Howlett v. Scott

370 N.E.2d 1036, 69 Ill. 2d 135, 13 Ill. Dec. 9, 1977 Ill. LEXIS 417
CourtIllinois Supreme Court
DecidedNovember 30, 1977
Docket48929
StatusPublished
Cited by82 cases

This text of 370 N.E.2d 1036 (Howlett v. Scott) is published on Counsel Stack Legal Research, covering Illinois Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Howlett v. Scott, 370 N.E.2d 1036, 69 Ill. 2d 135, 13 Ill. Dec. 9, 1977 Ill. LEXIS 417 (Ill. 1977).

Opinions

MR. JUSTICE UNDERWOOD

delivered the opinion of the court:

During the early months of 1976, Daniel Walker, then Governor of Illinois, and Michael J. Howlett, then Illinois’ Secretary of State, were candidates for the nomination of the Democratic party for the office of Governor, and Ronald E. Stackler, previously appointed by Governor Walker as Director of the Illinois Department of Registration and Education and then on leave from that office, was a candidate for the same party’s nomination as Attorney General. William J. Scott, Attorney General of Illinois, was a candidate for the nomination of the Republican party for the office of Attorney General.

Michael J. Howlett had been employed as a full-time executive by Sun Steel Company from 1952 until his election as Auditor of Public Accounts of this State in 1960, at which time he resigned from his position as vice-president of the company. During the years he served as Auditor and Secretary of State he received $15,000 per year from Sun Steel Company for his services as a consultant. Receipt of that compensation was disclosed by him in each of his annual reports filed with the State Board of Ethics (Ill. Rev. Stat. 1975, ch. 127, par. 604A — 101(b)).

Subsequent to Secretary Hewlett's election as Secretary of State in 1972, new legislation created the Vehicle Recycling Board, of which the Secretary of State was to serve as chairman. (Ill. Rev. Stat. 1975, ch. 95½, par. 4 — 300 et seq.) This board is primarily concerned with the efficient removal of abandoned vehicles from highways and streets and with the wrecking, salvaging and recycling thereof. Sun Steel Company is wholly owned by M. S. Kaplan Company, which also wholly or partially owns or controls several other steel companies engaged in various phases of the steel industry. The principal business of the Kaplan companies involves scrap iron and steel, a major source of which is abandoned, wrecked or obsolete automobiles which have been junked.

Prior to the March primary election, Director Stackler publicly charged that the receipt by Secretary Howlett of the $15,000 per year during his years as Auditor (1962-1972) and Secretary of State (1972-1976) constituted a conflict of interest entitling the State of Illinois to recover those funds from the Secretary. Governor Walker supported Director Stackler’s charges and publicly demanded that Attorney General Scott institute a civil action against Secretary Howlett to recover the payments for the benefit of the State. Considerable publicity was given the charges and demands in the news media, and on February 5 Attorney General Scott announced the appointment of a retired former member of this court, Charles H. Davis, “to head up an independent team to determine whether there is any legal basis for Governor Daniel Walker’s suggestion that a civil recovery suit be considered regarding Secretary of State Michael J. Howlett’s position with Sun Steel.” Mr. Justice Davis died several weeks later, and on March 4 the Attorney General announced the appointment as a Special Assistant Attorney General of Marvin F. Burt, a former circuit judge who at one time had been assigned to service on this court, to carry out the original purpose. That announcement stated “the report is to be made public by Judge Burt as soon as it is completed.”

The completed 41-page report was delivered to the Attorney General on July 19, 1976. It was based substantially on the facts as given by Secretary Howlett and Governor Walker, both of whom cooperated fully during the investigation. The report recited in detail the factual background concerning the charges against the Secretary earlier summarized herein. It discussed three issues, concluding that no conflict of interest existed while Secretary Howlett was Auditor. It also concluded that there was an “evidentiary stalemate” on the question of the Secretary’s involvement with and support for two pieces of legislation which would have reduced the costs of some scrap processors in junking automobiles. The report did conclude, however, that a conflict of interest arose when Secretary Howlett, in performing his official duties, became chairman of the Vehicle Recycling Board. (While not used, the Board had available to it large sums of money which it could use to subsidize private enterprise in removing and recycling automobiles.) The report recommended that the Attorney General delay action until this court had completed its review of two recent appellate court decisions on which the report’s conclusions were substantially based.' The Attorney General released this report to the news media on July 20, 1976, with a summary reiterating the recommendation that action be delayed.

Two days later Secretary Howlett filed in the circuit court of Cook County his complaint for declaratory judgment naming the Attorney General as defendant and alleging that the controversy first arose when the Attorney General announced his intention to appoint a special assistant to investigate the charges; that plaintiff had completely responded to all inquiries by the investigator; that the report concluded a conflict of interest existed but recommended that legal action await the outcome of cases pending before this court; that the report was publicly released and that the timing of the release caused substantial publicity unfavorable to plaintiff and cast a shadow of suspicion over him and his campaign, endangering his right to be a candidate for public office; and that threats of an imminent suit created an immediate and irresolvable controversy over plaintiff’s right to retain his consulting fees. A copy of the report was annexed to the complaint, which prayed for a declaration that no conflict of interest existed and that plaintiff was entitled to retain all annual payments received by him from Sun Steel.

On July 28, 1976, plaintiff filed a motion for summary judgment which alleged that he did not dispute any of the material facts set forth in the report, and that there was no genuine issue of fact. The Attorney General moved to dismiss the complaint on August 16, alleging inter alia that the complaint did not present a justiciable matter, i.e., it sought an advisory opinion; and that no actual justiciable controversy then existed. The motion to dismiss was denied and an answer filed on August 27 denying certain allegations and demanding strict proof of others. A counterclaim was also filed against Secretary Howlett, joining M. S. Kaplan Company and Sun Steel as additional parties, seeking a declaration that Secretary Howlett held the payments received by him from M. S. Kaplan Company and its affiliates, while he was Secretary of State, as constructive trustee for the public and seeking a full accounting. The counterclaim alleged that plaintiff’s receipt of those payments breached his fiduciary obligation to the public.

Plaintiff moved to dismiss the counterclaim on September 1, and that motion, together with plaintiff’s motion for summary judgment, was allowed one week later. We granted the Attorney General’s motion for direct appeal to this court under Rule 302(b) (58 Ill. 2d R. 302(b)).

While the parties have briefed and argued the merits of defendant’s counterclaim, in our view it is necessary to discuss only the propriety of the trial court’s denial of the motion to dismiss the complaint for declaratory judgment.

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Cite This Page — Counsel Stack

Bluebook (online)
370 N.E.2d 1036, 69 Ill. 2d 135, 13 Ill. Dec. 9, 1977 Ill. LEXIS 417, Counsel Stack Legal Research, https://law.counselstack.com/opinion/howlett-v-scott-ill-1977.