Shaw v. Department of Employment Security

612 N.E.2d 919, 243 Ill. App. 3d 844, 184 Ill. Dec. 43, 1993 Ill. App. LEXIS 573
CourtAppellate Court of Illinois
DecidedApril 21, 1993
DocketNos. 3-92-0549, 3-92-0550 cons.
StatusPublished
Cited by9 cases

This text of 612 N.E.2d 919 (Shaw 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
Shaw v. Department of Employment Security, 612 N.E.2d 919, 243 Ill. App. 3d 844, 184 Ill. Dec. 43, 1993 Ill. App. LEXIS 573 (Ill. Ct. App. 1993).

Opinion

JUSTICE LYTTON

delivered the opinion of the court:

This consolidated appeal involves two cases challenging decisions of the Board of Review of the Illinois Department of Employment Security (Board), which upheld referees’ decisions denying unemployment insurance benefits to plaintiffs Helen Shaw (Shaw) and Janice Camp (Camp). In filing suit, each plaintiff named as a defendant the “Department of Employment Security, State of Illinois” (Department) but failed to name the Department’s Director or the Board of Review. The circuit court dismissed the cases for plaintiffs’ failure to name a necessary party, and the plaintiffs appealed. We affirm.

On March 11, 1992, the Board of Review of the Illinois Department of Employment Security issued a final decision affirming a referee’s decision which denied unemployment insurance benefits to Helen Shaw. On March 27, 1992, the Board issued a similar decision affirming the denial of benefits to Janice Camp.

On March 23, 1992, Shaw filed a complaint in the circuit court of Hancock County, seeking administrative review of the Board’s decision. Likewise, on March 27, 1992, Camp filed suit in the same court, seeking administrative review. Both complaints named as defendant the “Department of Employment Security, State of Illinois.” Neither complaint named the Department’s Director or the Board of Review as defendants and neither plaintiff served the Director or the Board with summons.

On April 23 and 27, 1992, the Department filed motions to dismiss the two complaints. The Department alleged that both plaintiffs had failed to name the Board as a defendant and failed to serve the Board. The Department alleged that since the Board had issued the decisions which were being appealed, the Board was a necessary-party in each case. Under the Administrative Review Law (Ill. Rev. Stat. 1991, ch. 110, par. 3 — 101 et seq.), the Department asserted that the plaintiffs were required to name the Board as a party and cause summons to issue within 35 days from the date the Board served its decision. The Department also asserted that the Director was a necessary party which the plaintiffs had failed to name and serve.

On June 1, 1992, each defendant responded by filing a motion to amend complaint and add additional parties. Each plaintiff also submitted a brief in support of her motion.

On July 1, 1992, the circuit court granted the Department’s motion to dismiss and denied plaintiffs’ motions to amend. Shaw and Camp then filed timely notices of appeal, and their cases were consolidated for purposes of this appeal.

The Unemployment Insurance Act provides that a decision of the Board of Review shall be reviewable only under and in accordance with the Administrative Review Law. (Ill. Rev. Stat. 1991, ch. 48, par. 520.) The Administrative Review Law requires that every action to review a final administrative decision be commenced by the filing of a complaint and the issuance of summons within 35 days from the date 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.) Unless review is sought within the time and manner provided within the Administrative Review Law, the parties shall be barred from obtaining judicial review of such administrative decision. Ill. Rev. Stat. 1991, ch. 110, par. 3-102.

“[I]n any action to review any final decision of an administrative agency, the administrative agency and all persons, other than the plaintiff, who were parties *** before the administrative agency shall be made defendants.” (Ill. Rev. Stat. 1991, ch. 110, par. 3 — 107(a).) “Administrative agency” is defined as the “person, body of persons, group, officer, board, bureau, commission or department of the state *** having power under law to make administrative decisions.” (Ill. Rev. Stat. 1991, ch. 110, par. 3 — 101.) Within the context of this case, the entity with power to make the administrative decision was the Board of Review of the Illinois Department of Employment Security (Ill. Rev. Stat. 1991, ch. 48, par. 473), and it was the Board that issued the final decision from which Shaw and Camp sought administrative review. In seeking review of the Board’s final decisions in their respective cases, however, neither plaintiff named the Board as a defendant.

Nevertheless, Shaw and Camp assert that the circuit court erred in dismissing their complaints. First, the plaintiffs argue that they were not required to name the Director of the Department as a party. Second, the plaintiffs contend that they should have been allowed to amend their complaints to add any necessary parties. Third, plaintiffs assert that they acted in good faith and gave the defense ample time and notice to respond. After reviewing each of these issues, we affirm the decision of the circuit court.

Initially, Shaw and Camp assert that the Director of the Department of Employment Security was not a necessary party, and, therefore, failure to name and serve the Director was not fatal to plaintiffs’ complaints. We agree.

In Stone v. Department of Employment Security Board of Review (1991), 213 Ill. App. 3d 739, 572 N.E.2d 412, the Second District Appellate Court considered this precise issue. In Stone, the plaintiff failed to name the Director of the Department as a defendant in the administrative review case filed in circuit court. The appellate court held, however, that this failure did not deprive the circuit court of jurisdiction. While a plaintiff seeking administrative review is required to name as defendants all “parties of record to the proceedings before the administrative agency” (Ill. Rev. Stat. 1991, ch. 110, par. 3 — 107), and the Director is deemed a party to any “judicial action” involving a Board decision (Ill. Rev. Stat. 1991, ch. 48, par. 520), the statutes do not state that the Director is a party to the Board’s administrative action. Thus, a defendant seeking review of a Board decision is not required to name the Director as a defendant. Stone, 213 Ill. App. 3d at 742.

While conceding that they failed to name the Board of Review in their complaint and that the Board is a necessary party, the plaintiffs assert that the circuit court erred in denying their motions to amend their complaints and add the Board as a defendant. Under existing case law, we are compelled to affirm the circuit court’s decision.

In Lockett v. Chicago Police Board (1990), 133 Ill. 2d 349, 549 N.E.2d 1266, the Illinois Supreme Court considered the issue of whether plaintiffs seeking administrative review could amend their complaints and add a necessary party after the 35-day statutory period for the filing of a complaint. Noting that the filing of the complaint is a jurisdictional requirement under section 3 — 103 of the Administrative Review Law (Ill. Rev. Stat. 1991, ch. 110, par. 3 — 103), the court concluded:

“Since the Administrative Review Law is a departure from common law, the procedures it establishes must be strictly adhered to in order to justify its application. Winston v. Zoning Board of Appeals (1951), 407 Ill. 588[, 95 N.E.2d 864].

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Bluebook (online)
612 N.E.2d 919, 243 Ill. App. 3d 844, 184 Ill. Dec. 43, 1993 Ill. App. LEXIS 573, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shaw-v-department-of-employment-security-illappct-1993.