Johnson v. Municipal Employees', Officers' , & Officials' Annuity & Benefit Fund of Chicago
Johnson v. Municipal Employees', Officers' , & Officials' Annuity & Benefit Fund of Chicago
Opinion
¶ 1 After the Illinois Supreme Court ruled that Illinois Pension Code amendments violated our constitution's pension protection clause, plaintiffs' counsel in one of the consolidated cases petitioned for attorneys' fees. The firm sought over $ 200,000 under the Illinois Civil Rights Act and an additional $ 750,000 from a "common fund." The trial court denied the fee petition in its entirety as impermissible under the Illinois Pension Code. We agree and affirm.
¶ 2 Background
¶ 3 As summarized in
Jones v. Municipal Employees' Annuity & Benefit Fund
,
¶ 4 The General Assembly adopted legislative strategies to deal with some of the underfunded pensions. Public Act 98-641, passed in 2014, consisted of a comprehensive set of provisions designed to reduce annuity benefits for MEABF and LABF members. Id. ¶ 18.
¶ 5 After Public Act 98-641 became law, MEABF participants challenged its constitutionality and sought to enjoin enforcement:
Jones v. MEABF
, No. 2014-CH-20027,
¶ 6 The Jones v. MEABF plaintiffs included 14 individual participants in the MEABF, including current employees and retirees receiving an annuity, and four labor unions whose members participated in the MEABF. The defendants included MEABF and its board of trustees. The law firm of Freeborn & Peters LLP represented the plaintiffs. Ten days later, Krislov & Associates, Ltd. filed the Johnson v. MEABF lawsuit on behalf of one current participant in the MEABF, three retired participants receiving annuities from the LABF, and the Municipal Employees Society of Chicago. The defendants included MEABF and LABF. The City of Chicago and the State intervened, and the cases were consolidated. Ultimately, the parties filed cross-motions for summary judgment, with the State adopting the City's motion.
¶ 7 The trial court declared that Public Act 98-641, by reducing the value of annual annuity increases, violated the constitution's pension protection clause. The City, the State, MEABF, and LABF appealed directly to the Illinois Supreme Court under Rule 302(a). Ill. S.Ct. R. 302(a) (eff. Oct. 4, 2011). In March 2016, the supreme court affirmed, declaring the entire statute unconstitutional.
Jones
,
¶ 8 Krislov, the Johnson v. MEABF plaintiffs' counsel, petitioned for attorneys' fees against the City, MEABF, and LABF under the Civil Rights Act ( 740 ILCS 23/5(c) (West 2016) ) in the amount of $ 219,041 representing the firm's statutory lodestar fee. In addition, under a common fund theory, Krislov sought an additional $ 750,000 from the 3% annual annuity increase for plan members.
¶ 9 Deciding as a matter of law that attorneys' fees were not available under either approach, the trial court denied with prejudice Krislov's petition, as well as a motion for class certification and a motion to compel production of his opponents' time records. Krislov requests that we reverse and remand with directions to award an appropriate fee, considering both statutory lodestar and common fund sources. Krislov also requests we order production of the time records and certification of a class for purposes of applying the common fund doctrine.
¶ 10 Standard of Review
¶ 11 This appeal presents a matter of statutory interpretation, a question of law, which we review
de novo
.
Klaine v. Southern Illinois Hospital Services
,
¶ 12 Analysis
¶ 13 Fee Entitlement
¶ 14 The Illinois Civil Rights Act of 2003 prohibits discrimination based on a person's race, color, national origin, or gender. 740 ILCS 23/5(a) (West 2016). Subsection (b) empowers an aggrieved party to bring a civil lawsuit in federal district or state circuit court "against the offending unit of government."
¶ 15 The Act includes a provision for attorneys' fees: "Upon motion, a court shall award reasonable attorneys' fees and costs, including expert witness fees and other litigation expenses, to a plaintiff who is a prevailing party in any action brought: (1) pursuant to subsection (b); or (2) to enforce a right arising under the Illinois Constitution."
¶ 16 The trial court denied attorneys' fees because the issues raised by the lawsuits have no relation or connection to the Civil Rights Act. We agree.
¶ 17 Krislov argues
Grey v. Hasbrouck
,
¶ 18 We also reject Krislov's quarrel with
Thomann
,
¶ 19 Nevertheless, Krislov insists that the text of section 5(c)(2)-"to enforce a right arising under the Illinois Constitution" ( 740 ILCS 23/5(c)(2) (West 2016) )-opens the way for fees regardless of the nature of the claim as long as it arises under the Illinois Constitution. Krislov characterizes the language as unambiguous and insists it should be interpreted liberally.
¶ 20 A cardinal rule of statutory construction requires that courts ascertain and give effect to the legislature's intent, with the plain language offering the best indication of intent.
Acme Markets, Inc. v. Callanan
,
¶ 21 Thomann got it right in finding an expansive interpretation of the section 5 (c)(2) fee-shifting provision as contrary to the statutory scheme, and refusing to apply the section to a prevailing party of any claim arising under the Illinois Constitution, regardless of subject matter or context. In Thomann , plaintiffs alleged the procedures in evaluating objections to concealed carry license applications violated their due process rights under the Illinois Constitution. Id. ¶ 4. After the dismissal of the complaint as moot, plaintiffs' attorneys petitioned for fees, asserting that section 5(c) of the Civil Rights Act entitled them to fees because they prevailed in a suit " 'to enforce a right arising under the Illinois Constitution.' " Id. ¶ 11 (quoting 740 ILCS 23/5(c)(2) (West 2014) ). The sole issue was whether the trial court erroneously dismissed the plaintiffs' attorneys' fee petition. Id. ¶ 1. The trial court was affirmed. Id. ¶ 33.
¶ 22 Krislov asserts that the Civil Rights Act's first two subsections "say nothing to suggest the Act as a whole does not extend beyond the context of discrimination." (Emphasis in original.) But the absence of any language limiting fees to discrimination claims proves nothing as well. Indeed, Krislov's approach puts an unstated and unwritten consequence into unambiguous language.
¶ 23 Accordingly, the Civil Rights Act cannot serve as a means for awarding attorneys' fees, as plaintiffs in Jones v. MEABF were not aggrieved parties suing under the Illinois Constitution on the subject of discrimination based on race, color, national origin, or gender.
¶ 24 Statutory Exemption
¶ 25 Illinois follows the "American Rule." That rule makes each party bear its own attorneys' fees and costs unless statutory authority or a contractual agreement says otherwise.
Housing Authority of Champaign County v. Lyles
,
¶ 26 The Pension Code, however, exempts retirement annuities from attachment for the payment of any debt of an annuitant, which includes attorneys' fees. See 40 ILCS 5/1-101
et seq.
(West 2016). Article 8 of the Illinois Pension Code applies to annuities due MEABF members. See
¶ 27 Article 11 of the Illinois Pension Code applies to LABF members' annuities. See
¶ 28 The Illinois Supreme Court recently considered the constitutionality of changes to the Pension Code in
Carmichael v. Laborers' & Retirement Board Employees' Annuity & Benefit Fund of Chicago
,
¶ 29 Common Fund
¶ 30 Courts have general equity power "to do equity in a particular situation."
Sprague v. Ticonic National Bank
,
¶ 31 Krislov proposes creating a common fund through deductions from the amounts paid to beneficiaries from the pension funds under the jurisdiction of the court (the 3% annual increases) from LABF or MEABF members' annuities. In his reply, Krislov suggests a common fund exists "because the annuitants have received and will continue to receive actual increases in monetary payment, thus, there is a fund," and maintains the City cited factually distinguishable cases. While that may be, the cases do not support Krislov's position either.
¶ 32 Each of the cases involves future savings, and none created a common fund. In
Hamer v. Kirk
,
¶ 33 Krislov wants us to follow cases involving the Employment Retirement Income Security Act of 1974 (ERISA) (
¶ 34 Double Recovery
¶ 35 Although we need not decide the appropriateness of a double recovery of fees, we would be remiss not to mention Krislov's desire for an award of both statutory fees and common fund fees, not one or the other. Krislov has asked for statutory fees in excess of $ 200,000 under the "fee-shifting" provision of the Illinois Civil Rights Act, section 5(c), along with $ 750,000 under the "common fund" doctrine. Defendants label this a double recovery.
¶ 36 Krislov cites no basis for this request. See
Pierce v. Visteon Corp.
,
¶ 37 Given our resolution, we need not address the remaining issues asserted by Krislov.
¶ 38 Affirmed.
Presiding Justice Mason and Justice Lavin concurred in the judgment and opinion.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.