El Sauz, Inc. v. Daley

765 N.E.2d 1052, 328 Ill. App. 3d 508, 262 Ill. Dec. 444
CourtAppellate Court of Illinois
DecidedFebruary 20, 2002
Docket1-00-3721
StatusPublished
Cited by15 cases

This text of 765 N.E.2d 1052 (El Sauz, Inc. v. Daley) 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
El Sauz, Inc. v. Daley, 765 N.E.2d 1052, 328 Ill. App. 3d 508, 262 Ill. Dec. 444 (Ill. Ct. App. 2002).

Opinion

PRESIDING JUSTICE HALL

delivered the opinion of the court:

The plaintiff, El Sauz, Inc., doing business as El Gato Negro, filed a complaint for administrative review seeking review of an order of suspension issued by the Local Liquor Control Commission of the City of Chicago. The defendants filed a motion to dismiss the complaint for lack of jurisdiction. The circuit court granted the motion. The plaintiff appeals from the order of dismissal.

On appeal, the plaintiff raises the following issues: (1) whether the defendants waived their jurisdictional challenge to the plaintiffs complaint; (2) whether the License Appeal Commission had jurisdiction to rule on the plaintiffs petition for rehearing; (3) whether the plaintiff was statutorily entitled to service of the License Appeal Commission’s order by certified mail; and (4) whether section 3 — 13 of the Liquor Control Act of 1934 (235 ILCS 5/1 — 1 et seq. (West 1998)) (Liquor Act) denies the plaintiff its constitutional rights to due process and equal protection.

Procedural History

On September 1, 1998, following a hearing, the Local Liquor Control Commission (LLCC) ordered a 30-day suspension of the plaintiffs liquor license based on its finding that the purchase of a controlled substance had been permitted on the plaintiffs premises. The plaintiff timely filed its notice of appeal to the License Appeal Commission (LAC). On March 15, 1999, the LAC issued its order affirming the findings of the LLCC and the imposition of the 30-day suspension penalty. Accompanying the order was the certification by a staff assistant that the order was mailed on March 15, 1999, addressed to the attorney of record.

On April 15, 1999, the plaintiff filed a petition for rehearing with the LAC. Anticipating a jurisdictional challenge because the petition was not filed within 20 days of the LAC’s order (see 235 ILCS 5/7 — 10 (West 1998)), the plaintiff alleged that it never received a copy of the order and that its attorney did not receive a copy of the March 15, 1999, order within the 20-day period. The plaintiff further alleged that the order, which was served by regular mail, was required to be served by certified or registered mail as provided for in the Illinois Administrative Procedure Act (the Procedure Act) (5 ILCS 100/10 — 50 (West 1998)). The petition was supported by the affidavit of the plaintiffs president, Geraldine Lambert. After the filing of the petition, the plaintiff submitted the affidavit of its attorney. In his affidavit, the attorney stated that oral arguments in this case were held on March 8, 1999. Thereafter, he was out of town from March 17 through March 21, 1999, and from March 23 through April 9, 1999. When he returned to his office on April 9, 1999, the LAC’s order was included in the mail that had been delivered while he was out of town.

On April 16, 1999, the LLCC filed a motion to dismiss the plaintiffs petition for rehearing. The LLCC alleged that the 20-day period for filing the petition for rehearing was jurisdictional. The LLCC further alleged that notice of the March 15, 1999, order was properly served by regular mail, since the Procedure Act did not apply to the procedures followed by the LAC.

On January 26, 2000, the LAC issued a corrected order denying the LLCC’s motion to dismiss the petition for rehearing. The LAC determined that the Procedure Act was applicable to the LAC procedures and, therefore, service of the March 15, 1999, order by regular mail did not comply with the Procedure Act. As a result, the LAC concluded that the plaintiffs petition for rehearing had been timely filed. On January 28, 2000, the LLCC filed a petition for rehearing, which was denied by the LAC on January 31, 2000. After a hearing on the merits of the plaintiffs petition for rehearing, on March 17, 2000, the LAC issued a corrected order denying the plaintiffs petition for rehearing.

On April 4, 2000, the plaintiff filed its complaint for administrative review seeking reversal of the LAC’s order affirming the LLCC’s findings and the imposition of the 30-day suspension of its liquor license.

On May 9, 2000, the defendants filed a motion to dismiss the complaint for lack of jurisdiction. The motion alleged the same jurisdictional arguments that the LLCC had raised in its motion to dismiss and its petition for rehearing before the LAC. The motion to dismiss asserted that since the plaintiff was required to file a petition for rehearing before it could seek review of the LAC’s order (see 235 ILCS 5/7 — 10 (West 1998)), its untimely filing of its petition for rehearing deprived the LAC of jurisdiction to act on the petition for rehearing and, therefore, the circuit court was without jurisdiction to hear the complaint.

On June 15, 2000, the plaintiff filed a response to the motion to dismiss. In its response, the plaintiff pointed out that the defendants did not file for administrative review of the LAC’s order denying their petition for rehearing as required by section 3 — 103 of the Administrative Review Law (Review Act) (735 ILCS 5/3 — 103 (West 1998)) and thus waived review of the LAC’s denial of its motion to dismiss. Therefore, the plaintiff argued that the defendants’ motion to dismiss constituted an impermissible collateral attack on the LAC’s order.

On July 28, 2000, the circuit court issued a written opinion granting the defendants’ motion to dismiss. The plaintiff filed a motion for reconsideration and rehearing on August 25, 2000. The circuit court denied the motion on October 23, 2000. The plaintiff filed a timely notice of appeal on October 27, 2000.

ANALYSIS

I. Whether the Defendants Waived Their Right to Raise the Issue of Jurisdiction Before the Circuit Court.

The material in this section is nonpublishable pursuant to Supreme Court Rule 23 (166 Ill. 2d R. 23).

II. Whether the LAC had Jurisdiction of the Plaintiffs Petition for Rehearing.

A. Standard of Review

Review of an agency’s legal conclusions is de novo. Stillo v. State Retirement Systems, 305 Ill. App. 3d 1003, 1007, 714 N.E.2d 11, 14 (1999). However, findings and conclusions of fact are held to be prima facie true and correct and will not be disturbed on review unless they are against the manifest weight of the evidence. Stillo, 305 Ill. App. 3d at 1006, 714 N.E.2d at 14.

B. Discussion

Section 7—10 of the Liquor Act provides in pertinent part as follows:

“Within 20 days after the service of any rule, regulation, order or decision of said commission upon any party to the proceeding, such party may apply for a rehearing in respect to any matters determined by said commission.

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765 N.E.2d 1052, 328 Ill. App. 3d 508, 262 Ill. Dec. 444, Counsel Stack Legal Research, https://law.counselstack.com/opinion/el-sauz-inc-v-daley-illappct-2002.