Bueker v. Madison County Illinois
2016 IL 120024
| Ill. | 2017Background
- Plaintiffs (private citizens and a proposed class) sued for damages arising from an alleged scheme by Madison County Treasurer/Collector Fred Bathon to inflate interest on delinquent tax redemptions, benefiting purchasers of tax debt.
- Plaintiffs sued multiple defendants and also sued RLI Insurance Company, the surety on Bathon’s statutorily required public official bond.
- The bond named Bathon as principal and (erroneously) “Madison County Government” as obligee; statutory bond forms, however, require the obligee to be “the People of the State of Illinois.”
- RLI moved to dismiss plaintiffs’ direct claim on the bond under section 2-615 (failure to state a cause of action), arguing private citizens lack standing to sue directly on a statutory public official bond that runs to the People.
- The circuit court granted the motion with prejudice; the appellate court affirmed. The Illinois Supreme Court granted leave and affirmed, holding private citizens cannot directly sue on the statutory county treasurer/collector bond absent legislative authorization.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether private citizens may sue directly on a statutorily mandated county treasurer/collector bond that names the People of the State of Illinois as obligee | Private citizens harmed by Bathon’s misconduct may bring a direct action on the bond to recover their losses | Only the named obligee (the People/body politic) may sue on the statutory public official bond unless the statute expressly allows private suits | Held: Private citizens are precluded from suing directly on the bond; plaintiffs lack standing to pursue RLI under the bond statutes |
Key Cases Cited
- United States ex rel. Midland Loan Finance Co. v. National Surety Corp., 309 U.S. 165 (1940) (private third parties may sue on an official bond only if legislative intent—express or implied—permits it)
- Marshall v. Burger King Corp., 222 Ill. 2d 422 (2006) (standard of review for section 2-615 motions; accept well-pleaded facts and reasonable inferences)
- Rosewood Corp. v. Transamerica Insurance Co., 57 Ill. 2d 247 (1974) (a bond is construed with reference to its statutory form; omitted statutory language is read into the bond)
- Cowper v. Nyberg, 2015 IL 117811 (2015) (recognition that court clerks may be liable for breaches of ministerial duties; did not confer private direct-bond standing)