Meyer v. Department of Public Aid

912 N.E.2d 690, 392 Ill. App. 3d 31
CourtAppellate Court of Illinois
DecidedJune 18, 2009
Docket3-07-0684
StatusPublished
Cited by5 cases

This text of 912 N.E.2d 690 (Meyer v. Department of Public Aid) 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
Meyer v. Department of Public Aid, 912 N.E.2d 690, 392 Ill. App. 3d 31 (Ill. Ct. App. 2009).

Opinions

JUSTICE SCHMIDT

delivered the opinion of the court:

The plaintiff, Rosalind Meyer, filed a two-count complaint against the defendants, the Illinois Department of Public Aid (Department) and Streator Home Building and Loan Association (Streator), arguing that: (1) the Department should partially reimburse her for her expenses in maintaining and selling the property on which it held a lien; and (2) Streator breached its fiduciary duty to the plaintiff when it unilaterally disbursed money held in escrow to satisfy the Department’s lien. The plaintiff later filed a motion for leave to file the complaint against the Department as a class action suit. The defendants each filed motions to dismiss the complaint, and the circuit court granted their motions, finding that it did not have subject matter jurisdiction for the claim against the Department and that the claim against Streator was not ripe. The plaintiff appeals, arguing that: (1) the circuit court had subject matter jurisdiction for the claim against the Department; (2) the Department was obligated to reimburse her for her expenses in preserving and selling the property on which it held a lien; (3) Streator breached its fiduciary duty to the plaintiff by conversion when it unilaterally disbursed money held in escrow to satisfy the Department’s lien; and (4) if the matter is reversed against the Department, the action against it should be certified as a class action and she should be the class representative. We affirm and remand.

FACTS

On June 26, 2007, the plaintiff filed a two-count complaint against the defendants, arguing that: (1) the Department should partially reimburse her for her expenses in maintaining and selling the property on which it held a lien; and (2) Streator breached its fiduciary duty to the plaintiff by conversion when it unilaterally disbursed money held in escrow to satisfy the Department’s lien.

The plaintiff inherited her mother’s house when her mother died on April 20, 2005. The Department claimed a lien for $13,072.39 on the house because it provided the plaintiff’s mother with public aid during her lifetime.

The plaintiff attempted to sell the house from April 20, 2005, to March 23, 2007, the date of the sale. She alleged that she expended $2,732.04 to maintain the property and $2,692.25 in closing costs. The Department did not contribute any money for the maintenance or sale of the property.

The plaintiff sold the house to a purchaser who funded the purchase with a mortgage from Streator. The plaintiff alleged that she notified Streator at the closing that she intended to seek a contribution from the Department for the expenses she incurred in maintaining and selling the house. She requested that Streator not disburse the money until the dispute between her and the Department was resolved, and she alleged that Streator entered into a fiduciary relationship with her when it agreed to hold the money. The “Statement of Sale” attached to the complaint stated, “State of Illinois disbursement may be subject to a lesser amount, if so, balance to seller would increase by that difference.”

The plaintiff further alleged that she kept Streator advised of her negotiations with the Department between March 23, 2007, and June 7, 2007. However, on June 7, Streator, without her consent, sent the Department $13,072.39, the amount of its claimed lien. Streator sent the plaintiff the balance of the money that it held.

On July 17, 2007, both defendants filed motions to dismiss. The Department argued that the circuit court lacked subject matter jurisdiction to hear the claim against it because the plaintiff sought a monetary judgment against the State and such claims must be brought in the Court of Claims. Streator argued that the complaint failed to state a cause of action because it, as lender in a real estate transaction, had no fiduciary obligation to the plaintiff, as seller in that transaction.

On August 24, 2007, the plaintiff filed a motion for leave to file the complaint against the Department as a class action. The plaintiff believed that there were many individuals who, like her, sought reimbursement from the Department for expenses incurred while maintaining an asset on which the Department held a lien for benefits given to an aid recipient.

On August 27, 2007, the circuit court held a hearing on the defendants’ motions. The circuit court dismissed the plaintiffs claim against the Department with prejudice for lack of subject matter jurisdiction under the doctrine of sovereign immunity. The circuit court dismissed the claim against Streator without prejudice, finding that it was not ripe for adjudication because it was dependent on the outcome of the dispute between the plaintiff and the Department.

The plaintiff appeals.

ANALYSIS

I. Claim Against the Department

On appeal, the plaintiff first argues that the circuit court had subject matter jurisdiction to hear her claim against the Department.

The Illinois Constitution of 1970 abolished sovereign immunity but gave the legislature the authority to reinstate it. Ill. Const. 1970, art. XIII, §4. Pursuant to this authority, the legislature enacted the State Lawsuit Immunity Act, which provides that the State shall not be made a party in any court except as provided in the Court of Claims Act (705 ILCS 501/1 et seq. (West 2006)), the Illinois Public Labor Relations Act (5 ILCS 315/1 et seq. (West 2006)), and the State Officials and Employees Ethics Act (5 ILCS 430/1—1 et seq. (West 2006)). 745 ILCS 5/1 (West 2006). The Court of Claims has exclusive jurisdiction to hear and determine any claim against the state “founded upon any law of the State of Illinois.” 705 ILCS 505/8(a) (West 2006).

Sovereign immunity of the State extends to suits against a state agency or department and when it applies, the circuit court lacks jurisdiction to hear the claim. Walker v. Rogers, 272 Ill. App. 3d 86, 650 N.E.2d 272 (1995). “The determination of whether an action is a suit against the State, and thus one that must be brought in the Court of Claims, turns upon an analysis of the issues involved and the relief sought, rather than the formal designation of the parties.” Walker, 272 Ill. App. 3d at 88, 650 N.E.2d at 273-74. An action is against the State when a “judgment for the plaintiff could operate to control the actions of the State or subject it to liability.” Currie v. Lao, 148 Ill. 2d 151, 158, 592 N.E.2d 977, 980 (1992). A party seeking a monetary judgment against an agency payable out of state funds must bring its action in the Court of Claims. James v. Mims, 316 Ill. App. 3d 1179, 738 N.E.2d 213 (2000).

In the present case, the plaintiff clearly seeks a monetary judgment against the Department. She argues that she is entitled to a partial reimbursement from the Department for her expenses in maintaining and selling her mother’s house.

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Cite This Page — Counsel Stack

Bluebook (online)
912 N.E.2d 690, 392 Ill. App. 3d 31, Counsel Stack Legal Research, https://law.counselstack.com/opinion/meyer-v-department-of-public-aid-illappct-2009.