Lavery v. Department of Financial and Professional Regulation

2025 IL 130033
CourtIllinois Supreme Court
DecidedSeptember 18, 2025
Docket130033
StatusPublished

This text of 2025 IL 130033 (Lavery v. Department of Financial and Professional Regulation) 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
Lavery v. Department of Financial and Professional Regulation, 2025 IL 130033 (Ill. 2025).

Opinion

2025 IL 130033

IN THE SUPREME COURT OF THE STATE OF ILLINOIS

(Docket No. 130033)

TERRENCE LAVERY et al., Appellees, v. THE DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION, Appellant.

Opinion filed September 18, 2025.

JUSTICE OVERSTREET delivered the judgment of the court, with opinion.

Chief Justice Theis and Justices Neville, Holder White, Cunningham, Rochford, and O’Brien concurred in the judgment and opinion.

OPINION

¶1 Plaintiffs, Terrence Lavery and Illinois Professional Health Program, LLC, provide their clients with counseling and clinical services, including substance abuse rehabilitation programs. Plaintiffs provided one of their clients, a doctor, with rehabilitation services after the doctor was suspended from practicing medicine. When the doctor later sought reinstatement of his medical license, an administrative hearing was held to determine whether restoration of the doctor’s medical license was in the public’s interest. In connection with this hearing, the Department of Financial and Professional Regulation (Department) demanded that plaintiffs provide it with a copy of Lavery’s personal notes relating to the rehabilitation services Lavery provided to the doctor. Plaintiffs filed the present action against the Department seeking a protective order from the Cook County circuit court to bar disclosure of Lavery’s personal notes in the administrative proceeding. Plaintiffs maintained that Lavery’s personal notes were protected from disclosure under section 3(b) of the Mental Health and Developmental Disabilities Confidentiality Act (Confidentiality Act) (740 ILCS 110/3(b) (West 2020)). After an in camera inspection of the undisclosed documents, the circuit court agreed with plaintiffs and granted their request for a protective order barring the Department from obtaining a copy of the undisclosed documents. In addition, the circuit court awarded plaintiffs attorney fees and costs pursuant to section 15 of the Confidentiality Act. Id. § 15. The Department appealed, challenging only the circuit court’s award of attorney fees and costs, arguing that the circuit court’s award of fees and costs violated principles of sovereign immunity. The appellate court rejected the Department’s sovereign immunity challenge and affirmed the circuit court’s award of fees and costs. We granted the Department’s petition for leave to appeal to review the circuit court’s monetary judgment for attorney fees and costs against the Department pursuant to section 15 of the Confidentiality Act. Id.; Ill. S. Ct. R. 315 (eff. Oct. 1, 2021). For the following reasons, we reverse the appellate court’s judgment and reverse that portion of the circuit court’s judgment granting plaintiffs a monetary award of attorney fees and costs against the Department.

¶2 I. BACKGROUND

¶3 Our legislature has declared that it is a matter of public interest that persons licensed to practice in regulated professions in Illinois be subject to standards of competency. 20 ILCS 2105/2105-10 (West 2020). To further this public policy directive, the legislature has tasked the Department with regulating professional licenses in Illinois, including medical and controlled substance licenses. Id. § 2105- 15; 225 ILCS 60/3 (West 2020); 720 ILCS 570/301 (West 2020). Medical practitioners must have an active license (225 ILCS 60/3 (West 2020)); show good “moral character” (id. § 9(1)); and be “physically, mentally, and professionally

-2- capable of practicing medicine with reasonable judgment, skill, and safety” (id. § 9(4)).

¶4 In 2014, the Department filed a petition to temporarily suspend the medical and controlled substances licenses of Dr. Anil K. Ramachandran. The Department and Dr. Ramachandran subsequently agreed to a consent order that subjected the doctor to an indefinite suspension of his licenses. Following the entry of the consent order, Dr. Ramachandran underwent corrective measures to regain his licenses, including completion of a rehabilitation program to address substance abuse. Lavery, who is a licensed clinical therapist, provided clinical services to Dr. Ramachandran during this substance abuse rehabilitation program and served as Dr. Ramachandran’s case manager, ensuring Dr. Ramachandran’s compliance with the substance abuse recovery plan. Lavery provided these services as an employee of Illinois Professionals Health Program, LLC.

¶5 Following completion of the substance abuse program, Dr. Ramachandran filed a petition with the Department seeking restoration of his licenses, asserting that he had completed various qualifying examinations and was, at that time, employed as a certified drug and alcohol counselor. 1 An administrative law judge (ALJ) presided over an administrative hearing on Dr. Ramachandran’s request for licensing restoration. At the hearing, Lavery testified about the doctor’s recovery plan, revealing the existence of personal notes that Lavery made and kept in connection with the mental health services he provided. The Department asked Lavery for a copy of Lavery’s personal notes, but Lavery rejected the request on the basis that his personal notes were his work product that he was not required to disclose under the terms of the Confidentiality Act. 2 Lavery moved for a protective order in the administrative proceeding, but the ALJ denied the motion and ordered Lavery to produce the withheld notes.

1 Section 43 of the Medical Practices Act of 1987 provides that the Department may restore suspended licenses “unless after an investigation and hearing, the Secretary [of Financial and Professional Regulation] determines that restoration is not in the public interest.” 225 ILCS 60/43 (West 2020) (restoration of license from discipline). 2 Under section 3(b) of the Confidentiality Act, a therapist’s personal notes “are the work product and personal property of the therapist and shall not be subject to discovery in any judicial, administrative or legislative proceeding.” 740 ILCS 110/3(b) (West 2020).

-3- ¶6 Lavery and his employer, Illinois Professionals Health Program, LLC (plaintiffs), then filed a complaint in the circuit court seeking a protective order pursuant to section 15 of the Confidentiality Act, which provides that “[a]ny person aggrieved by a violation of this Act may sue for damages, an injunction, or other appropriate relief.” 740 ILCS 110/15 (West 2020). Plaintiffs sought a declaration that the withheld documents were protected by the therapist’s work product privilege codified in section 3(b) of the Confidentiality Act (id. § 3(b)) and sought a protective order stating that Lavery was not required to produce the documents to the Department. Plaintiffs also sought attorney fees and costs pursuant to section 15 of the Confidentiality Act (id. § 15). The ALJ stayed the administrative proceeding pending the circuit court’s resolution of plaintiffs’ complaint.

¶7 The circuit court conducted an in camera inspection of the nondisclosed documents and agreed with plaintiffs that the withheld documents were protected from disclosure under the terms of the Confidentiality Act.

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Bluebook (online)
2025 IL 130033, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lavery-v-department-of-financial-and-professional-regulation-ill-2025.