One Eleven Food & Liquor, Inc. v. City of Chicago

2021 IL App (1st) 200802-U
CourtAppellate Court of Illinois
DecidedApril 21, 2021
Docket1-20-0802
StatusUnpublished

This text of 2021 IL App (1st) 200802-U (One Eleven Food & Liquor, Inc. v. City of Chicago) 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
One Eleven Food & Liquor, Inc. v. City of Chicago, 2021 IL App (1st) 200802-U (Ill. Ct. App. 2021).

Opinion

2021 IL App (1st) 200802-U No. 1-20-0802 Order filed April 21, 2021 Third Division

NOTICE: This order was filed under Supreme Court Rule 23 and is not precedent except in the limited circumstances allowed under Rule 23(e)(1). ______________________________________________________________________________ IN THE APPELLATE COURT OF ILLINOIS FIRST DISTRICT ______________________________________________________________________________ ONE ELEVEN FOOD & LIQUOR, INC. and PERCELL ) Appeal from the SEARCY, ) Circuit Court of ) Cook County Plaintiffs-Appellants, ) ) v. ) ) CITY OF CHICAGO, a municipal corporation; CITY OF ) CHICAGO DEPARTMENT OF BUSINESS AFFAIRS ) AND CONSUMER PROTECTION; KHALED ) ELKHATIB, Commissioner and Hearing Officer for the ) City of Chicago Department of Business Affairs and ) No. 20 CH 319 Consumer Protection; CITY OF CHICAGO LICENSE ) APPEAL COMMISSION; DENNIS FLEMING, ) Chairman of the License Appeal Commission; THOMAS ) W. GIBBONS, Commissioner; CYNTHIA A. BERG, ) Commissioner; LORI LIGHTFOOT, Local Liquor ) Control Commissioner of the City of Chicago; ) SHANNON K. TROTTER, Mayor’s Appointed Local ) Liquor Control Commissioner; and CITY OF CHICAGO ) POLICE DEPARTMENT, ) Honorable ) Anna H. Demacopoulos, Defendants-Appellees. ) Judge presiding. No. 1-20-0802

JUSTICE BURKE delivered the judgment of the court. Presiding Justice Howse and Justice McBride concurred in the judgment.

ORDER

¶1 Held: We affirm the circuit court’s order dismissing plaintiffs’ complaint for administrative review based on a lack of subject-matter jurisdiction where they failed to file a petition for rehearing with the License Appeal Commission before seeking judicial review and therefore did not exhaust their administrative remedies and none of the exceptions to the exhaustion requirement applied.

¶2 Plaintiffs Percell Searcy and One Eleven Food & Liquor, Inc., filed a complaint for

administrative review in the circuit court after their liquor license was revoked by the Local Liquor

Control Commissioner and upheld on appeal by the License Appeal Commission. On a motion to

dismiss by defendants, a collection of Chicago liquor control commissioners and commissions, the

circuit court dismissed plaintiffs’ complaint because they failed to file a petition for rehearing with

the License Appeal Commission and thus, failed to exhaust their administrative remedies and no

exceptions to exhaustion requirement applied. Plaintiffs appealed, and on appeal, they contend that

they did exhaust their administrative remedies, and even if they did not, two exceptions to the

exhaustion requirement apply. For the reasons that follow, we affirm.

¶3 I. BACKGROUND

¶4 Searcy was the president of One Eleven Food & Liquor, Inc., a convenience store that sold

food and liquor in Chicago. In 2015 and January 2016, multiple shooting incidents occurred in the

convenience store and its parking lot, which caused the Superintendent of the Chicago Police

Department to summarily close the store based on it being a public safety threat. In February 2016,

the City of Chicago and plaintiffs agreed to a nuisance abatement plan that required plaintiffs to,

among other things, modify their hours of operation, install fencing around the parking lot, install

-2- No. 1-20-0802

and maintain better lighting on the premises, install a surveillance camera system, and hire private

security guards for specific times. After the parties agreed to the nuisance abatement plan, the City

allowed One Eleven to re-open.

¶5 Between August 2018 and November 2018, plaintiffs allegedly violated the plan, which

caused the City to bring eight charges against them in the Local Liquor Control Commission.

Following two days of testimony, a hearing commissioner concluded that the City proved all eight

charges. The commissioner determined that plaintiffs’ liability on four charges warranted the

revocation of their liquor license and liability on the other four charges warranted fines. In finding

revocation warranted on four of the charges, the hearing commissioner summarily concluded that

it was the appropriate punishment “based on the totality of the circumstances.” In July 2019, the

Local Liquor Control Commissioner accordingly entered an order of revocation on the four

charges and imposed fines on the other four charges.

¶6 Plaintiffs subsequently appealed to the License Appeal Commission, who affirmed the

order of the Local Liquor Control Commissioner in December 2019. In its decision, the License

Appeal Commission observed that the hearing commissioner did not identify or explain the

“circumstances” that led to his finding that revocation was the appropriate punishment for four of

the charges. To this end, the License Appeal Commission noted that, “[i]n a different scenario, this

Commission would be able to remand this case” so the hearing commissioner “could address these

concerns and better explain his rationale.” However, the License Appeal Commission observed

that it did not have the power to reduce a revocation to a suspension or remand the matter to the

Local Liquor Control Commissioner to reconsider and reduce the discipline imposed. But because

the record supported revocation and it could only reverse a punishment of revocation if such a

-3- No. 1-20-0802

penalty was arbitrary and capricious, the License Appeal Commission affirmed the Local Liquor

Control Commissioner’s revocation order.

¶7 Two of the three commissioners of the License Appeal Commission wrote a special

concurrence, in which they noted that the hearing commissioner “did not give any specific factual

basis on which he determined [the] penalties were appropriate” but rather “used the general

statement ‘based on the totality of the circumstances.’ ” They further highlighted that no one from

the City of Chicago had even requested revocation as a penalty. The commissioners observed that,

if they were commissioners on the Illinois Liquor Control Commission, they would have remanded

the matter back to the Local Liquor Control Commissioner to reduce the penalty from revocation

or to supplement its factual findings, including specific findings as to why revocation of the liquor

license was appropriate. Nevertheless, they concluded there was “substantial evidence” in the

record to support the hearing commissioner’s findings and noted that, if they had chosen to reverse

the punishment of revocation, this “would mean a licensee would face no punishment for proven

violations of the [Chicago] Municipal Code.” As such, they “reluctantly affirm[ed]” the

punishment of revocation, but they “encourage[d] the Licensee to appeal.” At the end of the

License Appeal Commission’s decision, it stated:

“Pursuant to Section 154 of the Illinois Liquor Control Act, a petition for rehearing

may be filed with this Commission within TWENTY (20) days after service of this

order. The date of the mailing of this order is deemed to be the date of service. If

any party wishes to pursue an administrative review action in the Circuit Court, the

petition for rehearing must be filed with this Commission within TWENTY (20)

-4- No. 1-20-0802

days after service of this order as such petition is a jurisdictional prerequisite to the

administrative review.”1

¶8 Plaintiffs did not file a petition for rehearing. Instead, in January 2020, they filed a

complaint for administrative review in the circuit court. In response, defendants filed a motion to

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Northwestern University v. City of Evanston
383 N.E.2d 964 (Illinois Supreme Court, 1978)
One Way Liquors, Inc. v. Byrne
435 N.E.2d 144 (Appellate Court of Illinois, 1982)
El Sauz, Inc. v. Daley
765 N.E.2d 1052 (Appellate Court of Illinois, 2002)
ESG Watts, Inc. v. Pollution Control Board
727 N.E.2d 1022 (Illinois Supreme Court, 2000)
Castaneda v. Illinois Human Rights Commission
547 N.E.2d 437 (Illinois Supreme Court, 1989)
City of Springfield v. Carter
540 N.E.2d 536 (Appellate Court of Illinois, 1989)
Nestle USA, Inc. v. Dunlap
852 N.E.2d 282 (Appellate Court of Illinois, 2006)
Fredman Bros. Furniture Co. v. Department of Revenue
486 N.E.2d 893 (Illinois Supreme Court, 1985)
Dumas v. Pappas
2014 IL App (1st) 121966 (Appellate Court of Illinois, 2014)
Lutkauskas v. Ricker
2015 IL 117090 (Illinois Supreme Court, 2015)
People v. One 1998 GMC
2011 IL 110236 (Illinois Supreme Court, 2011)
Sandholm v. Kuecker
2012 IL 111443 (Illinois Supreme Court, 2012)
Benchwarmers, Inc. v. Daley
690 N.E.2d 622 (Appellate Court of Illinois, 1997)
Goral v. Dart
2020 IL 125085 (Illinois Supreme Court, 2020)
Danison v. Paley
355 N.E.2d 230 (Appellate Court of Illinois, 1976)

Cite This Page — Counsel Stack

Bluebook (online)
2021 IL App (1st) 200802-U, Counsel Stack Legal Research, https://law.counselstack.com/opinion/one-eleven-food-liquor-inc-v-city-of-chicago-illappct-2021.