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King's Health Spa, Inc. v. Village of Downers Grove
11 N.E.3d 489
Ill. App. Ct.
2014
Read the full case

Background

  • 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  • Commissioner revoked King’s license after undercover prostitution investigation; Ace’s license was revoked first, then continued on remands.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)
Read the full case

Case Details

Case Name: King's Health Spa, Inc. v. Village of Downers Grove
Court Name: Appellate Court of Illinois
Date Published: Jul 2, 2014
Citation: 11 N.E.3d 489
Docket Number: 2-13-0825, 2-13-0978 cons.
Court Abbreviation: Ill. App. Ct.