Giggs Bajwa Corp. v. Berg

2024 IL App (1st) 221691
Appellate Court of Illinois·Decided May 24, 2024·No. 1-22-1691·Published

Opinion

2024 IL App (1st) 221691

SIXTH DIVISION

May 24, 2024

No. 1-22-1691

IN THE

APPELLATE COURT OF ILLINOIS FIRST DISTRICT

GIGGS BAJWA CORPORATION, d/b/a Gas ) Appeal from the Circuit Court Depot Express Market, ) of Cook County.

)

Plaintiff-Appellant, )

)

v. ) No. 22 CH 881 )

CYNTHIA BERG, Chairman of the Illinois ) The Honorable Liquor Control Commission, THE ILLINOIS ) Anna Helen Demacopoulos, LIQUOR CONTROL COMMISSION; ) Judge, presiding. CHRISTOPHER CLARK, Local Liquor ) Control Commissioner of the City ) of Harvey; and THE HARVEY LIQUOR ) CONTROL COMMISSION, )

)

Defendants-Appellees. )

PRESIDING JUSTICE ODEN JOHNSON delivered the judgment of the court, with opinion.

Justices C.A. Walker and Tailor concurred in the judgment and opinion.

OPINION

¶1 This is an appeal of an administrative decision by defendant-appellee the Illinois Liquor Control Commission (State Liquor Commission) affirming a decision by the Harvey Liquor Control Commission (Harvey) not to renew the liquor license of plaintiff-appellant Giggs Bajwa Corporation (Giggs). For the reasons explained below, we cannot find that the State

Liquor Commission clearly erred in finding that Harvey did not abuse its discretion by declining to renew Giggs’s license, and, thus, we affirm.

¶2 BACKGROUND

¶3 I. The Harvey Order

¶4 On December 22, 2020, Harvey issued a decision declining to renew Giggs’s liquor license. The order stated that a hearing on the matter was held on December 17, 2020, and that the following findings were made.

¶5 On November 13, 2020, a notice was sent by (1) regular mail and “UPS Next Day Delivery” to Giggs and (2) e-mail to Giggs’s attorneys. The notice stated that it was a “Notice of Hearing for Intent to Not Renew A City of Harvey Liquor License” and that the hearing was scheduled for November 20, 2020. At the request of Giggs’s attorneys, the hearing was rescheduled to December 2, 2020.

¶6 At the December 2, 2020, hearing, Giggs’s counsel again requested a continuance, which was granted without objection, and the hearing was rescheduled to December 17, 2020. Although the December 17 hearing was scheduled to take place in person, Giggs’s attorney elected to participate remotely via Zoom.

¶7 At the December 17 hearing, it was established that Giggs received a liquor license renewal packet and instructions on August 6, 2020, which was approximately two months prior to the October 2, 2020, submission deadline stated in the packet.

¶8 The packet had an instructional cover letter from the mayor of Harvey stating the following, underlined and in bold, on the first page:

“The deadline to submit a completed application and all required information and documentation is Friday, October 2, 2020. No applications will be accepted for

consideration for liquor licenses for the 2020-2021 license year after that date, and no supplemental information or documentation will be accepted after that date.”

(Emphasis omitted.)

The letter put recipients on notice that “no supplemental information or documentation will be accepted after that date.”

¶9 In order to aid recipients in meeting what was declared to be a drop-dead deadline, the packet provided Giggs and other licensees with an option for early review of, and assistance with, preliminary applications that were furnished by September 1, 2020. Giggs declined to take advantage of this opportunity.

¶ 10 On or close to the October 2, 2020, application deadline, Giggs submitted its renewal application. As of October 2, 2020, its application was incomplete in that Giggs did not provide (1) its articles of incorporation, (2) its sales and use tax forms and surcharge return forms for November 2019 through the current date, (3) its drink excise tax return forms for the 2019-20 license year showing payment, (4) a certificate of insurance reflecting workers’ compensation coverage, and (5) a certificate of occupancy for the licensed premises.

¶ 11 On the morning of the December 2, 2020, hearing, Giggs filed item (4) above, which was a copy of its certificate of liability insurance. Giggs also filed a portion of item (2) above, namely sales and use tax forms for the 2019 calendar year, but not for the 2020 calendar year, as required by the packet.

¶ 12 On December 16, 2020, the day before the now-twice rescheduled hearing, Giggs furnished a portion of item (3) above, namely drink excise tax return forms for November 2019 through November 2020. However, no drink excise tax payments accompanied the forms, as of the December 17, 2020, hearing.

¶ 13 After the missing payments were discussed at the December 17, 2020, hearing, payment was tendered by Giggs at the close of the December 17 hearing. However, as of the close of the December 17 hearing, Giggs had still not submitted any sales and use tax forms for the calendar year 2020 (part of item (2) above), and still had not submitted item (1) above, its articles of incorporation, or item (5) above, its certificate of occupancy.

¶ 14 Regarding its certificate of occupancy, Giggs explained at the December 17 hearing that Giggs did not own the property and had been unsuccessful in its attempts to contact its international landlord to obtain the certificate.

¶ 15 On December 18, 2020, which was after the close of the December 17 hearing but before the issuance of the Harvey order on December 22, Giggs provided item (1) above, its articles of incorporation, and a portion of item (2) above, namely its sales and use tax forms for the calendar year 2020.

¶ 16 Based on the foregoing recitation of facts, the order found, among other things, that a final deadline of October 2, 2020, had been established and that the cover letter had alerted Giggs two months prior to this deadline that no belated items would be accepted. Further, the order found that Giggs had been given an optional opportunity for early review and assistance, if it submitted its packet by the preliminary submission deadline of September 1, 2020, an option that Giggs chose not to exercise. The order concluded that Giggs’s “piecemeal tenders of outstanding records two months after the deadline and, in some cases, after the conclusion of the Hearing, was not adequate to demonstrate compliance with the *** time-sensitive liquor license cycle.”

¶ 17 The order explained that “accepting supplementary application materials more than two months after an established deadline would require” Harvey “to allow all licensees to belatedly

supplement deficient applications months after the fact and frustrate liquor license application processing.” The order stated that it was “a final and appealable order, appealable to the Illinois State Liquor Control Commission” within 20 days of receiving the order.

¶ 18 II. The State Liquor Commission Order

¶ 19 On November 17, 2021, the State Liquor Commission issued an order that made the following findings.

¶ 20 On January 7, 2021, Giggs had filed a petition of appeal with the State Liquor Commission, which held its hearing on October 4, 2021. The commission reviewed the record and deliberated on the matter at its November 17, 2021, meeting, where it decided to affirm the Harvey order.

¶ 21 The commission’s order stated that the governing statute required it to consider three questions: (1) whether the local agency proceeded in the manner prescribed by law, (2) whether the order is supported by its findings, and (3) whether the findings were supported by substantial evidence in light of the whole record. 235 ILCS 5/7-9 (West 2020).

¶ 22 The commission noted that, when considering these three statutorily prescribed questions, its duty was to determine whether the local agency had abused its discretion. In support of this proposition, it cited Koehler v. Illinois Liquor Control Comm’n, 405 Ill. App. 3d 1071, 1080 (2010) (State Liquor Commission must “determine whether the local agency abused its discretion”).

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