Stillo v. State Retirement Systems

852 N.E.2d 516, 366 Ill. App. 3d 660
Appellate Court of Illinois·Decided June 30, 2006·No. 1-05-2828·Published·Cited by 10 cases

Opinion

JUSTICE GREIMAN

delivered the opinion of the court:

In the trial court, plaintiff Adam N. Stillo sought administrative review of a decision of defendant the Board of Trustees of the Judges’ Retirement System of Illinois (the Board) that plaintiff was not entitled to a refund of contributions he made to the Judges’ Retirement System in the amount of $83,938.22 on the grounds that the claim was waived when plaintiff had not raised it in previous proceedings on the same issue before the Board. On review, the circuit court upheld the Board’s decision, holding that plaintiff’s cause of action was barred by res judicata. On appeal, plaintiff contends (1) that the cause of action was not barred by res judicata, and (2) that he did not waive his claim for a refund.

Plaintiff was a magistrate judge and then a circuit court judge in the circuit court of Cook County from 1964 to 1988. During that time, he made contributions of $107,534.83 to the Judges’ Retirement System of Illinois (the System). Between his August 1, 1988, retirement and July 31,1994, the System paid plaintiff a total of $438,598.62 in benefits. In 1991, plaintiff was indicted on federal felony charges of racketeering and extortion conspiracy arising from activities during his tenure as a judge. Upon his 1994 conviction and sentencing on those charges, the System terminated his pension benefits pursuant to section 18 — 163 of the Illinois Pension Code (40ILCS 5/18 — 163 (West 1994)), which requires that all benefit payments cease upon a member’s conviction and sentencing for a felony arising out of acts committed during the performance of the member’s official duties. Plaintiff then filed a complaint asking the circuit court to enjoin termination of his pension benefits until such time as a due process hearing could be held. The circuit court dismissed that complaint when the Board scheduled a hearing to consider plaintiff’s case for August 26, 1994. Following that hearing, the Board entered an order terminating all of plaintiffs benefits as of July 11, 1994 — the date of his conviction — and finding that the System had properly terminated his benefits.

Plaintiff filed a complaint in the circuit court on October 28, 1994, seeking administrative review of the Board’s decision. In his complaint, plaintiff alleged that his benefits should not terminate until he exhausted his appeals of his criminal conviction and that he and his wife were entitled to a hearing before the pension benefits could be suspended. Within that complaint, he alleged that the System owed him $83,938.22, a figure he reached by subtracting $21,279.93— the amount he was paid from 1988 through 1994 from his annuity— from the $104,574.95 he contributed to the system. The circuit court denied the petition for administrative review on November 24, 1997. This court affirmed. See Stillo v. State Retirement System, 305 Ill. App. 3d 1003 (1999). Plaintiff petitioned for a rehearing, which this court denied. The Illinois Supreme Court and the United States Supreme Court denied plaintiffs petitions for leave to appeal and for certiorari. See Stillo v. State Retirement Systems, 186 Ill. 2d 590 (1999); Stillo v. Illinois State Retirement Systems, 529 U.S. 1069, 146 L. Ed. 2d 485, 120 S. Ct. 1677 (2000).

Subsequently, the Illinois Supreme Court issued its decision in Shields v. Judges’ Retirement System of Illinois, 204 Ill. 2d 488 (2003). In Shields, the court held that a former judge whose pension benefits had been terminated following a felony conviction was entitled to a full refund of all contributions he made to the System. One month later, plaintiff wrote to the Board citing Shields and asking for a refund of $83,938.22.

After seeking and receiving an advisory opinion from the Office of the Attorney General, the Board denied the request based upon plaintiff’s failure to challenge the method by which the Board calculated the refund he may have been owed in the 1994 proceeding. The Board deemed that issue waived and informed plaintiff of its administrative decision in a letter dated November 4, 2004.

Plaintiff filed a complaint for administrative review of the Board’s decision on December 7, 2004, and sought a refund of $83,938.22. The circuit court issued a decision on August 3, 2005, affirming the Board’s denial of plaintiff’s request for a refund, finding that the cause of action was barred by the doctrine of res judicata. Plaintiff filed a notice of appeal on August 29, 2005.

On appeal, we will review an administrative agency’s decision rather than the circuit court’s determination. Village of Oak Park v. Village of Oak Park Firefighters Pension Board, 362 Ill. App. 3d 357, 365 (2005). Because the facts of plaintiff’s case were not in dispute before the Board, its determination that he had waived his request for a refund involves a matter of law. Citizens Utilities Co. of Illinois v. Centex-Winston Corp., 185 Ill. App. 3d 610, 613 (1989). An administrative agency’s findings on a question of law are reviewed de novo. Branson v. Department of Revenue, 168 Ill. 2d 247, 254 (1995).

First, plaintiff contends that his cause of action is not barred by the doctrine of res judicata. The doctrine of res judicata mandates that a final judgment on the merits of a case rendered by a court of competent jurisdiction is an absolute bar to future suits between the same parties regarding the same “claim, demand or cause of action.” Riverdale Industries, Inc. v. Malloy, 307 Ill. App. 3d 183, 185 (1999). Res judicata serves as a bar to litigation of all issues that were actually decided and “all issues that could have been raised and determined because they were properly involved by the subject matter of the earlier action.” (Emphasis added.) Riverdale Industries, 307 Ill. App. 3d at 185. To determine whether a second suit constitutes the same cause of action as a previous suit for res judicata purposes, we look to the “transactional test,” which asks whether the subsequent action arises from the same set of operative facts as the original action. River Park, Inc. v. City of Highland Park, 184 Ill. 2d 290, 309 (1998). Therefore, in determining whether two suits are the same cause of action under res judicata, we look at the facts that give rise to the claim for relief, not only those facts which support the decision in the first action. River Park, 184 Ill. 2d at 309-10. “ ‘ “ ‘[T]he assertion of different kinds or theories of relief still constitutes a single cause of action if a single group of operative facts give rise to the assertion of relief.’ ” ’ ” River Park, 184 Ill. 2d at 307, quoting Rodgers v. St. Mary’s Hospital, 149 Ill. 2d 302, 312 (1992), quoting Pfeiffer v. William Wrigley Jr. Co., 139 Ill. App. 3d 320, 323 (1985), quoting Baird & Warner, Inc. v. Addison Industrial Park, Inc., 70 Ill. App. 3d 59, 64 (1979).

In support of his contention, plaintiff distinguishes the case at bar from Bagnola v. SmithKline Beecham Clinical Laboratories, 333 Ill. App. 3d 711 (2002), and River Park. In Bagnola, this court ruled that a discharged police officer’s claims against a laboratory and the city for spoliation of evidence were barred by res judicata because the court had previously rejected the same arguments in a prior court action dealing with a challenge to the officer’s discharge.

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Stillo v. State Retirement Systems, 852 N.E.2d 516, 366 Ill. App. 3d 660 (Ill. Ct. App. 2006).

852 N.E.2d 516 (Stillo v. State Retirement Systems) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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