Karfs v. City of Belleville

770 N.E.2d 256, 329 Ill. App. 3d 1198, 264 Ill. Dec. 362, 2002 Ill. App. LEXIS 423
CourtAppellate Court of Illinois
DecidedMay 23, 2002
Docket5-00-00643
StatusPublished
Cited by14 cases

This text of 770 N.E.2d 256 (Karfs v. City of Belleville) 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
Karfs v. City of Belleville, 770 N.E.2d 256, 329 Ill. App. 3d 1198, 264 Ill. Dec. 362, 2002 Ill. App. LEXIS 423 (Ill. Ct. App. 2002).

Opinion

PRESIDING JUSTICE MAAG

delivered the opinion of the court:

The defendant, the City of Belleville (the City), appeals from an order of the St. Clair County circuit court finding that the City was bound by the finality of the decision made by the codefendant, the Board of Trustees of the Firefighters’ Pension Fund of the City of Belle-ville (Board), to award a monthly disability benefit of $2,481.02 to Craig Karfs (plaintiff). On appeal, the City claims that the trial court erred in determining that the City was bound by the Board’s award. The City claims that because it was not a proper party to the proceeding before the administrative agency, it could not have sought administrative review of that decision and, therefore, it was not bound by the 35-day limitation period for seeking a review of administrative decisions.

The pertinent facts are not in dispute. Plaintiff was employed as a firefighter for the City from November 1, 1973, until November 26, 1996. On November 27, 1996, plaintiff retired. He applied for a duty-related disability pension. In his application, plaintiff requested that five weeks of his unused vacation pay and 1,000 hours of unused sick pay be added to his base salary for the purpose of calculating his pension. At the time of plaintiffs pension application, there was in effect a labor contract between the City and the firefighters’ union that permitted a retiring firefighter with sufficient service time to request that unused vacation and sick pay be added to his base salary for pension purposes.

Michael J. Lundy, the treasurer of the Board and the treasurer of the City, calculated plaintiffs pension. He included plaintiffs unused vacation and sick pay in calculating the total base salary. According to Lundy’s calculation, plaintiff was entitled to receive a monthly pension of $2,481.02. Lundy’s pension computations were recorded on the letterhead stationery of the treasurer of the City. In December 1996, the Board met and voted to award plaintiff a duty-related disability pension of $2,481.02 per month. The minutes of that meeting are not a part of this record. However, members of the Board did sign the bottom of the letterhead stationery containing Lundy’s computations. The Board’s decision was not appealed.

In a letter dated June 30, 1997, Lundy notified plaintiff that errors were made when his pension was originally calculated. The letter was written on letterhead of the treasurer of the City and was signed “Michael J. Lundy, City Treasurer.” Lundy indicated that the unused vacation and sick pay should not have been added to plaintiffs base salary for the purpose of calculating his total base pay. Lundy stated that the City should have paid plaintiff a lump sum of $4,900.30 as compensation for his unused sick hours and vacation hours. Lundy wrote that plaintiff should have received $2,215.59 per month in pension benefits and that his monthly pension would be reduced to that sum beginning in July 1997. Lundy advised plaintiff that he would be required to reimburse the pension fund a total of $1,858.01, a sum that represented monthly overpayments to plaintiff since December 1996. Plaintiff contacted the Board’s attorneys after receiving the letter. On July 3, 1997, Jim Mendillo, an attorney who represented the Board, wrote to “Michael Lundy, City Treasurer,” and questioned the claim of error, referencing specific provisions (sections 14.6 and 15.5) of the labor contract. There is no document or record suggesting that any action was taken by the City or the Board regarding plaintiffs pension following the July 3, 1997, letter of inquiry. Plaintiff continued to receive $2,481.02 per month in pension benefits.

On December 8, 1999, plaintiff received a letter from Michael E Murphy, an attorney of the law firm representing the Board. In the letter, Murphy stated that the Board had voted in May 1997 to reduce the amount of plaintiffs pension, due to an error in the calculation of the total base pay. However, other than the statement in this letter, there is no indication that the Board took any action to alter plaintiffs pension at any time prior to 1999. In the letter, Murphy advised plaintiff that the error would be “corrected” and that, once corrected, plaintiff would receive $2,215.59 in monthly pension benefits. He also indicated that plaintiff had received overpayments of more than $6,000. Murphy asked plaintiff to appear at the December 1999 meeting of the Board to establish a repayment plan.

According to the minutes of the January 25, 2000, meeting, the Board adopted its attorney’s recalculation of plaintiffs pension and voted to reduce the pension to $2,215.59 per month. The Board also discussed the repayment of the overpayments made to plaintiff, but there is no indication that a vote was taken on that issue. Beginning in February 2000, plaintiff’s monthly pension was reduced to $2,215.59.

On February 18, 2000, plaintiff filed suit against the Board and the City. Count I of the first amended complaint was directed against the Board. In count I, plaintiff sought an order prohibiting the Board from recalculating or attempting to recalculate his original pension award and prohibiting the Board from paying a lesser sum than that which was initially awarded. Count II was filed against the City and the Board. In count II, plaintiff asked the court to enter a judgment declaring that the City and the Board were prohibited from recalculating his pension benefit and from paying a reduced sum, on the ground that neither the Board nor the City sought a review of the Board’s decision within 35 days after the decision was issued. Plaintiff also asked the court to declare that the City and the Board are responsible to pay plaintiff a sum representing the difference between the reduced benefit and the original benefit for each month the reduced benefit was paid, statutory interest on that sum, and court costs.

In a written judgment, the circuit court pointed out that the Administrative Review Law (735 ILCS 5/3 — 101 et seq. (West 1994)) was the exclusive means of reviewing decisions of the Board, according to section 4 — 139 of the Illinois Pension Code (40 ILCS 5/4 — 139 (West 1994)). The court found that the Board had no jurisdiction to reduce plaintiffs pension award, because it did not seek a review of the decision within the 35-day limitation period provided in section 3 — 103 of the Administrative Review Law (735 ILCS 5/3 — 103 (West 1994)). The court also found that the City was bound by the original pension decision, because it had not sought a review of that decision within the 35-day limitation period in the Administrative Review Law (735 ILCS 5/3 — 103 (West 1994)). The court entered an order prohibiting the Board and the City from reducing plaintiffs initial pension award. The court also declared the Board and the City liable to pay plaintiff a sum representing the difference between the reduced benefit and the original benefit, a sum of $265.43 per month, for each month the reduced benefit was paid, statutory interest on that amount, and plaintiffs court costs. The Board did not appeal.

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Bluebook (online)
770 N.E.2d 256, 329 Ill. App. 3d 1198, 264 Ill. Dec. 362, 2002 Ill. App. LEXIS 423, Counsel Stack Legal Research, https://law.counselstack.com/opinion/karfs-v-city-of-belleville-illappct-2002.