People Ex Rel. Burris v. C.J.R. Processing, Inc.

647 N.E.2d 1035, 207 Ill. Dec. 542, 269 Ill. App. 3d 1013
CourtAppellate Court of Illinois
DecidedMarch 8, 1995
Docket3-94-0268
StatusPublished
Cited by22 cases

This text of 647 N.E.2d 1035 (People Ex Rel. Burris v. C.J.R. Processing, Inc.) 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
People Ex Rel. Burris v. C.J.R. Processing, Inc., 647 N.E.2d 1035, 207 Ill. Dec. 542, 269 Ill. App. 3d 1013 (Ill. Ct. App. 1995).

Opinion

JUSTICE McCUSKEY

delivered the opinion of the court:

The State appeals from the dismissal of one of the defendants, Curtis Appel, from an enforcement action brought against various defendants pursuant to the Environmental Protection Act (Act) (415 ILCS 5/1 et seq. (West 1992)). In dismissing Appel, the circuit court of Grundy County concluded that the definition of "person” under the Act did not include corporate officers. As a consequence, the court determined that the State’s complaint did not state a cause of action against Appel. On appeal, the State contends that both of the trial court’s decisions are incorrect. We agree. Therefore, we reverse and remand.

FACTS AND PROCEDURAL BACKGROUND

Defendants C.J.R. Processing, Inc. (CJR), and Regenex, Inc. (Regenex), are corporations conducting business in Illinois. CJR is a wholly owned subsidiary of Regenex. Appel is the president of CJR. He is responsible for CJR and controls its activities. Appel is also the executive vice-president and chief operating officer for Regenex.

According to the complaint, CJR, Regenex, and Appel (the defendants) own and operate a facility located in Morris (the Morris facility). From April 11, 1991, until March 31, 1993, the defendants transported large quantities of solid and liquid waste materials to the Morris facility, where the waste is stored. Representatives of the Illinois Environmental Protection Agency inspected the Morris facility on two occasions and found large amounts of the solid waste scattered throughout the building.

On September 3, 1993, the State filed a 14-count complaint against the defendants. After discovering further information, the State filed a second amended complaint on November 29, 1993. The complaint categorized all of the waste stored in the Morris facility as "special waste.” In this 24-count complaint, counts I through XI allege the defendants caused or allowed various violations of the Act and its regulations. Count XVII alleges the defendants caused or allowed the creation and maintenance of a common law public nuisance. Count XVIII alleges the defendants caused or allowed the creation and maintenance of a public nuisance in violation of section 221 of "An Act to revise the law in relation to criminal jurisprudence” (the Criminal Jurisprudence Act) (740 ILCS 55/221 (West 1992)). Count XXIII alleges the defendants violated section 43(a) of the Act by causing or allowing substantial danger to the environment or public health. (See 415 ILCS 5/43(a) (West 1992).) The complaint requested preliminary and permanent injunctive relief, the imposition of civil penalties, and orders requiring the defendants to correct the violations. The remaining counts purport to state causes of action against other defendants and have no bearing on this appeal.

On January 11, 1994, Appel filed a motion asking the trial court to dismiss him as a defendant. In his motion, Appel contended he acted solely in his capacity as a corporate officer of Regenex and CJR. Appel pointed out that section 3.26 of the Act (415 ILCS 5/3.26 (West 1992)) did not expressly include corporate officers in its definition of "person.” Therefore, Appel claimed that he could not be liable for the acts or omissions of the corporations.

At a hearing on March 11, 1994, the trial court granted Appel’s motion. The court concluded that Appel could not be held individually liable because the Act’s definition of "person” does not include corporate officers or directors. The court also found that the complaint’s allegations were insufficient to state a cause of action. The State’s timely notice of appeal followed.

DISCUSSION AND ANALYSIS

The instant case presents questions of first impression in Illinois. We identify these issues as follows: (1) whether a corporate officer is a "person” under section 3.26 of the Act; and (2) whether a corporate officer may be held individually liable for a corporation’s violations of the Act when he or she is personally involved or actively participates in those violations. We answer both of these questions in the affirmative.

Based on our resolution of these questions, we find the complaint is legally and factually sufficient to state a cause of action against Appel for violations of the Act and for statutory and common law public nuisances.

I. Scope of Section 3.26

The State first argues that the trial court committed error when it determined that Appel is not a "person” under the Act. We agree. Section 3.26 of the Act provides in full:

" 'Person’ is any individual, partnership, co-partnership, firm, company, corporation, association, joint stock company, trust, estate, political subdivision, state agency, or any other legal entity, or their legal representative, agent or assigns.” (Emphasis added.) (415 ILCS 5/3.26 (West 1992).)

The Federal Resource Conservation and Recovery Act (RCRA) (42 U.S.C.A. § 6901 et seq. (West 1983)) contains a similar definition of "person” which neither includes nor excludes corporate officers. (42 U.S.C.A. § 6903(15) (West Supp. 1994).) In United States v. Northeastern Pharmaceutical & Chemical Co. (8th Cir. 1986), 810 F.2d 726, the court noted that the definition includes individuals. Also, the court said that Congress could have limited RCRA’s definition of "person” but evidently chose not to do so. Therefore, the court held the corporate officers individually liable for the corporation’s acts. Northeastern Pharmaceutical, 810 F.2d at 745.

One of the Act’s prime purposes is to hold responsible those who cause harm to the environment. (415 ILCS 5/2(b) (West 1992).) The Act must be liberally construed in order to effectuate its purposes. 415 ILCS 5/2(c) (West 1992).

Based upon the authority set forth above, we hold that the Act’s definition of "person” includes corporate officers. First, section 3.26 explicitly includes individuals and does not exclude corporate officers. Moreover, our General Assembly could have explicitly excluded corporate officers from section 3.26, but it did not do so. In these respects, the Act’s definition of "person” is similar to that contained in RCRA. See 415 ILCS 5/3.26 (West 1992); 42 U.S.C.A. § 6903(15) (West Supp. 1994); Northeastern Pharmaceutical, 810 F.2d at 745.

Second, the General Assembly intended for the Act to be liberally construed. A constricted interpretation of section 3.26 would not serve the Act’s express purpose of imposing responsibility upon those who cause harm to the environment. (See 415 ILCS 5/2(b),(c) (West 1992).) For the reasons indicated, we conclude that section 3.26 includes corporate officers.

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Bluebook (online)
647 N.E.2d 1035, 207 Ill. Dec. 542, 269 Ill. App. 3d 1013, Counsel Stack Legal Research, https://law.counselstack.com/opinion/people-ex-rel-burris-v-cjr-processing-inc-illappct-1995.