Case Information
*1
Opinion filed June 10, 2016 _____________________________________________________________________________
IN THE
APPELLATE COURT OF ILLINOIS THIRD DISTRICT
WILLIE PEARL BURRELL TRUST, ) Appeal from the Circuit Court
) of the 21st Judicial Circuit, Plaintiff-Appellant, ) Kankakee County, Illinois, )
v. ) Appeal No. 3-15-0655 ) Circuit No. 13-MR-683 CITY OF KANKAKEE, an Illinois )
Municipal Corporation, ) Honorable
) Kendall O. Wenzelman, Defendant-Appellee. ) Judge, Presiding.
_____________________________________________________________________________
JUSTICE CARTER delivered the judgment of the court, with opinion Justices Schmidt and Wright concurred in the judgment and opinion.
_____________________________________________________________________________
OPINION Plaintiff, the Willie Pearl Burrell Trust, appeals from the trial court's granting of
summary judgment in favor of defendant, the City of Kankakee. Plaintiff contends that certain genuine issues of material facts remain in regard to its mandamus claim. Additionally, plaintiff argues that it was itself entitled to summary judgment on its constitutional claims. Specifically, plaintiff maintains that defendant violated its right to due process by not providing notice and a hearing prior to its nonrenewal of plaintiff's rental licenses. Plaintiff also claims defendant imposed an unconstitutional condition upon the renewal of those licenses. We affirm.
¶ 2 FACTS
¶ 3 Plaintiff owns several properties in the City of Kankakee and sought to rent those
properties to tenants. Pursuant to City ordinance, plaintiff successfully procured rental licenses for those properties. The rental licenses on the properties in question expired between June 2011 and November 2013, at which times plaintiff applied for renewal of the licenses. Defendant took no action on plaintiff's applications, neither approving nor denying them.
This inaction occurred in reliance on a City ordinance prohibiting the issuance of any license to any party indebted to the City. See Kankakee Municipal Code § 21-02. Records showed that plaintiff owed defendant a sum of $43,866.68. [1] The money owed by plaintiff was a result of a series of tickets issued for violations of the Kankakee Municipal Code (Municipal Code), dating as far back as 2003. Plaintiff claimed that the properties were in compliance with the ordinance governing rental licenses. See Kankakee Municipal Code § 8-02-112. In a complaint filed on October 3, 2013, plaintiff sought a writ of mandamus that would
compel defendant to comply with the rental license ordinance and act upon plaintiff's rental license applications. Alternatively, plaintiff alleged that the ordinance prohibiting the issuance of licenses to parties indebted to the City stood as an unconstitutional condition.
On April 21, 2014, plaintiff filed a motion for summary judgment, which the trial court denied. Defendant subsequently filed its own motion for summary judgment. In response, plaintiff cross-petitioned its second motion for summary judgment. Plaintiff attached to its motion an affidavit from Willie Pearl Burrell, plaintiff's sole beneficiary, dated June 10, 2015. In the affidavit, Burrell averred that defendant had informed her that she owed a sum of $41,285.77. Burrell further averred that when she attempted to tender payment in that amount, defendant, through City Attorney L. Patrick Power, "refused to accept [Burrell's] payment because [she] made it clear that the tender was made under protest, and [she] intended to file suit against [defendant]." In her deposition, Burrell explained that she wanted to get her rental licenses, and believed that if she paid under protest she would get her money back after a lawsuit. She testified that when she attempted to make the payment, Power told her to take the check back and "go get us half." According to Burrell, Power explained that the City was "trying to work with the landlords." Plaintiff's counsel addressed the issue of the attempted payment at arguments on the
summary judgment motions:
"And then, your Honor, my client goes to the city with $41,000 and change and says, here, here's your money. Please give me the rental license applications. And the city says oh, no, we can't possibly do that. Oh, you know why, because we're going to work with everybody, not just you, but we're going to work with all the landlords. Well, [Y]our Honor, in their brief there's no ordinance that gives the city or the city attorney any unilateral authority to negotiate with people who allegedly owe the city money. There's no authority in any ordinance to refuse payment of fines. On what basis? On what basis, your Honor, would the city turn *4 back a certified check for over $41,000 if they weren’t playing games with the plaintiff?"
The trial court granted defendant's motion for summary judgment on August 18, 2015.
¶ 8 ANALYSIS On appeal, plaintiff argues (1) that the trial court's granting of summary judgment for
defendant on plaintiff's mandamus claim was improper where a number of genuine issues of material fact existed in relation to that claim. Plaintiff further contends that it was entitled to a judgment as a matter of law on its claims that (2) defendant deprived plaintiff of due process and that (3) defendant placed an unconstitutional condition upon the issuance of rental licenses. We reject each argument in turn. Under section 2-1005 of the Code of Civil Procedure, summary judgment shall be
granted when "the pleadings, depositions, and admissions on file, together with the affidavits, if
any, show that there is no genuine issue as to any material fact and that the moving party is
entitled to a judgment as a matter of law." 735 ILCS 5/2-1005(c) (West 2010). " 'A triable issue
of fact exists where there is a dispute as to a material fact or where, although the facts are not in
dispute, reasonable minds might differ in drawing inferences from those facts.' "
Danhauer v.
Danhauer
,
Municipal Code § 21-02. Section 21-02 of that article prohibits the issuance of any required license to a party indebted to the City. Id . Specifically, this section holds:
"No licenses required by this Code for the engaging in any business or the sale of any article shall be issued to any person who is indebted to the City, or any department thereof or who is indebted to the City for any fine or penalty adjudged against such person for the violation of any ordinances of the City, unless the indebtedness or the fine or penalty is first paid." Id . Section 112.1 of the Kankakee Property Maintenance Code holds that "[n]o person,
corporation, or other entity shall rent *** any dwelling unit *** unless the City of Kankakee has issued a current unrevoked operating license *** for the specific dwelling unit." Id. § 8-17- 112.1. Section 112.2 of the Property Maintenance Code holds that
"[a]n initial operating license shall be issued upon the inspection of the premises and the determination by the City of Kankakee that the premises are in compliance with the applicable Property Maintenance, Fire and Life Safety Codes as amended. Upon the issuance of an initial license, every operating license, with the exception of Section 8 properties which shall require a 1 year annual operating license, shall be issued for a period of 2 years from its date of issuance, unless sooner revoked as provided pursuant to the applicable sections of this code. " . § 8-17-112.2.
An otherwise unexpired license may be revoked when "any dwelling unit within a rental building fails to meet all applicable requirements of all codes of the City of Kankakee and statutes of the *6 State of Illinois." Id . § 8-17-112.13. Upon receiving a notice of revocation, the property owner may appeal the revocation. Id .
¶ 13 Section 112.19 of the Property Maintenance Code, entitled "Renewal of license," holds:
"No operating license may be renewed unless an application therefore has been made prior to the expiration of the existing operating license. In the event that a license is sought after the expiration date of the current license, the applicant for the license shall pay an additional fee of $100.00 dollars for said license. Upon payment of the fee and the property being determined to be in compliance with all applicable rules and regulations and ordinances of the City of Kankakee and statutes of the State of Illinois, a license will thereupon be issued." Id . § 8-17- 112.19. Section 112 of the Building Code governs appeals. Id. § 8-02-112.1. That section holds:
"1. An appeal of any decision or determination of authorized city staff must be submitted in writing to the Code Official within 10 days of the date of mailing thereof. The Code Official shall then notify the authorized owner or agent of the administrative decision on the appeal within 10 days of receiving the written appeal request. The decision of the Code Official constitutes the final administrative action of the City.
2. Any person or entity seeking review of any tickets issued by authorized city staff for violation of this code may appear before the Adjudication Court. The decision of the Adjudication Court shall constitute the final administrative act of the City." . I. Mandamus The writ of mandamus is an extraordinary remedy used to compel "the performance by a
public officer of nondiscretionary official duties."
People ex rel. Birkett v. Konetski
, 233 Ill. 2d
185, 192-93 (2009).
Mandamus
will only issue where the petitioner has shown: (1) a clear right
to the relief requested; (2) a clear duty of the public officer to act; and (3) a clear authority on the
part of the officer to comply with the writ.
Id
. at 193.
Mandamus
will not be awarded in a
doubtful case.
Kramer v. City of Chicago
,
has a duty to issue rental licenses for the properties in question. In support of its argument, plaintiff emphasizes that section 112.2 holds that the licenses " shall be issued" if the property is in compliance with property maintenance, fire, and life safety codes (emphasis added) (Kankakee Municipal Code § 8-17-112.2), and that defendant does not dispute that those properties are in compliance with those codes. To the extent that section 21-02 of the Municipal Code would bar plaintiff from being issued the licenses due to its indebtedness, plaintiff argues that it is in conflict with section 112.2 of the Property Maintenance Code, which does not explicitly reference nonindebtedness as a prerequisite for a rental license. Plaintiff urges that this conflict must be resolved in favor of the more specific provision, section 112.2 of the Property Maintenance Code. Upon review, we find that there is no conflict between the two sections of *8 the Municipal Code at issue, and that plaintiff has failed to show a clear duty on the part of defendant to issue rental licenses. Initially, we note that plaintiff has vacillated as to what remedy it seeks. On one hand,
plaintiff argues that it "is entitled to a writ of mandamus ordering [defendant] to issue the rental license permits." On the other hand, plaintiff argues that "[t]he writ of mandamus would be for [defendant] to process the rental license applications, and if the properties passed the code inspection, to issue the rental license." (Emphasis added.) However, plaintiff, in its original complaint, asserts that defendant's "refusal to process rental license applications is tantamount to a denial of said permits," and we agree. Plaintiff has made no argument that defendant's denial by inaction is functionally any different than some more formal denial. In fact, plaintiff recognizes that "[i]n the event that [defendant] is not going to process the applications, the ordinance allows for the appeal of a denial." See also Kankakee Municipal Code § 8-02-112.1 (setting forth appeal procedures). Further, to the extent that there is any practical difference between a denial by inaction and a more formal denial, the election between the two methods of denial is apparently wholly discretionary, and thus not appropriate for mandamus . Konetski , 233 Ill. 2d at 192-93. Accordingly, we will proceed under plaintiff's argument that a mandamus writ should issue compelling defendant to issue the licenses. It is a well-settled tenet of statutory construction that a court's primary objective is to
ascertain and effectuate the overall intent of the drafters.
Knolls Condominium Ass'n v. Harms
,
¶ 20 The ordinances at issue in the present case can reasonably be read in harmony with one
another. The plain language of section 21-02 makes clear that the drafters intended any debt owed to the City to bar the debtor from receiving a business license. It is equally clear that section 21-02 was intended to apply to any license required by the Municipal Code for the conducting of business, including a rental license. While section 112.2 of the Property Maintenance Code does not explicitly reference section 21-02, this should not be read as an implication that section 21-02 is inapplicable. Section 21-02 is plainly a threshold requirement that all license applicants must meet. Section 112.2 of the Property Maintenance Code simply adds further requirements for the acquisition of rental licenses. The drafters need not have rewritten the requirements of section 21-02 into each individual licensing ordinance in order for that section to have effect. Under section 21-02, plaintiff was ineligible to receive rental licenses from defendant.
Plaintiff is thus unable to demonstrate either that it has a right to rental licenses, or that defendant has a duty to issue licenses to it. Indeed, under section 21-02, defendant would not even have authority to issue the licenses. Similarly, plaintiff cannot demonstrate that it is entitled to a more formal denial of its application, or that defendant is obligated to provide such a denial. Accordingly, the writ of mandamus would not issue, and the trial court properly granted summary judgment on the issue in favor of defendant. Plaintiff maintains that a determination of whether mandamus should issue turns on a
number of unresolved questions of material fact, and that summary judgment was thus improper. First, plaintiff asserts that:
"[t]he reasons as to why [defendant] kept issuing rental licenses to the Plaintiff
when the Plaintiff allegedly owed money to [defendant] remains a material
question of genuine fact. That is, why had [defendant] issued rental licenses
between 2003 and 2013 when the City Ordinance supposedly forbids the same?
Did [defendant] waive its right to enforce Section [21-02]?"
Whether defendant waived its ability to enforce section 21-02 is not a question of fact,
but of law. See,
e.g.
,
Home Insurance Co. v. Cincinnati Insurance Co.
,
defendant—and defendant's purported refusal to accept that payment—remain unresolved. Specifically, plaintiff contends that whether it made an effort to tender payment in full is a question of material fact that should preclude summary judgment. [2] Though the record is not well-developed on this issue, we will construe all facts in favor of plaintiff. See Happel , 199 Ill. 2d at 186. In this instance, then, we will assume that Burrell did attempt to pay plaintiff's debt in full under protest, and that defendant refused said payment.
*11 ¶ 25 Even construing these facts in plaintiff's favor, plaintiff has failed to show the existence
of a genuine issue of material fact. See
Anderson v. Liberty Lobby, Inc.
,
revocation of those licenses. Plaintiff argues that it holds a property interest in the licenses, and that defendant's deprivation of that interest without notice and hearing violated principles of due process. Upon review, we find that plaintiff does not have a protectable property interest in the renewal of its rental licenses. Accordingly, defendant was not required to provide due process safeguards attendant to its nonrenewal of those licenses. "Procedural due process claims concern the constitutionality of the specific procedures
employed to deny a person's life, liberty or property. [Citation.] Procedural due process is
meant to protect persons not from the deprivation, but from the mistaken or unjustified
deprivation of life, liberty or property."
Segers v. Industrial Comm'n
,
Supreme Court discussed what interests are protected by the due process clause. The Court
stated: "To have a property interest in a benefit, a person clearly must have more than an abstract
need or desire for it. He must have more than a unilateral expectation of it. He must, instead,
have a legitimate claim of entitlement to it." . at 577. A legitimate claim of entitlement arises
from state statute, regulation, ordinance, or contract.
Suburban Downs, Inc. v. Illinois Racing
Board
,
beyond the one- or two-year period for which those licenses are issued. The Municipal Code
unambiguously provides that a rental license is valid for one or two years, and that a property
owner must reapply in order to secure a license for another period. Kankakee Municipal Code
§§ 8-17-112.2, 8-17-112.19. The renewal requirements are identical to those for receipt of the
initial license, as the property must again be "determined to be in compliance with all applicable
rules and regulations and ordinances of the City of Kankakee" prior to renewal of the license.
Id
.
§ 8-17-112.19. Similar to the employee in
Roth
, a property owner in Kankakee can claim no
entitlement beyond the one- or two-year period for which a rental license is issued. By contrast,
the Property Maintenance Code explicitly provides for notice and appeal rights when a rental
license is revoked
within
the licensing period. . §§ 8-17-112.13, 8-17-112.23. Illinois courts
have reached the same conclusion, consistently finding that holders of business licenses do not
have a property interest in the eventual renewal of the licenses.
E.g.
,
Tomm's Redemption, Inc. v.
Hamer
,
revocation
of those licenses, and thus subject to due process safeguards. In advancing this
argument, plaintiff relies extensively on
Reed v. Village of Shorewood
,
(1987), the First District declined to follow
Reed
, pointing out that it "directly contradicts
controlling Illinois law." We must do the same. See,
e.g.
,
Combs v. Insurance Co. of Illinois
,
¶ 33 Moreover, we cannot find that the Property Maintenance Code's requirements for the
issuance or renewal of a rental license are "undemanding." In order to obtain such a license, a
property must first be in compliance with Property Maintenance Code, Fire Code, and Life
Safety Code. Kankakee Municipal Code § 8-17-112.2
.
In order for the license to be renewed, a
reinspection of the premises is necessary to establish compliance with those codes. . § 8-17-
112.6. Given that a building can be expected to gradually degrade over time, and given that an
entirely new inspection is necessary for the renewal of a rental license, it would be unreasonable
to conclude that the drafters of the Municipal Code "expected most licenses to be renewed as a
matter of course." See
Reed
,
¶ 34 III. Unconstitutional Condition and Taking Plaintiff next contends that defendant's demand for repayment of debts owed prior to
issuing rental licenses represented an unconstitutional condition, resulting in an impermissible burden upon its right to be free of a taking without compensation. Specifically, plaintiff maintains that because the debt it owed to defendant did not stem from any of the properties for which it sought rental licenses, there did not exist a sufficient nexus between defendant's demand and the licenses requested. Upon review, we find that defendant's actions did not threaten to violate the takings clause, and thus did not constitute an unconstitutional condition. "The unconstitutional conditions doctrine *** vindicates the Constitution's enumerated
rights by preventing the government from coercing people into giving them up."
Koontz v. St.
Johns River Water Management District
,
¶ 37 In the present case, defendant has not directly required plaintiff to relinquish any
constitutional rights in order to obtain rental licenses. Instead, defendant merely requires
plaintiff to pay its outstanding debts. Plaintiff, however, maintains that this payment requirement
is in fact an infringement upon its right to be free of a taking without just compensation. See
U.S. Const., amend. V. Plaintiff's taking argument is premised solely upon the United States
Supreme Court's decision in
Koontz
,
Id.
at ___,
defendant's demands were constitutionally impermissible. The Court relied upon its previous
decisions in
Nollan v. California Coastal Comm'n
,
"because the government often has broad discretion to deny a permit that is worth far more than property it would like to take. By conditioning a building permit on the owner's deeding over a public right-of-way, for example, the government can pressure an owner into voluntarily giving up property for which the Fifth Amendment would otherwise require just compensation." Id. at ___, 133 S. Ct. at 2594.
The Court further recognized that "[e]xtortionate demands of this sort frustrate the Fifth
Amendment right to just compensation, and the unconstitutional conditions doctrine prohibits
them."
Id.
at ___,
requirement that the party give up a constitutional right. In
Koontz
, the Court held that demands
for money in the same context were likewise impermissible. . at ___,
"Extortionate demands for property in the land-use permitting context run afoul of
the Takings Clause not because they take property but because they
impermissibly burden the right not to have property taken without just
*18
compensation. As in other unconstitutional conditions cases in which someone
refuses to cede a constitutional right in the face of coercive pressure, the
impermissible denial of a governmental benefit is a constitutionally cognizable
injury."
Id
. at ___,
municipality's imposition of a certain fee unless that fee is "inextricably tied to real property."
Empress Casino Joliet Corp. v. Giannoulias
,
Justices—wrote that while the statute in question imposed "a staggering financial burden" on the petition by requiring it to pay benefits, the statute did "not appropriate, transfer, or encumber an estate in land (e.g., a lien on a particular piece of property), a valuable interest in an intangible (e.g., intellectual property), or even a bank account or accrued interest." Id. Justice Kennedy concluded: "To call this sort of governmental action a taking as a matter of constitutional interpretation is both imprecise and, with all due respect, unwise." Id. Justice Breyer further explained that the property "upon which the [Takings] Clause traditionally has focused is a specific interest in physical or intellectual property[,]" and that characterizing "an ordinary liability to pay money" as a governmental taking would have an inordinately broad application to ordinary taxes and statutes. Id. at 554 (Breyer, J., dissenting, joined by Stevens, Souter, and Ginsburg, JJ.). In Koontz , the Court accepted the position of the majority in Eastern Enterprises , but
found that position was not controlling where the demand for money operated upon an identified
property interest and the "monetary obligation burdened petitioner's ownership of a specific
parcel of land."
Koontz
,
¶ 45 In sum, defendant's requirement, codified in section 21-02, that plaintiff pay its debts
before rental licenses are issued cannot be characterized as a taking. Only where a constitutional right has been burdened is the nexus-proportionality test for unconstitutional conditions applicable. As plaintiff's unconstitutional condition argument is premised upon a violation of the takings clause, it follows that plaintiff's argument must fail.
¶ 46 CONCLUSION The judgment of the circuit court of Kankakee County is affirmed. Affirmed.
Notes
[1] An exhibit filed by plaintiff with its complaint showed an amount owed to defendant of $43,866.68. Kankakee code official Clifford Cross, in an affidavit filed by defendant, stated that plaintiff owed that same amount. A later affidavit filed by defendant declared an amount owed of $26,516.62. Plaintiff's sole beneficiary later averred that defendant, through its counsel, informed her that the outstanding debt was $41,285.77. In any event, the parties agreed that a sum of money is owed by plaintiff to defendant.
[2] Plaintiff, in its brief, asserts that Power—in his own affidavit—denied refusing Burrell's payment. The record does not support this assertion, however. Power's affidavit, filed more than a month prior to Burrell's, makes no reference to any attempt by Burrell to pay plaintiff's debt.
