Dawson v. City of Geneseo
Dawson v. City of Geneseo
Opinion
*125 ¶ 1 Plaintiff, Larry Dawson, a retired former employee of defendant, the City of Geneseo (City), filed a class action lawsuit against the City to challenge the City's reduction of the percentage it contributed to retiree health insurance premiums. Plaintiff alleged in his first amended complaint a violation of the pension protection clause of the Illinois Constitution of 1970 ( Ill. Const. 1970, art. XIII, § 5 ) (count I) and claims of breach of contract (count II), promissory estoppel (count III), and equitable estoppel (count IV). The City filed a combined motion, seeking to dismiss count I of the first amended complaint pursuant to section 2-615 of the Code of Civil Procedure (Code) ( 735 ILCS 5/2-615 (West 2016) ) and to dismiss counts II, III, and IV pursuant to section 2-619 of the Code ( id. § 2-619). Plaintiff opposed the motion to dismiss. After a hearing, the trial court granted the City's motion and dismissed plaintiff's first amended complaint with prejudice. Plaintiff appeals. We affirm the trial court's judgment.
¶ 2 I. BACKGROUND
¶ 3 Plaintiff previously worked for the City and subsequently retired. At the time of his retirement, the City's Personnel Ordinance allowed employees who retired with 10 or more years of service to continue to participate in the City's group health insurance program on a shared-cost basis with the City. The fixed percentage of the cost that the City would pay/contribute to a retiree's health insurance premium was specified in the ordinance and varied depending upon the employee's years of service. In November 2011, however, the City amended its Personnel Ordinance due to rising healthcare costs, reduced the contribution percentage, and capped the amount that it would contribute to an existing retiree's health insurance premium. The amendment went into effect in January 2012.
¶ 4 In December 2016, plaintiff, on behalf of himself and a proposed class of retired City employees, filed the instant class action lawsuit against the City regarding the reduction of the health insurance contribution. 1 The complaint was later amended. In count I of the first amended complaint, plaintiff alleged that the health insurance contribution was a retirement or pension benefit that was protected under the pension protection clause of the Illinois Constitution and that the City violated *126 *659 that clause by diminishing or impairing that benefit. In count II, plaintiff alleged that the Personnel Ordinance constituted a valid and enforceable contract between the City and the retirees and that the City breached that contract by reducing the health insurance contribution. In count III, plaintiff sought relief under a theory of promissory estoppel, alleging that the contribution percentage specified in the pre-amended version of the Personnel Ordinance was an unambiguous promise by the City and that the retirees had relied upon that promise to their detriment. Finally, in count IV of the first amended complaint, plaintiff alleged that the Personnel Ordinance and the City's course of conduct had created a contract between the City and the retirees, from which the City received a benefit, and that the City should be equitably estopped from refusing to pay the prior contribution amount. Plaintiff sought money damages and to restore the City's contribution percentage to its prior level for retirees. Copies of the health insurance provisions from the pre-amendment and post-amendment versions of the Personnel Ordinance were attached to plaintiff's first amended complaint as supporting documents.
¶ 5 In June 2017, the City filed a combined motion to dismiss plaintiff's first amended complaint. In the combined motion, the City sought to dismiss count I of the first amended complaint pursuant to section 2-615 of the Code because count I allegedly failed to state a cause of action for violation of the pension protection clause. The City also sought to dismiss counts II, III, and IV of the first amended complaint pursuant to section 2-619 of the Code because the counts were allegedly barred by a disclaimer clause in the Personnel Ordinance that precluded the formation of a contract between the City and the retirees. The City attached to its combined motion to dismiss a full copy of the Personnel Ordinance. Of relevance to this appeal, the first page of the Personnel Ordinance indicated that the ordinance had been enacted in 1995 and had been amended several times over the years. Also of relevance to this appeal, section 1.01 of the ordinance, titled "Personnel Ordinance Declaration," (emphasis omitted) provided:
"Terms, conditions and policies set forth in this ordinance are not intended to create a contract, nor are they to be construed to constitute contractual obligations of any kind or a contract of employment between the City and any of its employees for a specified period of time. Contents of the Personnel Ordinance are for informational purposes only.
This ordinance has been developed at the discretion of the Council and may be amended or cancelled at anytime, at the City's sole discretion upon the advice and recommendation of the City Boards."
Plaintiff filed a response and opposed the City's combined motion to dismiss, and the City filed a reply to that response.
¶ 6 In August 2017, a hearing was held on the City's combined motion to dismiss. After listening to the arguments of the attorneys, the trial court granted the City's combined motion, dismissed count I of the first amended complaint with prejudice pursuant to section 2-615 of the Code, and dismissed counts II, III, and IV of the first amended complaint with prejudice pursuant to section 2-619 of the Code. Plaintiff appealed.
¶ 7 II. ANALYSIS
¶ 8 A. The Trial Court's Grant of the City's Section 2-615 Motion to Dismiss Count I
¶ 9 As his first point of contention on appeal, plaintiff argues that the trial *127 *660 court erred in granting the City's section 2-615 motion to dismiss count I (the violation of the pension protection clause claim) of plaintiff's first amended complaint. Plaintiff asserts that the motion to dismiss should have been denied because (1) the benefit at issue in this case-a health insurance contribution provided to employees and retirees by the City, a unit of local government-is protected under the pension protection clause, (2) as a protected benefit, the health insurance contribution cannot be diminished or impaired by the City, and (3) the City's unilateral action of modifying the Personnel Ordinance, which had the direct effect of diminishing and impairing plaintiff's health insurance benefits, violated the pension protection clause. Thus, plaintiff contends, although somewhat implicitly, that count I of his complaint was sufficient to state a claim for violation of the pension protection clause. In making that contention, plaintiff maintains that the coverage of the pension protection clause is not limited solely to the State's public pension or retirement systems, as the City claims, but applies to benefits provided by a unit of local government, such as the City in the present case, as the plain language of the pension protection clause clearly indicates. For those reasons, plaintiff asks that we reverse the trial court's grant of the City's section 2-615 motion to dismiss count I of plaintiff's first amended complaint and, presumably, that we remand this case for further proceedings.
¶ 10 The City argues that the trial court's ruling was proper and should be upheld. In support of that argument, the City asserts that (1) the pension protection clause applies only to benefits derived from membership in one of the State's public pension or retirement systems (those governed by the Illinois Pension Code ( 40 ILCS 5/1-101 et seq. (West 2016) ), (2) the health insurance contribution provided by the City in this case was not such a benefit but, rather, was merely an employment policy of the City, (3) in addition, the health insurance contribution was not a pension or retirement system in and of itself, (4) the pension protection clause, therefore, did not apply to the health insurance contribution in the present case, and (5) the City's change in its employment policy, which reduced the health insurance contribution, did not violate the pension protection clause. Thus, the City contends that the trial court correctly found that count I of plaintiff's first amended complaint failed to state a cause of action for violation of the pension protection clause and correctly granted the City's section 2-615 motion to dismiss count I on that basis. For that reason, the City asks that we affirm the trial court's grant of the City's section 2-615 motion to dismiss count I of plaintiff's first amended complaint.
¶ 11 A section 2-615 motion to dismiss challenges the legal sufficiency of a complaint based upon defects that are apparent on the face of the complaint. See 735 ILCS 5/2-615 (West 2016) ;
Heastie v. Roberts
,
¶ 12 The pension protection clause of the Illinois Constitution provides that "[m]embership in any pension or retirement system of the State, any unit of local government or school district, or any agency or instrumentality thereof, shall be an enforceable contractual relationship, the benefits of which shall not be diminished or impaired." Ill. Const. 1970, art. XIII, § 5. Thus, members of a pension or retirement plan that is subject to the pension protection clause's provisions have a legally enforceable right to receive the benefits that they have been promised.
In re Pension Reform Litigation
,
¶ 13 In the present case, after having reviewed the record, we find that the benefit plaintiff seeks to enforce, a contribution by the City to health insurance premiums for employees and retirees, is not a pension or retirement system in and of itself, as plaintiff seems to imply. Nor is it a benefit that results from membership in one of the protected public pension or retirement systems-those provided for under the Illinois Pension Code-some of which are established and administered by participating municipalities.
2
See
*129
*662
Kanerva
,
¶ 14 B. The Trial Court's Grant of the City's Section 2-619 Motion to Dismiss Counts II, III, and IV
¶ 15 As his second point of contention on appeal, plaintiff argues that the trial court erred in granting the City's section 2-619(a)(9) motion to dismiss counts II, III, and IV (the breach of contract, promissory estoppel, and equitable estoppel claims) of plaintiff's first amended complaint. Plaintiff asserts that the trial court did not have sufficient information before it to grant the City's section 2-619 motion to dismiss because the first page of the Personnel Ordinance that the City tendered indicated that the ordinance had been amended several times over the years but did not indicate whether the disclaimer upon which the City relies was present in the applicable prior version of the ordinance. Rather, plaintiff contends, a more thorough review of the history of the ordinance should be undertaken through the discovery process to determine if the disclaimer was present in the applicable prior version. Plaintiff asks, therefore, that we reverse the trial court's grant of the City's section 2-619 motion to dismiss counts II, III, and IV of plaintiff's first amended complaint and that we remand this case with directions for further proceedings.
¶ 16 The City argues that the trial court's ruling was proper and should be upheld. The City asserts that the disclaimer contained in the Personnel Ordinance is a clear and unambiguous statement by the City that the Personnel Ordinance does not create any contractual rights or constitute a binding unchangeable promise by the City. In fact, the City maintains, the intent of the disclaimer was to prevent any employee from relying upon the terms of the ordinance. Finally, and more directly to plaintiff's specific contention, the City asserts that the time for plaintiff to investigate the history of the ordinance was prior to filing this lawsuit. The City notes *130 *663 that plaintiff has not alleged in his first amended complaint that a different version of the Personnel Ordinance applies or that the applicable version of the Personnel Ordinance lacks the disclaimer. For all of the reasons stated, the City asks that we affirm the trial court's grant of the City's section 2-619 motion to dismiss counts II, III, and IV of plaintiff's first amended complaint.
¶ 17 Section 2-619 of the Code allows a litigant to obtain an involuntary dismissal of an action or claim based upon certain defects or defenses. See 735 ILCS 5/2-619 (West 2016) ;
Van Meter v. Darien Park District
,
¶ 18 In resolving the employment-related section 2-619 issue in the present case, we are mindful of the following principles of employment law. It is well established under Illinois law that an employee hired for an indefinite period of time may be terminated at will. See
Duldulao v. Saint Mary of Nazareth Hospital Center
,
¶ 19 In the instant case, when we consider the legal principles set forth above along with the record presented, we find that the trial court correctly granted the City's section 2-619 motion to dismiss. As the City rightly notes, the disclaimer contained in the City's Personnel Ordinance clearly stated that the terms, condition, and policies set forth in the ordinance were for information purposes only, were not intended to create a contract, and were not to be construed as constituting contractual obligations of any kind or a contract of employment between the City and any of its employees. Based upon the clear language of the instant disclaimer, plaintiff could not reasonably believe that the terms of the Personnel Ordinance constituted an offer. See
Ivory
,
¶ 20 A similar analysis applies to count III of plaintiff's first amended complaint, which alleged promissory estoppel. Based upon the disclaimer that was contained in the Personnel Ordinance, plaintiff could not reasonably rely on any promises made in the ordinance. See
Ivory
,
*665
*132
Hogge
,
¶ 21 As a final matter, we must take a moment to comment upon plaintiff's assertion that additional information was necessary before dismissal could be granted. As the City correctly notes, plaintiff did not allege in his first amended complaint that a different version of the Personnel Ordinance applied or that the applicable version lacked the disclaimer at issue. Thus, we cannot agree with plaintiff's assertion that more information is needed before dismissal could be allowed. Plaintiff's claims in the instant case were negated by the disclaimer, and the trial court properly granted the City's section 2-619 motion to dismiss counts II, III, and IV of plaintiff's first amended complaint on that basis.
¶ 22 III. CONCLUSION
¶ 23 For the foregoing reasons, we affirm the judgment of the circuit court of Henry County.
¶ 24 Affirmed.
Justices McDade and Schmidt concurred in the judgment and opinion.
As of this time, the proposed class specified in plaintiff's complaint has not been certified.
Some of the pension or retirement systems provided for under the Illinois Pension Code include the General Assembly Retirement System (40 ILCS 5/2-101 et seq. (West 2016) ), the Police Pension Fund ( id. § 3-101 et seq. ), the Firefighters' Pension Fund ( id. § 4-101 et seq. ), the Illinois Municipal Retirement Fund ( id. § 7-101 et seq. ), the State Employees' Retirement System of Illinois ( id. § 14-101 et seq. ), the State Universities Retirement System ( id. § 15-101 et seq. ), the Teachers' Retirement System of the State of Illinois ( id. § 16-101 et seq. ), and the Judges Retirement System of Illinois ( id. § 18-101 et seq. ).
Case-law data current through December 31, 2025. Source: CourtListener bulk data.