Krall v. Secretary of State

522 N.E.2d 814, 168 Ill. App. 3d 478, 119 Ill. Dec. 152, 1988 Ill. App. LEXIS 507
CourtAppellate Court of Illinois
DecidedApril 21, 1988
Docket2-87-0715
StatusPublished
Cited by9 cases

This text of 522 N.E.2d 814 (Krall v. Secretary of State) 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
Krall v. Secretary of State, 522 N.E.2d 814, 168 Ill. App. 3d 478, 119 Ill. Dec. 152, 1988 Ill. App. LEXIS 507 (Ill. Ct. App. 1988).

Opinion

JUSTICE UNVERZAGT

delivered the opinion of the court:

The defendant, the Secretary of State of the State of Illinois (Secretary), appeals from an order of the circuit court which reinstated the car dealership operator’s license of the plaintiff, William Krall. On appeal, the Secretary contends that the circuit court’s finding was against the manifest weight of the evidence because plaintiff failed to satisfy the requirement of maintaining an established place of business pursuant to section 5 — 100 of the Illinois Vehicle Code (Code) (Ill. Rev. Stat., 1986 Supp., ch. 95½, par. 5 — 100).

Plaintiff had been issued an Illinois Dealer’s Certificate of Authority (license) which authorized him to sell or otherwise deal in used cars. For the past eight years, plaintiff owned and operated a used car dealership located in Byron, Illinois. For the past three years, plaintiff has operated his barbershop, rent-a-space business, and used car dealership out of the same two-story frame building.

On the north side of the building, plaintiff had a barbershop which, through an archway, opened up into an adjoining room. The barbershop was also accessible from an outside entry way. The east half of the adjoining room was used to operate plaintiff’s used car dealership while the west half was used to operate his rent-a-space business. A lot located on the south side of the building displayed used cars. In the area directly behind that lot, plaintiff rented spaces for $10 per week plus $100 over the price at which a lessee would sell his or her car. The barbershop operated on the largest floor space, yet the used car dealership generated the largest gross income. The building also served as plaintiff’s residence, although access to his residence could not be obtained through one of the businesses. Instead, it was necessary to go outside the building and around an eight-foot fence to enter plaintiff’s residence.

On April 2, 1985, Investigator Henry (Henry) of the Secretary of State’s Department of Police made a routine investigation of plaintiff’s premises. After Henry entered the building through its southern door, plaintiff told him that the room they were in was used as an office for plaintiff’s used car dealership. Plaintiff then produced the appropriate records for Henry to examine while he tended to a customer in the barbershop.

Henry went outside to investigate the vehicles parked on plaintiff’s southern lot. Henry noticed that many of the cars had regular license plates as opposed to dealer plates. When questioned about the cars, plaintiff explained that he operated a rent-a-space business from the same office as his used car dealership. Plaintiff further stated that the west side of the office was used for his rent-a-space business while the east side was used for the used car dealership. It is undisputed that each business had separate desks, records, phone lines, and office equipment.

Upon learning that plaintiff operated his rent-a-space business and used car dealership from the same office, Henry informed plaintiff that the businesses would have to be separated. Henry further stated that the archway connecting the barbershop and the business offices would have to be blocked off. Plaintiff requested that Henry bring his supervisor to the building to survey the premises. On April 23, 1985, Henry returned with his supervisor, Sergeant Juliano. Both investigators again informed plaintiff that the archway would have to be blocked off. Plaintiff then requested verification as to what constituted a blocked-off wall.

On June 5, 1985, Henry returned to plaintiff’s building with another investigator, Sergeant Quest, in response to plaintiff’s request. Again, plaintiff was advised that he must block off the archway and separate his rent-a-space business and used car dealership. During this meeting, plaintiff stated that he resided in the building. Henry informed plaintiff that he could not operate his used car dealership out of his residence. On October 27, 1985, Henry and Sergeant Juliano returned to inspect plaintiff’s building. At this point, plaintiff’s only change to the physical condition of the building was the installation of swinging, solid wood doors onto the archway.

On November 20, 1985, a hearing was conducted at which plaintiff was ordered to show cause why his license should not be revoked for failure to maintain an established place of business pursuant to section 5 — 100 of the Code (Ill. Rev. Stat., 1986 Supp., ch. 95½, par. 5 — 100). After considering all the evidence, the hearing officer suspended plaintiff’s license for 30 days and indicated that plaintiff’s license would be revoked unless he permanently separated his barbershop and rent-a-space businesses from his used car dealership and removed his residence from the premises.

On February 14, 1986, plaintiff sought review of the hearing officer’s decision. After receiving written memoranda from the parties, the circuit court found that the hearing officer’s decision was against the manifest weight of the evidence. In its written opinion, the court stated:

“A review of the evidence establishes that Plaintiff’s place of business and his residence are separate and distinct. The Act uses a term place and premises. [Emphasis in original.] The word place is a very indefinite term generally meaning locality. Whereas premises means a dwelling and its land. There is no evidence in the record to support a finding that the Plaintiff conducted any business from his dwelling or the land distinctly related to the dwelling.
The Illinois Vehicle Code does not require the place the dealer occupies to be used exclusively for the selling, [etc.]; e.g. Section 1020.10(aXl) of the Illinois Administrative Code permits a dealer office facilities in a licensed mobile home park and a department store.
Facts established that the Plaintiff’s primary and principal operation at his place of business is an auto dealership.”

This appeal raises the issues: (1) whether plaintiff’s operation of a used car dealership along with two other businesses on the same premises violated plaintiff’s obligation to maintain an established place of business for his used car dealership; and (2) whether plaintiff’s established place of business included his residence.

Initially, we note that whether an administrative agency has acted within the scope of its power and authority is a judicial function, not one which the agency determines. (Mitee Racers, Inc. v. Carnival-Amusement Safety Board (1987), 152 Ill. App. 3d 812, 816.) Therefore, although the Secretary contends that the circuit court’s decision is against the manifest weight of the evidence, the proper standard of review is whether the circuit court correctly interpreted section 5 — 100 (Ill. Rev. Stat., 1986 Supp., ch. 95½, par. 5 — 100) as a matter of law. Neither party has directed us to a case interpreting the provisions of section 5 — 100, and our independent research has not discovered any.

Section 5 — 501(a) of the Code states:

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Bluebook (online)
522 N.E.2d 814, 168 Ill. App. 3d 478, 119 Ill. Dec. 152, 1988 Ill. App. LEXIS 507, Counsel Stack Legal Research, https://law.counselstack.com/opinion/krall-v-secretary-of-state-illappct-1988.