engaged in code enforcement. After November 1, he no longer had an

emergency response vehicle. Cronholm testified that after November 1, Skoryi had the ultimate

authority to approve or disprove a grievance. Cronholm did sign off on a resignation agreement

in February 2010 as chief administrator. He no longer contributed to the pension fund. Skoryi

testified that he was told he was acting chief as of November 1, 2009, but he did not get an

increase in pay until he was appointed chief on March 18, 2010. Cronholm submitted monthly

reports to the Board, signed as the fire chief, from November 2009 to March 2010. Starting with

3 April 2010, Skoryi submitted the fire chief report and Cronholm submitted an administrator’s

report. Skoryi testified that after November 1, 2009, as acting chief, he believed that he was the

ultimate authority over the investigation of fires. He had the authority to discipline and assign

firefighters, and he was the highest ranking person at the fire department with regard to

supervising firefighters.

¶8 The Board concluded that Cronholm reentered active service from the date that he began

his service as chief administrator (11/1/2009) until the organization structure of the District was

reorganized and Skoryi was appointed fire chief (3/18/2010). In reaching this decision, the

Board made the factual finding that during this time period, Cronholm’s responsibilities

remained the same, except for on-scene fire suppression. The Board relied exclusively on the

DOI’s interpretation of the Pension Code in concluding that Cronholm had reentered active

service. During that 4 ½ month time period, the Board held that Cronholm’s retirement benefits

should have been suspended pursuant to section 4-117 of the Pension Code. The Board ordered

that $1,000 per month be deducted from Cronholm’s pension until the $17,693.68 paid during

the reentry was repaid.

¶9 Cronholm filed a complaint for administrative review. The circuit court found that the

case involved mixed questions of law and fact and applied the clearly erroneous standard of

review. The circuit court concluded that the Board’s decision that Cronholm had reentered

service was clearly erroneous. It reversed the Board’s decision and ordered that any pension

monies taken from Cronholm be restored. The Board appealed.

¶ 10 ANALYSIS

¶ 11 The Board argues that its determination that Cronholm reentered active service under

section 4-117 of the Pension Code from November 1, 2009, until March 18, 2010, was grounded

4 in fact and law.

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2016 IL App (3d) 150122, 56 N.E.3d 1080, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cronholm-v-board-of-trustees-of-the-lockport-fire-protection-district-illappct-2016.