King's Health Spa, Inc. v. Village of Downers Grove
11 N.E.3d 489
Ill. App. Ct.2014Background
- King’s Health Spa, Inc. and Ace Spa, Inc. operate massage establishments in Downers Grove, Illinois.
- Village’s massage business ordinance authorizes license suspension or revocation for specified acts, including prostitution by any employee on licensed premises.
- Commissioner revoked King’s license after undercover prostitution investigation; Ace’s license was revoked first, then continued on remands.
- Ace’s first remand vacated revocation; on remand, evidence included Agent Bauman’s testimony about broader trafficking problems.
- Trial courts vacated and remanded; appellate court ultimately upheld King’s revocation but reversed Ace’s initial revocation denial on remand and reinstated the original revocation for Ace.
- Court held the Commissioner did not abuse discretion in revoking either license under the village’s ordinance.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether revocation for a single act can be upheld. | King’s contends no prior violations or knowledge, so revocation is abuse. | Ordinance makes revocation available for a single prostitution incident; severity justified. | No abuse; revocation upheld as reasonable sanction. |
| Whether Ace’s due process claim invalidates revocation. | Ace argues lack of knowledge/notice violates due process and presumes knowledge. | Ordinance imposes strict responsibility to prevent illegal acts by employees; mitigating evidence may be considered. | Procedural due process not violated; substantive due process not implicated; mitigation considered but not dispositive. |
| Whether Commissioner’s reliance on mitigations and broad trafficking testimony was error. | Mitigation evidence should have reduced sanction; agent testimony was improper for Ace. | Mitigation weighed; testimony supported regulation purpose and penalties align with public interest. | No reversible error; mitigation limited weight but did not mandate lesser sanction. |
Key Cases Cited
- Wes Ward Enterprises, Ltd. v. Andrews, 42 Ill. App. 3d 458 ( Illinois App. 1976) (massage ordinance validity for public regulation)
- Clevenger v. City of East Moline, 44 Ill. App. 3d 168 ( Illinois App. 1976) (police power upheld massage regulation)
- Byrne v. Stern, 103 Ill. App. 3d 601 ( Illinois App. 1981) (liquor license revocation for employee conduct upheld when no prior violations)
- Hanson v. Illinois Liquor Control Comm’n, 201 Ill. App. 3d 973 ( Illinois App. 1990) (revocation cases with no prior violations discussed)
- Jacquelyn’s Lounge, Inc. v. License Appeal Comm’n, 277 Ill. App. 3d 959 ( Illinois App. 1996) (no prior violations; employee conduct proscriptions)
- Roach Enterprises, Inc. v. License Appeal Comm’n, 277 Ill. App. 3d 523 ( Illinois App. 1996) (revocation upheld where licensee accepted responsibility for associated violations)
- Feliciano v. Illinois Racing Board, 110 Ill. App. 3d 997 ( Illinois App. 1982) (strict liability aspects distinguished by knowledge of conduct)
- Spiros Lounge, Inc. v. Illinois Liquor Control Comm’n, 98 Ill. App. 3d 280 ( Illinois App. 1981) (license revocation for employee misconduct)
- S&F Corp. v. Bilandic, 62 Ill. App. 3d 193 ( Illinois App. 1978) (revocation upheld where licensee had knowledge of operation)
- Oglesby v. City of Toledo, 635 N.E.2d 1319 ( Ohio Ct. App. 1994) (similarity to regulatory health/safety enforcement upholding broad sanction)
