Gelb v. Air Con Refrigeration & Heating, Inc.

761 N.E.2d 265, 326 Ill. App. 3d 809, 260 Ill. Dec. 421
CourtAppellate Court of Illinois
DecidedNovember 30, 2001
Docket1-00-2099
StatusPublished
Cited by18 cases

This text of 761 N.E.2d 265 (Gelb v. Air Con Refrigeration & Heating, Inc.) 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
Gelb v. Air Con Refrigeration & Heating, Inc., 761 N.E.2d 265, 326 Ill. App. 3d 809, 260 Ill. Dec. 421 (Ill. Ct. App. 2001).

Opinion

JUSTICE GREIMAN

delivered the opinion of the court:

Plaintiff Dana Gelb (Gelb) filed this suit on January 28, 2000, alleging that defendants Air Con Refrigeration & Heating, Inc. (Air Con), Hill Mechanical Corp. (Hill), Chicagoland Sheet Metal Contractors Association (the Association), and John Does 1 to 99 conspired to violate and were violating the Illinois Minimum Wage Law (820 ILCS 105/1 et seq. (West 1998)) by providing lower overtime wages than those prescribed by law. Gelb prayed for a determination that the case proceed as a class action for accounting of lost wages for himself and the class, payment of lost wages for himself and the class, a declaration of the illegality of defendants’ unlawful practices, an injunction barring defendants’ unlawful practices, statutory penalties, interest, and attorney fees. However, days later on the 15th of March, 2000, before the plaintiff filed a motion for class certification, defendants Hill and Air Con made a settlement offer to pay plaintiffs individual back wages plus interest, statutory penalties, and attorney fees. Plaintiff rejected the settlement offer because the amount of back wages to be paid was not specified, the attorney fees were not specified, and no offer was made to stop the allegedly illegal practice or provide any class relief.

Hill, Air Con, and the Association then filed a joint motion under sections 2 — 615 and 2 — 619(a) of the Code of Civil Procedure (735 ILCS 5/2 — 615, 2 — 619(a) (West 1998)) to dismiss the plaintiff’s complaint on the basis that Hill and Air Con’s tender to the plaintiff removed the case or controversy between the plaintiff and the named defendants, and accordingly, plaintiffs case was moot. The trial court agreed and granted the motion to dismiss plaintiffs complaint and cause of action. Plaintiff has appealed, and for the reasons that follow, we reverse and remand.

Plaintiff is a sheet metal worker who was employed by Hill and Air Con and was paid wages on an hourly basis. In his putative class action complaint, filed on January 28, 2000, he argued that these defendants and John Does 1 to 99 are entities that had entered into a conspiracy to pay their hourly wage earners a lower rate of overtime pay than required by the Minimum Wage Law. Specifically, he alleged that under the Minimum Wage Law, an employer is required to pay its employees an overtime premium — 50% of the workers’ regular rate of pay — for each hour over 40 hours that was worked in a week. However, defendants calculated their workers’ overtime premiums by intentionally lowering the workers’ regular rates of pay by $1.62 for “savings plan amounts” or “organization and education amounts.” Consequently, he avers, these reductions in the employees’ regular rates of pay also resulted in depriving the workers of $0.81 (50% of $1.62) in overtime premiums for every hour of overtime worked. Plaintiff also claimed that, as a part of the conspiracy, the Association instructed the employer-defendants to make the unlawful reductions in overtime pay.

In his prayer for relief, plaintiff sought an express determination that the case should proceed as a class action. As previously noted, he also requested an accounting of lost,wages for himself and the class, payment of lost wages for himself and the class, a declaration of the illegality of defendants’ unlawful practices, an injunction barring defendants’ unlawful practices, statutory penalties, interest, and attorney fees.

Roughly two weeks after filing his complaint, plaintiff served Hill, Air Con, and the Association with interrogatories and document requests. Those discovery requests were aimed at obtaining the identities of John Does 1 to 99 and other information necessary to file a motion for class certification. That discovery was stayed.

One month later, Hill and Air Con made a settlement offer. Those defendants offered to:

“[Pjrovide Mr. Gelb all overtime wages allegedly due or unpaid to him (pursuant to the allegations set forth in his complaint) in accordance with the Illinois Minimum Wage Law. The [djefendants will award him pre-judgment interest as he claims he is entitled to receive pursuant to 815 ILCS 205/2. The [djefendants will award the [pjlaintiff individual punitive damages as he claims entitlement pursuant to 820 ILCS 105/12. Finally, the [djefendants will pay Mr. Gelb’s reasonable attorney’s fees and costs incurred pursuing his claim against them. It is our understanding that Mr. Gelb is not currently employed by either Hill Mechanical Corp. or Air Con Refrigeration & Heating, Inc., at this time.”

Defendants’ offer further stated:

“This offer is being made for settlement purposes only. It is not an admission of nor a comment upon the merits of any claim Mr. Gelb may have alleged against any [djefendant in case 00-CH-1511.”

In a letter dated March 24, 2000, plaintiff rejected the settlement offer, and his counsel responded as follows:

“Mr. Gelb would be interested in your offer if it were to provide the offered relief to all members of the class. Furthermore, we believe that it is in all parties’ interest for any settlement to include a provision ending your client’s unlawful practice (and conspiracy) of deducting ‘savings plan’ amounts and ‘organizing’ amounts from employees regular rate in the calculation of overtime pay.
Please let me know whether you wish to continue pursuing the possibility of settlement at the present time. In any event, I remain open to discussing settlement with you at any time during the litigation.”

Also on that date, defendants Hill, Air Con, and the Association filed a motion to dismiss pursuant to section 2 — 619(a). In that motion, defendants admitted that the employer-defendants were, in fact, subtracting $0.81 per hour of overtime worked. However, they argued that the employer-defendants were required to do so until 2002 under a collective bargaining agreement into which they entered with the Sheet Metal Workers International Association Local No. 73 (the union). Because.plaintiff was a member of the union, he was subject to the terms of that agreement. They also argued that by virtue of Hill and Air Con’s settlement offer, plaintiff had been offered everything that he was individually requesting in his complaint and that there was no justiciable controversy between the parties. Consequently, they claimed that plaintiff’s individual claims had been mooted by the settlement tender and that he could no longer maintain any claim for himself or for any class.

On May 19, 2000, the circuit court granted defendants’ motion and dismissed plaintiffs complaint.

As we recently noted in In re Marriage of Buck, 318 Ill. App. 3d 489, 493 (2000), “[a] motion to dismiss admits all well-pleaded facts. Its purpose is to raise an issue of law as to the legal sufficiency of the allegations of the complaint. Ostendorf [v. International Harvester Corp.), 89 Ill. 2d [273, 280 (1982)].

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Gartreaux v. DKW Enterprise
2011 IL App (1st) 103482 (Appellate Court of Illinois, 2011)
Gatreaux v. DKW ENTERPRISES, LLC
2011 IL App (1st) 103482 (Appellate Court of Illinois, 2011)
Barber v. American Airlines, Inc.
948 N.E.2d 1042 (Illinois Supreme Court, 2011)
Barber v. American Airlines
Illinois Supreme Court, 2011
Barber v. American Airlines, Inc.
925 N.E.2d 1240 (Appellate Court of Illinois, 2010)
Akinyemi v. JP Morgan Chase Bank, N.A.
908 N.E.2d 163 (Appellate Court of Illinois, 2009)
Cohen v. Compact Power Systems, LLC
382 Ill. App. 3d 104 (Appellate Court of Illinois, 2008)
Gelb v. Air Con Refrigeration & Heating, Inc.
826 N.E.2d 391 (Appellate Court of Illinois, 2005)
Dickson v. West Koke Mill Village Partners
Appellate Court of Illinois, 2002
Bruemmer v. Compaq Computer Corp.
768 N.E.2d 276 (Appellate Court of Illinois, 2002)

Cite This Page — Counsel Stack

Bluebook (online)
761 N.E.2d 265, 326 Ill. App. 3d 809, 260 Ill. Dec. 421, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gelb-v-air-con-refrigeration-heating-inc-illappct-2001.