Smoke N Stuff v. City of Chicago

2015 IL App (1st) 140936, 40 N.E.3d 338
CourtAppellate Court of Illinois
DecidedAugust 24, 2015
Docket1-14-0936
StatusUnpublished
Cited by6 cases

This text of 2015 IL App (1st) 140936 (Smoke N Stuff 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
Smoke N Stuff v. City of Chicago, 2015 IL App (1st) 140936, 40 N.E.3d 338 (Ill. Ct. App. 2015).

Opinion

2015 IL App (1st) 140936

FIRST DIVISION August 24, 2015

No. 1-14-0936

SMOKE N STUFF, ) Appeal from the ) Circuit Court of Plaintiff-Appellant, ) Cook County. ) v. ) ) CITY OF CHICAGO, a Municipal Corporation, ) DEPARTMENT OF ADMINISTRATIVE ) No. 13 CH 10385 HEARINGS, DEPARTMENT OF BUSINESS ) AFFAIRS AND CONSUMER PROTECTION, ) ROSEMARY KRIMBEL, Commissioner, ) MAYOR'S LICENSING COMMISSION, RAHM ) EMANUEL, Mayor of the City of Chicago, ) Honorable ) Neil Cohen, Defendants-Appellees. ) Judge Presiding.

Justice Harris delivered the judgment of the court, with opinion. Presiding Justice Delort and Justice Cunningham concurred in the judgment and opinion.

OPINION

¶1 Plaintiff, Smoke N Stuff, a licensed tobacco dealer in Chicago, Illinois, petitioned the

circuit court for a writ of certiorari seeking review of the administrative decision of the city of

Chicago's Department of Administrative Hearings and its Department of Business Affairs and

Consumer Protection (collectively, the department). The department found that plaintiff

violated the following tobacco related provisions of the Chicago Municipal Code (Code): (1)

purchasing or receiving 1,127 packs of cigarettes that did not bear an unmutilated tax stamp

affixed or canceled indicating payment of the proper cigarette tax to Chicago in violation of

section 3-42-020(d) of the Code (Chicago Municipal Code § 3-42-020(d) (added Dec. 9, 1992)); No. 1-14-0936

(2) purchased or received 1,107 packs of cigarettes in a package not bearing an unmutilated tax

stamp affixed or cancelled indicating payment of the proper cigarette tax to Cook County in

violation of section 3-42-025 of the Code (Chicago Municipal Code § 3-41-025 (added Feb. 15,

2012)); (3) failed to provide for inspection a record of cigarette transactions in violation of

section 4-64-150 of the Code (Chicago Municipal Code § 4-64-150 (added Dec. 9, 1992)); and

engaged in an act of concealment in violation of section 3-42-020(e) of the Code (Chicago

Municipal Code § 3-42-020(e) (added Dec. 9, 1992)). 1 As a sanction, the department revoked

plaintiff's license. The circuit court of Cook County denied plaintiff's petition for writ of

certiorari, and affirmed the findings of the department.

¶2 Plaintiff raises the following issues for our review: (1) whether, under the one-act,

one-crime rule, it can be convicted of both section 3-42-020(d) of the Code for nonpayment of

Chicago cigarette taxes (Chicago Municipal Code § 3-42-020(d) (added Dec. 9, 1992)) and

section 3-42-025 of the Code (Chicago Municipal Code § 3-41-025 (added Feb. 15, 2012)) for

the nonpayment of Cook County cigarette taxes; and (2) whether the department abused its

discretion when it revoked its license as a sanction for its tobacco related violations. We reject

defendant's reliance on the one-act, one-crime rule and hold that the rule does not apply to

municipal ordinance proceedings such as the case at bar. We further hold that the department's

revocation of plaintiff's license was not an arbitrary or capricious sanction because plaintiff

attempted to conceal over 1,000 untaxed cigarette packs in a back room. We therefore affirm

the judgment of the circuit court of Cook County.

1 Plaintiff named the following entities and government officials as defendants: the City of Chicago; its Department of Administrative Hearings; its Department of Business Affairs and Consumer Protection and its commissioner, Rosemary Krimbel; the Mayor's Licensing Commission; and Rahm Emanuel, the mayor of Chicago. Defendants presented a unified defense, and, for the most part, we will refer to them collectively to avoid confusion.

-2- No. 1-14-0936

¶3 JURISDICTION

¶4 On March 5, 2014, the circuit court denied plaintiff's petition for writ of certiorari. On

March 28, 2014, plaintiff timely appealed. Accordingly, this court has jurisdiction pursuant to

Illinois Supreme Court Rules 301 and 303 governing appeals from final judgments entered

below. Ill. S. Ct. R. 301 (eff. Feb. 1, 1994); R. 303 (eff. May 30, 2008).

¶5 BACKGROUND

¶6 Defendants alleged plaintiff committed the following violations of the Code in July of

2012: (1) purchased or received 1,127 packs of cigarettes that did not bear an unmutilated tax

stamp affixed or canceled in violation of section 3-42-020(d) of the Code (Chicago Municipal

Code § 3-42-020(d) (added Dec. 9, 1992)); (2) purchased or received 1,107 packs of cigarettes in

a package not bearing an unmutiliated tax stamp affixed or cancelled in violation of section

3-42-025 of the Code (Chicago Municipal Code § 3-41-025 (added Feb. 15, 2012)); (3) failed to

provide for inspection a record of cigarette transactions in violation of section 4-64-150 of the

Code (Chicago Municipal Code § 3-42-020(e) (added Dec. 9, 1992)); and engaged in an act of

concealment in violation of section 3-42-020(e) of the Code (Chicago Municipal Code §

3-42-020(e) (added Dec. 9, 1992)).

¶7 The department conducted a hearing adjudicating this matter before a hearing

commissioner on January 29, 2013, and March 12, 2013. Only one witness testified on either

date, John Gammal, a revenue investigator employed by the department. On July 31, 2012,

Gammal inspected plaintiff's store at 2909 North Broadway in Chicago, Illinois, based on a

complaint that plaintiff was selling unstamped cigarettes out of the rear room of its store.

Gammal testified that the store was open, its doors were unlocked, and he entered through the

main entrance. Gammal identified himself to the employee behind the register. The employee

-3- No. 1-14-0936

never stated his name, but Gammal described him as "of Indian or Pakistani descent." Gammal

knew he was a store clerk because "[h]e was speaking to the customer on the side where the

register was and he provided for me the licenses when I asked for them." Gammal informed the

employee that he was there to conduct a premises check. Upon checking the rear storage room,

Gammal found 1,127 unstamped packs of cigarettes in an 18-inch gap in the wall. Out of those

1,127 packs of cigarettes, 20 only had a Cook County tax stamp affixed to its packaging while

the remaining 1,107 packs of cigarettes lacked the single tax stamp that serves as a joint tax

stamp for both Cook County and Chicago. Gammal explained that the 20 packs found bearing

only a Cook County tax stamp could only legally be sold in Cook County outside of the city of

Chicago. Gammal also asked the employee to see the licensee's transaction book, but the

employee did not comply.

¶8 At the hearing, plaintiff argued to the hearing commissioner it had been charged twice for

the same offense. Specifically, both Chicago and Cook County were charging it for failing to

buy a single stamp. In response, defendants argued that section 3-42-025 of the Code (Chicago

Municipal Code § 3-42-025 (added Feb. 15, 2012)) specifies that it is a separate and distinct

offense from other tax violations. Accordingly, defendants maintained "it's wholly permissible

for the City to charge for the lack of a County tax stamp and the lack of a City tax stamp."

¶9 Plaintiff offered no testimony or other evidence at the hearing. In aggravation,

defendants presented a 2007 Chicago stamp tax violation that resulted in a $1,000 fine, a 2009

violation for illegally posting a tobacco advertisement that resulted in a $200 fine, and a 2011

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Bluebook (online)
2015 IL App (1st) 140936, 40 N.E.3d 338, Counsel Stack Legal Research, https://law.counselstack.com/opinion/smoke-n-stuff-v-city-of-chicago-illappct-2015.