Monday, December 22, 2014

Ill. Supreme Court Resolves Dispute on Electoral Board Judicial Review

A candidate or objector can file an appeal of an adverse electoral board's decision with the circuit court, subject to certain statutory procedural requirements. 5 ILCS 5/10-10.1. One of those requirements is that the  party seeking judicial review must serve a copy of the petition on the electoral board and other parties.  There is currently a split in the appellate courts as to what constitutes service "on the electoral board."  The First and Fourth Districts have ruled that service on individual members of the electoral board is not sufficient to confer jurisdiction on the court, holding that the individual electoral board members and the board as an entity must be served.  The Third and Fifth Districts, on the other hand, have taken a contrary position and held that service on individual board members is sufficient to comply with the Election Code.  

This split was the subject of a recent Illinois Supreme Court decision in Bettis v. Marsaglia, 2014 IL 117050.  In that case, the Supreme Court heard the appeal of the Fourth District's decision that the statute requires service on the individual members and the board itself.  The question before the court is if a petitioner serves every member on the electoral board, is duplicate service on the board as ane entity also required?  The Supreme Court said no, reversing the Fourth District and adopting the Third and Fifth District's position that service on the individual members is sufficient to provide jurisdiction to the courts to hear the appeal of an electoral board decision.

The Illinois Supreme Court first determined that the statutory language is unclear, leading to the split decisions in the various districts.  Because of the ambiguous language, the Court noted that both interpretations were reasonable.  However, the Court held that the Third and Fifth District's interpretation was the better one because service on the individual electoral board members accomplished the intent of the statute - that all necessary parties receive notice.  Requiring the additional step of serving the electoral board as an entity would be redundant, in the Court's view.  

The Court also noted that access to a place on the ballot is a substantial right not lightly to be denied. Adopting an interpretation that simplifies judicial review would promote ballot access.

The Court also rejected the argument that the petition for judicial review must name the electoral board and its members, finding that the statute does not require this.  

Justice Theis dissented from the opinion, and would agree with the First and Fourth Districts that the petition for judicial review must be served on the electoral board as an entity.  

Post Authored by Julie Tappendorf, Ancel Glink

Friday, December 19, 2014

Court Rejects Sierra Club's Challenge to EPA's Finding that 3 Midwest Areas Meet Ozone Standards

The Sierra Club filed a lawsuit against the U.S. EPA challenging its decisions to redesignate three Midwest areas (including Milwaukee-Racine, Chicago, and East St. Louis) as meeting the ozone standards of the Clean Air Act.  The Act requires the EPA to confirm that (1) the ozone in an area has dropped to a certain level and (2) that the improvement in air quality resulted from permanent and enforceable reductions in emissions.  

In 2004, all three areas were designed by the EPA as not meeting the ozone standards, and classified the areas as "moderate nonattainment" under the Act.   In 2012, however, the EPA redesignated the areas to "attainment."The Sierra Club argues that the EPA acted arbitrarily and capriciously in making its redesignation decisions in these three areas.   The Seventh Circuit disagreed, and denied the Sierra Club's appeal.  Sierra Club v. USEPA (7th Cir., Dec. 16, 2014)  The court noted that the arbitrary and capricious standard gives great deference to the EPA's administrative decision, and determined that the Sierra Club failed to overcome that high standard in its challenge to the EPA's redesignation.

Post Authored by Julie Tappendorf

Thursday, December 18, 2014

Village's $1000 Video-Gaming License Fee Upheld

Illinois allows establishments with liquor licenses to install video-gaming machines subject to state regulations and a state license. The Video Gaming Act expressly authorizes non home-rule municipalities to charge a fee for each video gaming terminal not to exceed $25.  There is nothing else in the Act about local registration or licensing, although many municipalities have enacted regulations to require a license or registration and impose a fee, including the Village of Elmwood Park.  

In 2013, the Village adopted an ordinance imposing a $1,000 license fee per video gaming terminal. The Village relied on its home rule authority to impose the fee.  A gaming company applied for and obtained state licenses to install video gaming terminals in a restaurant in Elmood Park.  However, the company did not pay the Village's license fee, nor did it obtain the required local licenses for the gaming machines.  Instead, the company requested that the Village waive the fee.  When that request was denied, the company sued the Village, claiming that the fee was unconstitutional and the Village was preempted from requiring a license or license fee.

Recently, a trial court issued an opinion upholding the Village's license fee.  First, the court rejected the company's argument that the Video Gaming Act preempted a home rule municipality's video gaming regulations, finding that Elmwood Park's regulations and license fee did not conflict with the state regulatory scheme. The court also determined that the license fee was not an unconstitutional tax, because the fee was reasonably related to the costs of regulating and enforcing the video gaming regulations.  As a result, the court dismissed the company's challenge to the Village's video gaming licensing fee and ordinance.

Post Authored by Julie Tappendorf

Wednesday, December 17, 2014

Supreme Court Upholds Traffic Stop Based on Reasonable Mistake of Law

The U.S. Supreme Court decided a case regarding probable cause for traffic stops. In Heien v. North Carolina, the court concluded that an officer's reasonable mistake of law can still support probable cause to make a traffic stop.  

In the case, a police officer had stopped a vehicle with a broken brake light based on the officer's belief that a North Carolina law that required vehicles to maintain rear lights in factory-installed condition meant that both rear brake lights had to be in working order. While issuing a warning ticket for the broken light, the officer became suspicious and requested consent to search the vehicle, which was granted.  The officer found cocaine in the car and arrested the driver for attempted drug trafficking. 

The driver filed a motion to suppress the evidence, arguing that the officer had no probable cause to make the initial traffic stop because North Carolina law did not require both lights to be in working order.  The trial court agreed that the law only required one brake light to be in working order, but allowed the evidence in based on the officer's reasonable, although mistaken, belief in the law.  The appeals court reversed, finding that the officer's mistake could not justify probable cause, but the state supreme court reversed again.  The case was ultimately appealed to the U.S. Supreme Court.  

On appeal, the Supreme Court concluded that the officer's mistake in believing the car violated the law was 'reasonable' and satisfied the requirements of probable cause for the traffic stop.  The Supreme Court noted that the Fourth Amendment requires government officials to act reasonably, not perfectly, and gives those officials “fair leeway for enforcing the law.” As a result, the officer had probable cause to stop the vehicle based on a reasonable "mistake in law."  Therefore, the evidence was properly admitted.

Post Authored by Julie Tappendorf

Tuesday, December 16, 2014

Federal Spending Bill Includes Medical Marijuana Provision

One of the problems with state medical marijuana laws (including the recently enacted Illinois Compassionate Use of Medical Cannabis Pilot Program Act) is that federal law still prohibits the cultivation and sale of marijuana, and there are no medical marijuana or research exceptions.  

Recently, however, the House and Senate Appropriations Committees included a provision to address this issue in the omnibus spending bill sent to the President last week.  The Hinchey-Rohrabacher Amendment would block the use of Department of Justice funds to “prevent [medical marijuana states] from implementing their own State laws that authorize the use, distribution, possession, or cultivation of medical marijuana.” One of the immediate effects of this federal spending restriction may be to enable medical marijuana transactions to take place by means of payment other than cash. 

Post Authored by Julie Tappendorf

Monday, December 15, 2014

Condemnation of Sewer Easement was Proper

A water reclamation district adopted an ordinance to install a sanitary sewer extension to a residential development. The proposed sewer main would require the installation of a "trunk line" that would run beneath property known as the Sanctuary Condominiums of Rock Cut.  The district attempted to negotiate purchase of an easement for the improvements (at one point offering double the easement's appraised value of $1350), but when the negotiations failed, the district filed a complaint for condemnation with the circuit court.  The circuit court approved the condemnation at the appraised value of $1,350 and the condominium group appealed.  The appellate court affirmed in Rock River Water Reclamation District v. Sanctuary Condominiums of Rock Cut, 2014 IL App (2d) 130813.

The appellate court rejected the condominium's arguments that the condemnation action was defective, and the compensation amount insufficient.  Specifically, the court held that the district had authority to condemn, the sewer project was necessary, the district negotiated in good faith, and the compensation award of appraised value was appropriate. The court rejected the condominium group's argument that the district was required to compensate the owner for costs to re-landscape the property after the project was completed. 

Post Authored by Julie Tappendorf

Friday, December 12, 2014

Update on Bleacher Zoning Dispute

We've previously posted about the suburban school district that installed bleachers at its high school without going through the city's zoning process.  When sued by the city, the school district argued that it was exempt from zoning.  The circuit and appellate courts disagreed, holding that the school district must comply with local zoning. Gurba v. Community HS Dist. 155 

The school district has filed an appeal with the Illinois supreme court, but it could take months before the court decides whether it will hear the appeal.  Recently, the school district submitted an application to the city for zoning relief for the bleachers, which application is making its way through the city's zoning process.  That process will include staff review and a future public hearing before the city's planning and zoning commission before ultimately being voted on by the city council.  

You can read the previous posts about this case here and here.

Post Authored by Julie Tappendorf

Thursday, December 11, 2014

McCormick Place Convention Leases Not Exempt under FOIA

The PAC recently issued its 16th opinion for 2015.  PAC Op. 14-016.  There, a reporter for the Chicago Sun-Times had filed a FOIA request with the Metropolitan Pier and Exposition Authority (MPET) for copies of lease agreements for all conventions and trade shows at McCormick Place since January of 2011.  MPET responded by asking the reporter to narrow his request because it would be unduly burdensome to provide 243 license agreements.  MPET also asserted that certain information relating to financial and square footage data was exempt as confidential and proprietary under section 7(1)(g) of FOIA because release would put McCormick Place at a disadvantage in competing for conventions and trade shows.  MPET further argued that it would undermine the show organizer's ability to freely negotiate pricing with other centers.

The reporter declined to narrow his request, and instead filed a complaint with the PAC.  The PAC rejected MPET's reliance on the "trade secret and commercial or financial information" exemption, finding that this exemption only protects information obtained from a person or business that would cause competitive harm to that business, not the public body.  Further, the PAC argued that the Illinois constitution requires all records relating to the receipt and use of public funds to be open to the public.  

The PAC also rejected MPET's argument on appeal that the financial terms of the lease are exempt as valuable formula "when disclosure could reasonably be expected to produce private gain or public loss" under section 7(1)(i).  The PAC asserted that this exemption does not apply to "basic lease agreement information" such as rental amounts or leased square footage.  

Finally, the PAC rejected MPET's argument that compliance would be unduly burdensome. Although the 235 lease agreements encompass 3,500 pages, because the PAC rejected all of MPET's cited exemptions, there would be no need to review and redact any information.

Post Authored by Julie Tappendorf

Wednesday, December 10, 2014

Public Body Can Now Direct FOIA Requesters to Website for Records

Although we reported last week on the passage of HB 3796 (the FOIA amendment), the "online records" provision of this new law may have gotten lost in all of the opposition to the "voluminous request" provision of P.A. 98-1129.  

A new section 8.5 to FOIA now states that a public body that posts records on its website need not provide copies of those online records in response to a FOIA request.  Instead, the public body can direct the requester to the website where the record can be “reasonably accessed.” 

There is an exception to this new rule.  If the requester is unable to reasonably access the record online after being directed to the website, then the requester can resubmit the request to the public body with a statement as to his or her inability to access the record.  In that case, the public body is required to make the record available for inspection or copying as otherwise required by FOIA.

Although there was some opposition to this provision from pro-transparency groups, this law should actually promote transparency because public bodies are likely to post more of their records online.

The law became effective on December 3, 2014, when the Senate voted to override the Governor’s veto.  

New section 8.5 is reprinted below:  
Sec. 8.5. Records maintained online. 
   (a) Notwithstanding any provision of this Act to the contrary, a public body is not required to copy a public record that is published on the public body's website. The public body shall notify the requester that the public record is available online and direct the requester to the website where the record can be reasonably accessed. 
    (b) If the person requesting the public record is unable to reasonably access the record online after being directed to the website pursuant to subsection (a) of this Section, the requester may re-submit his or her request for the record stating his or her inability to reasonably access the record online, and the public body shall make the requested record available for inspection or copying as provided in Section 3 of this Act.
Post Authored by Julie Tappendorf

Tuesday, December 9, 2014

Veto of Commercial Ridesharing "Uber" Bill Stands

On November 21, 2014, the Illinois House failed to override Governor Quinn’s veto of HB 4075That bill was intended to ensure that ridesharing companies such as Uber and Lyft offer the same consumer protections as is required for the taxi industry (i.e., commercial liability insurance, criminal background checks, special licenses, special registration plates, vehicle inspections, etc.). The bill also included language that would preempt home rule powers and circumvent local regulatory authority.  Home rule preemption prompted the Governor’s veto and the Illinois Municipal League's opposition to the bill.

Post Authored by Julie Tappendorf

Monday, December 8, 2014

Court Upholds Arbitration Ruling in Chicago Parking Agreement Case

The recent case of The City of Chicago v. Chicago Loop Parking LLC warns government about the danger of giving up the right to go to court to settle disputes.  The City entered into an agreement with Chicago Loop Parking LLC, (“CLP”), to lease and grant a concession to operate four underground parking garages in Grant and Millennium Parks for a 99-year period.  CLP paid the City $563,000,000.  As a result of a series of mistakes and unsuccessful strategy choices made by the City, the contract turned out to be a very bad deal.  One of the terms of the contract prevented the City from litigating in court and limited dispute resolution to a binding arbitration process.  A dispute arose and a 3-member arbitration panel found that the City owed CLP nearly $58,000,000 in damages.  Five months after the arbitration award was entered, the City filed a lawsuit in the circuit court seeking to stay the judgment and to modify it. 

The reason for the judgment against the City was that, contrary to a promise made in the Agreement with CLP, the City allowed the owners of a new building called “Aqua” the right to include a 1,273-space parking garage in an area where it had agreed to give exclusive parking lot privileges to CLP.  After the Court made the award, the City and the owner of the newly-granted garage entered into an agreement to somewhat limit those who could park in the new garage.

At the trial court, the City attempted to overturn the perfectly rational decision of the arbitrators based upon a whole series of arguments.  Both the trial and appellate courts were confronted with the very established rules and concepts which attempt to make arbitration decisions, generally between commercial disputants, almost impossible to overturn.  Although there are cases where arbitration awards are overturned or modified based upon clear errors or mistakes by the arbitrators, in this situation, the errors, mistakes and poor judgment all related to the actions of the City.  There are very limited instances in which an arbitration award can be overturned to “do justice.”  Nonetheless, the arbitration process is adversarial and entities that become involved in contract disputes must be prepared to suffer the financial penalties of agreeing to bad contracts and making matters worse through other mistakes. 

The appellate court concluded that “special rules do not apply to the City simply because its actions have significant consequences for taxpayers.”  The Court also wrote:  “There is nothing ‘fair’ about reversing the outcome of a year’s-long arbitration process selected by the parties because one party does not like the result, even where significant public funds are at stake.”  The City was either not able to or did not raise the argument that a governmental body, which requires large-scale residential and commercial buildings to include public parking could not or did not intend to give a concession holder an absolute monopoly on parking in the area.  Unfortunately, even the modified agreement for the new parking garage did not limit parking to tenants, customers and visitors, but allowed public parkers.  While such an argument might have been made if the original dispute was heard by a court, it would likely be ignored in arbitration.  Governmental bodies must evaluate the lost benefits of turning their disputes over to arbitrators who have a limited scope of analysis and inquiry.   

It is not often that the first few sentences in an appellate court opinion tell us all we need to know.  This opinion begins, as follows:  

This case involves two sophisticated parties that willingly chose arbitration as their preferred method of resolving their disputes, thereby restricting the reach of the courts.  Now, unhappy with the result of that choice – a final and binding arbitration award it wishes to avoid – one of the parties turns to the court for relief.  This court finds, as did the trial court, that it has no authority to overturn the valid arbitration award.
Post Authored by Stewart Diamond, Ancel Glink

Friday, December 5, 2014

Employee's Letter About Treatment of Adjuncts a Matter of Public Concern

The 7th Circuit Court of Appeals recently reviewed First Amendment protections for public employees in Meade v. Moraine Valley Community College (Oct. 30, 2014).  There, a college professor wrote a letter to an outside organization about her employer college.  The letter alleged that the college poorly treated its adjunct professors, which harmed its students. She signed the letter in her capacity as president of the Moraine Valley Adjunct Faculty Organization, a union representing adjunct faculty.  Two days later, she was fired, and the notice of termination expressly stated that the reason was her letter.

She sued the college, alleging that her employer retaliate against her for exercising her right to freedom of speech.  The college defended its actions by arguing that her letter did not address "matters of public concern" and could not, therefore, serve as the basis for a First Amendment retaliation claim.  The district court determined that the letter was not a matter of public concern because Meade would be personally affected by any changes in policy.

On appeal, the 7th Circuit disagreed with the district court and found that Meade's letter did discuss matters of public concern by addressing treatment of all adjuncts (not just Meade), and linking that treatment to student performance at the college.  As a result, the case was remanded to the district court to consider whether (1) the employee's speech was a substantial or motivating factor in her termination and (2) the college can show that it would have taken the same action without the existence of the protected speech. 

To read more about this case, visit The Workplace Report here.