Doe v. Department of Professional Regulation

606 N.E.2d 389, 238 Ill. App. 3d 349, 179 Ill. Dec. 557, 1992 Ill. App. LEXIS 1804
CourtAppellate Court of Illinois
DecidedNovember 12, 1992
DocketNo. 1—91—1094
StatusPublished

This text of 606 N.E.2d 389 (Doe v. Department of Professional Regulation) 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
Doe v. Department of Professional Regulation, 606 N.E.2d 389, 238 Ill. App. 3d 349, 179 Ill. Dec. 557, 1992 Ill. App. LEXIS 1804 (Ill. Ct. App. 1992).

Opinion

JUSTICE JOHNSON

delivered the opinion of the court:

Plaintiff, Dr. John Doe (a pseudonym), brought an action to enjoin defendant, the Illinois Department of Professional Regulation (hereinafter the Department), from filing an administrative complaint against him for violating section 22 of the Medical Practice Act of 1987 (hereinafter the Act) (Ill. Rev. Stat. 1987, ch. Ill, par. 4400—22). The circuit court entered summary judgment and permanently enjoined the Department from bringing an administrative complaint against plaintiff due to the Department’s lack of jurisdiction. The circuit court based its decision on the five-year statute of limitations contained in the Act.

The sole issue on appeal is whether the trial court erred in deciding that the Department lacked jurisdiction to bring an administrative complaint against plaintiff based on the five-year statute of limitations for disciplinary actions pursuant to the Act.

We reverse and remand.

Plaintiff is a physician licensed in Illinois and specializing in psychiatry and psychoanalysis. Plaintiff treated a patient for depression from 1969 to February 1980. While undergoing treatment, plaintiff’s patient, acting through her own attorneys and financial advisors, established a trust fund providing plaintiff with an annual annuity of $50,000. It was irrevocable without plaintiff’s consent, and continued until 1989 when the trust assets were exhausted. A second trust was established in 1978. This trust was revocable by the patient upon two years’ notice. However, it was not revoked by the patient at the time of her death. Plaintiff received an annual payment of $30,000 to continue until his death.

On February 6, 1990, plaintiff’s attorney received a draft complaint to be filed by the Department alleging ethical misconduct on the part of plaintiff. Count I alleged that plaintiff’s receipt of funds from the 1976 trust from February 1985 to its termination violated section 22(A)(5) of the Act. (Ill. Rev. Stat. 1987, ch. Ill, par. 4400—22(A)(5).) Count II alleged the same violation concerning the 1978 trust. On April 6, 1990, the court granted plaintiff’s motion for a temporary restraining order to remain in effect until April 24, 1990. On that date, it was ordered that the parties conduct discovery and that the restraining order instituted on April 6, 1990, remain in effect until the next hearing on the matter.

On March 1, 1991, the circuit court granted plaintiff’s motion for summary judgment and permanently enjoined the Department from filing a claim on the 1976 and 1978 trusts. The circuit court found that the Department had no jurisdiction to file a complaint against plaintiff for any conduct occurring in 1976 or 1978 because of the five-year statute of limitations in section 22(A)(38) of the Act. The Department now appeals.

The Department’s authority to file a complaint against plaintiff pursuant to the Act is as follows:

“Except for the grounds numbered (8), (9) and (29), no action shall be commenced more than 5 years after the date of the incident or act alleged to have violated this Section.” (Ill. Rev. Stat. 1987, ch. Ill, par. 4400—22(A)(38).)

Plaintiff was informed that the Department may bring an action against him pursuant to the Act, which prohibits unethical or immoral conduct and the sale or distribution of drugs other than for medically accepted purposes. Statutes of limitation are “designed to prevent recovery on stale demands.” (Pfeifer v. Bell & Howell Co. (1977), 53 Ill. App. 3d 26, 27.) As set forth below, plaintiff’s argument provides an interpretation of the statute of limitations that prohibits the Department from pursuing its administrative complaint against plaintiff.

Plaintiff finds no merit in the Department’s contention that its complaint should not be barred because plaintiff received trust annuities within the five years prior to 1990. Plaintiff finds support for his argument in Brehm v. Sargent & Lundy (1978), 66 Ill. App. 3d 472, and Kopel v. Board of Education (1971), 1 Ill. App. 3d 1083. However, both of these cases can be distinguished.

Brehm discusses whether an employee’s suit requesting a declaratory judgment entitling him to a pension is barred by the statute of limitations because it was filed 13½ years after the employee’s retirement. There, the plaintiff relied on the rule that when there are installment payments the statute of limitations runs against each installment individually. However, this court differentiated between an action to determine the existence of the right to a pension from an action to recover installments after the pension has been granted. This court found that “the right to receive the pension must be established by suit or otherwise, within the original statutory period which begins to run when the plaintiff first has the power to make the demand.” (Brehm, 66 Ill. App. 3d at 474.) Therefore, this court affirmed the determination of the trial court that plaintiff’s suit was barred by the statute of limitations.

Kopel v. Board of Education (1971), 1 Ill. App. 3d 1083, also involves the statute of limitations. In Kopel, plaintiff requested compensation for his services on a special research project in addition to his regular salary as a certified teacher. In a written reply, his request was refused. Plaintiff filed suit 10 years and 5 months after the receipt of the letter. The appellate court affirmed the trial court ruling that plaintiff’s suit was barred by the statute of limitations.

The plaintiff in Brehm was requesting a pension 13½ years after first having had the “power to make the demand.” In the instant case, the Department had no knowledge of the trusts until years after their creation. In Brehm, as well as in Kopel, the plaintiff was aware of the existence of a pension and of the letter. In these cases, there was knowledge of an immediate and complete event which required a timely response. By the time of their respective suits, the event had already occurred and because of their delay plaintiffs were subsequently barred by the statute of limitations.

In Brehm, plaintiff received no payments between the time of his retirement and 13½ years later when he filed suit. Likewise in Kopel, no payments were received between the time of plaintiff’s receipt of the letter and the 10 years and 5 months later when plaintiff filed suit. Here, plaintiff’s action is ongoing. His cashing of the check is an activity that is occurring in the present. Thus, the reason for finding that the Department’s claim is within the statute of limitations is because plaintiff’s alleged violations of the Act continued to take place within the limitations period and, with respect to the 1978 trust, continue to this day.

The first trust was established by plaintiff’s patient in 1976. It provided plaintiff with an annual annuity of $50,000. Plaintiff received payments from the trust fund until the assets were exhausted in 1989, well within the statute of limitations. However, the 1978 trust is still in effect and plaintiff will continue to receive payouts from it until his death.

The case most applicable to the Department’s position in this action is Abrahamson v. Department of Professional Regulation (1991), 210 Ill. App. 3d 354, appeal allowed (1991), 141 Ill. 2d 535.

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Related

Brehm v. Sargent & Lundy
384 N.E.2d 55 (Appellate Court of Illinois, 1978)
Abrahamson v. Department of Professional Regulation
568 N.E.2d 1319 (Appellate Court of Illinois, 1991)
Pfeifer v. Bell & Howell Co.
368 N.E.2d 520 (Appellate Court of Illinois, 1977)
Kopel v. Board of Education
275 N.E.2d 772 (Appellate Court of Illinois, 1971)

Cite This Page — Counsel Stack

Bluebook (online)
606 N.E.2d 389, 238 Ill. App. 3d 349, 179 Ill. Dec. 557, 1992 Ill. App. LEXIS 1804, Counsel Stack Legal Research, https://law.counselstack.com/opinion/doe-v-department-of-professional-regulation-illappct-1992.