Farrell v. State

52 Ill. Ct. Cl. 275
CourtCourt of Claims of Illinois
DecidedJanuary 10, 2000
DocketNo. 95-CC-0594
StatusPublished
Cited by1 cases

This text of 52 Ill. Ct. Cl. 275 (Farrell v. State) is published on Counsel Stack Legal Research, covering Court of Claims of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Farrell v. State, 52 Ill. Ct. Cl. 275 (Ill. Super. Ct. 2000).

Opinion

OPINION ON MOTION TO DISMISS

Epstein, J.

Eight Claimants bring two claims against the State (counts I-II) on behalf of themselves and a purported class of 700+ former employees of Wittek Industries, Inc. (‘Wittek”), which operated in Galesburg, Illinois, and two claims (counts III-IV) on behalf of themselves and a purported sub-class of 139 of the former Wittek employees who were the subject of an enforcement action against Wittek by Respondents Department of Labor (“IDOL”).

Count I alleges that the Respondent breached certain contracts between Wittek and the Respondents Department of Commerce and Community Affairs (“DCCA”), which Claimants seek to enforce as third-party beneficiaries. Count II asserts the intentional torts of interference with contract and with prospective economic advantage, alleging that the Respondent interfered with Claimants’ current and prospective employment with Wittek. Count III asserts state and federal statutory violations, alleging that IDOL misused and appropriated the Claimants’ social security numbers and other information. Count IV asserts invasions of privacy by IDOL.

These four putative class claims, seeking $70,000,000 plus in damages ($100,000 per Claimant) on counts I and II and unspecified damages on counts III and IV, are before us on two threshold motions that were fully briefed and orally argued to the Court: (1) the Claimants’ motion for certification of the class and sub-class pursuant to section 2 — 802 of the Code of Civil Procedure, which inter alia has provoked a challenge by the Respondent to this Court’s jurisdiction to entertain class actions; and (2) the legal issues raised by the Respondent’s motion for summary judgment on all four counts, which the Court has taken solely as a section 2 — 615 motion to dismiss based on the allegations of the complaint and the DCCA-Wittek contract documents that were produced by the Respondent pursuant to the Court’s order of November 19,1996.

Procedural Posture of the Case

The Court has ■ determined, unusually, to take up only some of the issues, i.e., the facial legal issues, that are raised in the Respondent’s summary judgment motion. We adhere to our refusal to consider, at this point, the fact-based defenses that were raised in the pending motion, despite the Respondent’s persistent efforts to renew those arguments at this stage of the case.

The Court will proceed step-wise in this case. The legal issues raised that can be adjudicated on the face of the complaint and on the contract document record should be decided expeditiously.1 There is no reason to delay resolution of those threshold issues.

However, the same cannot be said of the fact-sensitive issues raised in the Respondent’s summary judgment motion. We will not now take up the Respondents contention that it did not (and that Wittek did) breach the grant agreements on which counts I and II are predicated. We defer consideration of such issues because of the large and burdensome factual record that is required to adjudicate the issues of compliance, entitlement, interference and breach relating to the DCCA-Wittek agreements and because of the incompleteness of the extensive discovery requested by the Claimants. Those defenses may or may not ever be determinable by summary judgment rather than trial. But they surely are not determinable now or any time soon, and not before completion of a discovery process between these parties that promises to be protracted and contentious. The fact-based issues can be taken up later if necessary.

On the class issues, the Court directed that a hearing be conducted on the fact-related aspects of the certification issues under section 8 — 204 of the Code of Civil Procedure (735 ILCS 5/8 — 204). We also directed the parties to submit their suggestions for management of the classes, particularly the notice mechanics, in the event the Court did assert jurisdiction and certify one or more Claimant classes. For reasons inadequately explained, neither party addressed those issues beyond the initial pleadings and motions.

The Class Action Issues

Respondent vigorously opposes the class certification motion, and contends that the Court of Claims lacks jurisdiction to entertain a class action. Claimant asserts that this Court has the authority to entertain class actions by virtue of the class action provisions of the Code of Civil Procedure (part 8 of article II; 735 ILCS 5/2 — 801 et seq.). The Code, like the rules of the Illinois Supreme Court, has been adopted by this Court "[Ejxcept as herein otherwise provided by” this Court’s rules. Regulation 790.30 “Pleadings and Practice,” 74 Ill. Admin. Code, section 790.30.

Neither party has found, nor has our research, any decision of this Court or of the constitutional courts of Illinois that directly addresses or decides this jurisdictional issue. In this sense, this is an issue of first impression.

On the other hand, in at least one case this Court did entertain a class action and did adjudicate issues on behalf of a claimant class. (Gendel v. State (1984), 38 Ill. Ct. Cl. 76.) (Roe, C.J.).) However, in Gendel, the court’s opinion assumed rather than decided the class jurisdiction issue. Chief Justice Roe’s opinion applied the Code class provisions without any discussion of their vitality in the Court of Claims. There is no indication that any party in Gendel raised any jurisdictional issue. Gendel is thus of limited precedental guidance.

The other “class actions” that the Claimants cite as class precedents in this Court were not true class adjudications. Those cases were examples of class awards or joint awards entered by this Court on stipulations or following class judgments or class settlements in other courts, e.g., Peltz v. State (1981), 34 Ill. Ct. Cl. 284; Acoff v. State (1981), 35 Ill. Ct. Cl. 364; Coppetelli v. State (1981), 35 Ill. Ct. Cl. 328.

In light of the unsettled status of this class jurisdiction question, and in light of our disposition of the complaint at this stage of this case, the Court declines to reach the class action issues at this time as it is unnecessary to do so. We will return to this briefed and argued issue when and if we are required to do so in the course of future proceedings.

Count I

Breach of Contract — Third Party Beneficiary

Claimants’ breach of contract theory in count I of their complaint is predicated on a series of “promises” that the Respondent, through DCCA, made to Wittek in its “Incentive Letter” of November 1990 (and earlier versions of that letter, and in ensuing grant contracts) to provide $1,000,000 to Wittek as a training grant for use in training Wittek employees in Illinois and to provide a $2,000,000 grant to Wittek for “acquisition of machinery, equipment, improvements and” moving expenses. These “promises” were undisputedly made by DCCA in order to induce Wittek to consolidate its manufacturing operations in Illinois, specifically in Galesburg, which it ultimately did and where it ultimately failed and went out of business.

Claimants allege that the Respondent breached the Wittek-DCCA agreements by both tardy and short payments of the “promised” grant funds.

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Related

Haney v. Illinois Development Finance Authority
53 Ill. Ct. Cl. 171 (Court of Claims of Illinois, 1998)

Cite This Page — Counsel Stack

Bluebook (online)
52 Ill. Ct. Cl. 275, Counsel Stack Legal Research, https://law.counselstack.com/opinion/farrell-v-state-ilclaimsct-2000.