Dawson v. City of Geneseo

2018 IL App (3d) 170625, 127 N.E.3d 655, 431 Ill. Dec. 122
Appellate Court of Illinois·Decided October 23, 2018·No. Appeal 3-17-0625·Unpublished·Cited by 7 cases

Opinion

PRESIDING JUSTICE CARTER delivered the judgment of the court, with opinion.

*125 ¶ 1 Plaintiff, Larry Dawson, a retired former employee of defendant, the City of Geneseo (City), filed a class action lawsuit against the City to challenge the City's reduction of the percentage it contributed to retiree health insurance premiums. Plaintiff alleged in his first amended complaint a violation of the pension protection clause of the Illinois Constitution of 1970 ( Ill. Const. 1970, art. XIII, § 5 ) (count I) and claims of breach of contract (count II), promissory estoppel (count III), and equitable estoppel (count IV). The City filed a combined motion, seeking to dismiss count I of the first amended complaint pursuant to section 2-615 of the Code of Civil Procedure (Code) ( 735 ILCS 5/2-615 (West 2016) ) and to dismiss counts II, III, and IV pursuant to section 2-619 of the Code ( id. § 2-619). Plaintiff opposed the motion to dismiss. After a hearing, the trial court granted the City's motion and dismissed plaintiff's first amended complaint with prejudice. Plaintiff appeals. We affirm the trial court's judgment.

¶ 2 I. BACKGROUND

¶ 3 Plaintiff previously worked for the City and subsequently retired. At the time of his retirement, the City's Personnel Ordinance allowed employees who retired with 10 or more years of service to continue to participate in the City's group health insurance program on a shared-cost basis with the City. The fixed percentage of the cost that the City would pay/contribute to a retiree's health insurance premium was specified in the ordinance and varied depending upon the employee's years of service. In November 2011, however, the City amended its Personnel Ordinance due to rising healthcare costs, reduced the contribution percentage, and capped the amount that it would contribute to an existing retiree's health insurance premium. The amendment went into effect in January 2012.

¶ 4 In December 2016, plaintiff, on behalf of himself and a proposed class of retired City employees, filed the instant class action lawsuit against the City regarding the reduction of the health insurance contribution. 1 The complaint was later amended. In count I of the first amended complaint, plaintiff alleged that the health insurance contribution was a retirement or pension benefit that was protected under the pension protection clause of the Illinois Constitution and that the City violated *126 *659 that clause by diminishing or impairing that benefit. In count II, plaintiff alleged that the Personnel Ordinance constituted a valid and enforceable contract between the City and the retirees and that the City breached that contract by reducing the health insurance contribution. In count III, plaintiff sought relief under a theory of promissory estoppel, alleging that the contribution percentage specified in the pre-amended version of the Personnel Ordinance was an unambiguous promise by the City and that the retirees had relied upon that promise to their detriment. Finally, in count IV of the first amended complaint, plaintiff alleged that the Personnel Ordinance and the City's course of conduct had created a contract between the City and the retirees, from which the City received a benefit, and that the City should be equitably estopped from refusing to pay the prior contribution amount. Plaintiff sought money damages and to restore the City's contribution percentage to its prior level for retirees. Copies of the health insurance provisions from the pre-amendment and post-amendment versions of the Personnel Ordinance were attached to plaintiff's first amended complaint as supporting documents.

¶ 5 In June 2017, the City filed a combined motion to dismiss plaintiff's first amended complaint. In the combined motion, the City sought to dismiss count I of the first amended complaint pursuant to section 2-615 of the Code because count I allegedly failed to state a cause of action for violation of the pension protection clause. The City also sought to dismiss counts II, III, and IV of the first amended complaint pursuant to section 2-619 of the Code because the counts were allegedly barred by a disclaimer clause in the Personnel Ordinance that precluded the formation of a contract between the City and the retirees. The City attached to its combined motion to dismiss a full copy of the Personnel Ordinance. Of relevance to this appeal, the first page of the Personnel Ordinance indicated that the ordinance had been enacted in 1995 and had been amended several times over the years. Also of relevance to this appeal, section 1.01 of the ordinance, titled "Personnel Ordinance Declaration," (emphasis omitted) provided:

"Terms, conditions and policies set forth in this ordinance are not intended to create a contract, nor are they to be construed to constitute contractual obligations of any kind or a contract of employment between the City and any of its employees for a specified period of time. Contents of the Personnel Ordinance are for informational purposes only.
This ordinance has been developed at the discretion of the Council and may be amended or cancelled at anytime, at the City's sole discretion upon the advice and recommendation of the City Boards."

Plaintiff filed a response and opposed the City's combined motion to dismiss, and the City filed a reply to that response.

¶ 6 In August 2017, a hearing was held on the City's combined motion to dismiss. After listening to the arguments of the attorneys, the trial court granted the City's combined motion, dismissed count I of the first amended complaint with prejudice pursuant to section 2-615 of the Code, and dismissed counts II, III, and IV of the first amended complaint with prejudice pursuant to section 2-619 of the Code. Plaintiff appealed.

¶ 7 II. ANALYSIS

¶ 8 A. The Trial Court's Grant of the City's Section 2-615 Motion to Dismiss Count I

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Dawson v. City of Geneseo, 2018 IL App (3d) 170625, 127 N.E.3d 655, 431 Ill. Dec. 122 (Ill. Ct. App. 2018).

2018 IL App (3d) 170625 (Dawson v. City of Geneseo) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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