Engle v. Department of Financial and Professional Regulation
103 N.E.3d 382
Ill. App. Ct.2018Background
- Engle applied for and obtained a certified residential appraiser license in 2014; the Department later filed a 127-count complaint (June 29, 2015) alleging misreported experience hours and false application information and sought suspension or revocation.
- ALJ denied Engle’s motion to dismiss (Oct. 14, 2015) and ordered an answer by Nov. 2, 2015; Engle’s original counsel firm collapsed during a chaotic transition and successor counsel filed appearances but missed the answer deadline.
- ALJ entered a default order (Dec. 1, 2015) for failure to answer and transferred the matter to the Board for consideration on the pleadings; Engle filed a 118‑page answer and a motion to vacate the default on Jan. 11, 2016.
- The Board signed its report recommending revocation on Jan. 12, 2016 (apparently unaware of the Jan. 11 filings); the Secretary issued a final order revoking Engle’s license on Mar. 8, 2016, without addressing the motion to vacate.
- Engle sought administrative review in circuit court, which affirmed; on appeal Engle argued denial of due process (default without prove‑up or consideration of her timely motion to vacate), and that revocation was an abuse of discretion given the circumstances.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether revocation based on default deprived Engle of due process | Engle: she did not forfeit right to hearing; her Jan. 11 answer and motion to vacate were timely relative to Board action and should have been considered | Dept.: Engle had ample time, missed deadlines, and forfeited hearing by failing to comply; agency default procedures justified action | Court: Agency denied due process—motions not considered, no deeming‑admission motion or prove‑up, and default judgment issued despite pending motion to vacate; reversal and remand for hearing |
| Whether the motion to vacate default should have been considered/granted | Engle: good cause (death of prior counsel, abrupt firm closure, chaotic transition) excused late answer and warranted vacatur or remand | Dept.: delay and procedural defects (unverified answer, lack of affidavits) justify ignoring late filings | Court: Motion was not time‑barred and should have been adjudicated; agency failed to follow its rules and abused discretion in not remanding |
| Whether the Board could decide on pleadings without a prove‑up hearing | Engle: Board improperly relied solely on complaint allegations without a prove‑up or motion deeming answers admitted | Dept.: default admitted allegations; discipline appropriate without hearing | Court: Because the agency did not follow its own procedures (no motion to deem admissions; no prove‑up), adjudication on pleadings deprived Engle of adequate process; remand required |
| Whether revocation was an abuse of discretion/overly harsh | Engle: revocation is excessive given mitigating circumstances and procedural irregularities | Dept.: revocation aligns with Act’s purpose and prior discipline; licensee’s noncompliance justified penalty | Court: Denial to remand was an abuse of discretion under these circumstances; remanded for merits hearing (did not resolve proportionality on the merits) |
Key Cases Cited
- Marconi v. Chicago Heights Police Pension Board, 225 Ill. 2d 497 (Illinois Supreme Court) (plaintiff bears burden on administrative review)
- Abrahamson v. Illinois Department of Professional Regulation, 153 Ill. 2d 76 (Illinois Supreme Court) (due process in administrative hearings; limits on substituting court judgment for agency factfinding)
- Smith v. Department of Registration & Education, 412 Ill. 332 (Illinois Supreme Court) (professional license is property interest entitled to due process)
- In re Haley D., 2011 IL 110886 (Illinois Supreme Court) (distinguishing default order from default judgment)
- Glassworks, Inc. v. Human Rights Comm’n, 164 Ill. App. 3d 842 (Ill. App. Ct.) (procedural defaults and due process in agency context)
- Metz v. Illinois State Labor Relations Board, 231 Ill. App. 3d 1079 (Ill. App. Ct.) (agency enforcement of default rules upheld where notice and opportunity were provided)
- People ex rel. Birkett v. Konetski, 233 Ill. 2d 185 (Illinois Supreme Court) (Mathews balancing test for due process requirements)