delivered the opinion of the court:
The storage facility sold off plaintiffs property because his rent payments were overdue. That sale gives rise to the plaintiff’s constitutional and statutory claims we address in this appeal.
Plaintiff Theo Hill filed a class action lawsuit against defendant PS Illinois Trust (PS), alleging the Illinois Self-Storage Facility Act (Storage Act) (770 ILCS 95/1 et seq. (West 2004)) violated the due process clause of the Illinois Constitution (Ill. Const. 1970, art. I, §2). Plaintiff also alleged on his own behalf that PS’s actions in conducting a lien sale under the Storage Act were “unfair and deceptive” under the Illinois Consumer Fraud and Deceptive Business Practices Act (Act or CFA) (815 ILCS 505/2 (West 2004)).
PS moved to dismiss plaintiffs case pursuant to section 2 — 615 of the Illinois Code of Civil Procedure (Code) (735 ILCS 5/2 — 615 (West 2004)). The trial court granted PS’s motion.
On appeal, plaintiff contends the trial court erred when it determined he failed to allege the requisite state action necessary to support a claim under the Illinois due process clause, and that he failed to state a claim under the Act. We affirm in part and reverse and remand in part.
FACTS
The pleadings reveal the facts relevant to this appeal. On August 5, 2003, defendant entered into a contract with PS for the rental of a storage locker in order to store his personal property. Plaintiff made his monthly payments for August and September. On October 17, 2003, plaintiff called PS’s storage facility to inform it that he would be late with October’s rent payment, but would make the payment later in the week. Plaintiff was told his account was past due, but was not told his property would be auctioned off if payment was not made.
Plaintiff was unable to make the October and November rental payments. On December 5, 2003, plaintiff called PS to check the balance on his account and arrange payment. Plaintiff was told his belongings were auctioned off on November 25, 2003. Plaintiff’s personal property was worth in excess of $25,000. According to plaintiff, he never received notice that PS would be auctioning off his property in order to enforce a lien created under section 3 of the Storage Act. 770 ILCS 95/3 (West 2004).
On January 26, 2005, plaintiff called PS to demand the return of any balance remaining from the lien sale, as required by section 4(j) of the Storage Act. 770 ILCS 95/4(j) (West 2004). A representative of PS told plaintiff, “I have no idea what you are talking about.” On February 9, 2005, plaintiff faxed PS a letter demanding the return of any balance remaining. PS never responded to the letter.
Plaintiff filed a two-count complaint against PS in the circuit court of Cook County. In count I, plaintiff sought, on behalf of himself and a putative class of PS customers, a declaratory judgment that the Storage Act was unconstitutional “on its face and as applied” because it failed to provide adequate notice. In count II, plaintiff alleged on his own behalf that PS, in violation of the Act, engaged in unfair and deceptive conduct when it sold his property.
PS moved to dismiss the complaint pursuant to section 2 — 615 of the Code. PS contended: (1) plaintiff failed to allege the requisite state action necessary to support a claim under the due process clause of the Illinois State Constitution; and (2) plaintiff failed to allege any facts that would constitute an unfair act in violation of the Act. The trial court dismissed Count I and gave plaintiff time to amend his claim under the Act. Plaintiff then filed a motion to amend his complaint. The trial court denied plaintiff’s motion to amend and dismissed the case with prejudice. Plaintiff appealed the dismissal of the Act and declaratory judgment claims, but did not appeal from the trial court’s refusal to allow him to amend his complaint, nor did he appeal dismissal of his conversion claim.
DECISION
A section 2 — 615 motion to dismiss challenges only the legal sufficiency of the complaint. 735 ILCS 5/2 — 615 (West 2004); Jarvis v. South Oak Dodge, Inc.,
I. Due Process
Plaintiff contends the trial court erred when it determined he failed to allege the requisite state action necessary to support a claim under the Illinois due process clause.
Initially, we note plaintiff has not indicated he complied with Supreme Court Rule 19 (134 Ill. 2d R. 19), which requires a litigant challenging the constitutionality of a statute, ordinance, or administrative regulation to serve notice of the challenge upon the Attorney General or other affected agency or officer. While we recognize the failure of a litigant to strictly comply with the rule may result in forfeiture, our supreme court has concluded that “a party’s failure to timely comply with Rule 19 does not deprive the court of jurisdiction to consider the constitutional issue.” Village of Lake Villa v. Stokovich,
To assert a violation of the Illinois due process clause, a plaintiff must allege a state action deprived him of a protected right, privilege, or immunity. In re Adoption of L.T.M.,
Plaintiff contends state action was properly alleged in this case because the State of Illinois “authorized” PS, under section 4 of the Storage Act, to violate his constitutional rights by selling his property without due process. See 770 ILCS 95/4 (West 2004). Plaintiff contends there are three distinct tests for determining whether there is state action. See Edmonson v. Leesville Concrete Co.,
In response, PS contends plaintiffs failure to attribute state action to PS’s decision to sell his goods is fatal to his due process claim. Defendant contends section 4 of the Storage Act permitted, but did not compel, PS to sell plaintiffs belongings. See 770 ILCS 95/3 (West 2004). PS contends merely permitting a private actor to make such a choice cannot support a finding of state action.
When appropriate, the Illinois Supreme Court has interpreted our state due process clause to provide greater protections than its federal counterpart. Lewis E. v. Spagnolo,
To support his contention, plaintiff relies on three United States Supreme Court decisions: Edmonson,
In Edmonson, the Court noted that “in determining whether a particular action or course of conduct is governmental in character, it is relevant to examine the following: the extent to which the actor relies on governmental assistance and benefits [citations]; whether the actor is performing a traditional governmental function [citations]; and whether the injury caused is aggravated in a unique way by the incidents of governmental authority.” Edmonson,
In Shelley, the Court concluded restrictive racial covenant agreements, standing alone, could not be regarded as a violation of any rights guaranteed by the fourteenth amendment. “So long as the purposes of those agreements are effectuated by voluntary adherence to their terms, it would appear clear that there has been no action by the State.” Shelley,
Finally, in Reitman, the United States Supreme Court held a California statute not only repealed an existing law forbidding private racial discriminations, but “was intended to authorize, and does authorize, racial discrimination in the housing market.” Reitman,
By contrast, in Flagg Brothers, Inc. v. Brooks,
The Court held the New York statute had done nothing more than “authorize (and indeed limit) — without participation by any public official — what Flagg Brothers would tend to do, even in the absence of such authorization, i.e., dispose of respondents’ property in order to free up its valuable storage space.” Flagg Brothers,
Notwithstanding, the plaintiffs contended Flagg Brothers’ proposed action under the statute was properly attributable to the State because “the State has authorized and encouraged it” by enacting the statute. Flagg Brothers,
Plaintiff contends Flagg Brothers is inapplicable here because the plaintiff in that case sought to hold individuals personally liable under section 1983 of the Civil Rights Act, rather than simply seeking to declare the New York statute unconstitutional. Plaintiff contends the issue of whether a defendant is a state actor is not relevant in an action seeking only to declare a state statute unconstitutional.
Contrary to plaintiff’s contention, however, the United States Supreme Court has noted: “ ‘In cases under §1983, “under color” of law has consistently been treated as the same thing as the “state action” required under the Fourteenth Amendment.’ ” Lugar v. Edmondson Oil Co.,
For example, in American Manufacturers Mutual Insurance Co. v. Sullivan,
“both an alleged constitutional deprivation ‘caused by the exercise of some right or privilege created by the State or by a rule of conduct imposed by the State or by a person for whom the State is responsible,’ and that ‘the party charged with the deprivation must be a person who may fairly be said to be a state actor.’ ” (Emphasis in original.) Sullivan,526 U.S. at 50 ,143 L. Ed. 2d at 143-44 ,119 S. Ct. at 985 , quoting Lugar,457 U.S. at 937 ,73 L. Ed. 2d at 495 ,102 S. Ct. at 2753-54 .
The Court noted that in cases involving extensive state regulation of private activity, “we have consistently held that ‘[t]he mere fact that a business is subject to state regulation does not by itself convert its action into that of the State for purposes of the Fourteenth Amendment.’ ” Sullivan,
Whether such a “close nexus” exists depends on whether the State exercised coercive power or provided such significant encouragement, either overt or covert, that the choice must be deemed to be that of the state. Sullivan,
The dividing line we seek to apply in this case was clearly drawn by the United States Supreme Court in Tulsa Professional Collection Services, Inc. v. Pope,
The issue was whether state action wrongfully deprived a creditor of its property rights. Citing Flagg Brothers, the Court observed: “Private use of state-sanctioned private remedies or procedures does not rise to the level of state action.” Tulsa Professional Collection Services, Inc.,
The Court found significant state action because the probate court was “intimately involved throughout, and without that, involvement the time bar is never activated.” Tulsa Professional Collection Services, Inc.,
Similarly, the Illinois Supreme Court considered whether the Illinois distress-for-rent provisions (Ill. Rev. Stat. 1973, ch. 80, pars. 16 through 34) were unconstitutional in Cousins Club, Inc.,
“There are numerous holdings that when a creditor exercises his self-help remedy to repossess personal property as authorized under section 9 — 503 of the Uniform Commercial Code (Ill. Rev. Stat. 1973, ch. 26, par. 9 — 503) or under similar statutes, there is no State action involved so far as the question of due process is concerned.” Cousins Club, Inc.,64 Ill. 2d at 15 .
The question was not simply whether state action was involved but, rather, whether the role of the State was “sufficiently significant, constitutionally speaking, so that one may invoke the protection afforded by the due process clause.” Cousins Club, Inc.,
In an attempt to circumvent the holdings in Flagg Brothers, Sullivan, and Cousins Club, Inc., plaintiff contends the United States Supreme Court “unequivocally” held in Lugar: “While private misuse of a state statute does not describe conduct that can be attributed to the State, the procedural scheme created by the statute obviously is the product of state action.” (Emphasis added.) Lugar,
In this case, there is no question plaintiffs deprivation of property resulted from the exercise of a right or privilege having its source in state authority, i.e., the lien sale conducted pursuant to section 4 of the Storage Act. See 770 ILCS 95/4 (West 2004). Therefore, the question becomes whether PS may be appropriately characterized as a “state actor.” See Sullivan,
Similar to the statutes in Flagg Brothers and Sullivan, the Storage Act authorized, but did not require or compel, PS to sell plaintiffs personal property stored at the facility in order to satisfy a lien for past-due rent. Besides establishing the right to a lien and providing a self-help remedy by enacting the Storage Act, the State was not significantly involved in the seizure and sale of plaintiff’s property. See Cousins Club, Inc.,
While we recognize the State’s decision to provide storage facility owners the option of conducting a lien sale can be seen as encouragement to do just that, “this kind of subtle encouragement is no more significant than that which inheres in the State’s creation or modification of any legal remedy.” Sullivan,
We therefore conclude the trial court did not err in dismissing count I of plaintiffs complaint.
II. Consumer Fraud
Plaintiff contends the trial court erred in dismissing count II of his complaint because he adequately stated a cause of action under the unfair conduct prong of the Illinois Consumer Fraud Act.
The Act is “a regulatory and remedial statute intended to protect consumers, borrowers, and business people against fraud, unfair methods of competition, and other unfair and deceptive business practices.” Robinson v. Toyota Motor Credit Corp.,
Unfair or deceptive acts or practices are described in the Act as:
“including but not limited to the use or employment of any deception, fraud, false pretense, false promise, misrepresentation or the concealment, suppression or omission of any material fact, with intent that others rely upon the concealment, suppression or omission of such material fact.” 815 ILCS 505/2 (West 2004).
A plaintiff may allege that conduct is unfair under the Act without alleging that the conduct is deceptive. Saunders v. Michigan Avenue National Bank,
In dismissing count II of the complaint, the trial court found: “Plaintiff fails to allege that [PS] did not comply with the provisions of the Self Storage Facilities Act; therefore, Plaintiff fails to allege facts that constitute a violation of the act on any basis, let alone unfairness.”
Plaintiffs complaint, however, alleged PS violated the Consumer Fraud Act’s prohibition against unfair practices by failing to provide plaintiff with any form of statutorily required notice that his property was being sold. Plaintiff specifically alleged that he “never received notice, either by telephone, in-person delivery or certified mail, that [PS] would be seeking to enforcé the lien created in its favor,” as “required both by the Act itelf — see 770 ILCS 95/4(A)(C) — and by the express terms of the rental agreement Plaintiff signed.” Plaintiff also alleged PS engaged in unfair conduct by: failing to inform him of the outcome of the lien sale, or even acknowledge that it was statutorily required to return any surplus from such sale to plaintiff on demand; selling his personal property without allowing him the opportunity to exercise his statutory right to redeem the property; and failing to return to him any funds recouped from the sale of goods over and above the lien amount after defendant made a demand for the surplus.
Furthermore, plaintiff alleged PS’s conduct offended Illinois public policy, as embodied in the Storage Act; was unethical and oppressive because it was contrary to well-established industry practices and afforded him no reasonable opportunity to avoid the lien sale; and significantly harmed him because he lost nearly all of his possessions, including items of inestimable personal and sentimental value.
After reviewing the allegations contained in count II of the complaint, taking them as true, we find they were sufficient to state a cause of action under the Act for unfair conduct.
We therefore conclude the trial court erred in dismissing count II of plaintiffs complaint.
CONCLUSION
We affirm the trial court’s dismissal of count I of plaintiff’s complaint. We reverse the trial court’s dismissal of count II of plaintiffs complaint and remand for further proceedings.
Affirmed in part; reversed and remanded in part.
HOFFMAN and SOUTH, JJ., concur.
