New York Carpet World, Inc. v. Department of Employment Security

669 N.E.2d 1321, 283 Ill. App. 3d 497, 218 Ill. Dec. 795
CourtAppellate Court of Illinois
DecidedSeptember 4, 1996
Docket1-95-1325
StatusPublished
Cited by11 cases

This text of 669 N.E.2d 1321 (New York Carpet World, Inc. v. Department of Employment Security) 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
New York Carpet World, Inc. v. Department of Employment Security, 669 N.E.2d 1321, 283 Ill. App. 3d 497, 218 Ill. Dec. 795 (Ill. Ct. App. 1996).

Opinion

JUSTICE CERDA

delivered the opinion of the court:

Plaintiff, New York Carpet World, Inc., appeals from the circuit court of Cook County’s dismissal of plaintiff’s complaint seeking review of a decision of the Board of Review of the Department of Employment Security. Plaintiff argues that (1) the complaint sufficiently named the Board of Review as defendant; (2) the complaint should not have been dismissed because defendant Department was a misnomer for the Board of Review; and (3) the complaint could have been amended to add the Board of Review as defendant. We affirm.

I. Facts

On June 25, 1991, the Board of Review issued a decision in the matter of Michael Halstead, claimant, and New York Carpet World, Inc., employer (appeal docket No. ABR—90—10467). The Board of Review found that defendant Michael Halstead was eligible for unemployment benefits.

On July 30, 1991, plaintiff filed an administrativerreview complaint against defendants: the Department, Department Director Loleta A. Didrickson, and Michael Halstead. The first paragraph of complaint alleged that the Department had rendered its final administrative decision through its Board of Review.

On July 30, 1991, summonses for the complaint were issued. According to the proof of service, defendants were served on July 31, 1991, by registered mail, although the record indicates elsewhere that the summonses were mailed by certified mail.

The Illinois Attorney General filed a special and limited appearance for the Department and moved to quash the summons and to dismiss the Department. The Department argued that it did not issue the decision under review and that the Board of Review, which did issue the decision, was not named as defendant or served. An exhibit to the motion was a copy of the summons served on the Department, and it had the time stamp of the Board of Review for August 2, 1991.

The Department later filed a motion to dismiss for lack of subject matter jurisdiction.

Ninety days after the administrative decision was issued, on September 23, 1991, plaintiff filed a motion for leave to file an amended complaint to specifically identify the Board of Review as a defendant.

On January 13, 1995, the Department filed a motion to dismiss for want of prosecution or, in the alternative, for lack of subject matter jurisdiction.

On March 15, 1995, the trial court granted the motion to dismiss for lack of subject matter jurisdiction, denied plaintiffs motion for leave to file an amended complaint, and dismissed the complaint with prejudice.

Plaintiff appealed.

II. Naming the Board of Review as Defendant

Plaintiff argues on appeal that it sufficiently named the Board of Review as defendant in compliance with section 3—107 of the Administrative Review Law (Ill. Rev. Stat. 1989, ch. 110, par. 3—107).

The following summarizes the Administrative Review Law in effect in 1991, which was when the administrative-review complaint was filed and when the summonses were served. Actions to review final administrative decisions were to be "commenced by the filing of a complaint and the issuance of summons within 35 days from the date that a copy of the decision sought to be reviewed was served upon the party affected thereby.” Ill. Rev. Stat. 1991, ch. 110, par. 3—103. Summonses were to be served by registered or certified mail "on the administrative agency” and on each of the other defendants. Ill. Rev. Stat. 1989, ch. 110, par. 3—105. The administrative agency and all persons who were parties of record (other than plaintiff) were to be made defendants. Ill. Rev. Stat. 1989, ch. 110, par. 3—107. "Administrative agency” was defined to include a person, body of persons, or board, among others, having power to make administrative decisions. Ill. Rev. Stat. 1991, ch. 110, par. 3—101.

The first issue is whether the appropriate administrative agency was named as defendant and served in accordance with the Administrative Review Law.

The Board of Review of the Department of Employment Security was created by section 5 of the Civil Administrative Code of Illinois. 20 ILCS 5/5, 5.13i (West 1994); see also 820 ILCS 405/243 (West 1994). The Board of Review is empowered by the Unemployment Insurance Act to review appeals of decisions of referees. 820 ILCS 405/ 803 (West 1994)).

Plaintiff does not appear to dispute that the Board of Review was the administrative agency that had to be named as defendant and served. The Board of Review was the party that made the final administrative decision from which plaintiff is appealing. Whether or not the Board of Review is a division of the Department or a separate body, it is clear that it should have been made a defendant. Cuny v. Annunzio, 411 Ill. 613, 616-17, 104 N.E.2d 780 (1952).

In Cuny, an appeal was taken from the trial court’s order confirming a decision of the Board of Review of the Department of Labor. The Department Director moved to dismiss the appeal on the ground that appellants failed to join as defendants the Board of Review and the party who filed the claim for unemployment compensation. The court held that, while the Board of Review may be a division or arm of the Department of Labor that operated under a Director, the Board of Review made the administrative decision and was an administrative agency as defined in the administrative-review statute. Curvy, 411 Ill. at 616-17.

Plaintiff argues that the Board of Review was named in the body of the complaint, although not in the caption, and that therefore plaintiff complied with the requirement of section 2—401(c) of the Code of Civil Procedure (735 ILCS 5/2—401(c) (West 1994)) (the Code) that defendants be set forth in the body of the pleading. Plaintiff also argues that the Board of Review is part of the Department and is not a separate body and that the Board of Review was served because it ultimately received the complaint and summons that were directed to the Department.

The Administrative Review Law has been strictly interpreted to require that a defendant be named in the caption, and it is not sufficient to name a party in the body of the complaint. Associated General Contractors v. Chun, 245 Ill. App. 3d 750, 754-55, 615 N.E.2d 386 (1993). Even though the Board of Review was named in the body of the complaint, the fact remains that the Board of Review was not served. The Board of Review was not named in the summons, and it was not served, although it may have actually received a copy of the complaint and summons in the Department’s internal mail system.

III. Misnomer

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669 N.E.2d 1321, 283 Ill. App. 3d 497, 218 Ill. Dec. 795, Counsel Stack Legal Research, https://law.counselstack.com/opinion/new-york-carpet-world-inc-v-department-of-employment-security-illappct-1996.