Lewis v. Giordano's Enterprises, Inc.

921 N.E.2d 740, 397 Ill. App. 3d 581
Appellate Court of Illinois·Decided December 23, 2009·No. 1-08-2944·Published·Cited by 25 cases

Opinion

JUSTICE QUINN

delivered the opinion of the court:

This matter is before this court on interlocutory appeal pursuant to the provisions of Illinois Supreme Court Rule 308 (155 Ill. 2d R. 308) to consider a question certified by the trial court. Defendant Giordano’s Enterprises, Inc., which owns and operates several restaurants in the Chicago area, has a policy of automatically deducting $0.25 per hour from its hourly employees’ wages to cover the cost of making food and beverages available to those employees while they are working. On November 21, 2006, plaintiff, Mina V Lewis, a former Giordano’s employee, filed a class action lawsuit in the circuit court of Cook County against Giordano’s and John Apostolou and Allen Aynessazian, the corporation’s president and chief operating officer, respectively, alleging that defendants have profited from the food deduction program in violation of the Minimum Wage Law (820 ILCS 105/1 et seq. (West 2004)) (Wage Law) and the Illinois Wage Payment and Collection Act (820 ILCS 115/1 et seq. (West 2004)) (Wage Payment Act). 1 Defendants deny these allegations.

On February 14, 2007, plaintiff moved for class certification. The plaintiffs motion proposed two subclasses: (1) tipped employees to whom Giordano’s applied Illinois’s tip credit by paying them minimum wage minus the 40% tip credit and (2) nontipped employees who earned minimum wage or better. The trial court heard arguments on the motion for class certification on October 31, 2007, took the matter under advisement, and set the matter for ruling on November 14, 2007. On November 9, 2007, defendants filed an emergency motion asking the trial court to delay its ruling on class certification, stating that they had recently retained additional counsel and wanted to conduct settlement negotiations with plaintiff’s counsel. Over plaintiff’s objection, the court granted defendants’ motion and rescheduled the ruling date for December 4, 2007. On December 3, 2007, defendants filed a second motion to delay the ruling on class certification, again citing settlement efforts, as well as various improprieties on the part of the class representative and her husband, another former Giordano’s employee. The trial court granted the motion, again over plaintiffs objection, but did not schedule a new date for issuing its ruling.

Subsequently, plaintiffs learned from a brief that defendants filed on December 21, 2007, that defendants had obtained signed releases from more than 350 current employees and were receiving additional releases every day. The releases stated, in part, that in exchange for a payment of $10, the employee released defendants from all claims resulting from violations of the Wage Law and the Wage Payment Act as alleged in plaintiffs complaint and would indemnify defendants from and against all claims arising out of violations of those statutes. Plaintiff filed an emergency motion asking the court to enjoin defendants from continuing to obtain releases, declare void all previously obtained releases, and order defendants to notify current and former employees who signed releases that they were void as a matter of law. On December 28, 2007, the trial court granted the plaintiffs motion, in part, by enjoining defendants from obtaining additional releases. The court took the issue of the validity of the releases already obtained under advisement and allowed the parties to file additional briefs on the issue.

On January 28, 2008, the trial court issued an order stating that it should not have granted defendants’ motions to delay ruling on class certification because “little or no good faith settlement negotiations took place during this time and more significantly, it appears that Defendants utilized this time to obtain hundreds of settlement releases from putative class members. It is not overtly clear that the motions to delay the ruling on class certification were brought in bad faith, but what is clear to the Court is that more effort went into obtaining these releases than went into settling the case.” Therefore, the court vacated its prior orders delaying the ruling on class certification and certified the two subclasses sought by plaintiff, nunc pro tunc November 14, 2007. The court also held that releases dated prior to November 14, 2007, would be allowed to stand but that releases dated after that date were void.

On January 30, 2008, plaintiff filed a motion asking the trial court to reconsider or clarify its January 28 order and hold that the releases dated prior to November 14, 2007, were void in their entirety. Due to circumstances not relevant here, the trial court did not rule on that motion, and plaintiff filed a renewed motion to reconsider or clarify on July 9, 2009. After a hearing, the trial court denied plaintiffs motion and directed the parties to tender an order to the court certifying for appellate review the question of whether the releases were void as a matter of law.

The parties conferred and submitted the following question, which the trial court certified for interlocutory appeal:

“Whether, in a class action lawsuit in which an employer, through the operation of its food credit deduction program in purported compliance with the Illinois Administrative Code Section 210.200, Title 56, regarding Meals and Lodging, is alleged to have committed certain violations of the Illinois Minimum Wage Law or the Illinois Wage Payment and Collection Act, and in which a motion for class certification has been filed but has not yet been ruled upon by the Court, and the employer obtains releases of claims under Illinois Minimum Wage Law and the Illinois Wage Payment and Collection Act from its putative class-member employees, are such releases void as a matter of law?”

Plaintiff timely filed an application for leave to appeal, which this court denied on November 26, 2008. Plaintiff then filed a petition for leave to appeal with our supreme court. On March 25, 2009, the supreme court denied plaintiffs petition for leave to appeal and entered a supervisory order directing this court to accept the interlocutory appeal, which this court did on May 11, 2009.

ANALYSIS

The question before this court, whether the Wage Law and the Wage Payment Act permit an employee to release his employer from claims arising under those statutes while a motion for class certification is pending, is one of statutory interpretation and as such, will be reviewed de novo. Sylvester v. Industrial Comm’n, 197 Ill. 2d 225, 232 (2001). “The primary objective in construing a statute is to ascertain and give effect to the intent of the legislature.” Alvarez v. Pappas, 229 Ill. 2d 217, 228 (2008), citing General Motors Corp. v. State of Illinois Motor Vehicle Review Board, 224 Ill. 2d 1, 13 (2007). “In determining legislative intent, the first step is to examine the language of the statute, which is the most reliable indicator of the legislature’s objectives in enacting a particular law.” Alvarez, 229 Ill. 2d at 228, citing Yang v. City of Chicago, 195 Ill. 2d 96, 103 (2001). “The statutory language must be afforded its plain, ordinary, and popularly understood meaning.” Alvarez, 229 Ill. 2d at 228, citing People ex rel. Sherman v. Cryns, 203 Ill. 2d 264, 279 (2003).

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Lewis v. Giordano's Enterprises, Inc., 921 N.E.2d 740, 397 Ill. App. 3d 581 (Ill. Ct. App. 2009).

921 N.E.2d 740 (Lewis v. Giordano's Enterprises, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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