Midwest Med. Records Ass'n, Inc. v. Brown
Midwest Med. Records Ass'n, Inc. v. Brown
Opinion
¶ 1 Plaintiffs, Midwest Medical Records Association, Inc., Renx Group, LLC, and Tomica Premovic, appeal following the circuit court's dismissal of their consolidated class action complaint challenging the practice of defendant, Dorothy Brown, Clerk of the Circuit Court of Cook County (Clerk), charging a fee for filing a petition or motion to reconsider, vacate, or modify interlocutory judgments or orders in the circuit court. In granting defendants' motion to dismiss the complaint under section 2-615 of the Code of Civil Procedure (Code) ( 735 ILCS 5/2-615 (West 2014) ), the circuit court held that plaintiffs' claims were barred by the voluntary payment doctrine and that no private right of action existed under section 27.2a(g) of the Clerks of Courts Act (or Act) ( 705 ILCS 105/1 et seq. (West 2014)).
¶ 2 I. BACKGROUND
¶ 3 Section 27.2a(g) of the Clerks of Courts Act imposes a fee for filing a petition to vacate or modify "any final judgment or order of court." 705 ILCS 105/27.2a(g) (West 2014). Under this section, plaintiffs were each charged a $60 filing fee for filing motions to reconsider interlocutory orders in their separate underlying cases pending in the circuit court of Cook County. Plaintiffs paid these fees but not under protest. Plaintiffs then individually instituted lawsuits against defendants. 1 The lawsuits were subsequently all transferred as related to the same docket.
¶ 4 Plaintiffs filed a consolidated amended class action complaint against defendants *129 on May 5, 2016, for equitable and monetary relief. Plaintiffs alleged that they brought suit on behalf of themselves and all others similarly situated who paid a fee for filing a motion to reconsider an interlocutory order in the circuit court of Cook County under section 27.2a(g)(1) and (2) of the Act from November 19, 2010, to the present. Plaintiffs asserted that the filing fee was unauthorized under section 27.2a(g), but they paid the fees involuntarily and under duress because they would have been denied their constitutional right to challenge the interlocutory orders and suffered detrimental consequences and adverse judgments against them if they had not paid the fees.
¶ 5 In count I, plaintiffs sought a declaratory judgment that the practice of collecting the filing fee for motions or petitions to reconsider, vacate, or modify interlocutory orders was unlawful under section 27.2a(g), and requested equitable and monetary relief and reasonable attorney fees and expenses. Count II alleged that plaintiffs had an implied private cause of action under the Clerks of Courts Act based on the Clerk's violation of section 27.2a(g), and requested equitable and monetary relief, restitution of the unlawful fees they paid, and reasonable attorney fees and expenses. Count III alleged unjust enrichment based on the unlawful imposition of filing fees. Count IV prayed for injunctive relief prohibiting charging or collection of the fees.
¶ 6 Defendants moved to dismiss the complaint pursuant to sections 2-615 and 2-619 of the Code. 735 ILCS 5/2-615, 2-619 (West 2014). Defendants argued that (1) the claim was barred by the involuntary payment doctrine, (2) the filing fees were appropriately charged as section 27.2a(g) applies to nonfinal orders, (3) count II should be dismissed on grounds that the Clerks of Courts Act does not provide for a private right of action, and (4) the claim was collaterally stopped. Defendants also argued that although plaintiffs requested attorney fees in all four counts, there was no legal basis for such relief, as a court cannot order the government to pay plaintiffs' attorney fees absent statutory authority or an agreement to create a common fund where a plaintiff advances a legal theory in tort or contract.
¶ 7 On September 15, 2016, the circuit court granted the motion to dismiss under section 2615 but denied the motion as to section 2-619. Concerning count I, the circuit court rejected plaintiffs' claim that they paid the filing fees under duress because they would have lost the opportunity to contest the rulings of the court unless they paid the fees. The circuit court concluded that plaintiffs failed to adequately plead duress, they did not sufficiently show that they were denied access to a service that was necessary or essential, and plaintiffs were represented by counsel when they paid the fees. With respect to count II, the circuit court held that there was no implied private cause of action under section 27.2a(g) as plaintiffs were not members of the class intended to be benefited by the statute and plaintiffs failed to show that a private right of action was necessary to provide an adequate remedy, as plaintiffs could have simply paid the fees under protest and then pursued their remedies. The circuit court also dismissed counts III and IV as they depended on counts I and II. The court dismissed the consolidated amended class action complaint without prejudice.
¶ 8 Plaintiffs filed a motion to reconsider, which the circuit court denied. Plaintiffs then filed a second amended consolidated class action complaint. Defendants made an oral motion to dismiss. The parties agreed to rely on their prior briefs submitted in defendants' motion to dismiss *130 the amended consolidated class action complaint and plaintiffs' motion to reconsider.
¶ 9 On November 23, 2016, the circuit court granted defendants' motion "on grounds of voluntary payment and other reasons set forth in" the court's September 15, 2016, order, and it dismissed the complaint with prejudice. Plaintiffs timely appealed the circuit court's September 15 and November 23, 2016, orders.
¶ 10 II. ANALYSIS
¶ 11 A. Standard of Review
¶ 12 This court reviews motions to dismiss under section 2-615 of the Code
de novo
.
Kean v. Wal-Mart Stores, Inc.
,
¶ 13 Additionally, this case involves the construction of statutory language, which presents an issue of law we review
de novo
.
People v. Perez
,
¶ 14 On appeal, "this court reviews the judgment, not the reasoning, of the trial court, and we may affirm on any grounds in the record, regardless of whether the trial court relied on those grounds or whether the trial court's reasoning was correct."
Coghlan v. Beck
,
¶ 15 B. Section 27.2a(g)
¶ 16 Section 27.2a(g) of the Clerks of Courts Act provides, in pertinent part:
"The fees of the clerks of the circuit court in all counties having a population of 3,000,000 or more inhabitants in the instances described in this Section shall be as provided in this Section. In those instances where a minimum and maximum fee is stated, the clerk of the circuit court must charge the minimum fee listed and may charge up to the maximum fee if the county board has by resolution increased the fee. The fees shall be paid in advance and shall be as follows:
* * *
(g) Petition to Vacate or Modify.
(1) Petition to vacate or modify any final judgment or order of court, except in forcible entry and detainer cases and *131 small claims cases or a petition to reopen an estate, to modify, terminate, or enforce a judgment or order for child or spousal support, or to modify, suspend, or terminate an order for withholding, if filed before 30 days after the entry of the judgment or order, a minimum of $50 and a maximum of $60.
(2) Petition to vacate or modify any final judgment or order of court, except a petition to modify, terminate, or enforce a judgment or order for child or spousal support or to modify, suspend, or terminate an order for withholding, if filed later than 30 days after the entry of the judgment or order, a minimum of $75 and a maximum of $90." 705 ILCS 105/27.2a(g) (West 2014).
¶ 17 On appeal, plaintiffs dispute defendants' contention in the circuit court that section 27.2a(g) authorized the Clerk to charge a fee for filing a motion contesting an interlocutory order. Plaintiffs note that this court recently interpreted this section in accord with plaintiffs' argument in
Gassman v. Clerk of the Circuit Court
,
¶ 18 Defendants concede on appeal that Gassman controls here. Defendants do not dispute that the fees paid by plaintiffs to file their motions to reconsider interlocutory orders in the underlying lawsuits were unlawful. As such, we find that the fees for the motions to reconsider interlocutory orders that were charged in the underlying cases here were not authorized under section 27.2a(g).
¶ 19 C. Collateral Estoppel
¶ 20 We note that plaintiffs also contend on appeal that the circuit court properly rejected defendants' collateral estoppel argument below. They assert that the circuit court correctly held that the present case is distinguishable from the case relied on below by defendants (
Illinois Department of Healthcare & Family Services v. Ikechukwu
,
¶ 21 D. Involuntary Payment Doctrine
¶ 22 Defendants contend that the only issues which remain on appeal are (1) whether the plaintiffs adequately pleaded involuntary payment, i.e. , whether the voluntary payment doctrine bars plaintiffs' claims, and (2) whether an implied private right of action exists under section 27.2a(g)
*132 of the Clerks of Courts Act. We first address the voluntary payment issue.
¶ 23 Our supreme court long ago recognized that "money voluntarily paid under a claim of right to the payment and with knowledge of the facts by the person making the payment cannot be recovered back on the ground that the claim was illegal. It has been deemed necessary not only to show that the claim asserted was unlawful, but also that the payment was not voluntary; that there was some necessity which amounted to compulsion, and payment was made under the influence of such compulsion."
Illinois Glass Co. v. Chicago Telephone Co.
,
¶ 24 Notably, "[t]he kind of duress necessary to establish payment under compulsion has been expanded over the years."
Smith v. Prime Cable of Chicago
,
¶ 25 Accordingly, a payment is considered involuntary where "(1) the payor lacked knowledge of the facts upon which to protest the payment at the time of payment, or (2) the payor paid under duress."
Dreyfus v. Ameritech Mobile Communications, Inc.
,
¶ 26 Here, as stated, there is no dispute that payment of the fees was unlawful under Gassman. In addition, plaintiffs do not dispute that they failed to note any protest on the written instruments with which they paid the fees. 2 Plaintiffs also do not allege that they lacked knowledge of the facts upon which to protest payment of the fees. Instead, they contend that their payment of the filing fees was involuntary and under duress as failure to pay would have denied them access to the courts and the right to a hearing, subjecting them to adverse judgments and their lawyers to legal malpractice claims. To that end, plaintiffs assert that the circuit court erred in concluding that nonpayment would not have resulted in loss of access to necessary goods or services. Plaintiffs urge that the modern trend is against harsh application of the voluntary payment doctrine and a plaintiff need not show that the product or *133 service is a "necessity" in order to establish duress.
¶ 27 Defendants contend that plaintiffs' concept of duress is overbroad and argue that duress requires a showing of fraud or coercion, and the threat of being denied access to the courts is insufficient.
¶ 28 In determining whether payment is made under duress, the main consideration is whether the party had a choice or option,
i.e.
, whether there was "some actual or threatened power wielded over the payor from which he has no immediate relief and from which no adequate opportunity is afforded the payor to effectively resist the demand for payment."
Id.
at 849,
¶ 29 Plaintiffs cite
Keating v. City of Chicago
,
¶ 30 In
Norton
, the plaintiffs challenged a $3 penalty fee they paid on parking fines.
Norton
,
*134
¶ 31 Next, in
Raintree
, the trial court found in favor of the plaintiff developer in its declaratory judgment action challenging a village ordinance that required payment of impact fees as a condition of obtaining building permits.
Raintree Homes
,
¶ 32 We find
Norton
and
Raintree
instructive in the present case. Although plaintiffs here did not pay under protest, it is indisputable that they would have forfeited the ability to challenge the interlocutory orders if they had not paid the filing fee as the Clerk would have refused to accept their motions. We observe that, in attempting to distinguish
Raintree
, defendants rely on the dissenting opinion in that case, which is not binding on this court. Defendants argue that
Norton
is distinguishable because the Clerk here did not make any misrepresentations regarding legal rights or threaten entry of a judgment. However,
Norton
did not hold that a plaintiff must show fraud or coercive misrepresentations. Rather, the court simply followed precedent in holding that a plaintiff could show that a payment was "made under duress or compulsion" if he demonstrated that "the payee exert[s] some actual or threatened power over the payor from which the payor has no immediate relief except by paying." (Internal quotation marks omitted.)
Norton
,
*135
As such, the notices were "coercive enough to render plaintiffs' payment involuntary" where they "discouraged use of the judicial process or coerced payment."
Id.
at 628,
¶ 33 On appeal, defendant relies primarily on two cases:
Alvarez v. Pappas
,
¶ 34 We find
Alvarez
to be inapposite. The
Alvarez
court noted that the statute of limitations created an exception to the voluntary payment doctrine, which would otherwise bar repayment in that case.
Id.
at 221-22,
¶ 35 Defendant also asserts that the circuit court properly relied on
Wexler
,
"duress exists where the taxpayer's refusal to pay the tax would result in loss of reasonable access to a good or service considered essential. [Citation.] Goods or services deemed to be necessities have included telephone and electrical service and, for women, sanitary napkins and tampons. [Citation.]
Alcoholic beverages do not fall within the category of necessary goods or services." Id. at 24,284 Ill.Dec. 294 ,809 N.E.2d 1240 .
¶ 36 The
Wexler
court concluded that alcoholic beverages were "not essential, in any objective sense, to consumers such as [the plaintiff]."
¶ 37 Defendants argue that the payment of the fee to file a motion to challenge an interlocutory order here is more like the purchase of alcoholic beverages in Wexler and different from the necessary products or services at issue in the cases Wexler discussed, i.e. , the sanity napkins and tampons at issue in Geary , the electrical service at issue in Ross , or the telephone service at issue in Getto . However, Wexler is readily distinguishable from the present circumstances. Access to the courts to challenge an order entered against a party is an entirely different consideration than the plaintiff's purchase of alcoholic beverages in Wexler . And, unlike in Wexler , there is no indication that plaintiffs here filed the interlocutory motions and paid the filing fees solely to form a legal basis upon which to challenge the fee statute.
¶ 38 In addition, we are not persuaded by defendants' argument that the approximately $60 fee could not be impliedly coercive because it is a small amount compared to one hour of reasonable attorney fees in the Chicago market. Defendants do not cite to any authority holding that the amount of the unlawful fee is a relevant consideration. Indeed, case law points in the opposite direction. See
Norton
,
¶ 39 Accordingly, we find that the trial court erred in holding that plaintiffs' claims were insufficient to plead duress and failed to show they were denied access to a service that was necessary to them. Plaintiffs alleged that they paid the fees under duress because nonpayment would have resulted in loss of access to a necessary good or service,
i.e.
, access to the courts to challenge adverse judgments entered against them. At a minimum, the circuit court should not have resolved the issue of duress as a matter of law on the pleadings, as it is generally a question of fact.
Smith
,
¶ 40 E. Implied Cause of Action Under the Clerks of Courts Act
¶ 41 We next examine whether the circuit court erred in dismissing count II of the complaint upon concluding that no implied private right of action existed under the Clerks of Courts Act.
¶ 42 "When a plaintiff seeks to use a statutory enactment as a predicate for a tort action seeking damages, he must demonstrate that a private right of action is either expressly granted or implied in the statute."
Gassman
,
"(1) the plaintiff belongs to the class for whose benefit the statute was enacted; (2) the plaintiff's injury is one the statute was designed to prevent; (3) a private right of action is consistent with the underlying purpose of the statute; and (4) implying a private right of action is necessary to provide an adequate remedy for the statute's violation." Marshall v. County of Cook ,2016 IL App (1st) 142864 , ¶ 12,401 Ill.Dec. 834 ,51 N.E.3d 27 (citing
Fisher v. Lexington Health Care, Inc. ,188 Ill. 2d 455 , 460,243 Ill. Dec. 46 ,722 N.E.2d 1115 (1999), and Givot v. Orr ,321 Ill. App. 3d 78 , 87,254 Ill.Dec. 53 ,746 N.E.2d 810 (2001) ).
¶ 43 In count II, plaintiffs alleged that defendants violated section 27.2a(g) by imposing and collecting the filing fees and that plaintiffs were overcharged or paid fees they did not owe and suffered monetary damages as a result. Plaintiffs requested a declaration that charging the fees was unlawful and also sought a return of the fees collected pursuant to section 27.2a(g), in addition to attorney fees and other costs. Defendants asserted in their motion to dismiss that count II should be dismissed under
Marshall
,
¶ 44 On appeal, plaintiffs attempt to distinguish Marshall in asserting that litigants are the intended beneficiaries of the statute, as demonstrated by statements by a legislator in opposition to a proposal to increase court fees and the Act's detailed categories of fees and maximum amounts that the Clerk may charge. Plaintiff contends that payment of the unlawful fee is the type of injury intended to be prevented, considering the legislature amended the Act to add the adjective "final," and an implied cause of action would be consistent with the underlying purpose of the statute. Plaintiffs dispute that a restitution claim would provide an adequate remedy, as plaintiffs seek damages caused by defendants' imposition of unlawful fees, which includes the amount paid in unlawful fees and their attorney fees and costs.
¶ 45 Defendants maintain on appeal that Marshall is controlling. Defendants also assert that plaintiffs are not entitled to attorney fees absent a statutory or contractual basis. Defendants reiterate that plaintiffs have an adequate remedy in the form of a claim for restitution.
*137
¶ 46 In
Marshall
,
¶ 47 The holding in Marshall demonstrates that the fees imposed by section 27.2a(g) are intended to compensate for *138 the financial costs of operating the Clerk's office in handling litigants' pleadings and motions. It is not meant to benefit litigants such as plaintiffs. As the Marshall court specifically held, the Clerks of Courts Act is intended to "benefit counties that want to reduce court security costs or establish and maintain document storage or automated recordkeeping systems" and a private right of action is inconsistent with this underlying purpose of the Act and not necessary to provide an adequate remedy. Id. The same reasoning is applicable here. 5 Thus, we are not persuaded by plaintiffs' arguments that one legislator's comment regarding a proposed fee increase in 1991 demonstrates that the Act was meant to protect litigants as a class. Similarly, we are not persuaded that the fee structure of the Act shows that it was intended to primarily protect litigants and prohibit the Clerk from charging "exorbitant fees for access to the courts" or that plaintiffs' injuries were of the type intended to be prevented by the statute. The fees correspond with different types of filings and the administrative costs associated with each type of filing. Id. Implying a private cause of action here is not necessary to effectuate the purpose of the statute.
¶ 48 We also examine whether "implying a private right of action is necessary to provide an adequate remedy for the statute's violation." Id. ¶ 12. Plaintiffs complain that equitable relief would not fully compensate them because they are seeking damages- i.e. , attorney fees and other expenses costs incurred.
¶ 49 We note that in
Gassman
, the Clerk argued, as it does here, that there was no implied private right of action under section 27.2a(g).
Gassman
,
¶ 50 Indeed, a
mandamus
action is "an extraordinary remedy to enforce the performance of official duties by a public
*139
officer where no exercise of discretion on his part is involved."
Wilson v. Quinn
,
¶ 51 As our supreme court has explained, restitution is available in both cases of law and equity and " '[t]he concepts of restitution and damages are quite distinct, but sometimes courts use the term damages when they mean restitution.' "
Raintree Homes, Inc. v. Village of Long Grove
,
¶ 52 Here, we find that plaintiffs do not have a basis to pursue a private action to impose tort liability on defendants under Marshall , and consequently, they do not have a basis upon which to seek damages to compensate for costs and expenses beyond restitution. However, plaintiffs can proceed with a declaratory action, similar to the mandamus action pursued by the plaintiffs in Gassman . Much like the mandamus action by the plaintiffs in Gassman , plaintiffs here need not pursue a private right of action under the Clerks of Courts Act in seeking the equitable relief of a declaratory judgment and return of the fees unlawfully imposed in the form of restitution.
¶ 53 Moreover, to the extent that plaintiffs argue that they are seeking attorney fees, we note that "Illinois has long adhered to the general American rule that the prevailing party in a lawsuit must bear the costs of litigation, unless a statutory provision or an agreement between the parties allows the successful litigant to recover attorney fees and the expenses of suit."
Brundidge v. Glendale Federal Bank, F.S.B
.,
¶ 54 III. CONCLUSION
¶ 55 We find the circuit court erred in dismissing plaintiffs' count I claim on the basis that it was barred by the voluntary payment doctrine. As to count II, we find that no private right of action is implied in the Clerks of Courts Act. However, plaintiffs may proceed on their declaratory action to prevent the Clerk from charging filing fees under section 27.2a(g) for interlocutory motions and to recover such fees paid by plaintiffs as restitution.
¶ 56 Affirmed in part, reversed in part, and remanded.
Justices McBride and Ellis concurred in the judgment and opinion.
Midwest Medical Records Ass'n, Inc. v. Brown, No. 15 CH 16986 (Cir. Ct. Cook County) (motion to reconsider interlocutory order); Renx Group, LLC v. Brown, No. 15 CH 18832 (Cir. Ct. Cook County) (motion to vacate default judgment); Premovic v. Brown, No. 16 CH 193 (Cir. Ct. Cook County) (motion to vacate or modify an interlocutory order).
We note that defendants argue on appeal that plaintiffs failed to pay under protest. However, plaintiffs conceded this point and instead argue that while protest is evidence of compulsion, "compulsion may appear from the circumstances without a protest against payment" (
Smith
,
In
Keating
, the plaintiffs received red light violation citations from the City of Chicago and paid their fines.
Keating
,
The
Raintree
court cited
DeBruyn v. Elrod
,
That the purpose of section 27.2a(g) of the Clerks of Courts Act is intended to benefit the clerks' offices to cover the expenses associated with filing a petition to vacate a final order or judgment is buttressed by other cases examining the purpose behind similar fee provisions in the Clerks of Courts Act. See
Pick v. Pucinski
,
We note that "where the outcome of the litigation has created a common fund, this court has adopted the 'common fund doctrine.' "
Brundidge
,
Reference
- Full Case Name
- MIDWEST MEDICAL RECORDS ASSOCIATION, INC. ; Renx Group, LLC, F/K/A Big Blue Capital Partners, LLC; And Tomica Premovic, Individually, and on Behalf of All Others Similarly Situated, Plaintiffs-Appellants, v. Dorothy BROWN, Clerk of the Circuit Court of Cook County, Illinois; Maria Pappas, Treasurer of Cook County, Illinois; And Cook County, Illinois, a Body Politic and Corporate, Defendants-Appellees.
- Cited By
- 3 cases
- Status
- Unpublished