P&S Grain, LLC v. Herrin Community School District No.4.

2021 IL App (5th) 210023-U
CourtAppellate Court of Illinois
DecidedOctober 14, 2021
Docket5-21-0023
StatusUnpublished

This text of 2021 IL App (5th) 210023-U (P&S Grain, LLC v. Herrin Community School District No.4.) 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
P&S Grain, LLC v. Herrin Community School District No.4., 2021 IL App (5th) 210023-U (Ill. Ct. App. 2021).

Opinion

2021 IL App (5th) 210023-U NOTICE NOTICE Decision filed 10/14/21. The This order was filed under text of this decision may be NO. 5-21-0023 Supreme Court Rule 23 and is changed or corrected prior to the filing of a Petition for not precedent except in the

Rehearing or the disposition of IN THE limited circumstances allowed the same. under Rule 23(e)(1). APPELLATE COURT OF ILLINOIS

FIFTH DISTRICT ______________________________________________________________________________

P&S GRAIN, LLC, an Illinois Limited Liability ) Appeal from the Company, and RONALD OSMAN, Individually, ) Circuit Court of ) Williamson County. Plaintiffs-Appellants, ) ) v. ) No. 10-CH-9 ) HERRIN COMMUNITY SCHOOL DISTRICT ) NO. 4, WILLIAMSON, JACKSON, AND ) FRANKLIN COUNTIES, a School District Duly ) Established and Existing in Accordance With the ) Provisions of the Illinois School Code, ) Honorable ) John W. Sanders, Defendant-Appellee. ) Judge, presiding. ______________________________________________________________________________

JUSTICE VAUGHAN delivered the judgment of the court. Justices Welch and Moore concurred in the judgment.

ORDER

¶1 Held: The trial court’s order granting the defendant’s motion to strike is affirmed where an award of attorney fees pursuant to the common fund doctrine is unwarranted.

¶2 Plaintiffs, P&S Grain, LLC, and Ronald E. Osman, appeal the trial court’s order granting

defendant’s motion to strike count II of their second amended complaint that requested attorney

fees pursuant to the common fund doctrine because the doctrine is applicable in this case. For the

following reasons, we affirm.

1 ¶3 I. BACKGROUND

¶4 On January 30, 2010, plaintiffs filed a complaint for declaratory judgment and injunctive

relief against defendant, Herrin Community School District No. 4, Williamson, Jackson, and

Franklin Counties (Herrin), contending Herrin improperly used funds received pursuant to the

Illinois County School Facility Occupation Tax Law (55 ILCS 5/5-1006.7 (West 2010)) towards

refunding bonds.

¶5 Plaintiffs filed an amended complaint on December 9, 2015, limiting the dates of the

action from October 1, 2008, to August 22, 2011, because section 5-1006.7(h) was amended by

Public Act 97-542 (eff. Aug. 23, 2011) to allow expenditures of the School Facility Occupation

Tax Fund toward refunding bonds. The amended complaint requested (1) a declaratory judgment

finding Herrin’s expenditures towards the refunding and revenue source bonds were not for

school facility purposes pursuant to the statute during the applicable period; (2) an order for an

accounting by Herrin of all payments made with the School Facility Occupation Tax Fund that

were related to the refunding bonds; and (3) repayment by Herrin to the School Facility

Occupation Tax Fund in the amount determined by the accounting that was improperly used

toward the bonds.

¶6 Following cross-motions for summary judgment, the trial court granted summary

judgment for plaintiffs on the declaratory judgment action. Herrin appealed the decision, which

was affirmed by this court on June 18, 2018, and remanded for further proceedings. P&S Grain,

LLC v. Herrin Community School District No. 4, 2018 IL App (5th) 160428-U.

¶7 On remand, plaintiffs filed a motion for a status conference to establish a timeframe for

Herrin’s court-ordered accounting. On August 8, 2019, Herrin filed a motion for final resolution

advising the court that the accounting revealed $2,729,625.10 was improperly paid toward the

2 refunding bonds. The prayer for relief requested payment, via internal interfund transfer over the

next 10 fiscal years, consisting of 10 equal installments, ending on June 30, 2029.

¶8 On September 19, 2019, plaintiffs filed a response to defendant’s motion for final

resolution along with a motion for leave to file a second amended complaint. On October 22,

2019, the trial court granted plaintiffs’ motion for leave, and plaintiffs’ second amended

complaint was filed. Count I requested a declaratory judgment finding that Herrin’s expenditures

of the School Facility Occupation Tax Fund were not for school facility purposes as per the

statute, an accounting of the improperly used funds, and entry of a judgment against Herrin in the

amount of the repayment due to the School Facility Occupation Tax Fund as determined by the

accounting, “assessing 6% interest on that amount pursuant to 735 ILCS 5/2-1303 until the

judgment is paid in full.” Count II requested attorney fees under the common fund doctrine,

contending that a judgment entered against Herrin “creates a fund for which ownership sits with

all persons or entities collecting or paying sales tax in Williamson County, Illinois, during the

period of October 1, 2008, to August 22, 2011.” This count further alleged that plaintiffs created

the fund and no “other person or entity collecting or paying sales tax in Williamson County ***

participated in the creation of this fund.” Plaintiffs claimed that “[a]ll persons or entities

collecting sales tax or paying sales tax in Williamson County, Illinois,” from October 1, 2008, to

August 22, 2011, would benefit from the fund “by the fact that their sales tax payments will be

utilized as required by the County School Facility Occupational Tax Law.” Plaintiffs further

contended that equity required that “all persons or entities collecting sales tax or paying sales tax

in Williamson County *** contribute to the costs of this litigation.” Plaintiffs’ prayer for relief

requested a declaratory judgment finding they were entitled to attorney fees pursuant to the

common fund doctrine “from the repayment fund created in this matter” and an entry of

3 judgment against Herrin requiring it to pay “one-third of the repayment amount adjudged in

Count I to Plaintiffs for attorney’s fees.”

¶9 On November 20, 2019, Herrin filed a motion to strike plaintiffs’ second amended

complaint contending, inter alia, that the common fund doctrine was inapplicable because there

was no “common fund” and a diversion of tax funds for attorney fees was prohibited based on

language in Hamer v. Kirk, 64 Ill. 2d 434 (1976). Plaintiffs filed a response on December 17,

2019, again requesting statutory interest and attorney fees under the common fund doctrine. On

March 9, 2020, Herrin filed a memorandum in support of its motion to strike plaintiffs’ second

amended complaint, which, in addition to the prior arguments, contended that attorney fees were

unrecoverable because Osman was representing himself pro se. On March 11, 2020, plaintiffs

filed a “notice of filing case law” submitting copies of numerous cases with the trial court;

however, no written summary of those cases was ever provided. Oral argument was held on

March 11, 2020.

¶ 10 On April 14, 2020, the trial court issued an order denying Herrin’s motion to strike the

request for interest in count I after finding the issue premature and granting Herrin’s motion to

strike the request for attorney fees in count II. The trial court found the case was similar to

Hamer, in that no new fund would be created from the litigation and, therefore, no fund would be

under the court’s control.

¶ 11 On May 8, 2020, Herrin filed its verified answer to the second amended complaint and on

May 21, 2020, filed a motion for case management conference.

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

Related

Mills v. Electric Auto-Lite Co.
396 U.S. 375 (Supreme Court, 1970)
Brundidge v. Glendale Federal Bank, F.S.B.
659 N.E.2d 909 (Illinois Supreme Court, 1995)
Scholtens v. Schneider
671 N.E.2d 657 (Illinois Supreme Court, 1996)
Stevens v. Country Mutual Insurance
903 N.E.2d 733 (Appellate Court of Illinois, 2008)
Tenney v. American Family Mutual Insurance
470 N.E.2d 6 (Appellate Court of Illinois, 1984)
Flynn v. Kucharski
319 N.E.2d 1 (Illinois Supreme Court, 1974)
In Re Marriage of Murphy
786 N.E.2d 132 (Illinois Supreme Court, 2003)
Flynn v. Kucharski
290 N.E.2d 1 (Illinois Supreme Court, 1972)
Flynn v. Kucharski
273 N.E.2d 3 (Illinois Supreme Court, 1971)
Bishop v. Burgard
764 N.E.2d 24 (Illinois Supreme Court, 2002)
In Re Estate of Pfoertner
700 N.E.2d 438 (Appellate Court of Illinois, 1998)
Village of Chatham v. County of Sangamon
837 N.E.2d 29 (Illinois Supreme Court, 2005)
Linker v. Allstate Insurance
794 N.E.2d 945 (Appellate Court of Illinois, 2003)
Flynn v. Kucharski
258 N.E.2d 329 (Illinois Supreme Court, 1970)
Rosemont Building Supply, Inc. v. Illinois Highway Trust Authority
281 N.E.2d 338 (Illinois Supreme Court, 1972)
Johnson v. State Farm Mutual Automobile Insurance
752 N.E.2d 449 (Appellate Court of Illinois, 2001)
Baier v. State Farm Insurance Co.
361 N.E.2d 1100 (Illinois Supreme Court, 1977)
Morris B. Chapman & Associates, Ltd. v. Kitzman
739 N.E.2d 1263 (Illinois Supreme Court, 2000)
Maynard v. Parker
387 N.E.2d 298 (Illinois Supreme Court, 1979)
Hoffman v. Lehnhausen
269 N.E.2d 465 (Illinois Supreme Court, 1971)

Cite This Page — Counsel Stack

Bluebook (online)
2021 IL App (5th) 210023-U, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ps-grain-llc-v-herrin-community-school-district-no4-illappct-2021.