DuFour v. Matrisch

CourtDistrict Court, N.D. Illinois
DecidedAugust 27, 2018
Docket1:18-cv-01269
StatusUnknown

This text of DuFour v. Matrisch (DuFour v. Matrisch) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
DuFour v. Matrisch, (N.D. Ill. 2018).

Opinion

UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION

THEODORE DUFOUR,

Plaintiff, No. 18 CV 1269 v. Judge Manish S. Shah STEVE MATRISCH, et al.,

Defendants.

MEMORANDUM OPINION AND ORDER

Plaintiff Theodore DuFour applied twice for a recovery permit from the Illinois Commerce Commission. The permit was required to conduct collateral repossessions under the Collateral Recovery Act, 225 ILCS 422/1 et seq. DuFour’s application was denied both times due to his criminal history. DuFour brings this suit against Commission officers under 42 U.S.C. § 1983, alleging violations of his rights to due process, equal protection, and petition for redress of grievances and his right against double jeopardy. Defendants move to dismiss the complaint for a lack of jurisdiction and the failure to state a claim. The motion is granted in part, denied in part. I. Legal Standards Defendants move to dismiss the complaint under Federal Rules of Civil Procedure 12(b)(1) and 12(b)(6). A motion to dismiss under Rule 12(b)(1) argues that this court lacks subject-matter jurisdiction. Subject-matter jurisdiction “defines [the court’s] power to hear cases.” Lightfoot v. Cendant Mortg. Corp., 137 S.Ct. 553, 560 (2017). Without subject-matter jurisdiction, the court has no power to hear the case and cannot go on to reach the merits. See All. for Water Efficiency v. Fryer, 892 F.3d 280, 287 (7th Cir. 2018). As the plaintiff asserting subject-matter jurisdiction,

DuFour bears the burden of establishing it. Ctr. for Dermatology & Skin Cancer, Ltd. v. Burwell, 770 F.3d 586, 589 (7th Cir. 2014). A motion to dismiss under Rule 12(b)(6) is one on the merits of the case—it argues that the complaint “fail[s] to state a claim upon which relief can be granted.” That is to say, even if all the facts alleged in the complaint were true, it would not plausibly suggest a right to relief. Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009). Because DuFour is pro se, I construe his complaint liberally and hold it to a less

strict standard than a complaint drafted by lawyers (though it must still plausibly suggest a right to relief). Turley v. Rednour, 729 F.3d 645, 651 (7th Cir. 2013). When considering a Rule 12(b)(6) motion to dismiss, I am limited to reviewing the complaint, “documents attached to the complaint, documents that are critical to the complaint and referred to in it, and information that is subject to proper judicial notice.” Phillips v. Prudential Ins. Co. of Am., 714 F.3d 1017, 1019–20 (7th Cir.

2013) (citation omitted). In evaluating either type of motion to dismiss, I must assume that all of the facts alleged in the complaint are true and draw reasonable inferences from those facts in DuFour’s favor. St. John’s United Church of Christ v. City of Chicago, 502 F.3d 616, 625 (7th Cir. 2007); Iqbal, 556 U.S. at 678–79. I am not required to accept the complaint’s legal conclusions as true. Iqbal, 556 U.S. at 678. II. Background The Illinois Collateral Recovery Act regulates “individuals and entities engaged in the business of collateral recovery for the protection of the public.” 225

ILCS 422/5. One of its requirements is that collateral recovery agents employed by repossession agencies hold a valid recovery permit, specifically a “Class ‘E’ recovery permit,” issued by the Illinois Commerce Commission. 225 ILCS 422/30(c), 422/75(e)(4). The Commission can refuse to issue a permit for a number of reasons, including violations of the act and criminal convictions of felonies, misdemeanors with dishonesty as an element, and crimes related to the collateral recovery profession. 225 ILCS 422/80(a). If a permit applicant has a criminal conviction of

this kind, an administrative law judge holds an administrative hearing to help the Commission decide whether the applicant is “unfit by reason of conviction.” Ill. Admin. Code tit. 92, § 1480.50(c). When the Commission decides to deny a permit application, it must notify the applicant in writing, along with a statement about the denial, the convictions the denial was based on, and a summary of the appeal process (or information about when the applicant can reapply). 225 ILCS 422/85(d).

Defendants are Commission officials: Matrisch is the deputy executive director, Sheahan is the chairman, and Hinesheh is the ethics officer. [1] ¶¶ 4–6.1 Many of the following facts come from two Commission orders that defendants attached to their motion to dismiss and which I take judicial notice of. [18-1]. DuFour correctly points out that, under Rule 12(d), a motion to dismiss

1 Bracketed numbers refer to entries on the district court docket. Page numbers are taken from the CM/ECF header at the top of filings. relying on materials outside the pleadings must usually be turned into a motion for summary judgment, but there is a “narrow exception” for judicially-noticed public records. Gen. Elec. Capital Corp. v. Lease Resolution Corp., 128 F.3d 1074, 1080–81

(7th Cir. 1997). This “allow[s] courts to avoid unnecessary proceedings when an undisputed fact in the public record establishes that the plaintiff cannot satisfy the 12(b)(6) standard.” Id. I may take judicial notice of public records, including administrative records and findings, when the facts are “not subject to reasonable dispute.” Tobey v. Chibucos, 890 F.3d 634, 647–48 (7th Cir. 2018); Bell v. City of Country Club Hills, 841 F.3d 713, 716 n.1 (7th Cir. 2016). The Commission orders are public administrative records, and DuFour does not argue that they are

inaccurate or inauthentic, so I take judicial notice of them. See Oney v. Nennig, 142 F.3d 440, 1998 WL 123114, at *1 (7th Cir. 1998) (unpublished table decision) (district court properly took judicial notice of documents “[b]ecause they [were] all matters of public record and [plaintiff] did not challenge the documents’ authenticity or accuracy”). Plaintiff Theodore DuFour has been a recovery agent since 1999, and he

applied for a recovery permit in December 2012. [1] ¶ 3; [18-1] at 2. A background check revealed that DuFour had criminal convictions that could result in the denial of his application, so an administrative hearing was held in front of an ALJ. [18-1] at 2. DuFour represented himself at the hearing. [18-1] at 2. The evidence focused on DuFour’s criminal history, including his felony convictions of aggravated battery, illegal possession of a weapon, insurance fraud, and possession of a stolen vehicle. [18-1] at 3–4. DuFour also had several misdemeanor convictions for battery, phone harassment, and trespass, which all stemmed from DuFour’s work as a recovery agent. [18-1] at 4. In his testimony at the hearing, DuFour expressed remorse about

his past and explained the strides he had made in turning his life around. [18-1] at 4. The owner of a repossession agency also testified on DuFour’s behalf, stating that DuFour had turned his life around and was good at his job. [18-1] at 4–5. Ultimately, however, the Commission gave greater weight to DuFour’s criminal record and denied DuFour’s application for a recovery permit in August 2013. [18-1] at 6–7; [1] ¶ 9. DuFour tried to reapply for a recovery permit in December 2013. [18-1] at 9.

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