Knoob Enterprises, Inc. v. City of Carbondale

948 N.E.2d 183, 407 Ill. App. 3d 1177
CourtAppellate Court of Illinois
DecidedMarch 21, 2011
Docket5-09-0621
StatusPublished
Cited by1 cases

This text of 948 N.E.2d 183 (Knoob Enterprises, Inc. v. City of Carbondale) 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
Knoob Enterprises, Inc. v. City of Carbondale, 948 N.E.2d 183, 407 Ill. App. 3d 1177 (Ill. Ct. App. 2011).

Opinion

JUSTICE GOLDENHERSH

delivered the judgment of the court, with opinion.

Justices Welch and Donovan concurred in the judgment and opinion.

OPINION

On July 2, 2009, plaintiff, Knoob Enterprises, Inc., doing business as Stix Bar and Billiards, filed a complaint against defendants — the City of Carbondale, the Carbondale Local Liquor Control Commission, and the Carbondale Police Department — in the circuit court of Jackson County. The requested relief included a temporary restraining order and damages incurred as a result of the closing of an establishment named Stix Bar and Billiards (Stix). The circuit court granted a temporary restraining order in favor of plaintiff in an order of July 2, 2009, but in an order of October 9, 2009, the court dismissed the complaint. On appeal, plaintiff raises the following issues: (1) whether the circuit court erred by finding that plaintiff was not entitled to an automatic stay pursuant to Illinois’s Liquor Control Act of 1934 (Act) (235 ILCS 5/7—9 (West 2008)) and (2) whether the circuit court erred by dismissing the complaint in its entirety. We reverse and remand.

FACTS

Plaintiff had two separate liquor licenses for two different establishments located in the City of Carbondale — one for Stix and one for Callahan’s Irish Pub (Callahan’s). Both licenses ran from June 30, 2008, to June 30, 2009. In April 2009, plaintiff applied for the renewal and transfer of both licenses.

Both licenses were placed on the agenda for the June 16, 2009, meeting of the Carbondale Local Liquor Control Commission (Local Commission). According to defendants’ brief, the City of Carbondale had been notified that the State of Illinois Liquor Control Commission (State Commission) had placed a hold on any action on either license, and at the meeting plaintiffs counsel indicated he was attempting to have the hold lifted with regard to Stix. Plaintiff alleged in its complaint that the hold was lifted on June 17, 2009. In any event, no action was taken on the renewal applications at the meeting of June 16, 2009.

The record contains a petition of appeal from an order of the Local Commission signed by counsel for plaintiff on June 29, 2009, and stamped as received by the mayor’s office of the City of Carbondale on June 30, 2009. The petition addressed the license for Stix, not Callahan’s, and gave the following history: “Suspension History — The Licensee has not received any suspensions within the preceding 12 months.” The petition asserted that the Local Commission had refused “to act on a timely submitted application for renewal and transfer of an existing license prior to it(s) expiration.”

The license for Callahan’s was suspended from June 18, 2009, through July 17, 2009. It was suspended at the time the petition of appeal was filed.

In the early morning hours of July 2, 2009, a police officer for the City of Carbondale closed Stix for the failure to have a valid license. Later that day, plaintiff filed suit against defendants. Plaintiff requested a temporary restraining order, a permanent injunction, punitive damages, and actual damages for lost profits, interference with the contract for the sale of the business, and damage to business reputation. On July 2, 2009, the court entered, without notice to defendants, a temporary restraining order barring the City of Carbon-dale from closing Stix.

Upon entering the temporary restraining order, the court scheduled the matter for a hearing on the request for a preliminary injunction on July 13, 2009. After defendants entered their appearance, the temporary restraining order was extended and the matter was rescheduled for a hearing on August 5, 2009. On August 4, 2009, defendants filed an answer to plaintiffs complaint, and a docket entry of August 5, 2009, indicated that legal argument had been heard. A docket entry of September 4, 2009, indicated that the matter had been set for a hearing on the request for a permanent injunction on October 9, 2009. A printout from the circuit clerk of September 4, 2009, read, “The above case is set for: Hearing on Friday, October 09, 2009, at 9:30 AM.”

In the appendix to their appellate brief, defendants attached an order of the State Commission dated October 8, 2009, affirming an order of the Local Commission denying the renewal of the Stix license. Defendants assert that Stix remained open through October 9, 2009.

After the hearing on October 9, 2009, the court made the following docket entry:

“The Ct hears arguments by Atty Sanders & Atty Kimmel & takes under advisement.
ORDER
The court has reviewed PLEADINGS, CASE LAW & CONSIDERED ARGUMENTS OF COUNSEL. The Court finds: 235 ILCS 5/7—9 provides an appeal by a licensee, who has held [within] the preceding 12 mos. a stay issued by the [State Commission], by terms of state statute do not allow for licensee to continue to operate the establishment until the [State Commission] hears said appeal.
According to Plaintiffs Exhibit B[,] a 30 day suspension was to be in place as of June 18, 2009. This prelim, injunction was filed on July 2, 2009. The license for the licensee expired on June 30, 2009, during the time of a suspension.
The Court finds that the statute precludes the operation of the licensee’s expired license as the licensee had no valid liquor license at the time this action was filed, thus no license to renew.
Plaintiffs complaint for injunctive relief is denied. No evidence was presented as to damages. Thus, Court finds for Defendants [and] case is dismissed.”

Plaintiff appeals.

ANALYSIS

The disposition of this appeal is dictated by the terms of the Act. The second paragraph of section 7 — 9 of the Act provides as follows:

“In any case where a licensee appeals to the State Commission from an order or action of the local liquor control commission having the effect of suspending or revoking a license, denying a renewal application, or refusing to grant a license, the licensee shall resume the operation of the licensed business pending the decision of the State Commission and the expiration of the time allowed for an application for rehearing. If an application for rehearing is filed, the licensee shall continue the operation of the licensed business until the denial of the application or, if the rehearing is granted, until the decision on rehearing.” 235 ILCS 5/7—9 (West 2008).

Plaintiff was entitled to the protections of this provision. On June 29, 2009, plaintiff, through counsel, sent a petition of appeal to the State Commission. The plain language of this paragraph is clear.

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Cite This Page — Counsel Stack

Bluebook (online)
948 N.E.2d 183, 407 Ill. App. 3d 1177, Counsel Stack Legal Research, https://law.counselstack.com/opinion/knoob-enterprises-inc-v-city-of-carbondale-illappct-2011.