Illinois Supreme Court: The Questions Log Halfway Through 2013

With the Illinois Supreme Court halfway through its oral argument schedule for 2013 – three dockets down, three to go, beginning with September in Chicago – it’s time to take another look at the questions log.

In the first three terms, the Court has heard argument in 16 civil cases. Questioning has varied widely from case to case, from lows in the January term of 8 each in DeHart v. DeHart and Russell v. SNFA to highs in the May term of 40 in Relf v. Shatayeva and 51 in Board of Education of Peoria School Dist. No. 150 v. Peoria Federation of Support Staff. Interestingly, the Court seems to be becoming more active with each passing term, averaging 14.6 questions per argument in January, 21.5 in March and 34 questions per argument in May. Nine of the sixteen cases are decided, but there’s little indication so far of a convincing correlation between how active a Justice is during the questioning and whether that Justice will wind up writing an opinion on the case. So far, in only three of the nine cases has the most active questioner written the majority opinion. In none of the remaining six decided cases has the most active Justice written a special concurrence or dissent. In the first sixteen cases of the year, five of the seven Justices have ranked as the most active questioner on the Court in at least one case.

Halfway through 2013, here’s how the question log stands.  The numbers in parentheses show how many times that Justice has been the first questioner during each phase of the arguments.

 

Burke

Garman

Freeman

Kilbride

Thomas

Karmeier

Theis

Appellant

20 (1)

23 (4)

30 (5)

11

52 (5)

25 (1)

25 (2)

Appellee

23 (2)

19 (2)

8 (1)

10 (1)

26 (5)

19 (2)

29 (1)

Rebuttal

0

2 (1)

1 (1)

1

20 (3)

10 (3)

17 (1)

Total

43 (3)

44 (7)

39 (7)

22 (1)

98 (13)

54 (6)

71 (4)

Illinois Supreme Court Extends Harris Tort Immunity to Privately Owned Ambulances

Late last week, the Illinois Supreme Court handed down its opinion in Wilkins v. Williams, holding that the state Emergency Medical Services Act makes the private owner and driver of an ambulance immune from tort liability for any motor vehicle accident occurring while they are rendering services. Our detailed summary of Wilkins, including the lower court rulings, is here. Our report on the oral argument is here.

Wilkins was a sequel to Harris v. Thompson, which the Court handed down last June. In Harris, the Court held that government entities and public employees operating emergency vehicles were immune from liability for motor vehicle accidents pursuant to the Local Governmental and Governmental Employees Tort Immunity Act. The Act provides that public entities and their employees cannot be “liable for an injury caused by the negligent operation of a motor vehicle or firefighting or rescue equipment, when responding to an emergency call, including transportation of a person to a medical facility.” In so holding, the Court held that the Tort Immunity Act trumped language in the Vehicle Code imposing “the duty of driving with due regard for the safety of all persons” on drivers of emergency vehicles.

Wilkins involves nearly identical facts: an ambulance on a non-emergency run collides with another vehicle, injuring the driver. But in Wilkins, the ambulance was privately owned, so instead of the Tort Immunity Act, we’re looking at a nearly identical provision in the Emergency Medical Services Act: no person who provides emergency or non-emergency medical services can be “civilly liable as a result of their acts or omissions in providing such services unless such acts or omissions . . . constitute willful and wanton misconduct.” 210 ILCS 50/3.150(a). The trial court in Wilkins tossed the case on summary judgment based on the EMS Act, but the Appellate Court reversed, finding that the EMS Act applied only to negligence claims by patients, rather than by third-parties.

The same six Justices who comprised the Harris majority reversed the Appellate Court, finding that the EMS Act immunized the defendants. In an opinion by Justice Robert R. Thomas, the Court rejected the Appellate Court’s view that the EMS Act immunity did not extend to alleged negligence involving third parties. Although the statute doesn’t specifically mention injuries to third parties, it speaks in broad terms – “shall not be civilly liable” – without limitation. Since the legislature didn’t carve out third party drivers of other vehicles from the statute, the courts lacked any power to do so, the Court found. Indeed, any such construction would result in an absurdity, the Court noted: an unrelated third party could recover for simple negligence, while the patient actually being treated (or transported) in the ambulance would be limited to recovery for willful and wanton misconduct.

Once that was settled, the case became a straightforward application of Harris. Just as the Court had found no conflict in Harris between the Tort Immunity Act and the Vehicle Code, the Wilkins Court found none between the EMS Act and the Vehicle Code. The Vehicle Code imposed a duty of care. Without such a duty, any potential negligence claim would have been stopped in its tracks. Only after finding a duty does the analysis proceed to the separate question of whether any immunities apply, and the EMS Act kicks in. Since the EMS Act applied to the defendants, the negligence suit was barred.

Just as he had earlier in Harris, Chief Justice Thomas L. Kilbride dissented. The Chief Justice argued that there was a “clear conflict” between the EMS Act and the Vehicle Code, and as the more specific statute, the Vehicle Code should prevail.

Are Union Members Who Travel to Reach a Distant Job Site “Traveling Employees” Under Workers Comp?

In the final days of the May term, the Illinois Supreme Court allowed petitions for leave to appeal in five new civil cases. Our preview of the new cases concludes with Venture-Newberg Perini Stone & Webster v. Illinois Workers’ Compensation Commission. Venture-Newberg poses the following question: when is a union pipefitter who accepts a short-term job too far from home to commute a “traveling employee” entitled to workers’ compensation benefits for injuries received while traveling to work?

The employer in Venture-Newberg is a contractor hired to perform maintenance and repair work at a nuclear plant in Cordova, Illinois, more than 200 miles from Springfield. The union local for the Cordova region was unable to fill all the available jobs, so the openings were posted in other union halls, including the union local in Springfield where the claimant was a member. The claimant bid on the job and was hired; he found lodging about thirty miles from Cordova for the duration of the job, which was only scheduled to be a few weeks. The claimant was injured early on the second day of work while traveling from his lodging to the plant.

The general rule in workers’ compensation law is that injuries occurring while the employee is commuting to or from work do not arise out of and in the course of employment and are therefore not compensable. The arbitrator initially concluded that none of the exceptions to that rule applied and recommended that the claim be denied, but the Workers’ Compensation Commission reversed.

The Commission found that two exceptions to the general rule were applicable. First, the Commission held that the claimant was injured in the course of employment because the course or method of travel was determined by the exigencies of the claimant’s job rather than the claimant’s personal preference about where to live. Second, the Commission found that the claimant was a traveling employee: “one who is required to travel away from his employer’s premises in order to perform his job.” On administrative review, the Sangamon County Circuit Court rejected the Commission’s conclusions and set aside the decision.

During the hearing, the claimant had testified that his understanding was that the employer generally preferred that employees be within an hour of the job site so that they could respond to emergencies requiring them to report early or stay late. He acknowledged that the employer had dictated neither the specific place where he should stay or the route he should take to the plant, and that he was not called into work early on the day of the accident. A fellow employee testified that although the employer had never requested that employees reside near the job site, it would be difficult to work a 12-hour shift and be available for emergencies after driving 200 miles each way.

The Appellate Court concluded that the claimant was a traveling employee for two reasons: (1) he was assigned to work at a nuclear power plant 200 miles from his home; and (2) the premises were not those of his employer. Further, the Court found that the claimant’s conduct in finding overnight lodging should have been reasonably anticipated by his employer, given that the claimant was recruited to work more than 200 miles from his home. For these reasons, the claimant’s commuting injury arose out of and in the course of his employment, according to the Court.

Justice Hudson dissented, joined by Justice Turner. The dissenters noted that under the majority’s rationale, "everyone hired at the Cordova plant on a temporary basis, even individuals residing in close proximity to the plant, would arguably became a traveling employee." The dissenters argued that the traveling employee exception was inapplicable since the employee had not worked for the employer for an extended period of time. The dissenters argued that when a temporary employee is assigned to work at only one location for a limited time, the work site becomes the employer’s premises for purposes of the traveling employee exception. Finally, the dissenting justices argued that the exigency exception was inapplicable, since the employer exercised insufficient control over the employee’s lodging and method of transportation to work.

Illinois Supreme Court to Review Jurisdiction of Circuit Courts Over Pension Disputes

In the closing days of its May term, the Illinois Supreme Court allowed petitions for leave to appeal in five new civil cases. Our previews of those cases continue with People ex rel. Madigan v. Burge, a case which poses a jurisdictional question of potentially great importance: may the Attorney General challenge the actions of the Police Pension Board through a separate lawsuit in the Circuit Court, or are the Board’s actions subject to review only by routine administrative review?

Burge arises from a notorious case a few years ago involving a retired Chicago police officer. The officer was widely believed to have sanctioned and participated in the abuse and torture of arrestees in order to extract confessions. In 2010, the officer was convicted of two counts of obstruction of justice and one of perjury. The civil case arose from allegations that in responding to civil discovery, the officer had lied about his knowledge of abuse and torture of arrestees. The officer was sentenced to 54 months in prison.

Section 5-227 of the Pension Code provides that pension benefits may not be paid to anyone “convicted of any felony relating to or arising out of or in connection with his service as a policeman.”  The Board of Trustees of the Retirement Board of the Policemen’s Annuity and Benefit Fund held an evidentiary hearing to determine whether Section 5-227 barred any further pension payments to the imprisoned officer. At the conclusion of the hearing, the Board split 4-4 on whether to terminate payments to the officer: the four city-appointed trustees voting to terminate, the four trustees elected by the police officer participants in the pension fund voting to continue payments. The Pension Board concluded that a tie vote meant that benefits would continue, and issued a decision so holding.

Rather than seeking administrative review of the decision, the Attorney General sued the Board, seeking an injunction to halt the payments pursuant to section 5-227. The Attorney General cited section 1-115(b) of the Pension Code, which authorizes the Attorney General to sue to enjoin any practice which violates the Code, as giving standing for her suit. Both the Pension Board and the officer himself moved to dismiss the complaint, and the Circuit Court granted the motion.

The Appellate Court (First District, Sixth Division) reversed. The Court pointed out that the jurisdiction of the Circuit Courts was derived from the Illinois constitution, and as a result, could be limited or ousted only by express statutory language. Section 5-189 of the Pension Code provides that the Board has exclusive original jurisdiction over all matters “relating to or affecting the fund, including . . . all claims for annuities, pensions, benefits or refunds.” However, the Court noted, the statute said nothing about depriving the courts of jurisdiction over Section 5-227 suits by the Attorney General. Accordingly, the Circuit Court had jurisdiction to consider the Attorney General’s dec action.

The majority went on to briefly discuss the merits of the Pension Board’s decision. The Court noted that according to Section 5-182 of the Pension Code, no benefits could be paid out except on a majority vote of the Board. Since continuing the officer’s benefits had only received four of eight votes – obviously not a majority – the Board should have stopped the payments, according to the majority.

Justice Rodolfo Garcia specially concurred. Although Justice Garcia agreed with the principal conclusion of the majority opinion – that the Circuit Court had authority to hear the Attorney General’s declaratory judgment action – he found the suggestion that the Pension Code was violated by continuing payments following the 4-4 vote untenable. The only possible basis for the Attorney General’s claim, Justice Garcia argued, was the proposition that the officer’s felony conviction had in fact arisen from or in connection with his police service, making section 5-227 applicable.

To E-File or Not? Misfiled Notice of Appeal Not Necessarily Fatal, Illinois Supreme Court Rules

Like most states, Illinois is in the early stages of transitioning to an e-filing system in its state courts. With new rules come new problems for litigators: does this case qualify for e-filing? Is e-filing of this document mandatory, permissive, or barred?

Last week, a divided Illinois Supreme Court handed down its first major decision on the perils of e-filing. In an opinion by Justice Mary Jane Theis, the Court held 4-3 that erroneously e-filing a notice of appeal in a case that didn’t qualify for e-filing in the first place was not sufficient to deprive the Appellate Court of jurisdiction over the appeal. Our detailed summary of the facts and lower court opinions in VC&M, Ltd. v. Andrews is here. Our report on the oral argument is here.

VC&M began with a real estate dispute. In the midst of a divorce, the defendants signed a contract with the plaintiff to list their residence for sale. Plaintiff found a buyer who made an offer for the house. The defendants rejected the offer, declined to make a counter offer, and not long after, took the house off the market, with the wife allegedly saying she would buy out the husband and continue living there. Not long after the listing agreement expired, the Circuit Court entered a judgment of divorce incorporating a property settlement. The settlement valued the marital home at $5 more than the rejected offer.

So the disappointed real estate agent sued for the lost commission. The defendants moved to dismiss, and the Circuit Court granted the motion.

And that’s where the trouble started. Thirty days after dismissal, the plaintiff e-filed a motion for reconsideration. Thirty days after that motion was denied, the plaintiff e-filed a notice of appeal.

But the thing was, although the case appeared to be technically eligible, the plaintiff had never taken any of the steps required by the local court rules to qualify the case for e-filing. So did the misfiled motion for reconsideration toll the time for filing the notice of appeal? And did the misfiled notice of appeal accomplish anything at all? The Second District of Appellate Court answered both questions with a resounding “no,” dismissing the appeal.

The Supreme Court reversed. Neither the defendants nor the Appellate Court had pointed out any authority holding that non-compliance with a rule governing how a filing is delivered to the court rose to the level of a jurisdictional defect, the Court held. In fact, the Court concluded, what little authority exists points to the opposite conclusion, citing Ragan v. Columbia Mutual Insurance Co., Besic v. Lattof Chevrolet, Inc. and Cedzidlo v. Marriott International. Since the motion for reconsideration was merely defective, rather than a complete nullity, the motion tolled the plaintiff’s time to appeal. This was particularly true given that the defendants had not pointed to any prejudice arising from the plaintiff’s rules violation.

Nor was the e-filing of plaintiff’s notice of appeal fatal, the Court held. Plaintiff had argued that the rule’s language barring e-filing of “appellate . . . documents” didn’t apply to a notice of appeal, since the notice is filed in the trial court, but the majority disagreed. Nevertheless, particularly since during the transitional period, the clerk was maintaining a parallel paper file of all filed pleadings, the misfiled notice of appeal was sufficient to confer jurisdiction on the Appellate Court.

Justice Robert R. Thomas dissented from the Court’s “conclusion and analysis,” joined by Chief Justice Thomas L. Kilbride and Justice Lloyd A. Karmeier. The misfiled pleadings were a nullity, Justice Thomas concluded, ineffective for any purpose. Moreover, the dissenters argued, the presence or absence of prejudice had never been regarded as sufficient to excuse a jurisdictional defect. “Under the majority’s analysis, parties may now disregard local court rules” and “improperly file a document electronically,” and be subject to no consequences other than sanctions, Justice Thomas wrote.

Florida Legislature Adopts Daubert

Florida’s legislature recently amended the state’s evidence code to adopt the Daubert standard for admissibility of expert testimony. Despite the U.S. Supreme Court’s abandonment of the Frye “general acceptance” standard in 1993, Florida until now has continued to employ that standard. With these amendments, Florida joins the majority of states that have modernized and improved their admissibility standards by adopting Daubert or some form of it by statute or common law. The Daubert standard requires the court to determine if the testimony is based upon sufficient facts or data and is the product of reliable principles and methods, and if the witness has reliably applied the principles and methods to the facts.

The Florida bill and the statutory amendments show the legislature’s explicit intent to pattern section 90.702 of Florida’s Evidence Code after Federal Rule 702, amended in 2000 to incorporate Daubert’s admissibility requirementsThe bill also makes clear the legislature’s intent to banish “pure opinion” testimony based on an expert’s own experience, observation or research, which an expert in a Florida state court was free to give without satisfying any general acceptance test, avoiding scrutiny altogether.                                                          

No Punitive Damages Awards by Human Rights Commission, Illinois Supreme Court Rules

Late last week, in a unanimous opinion by Justice Rita Garman, the Illinois Supreme Court held that the Cook County Commission on Human Rights lacks any authority to award punitive damages. Our detailed summary of the facts and administrative and lower court rulings in Crittenden v. Cook County Commission on Human Rights is here. Our report on the oral argument is here.

Crittenden arises from a sexual harassment claim filed with the Cook County Commission on Human Rights by a bartender working at a Cook County bar. After a contentious hearing, a hearing officer recommended that the employee receive an award of lost wages, compensatory and punitive damages. The Commission adopted the hearing officer’s proposed order. The Circuit Court denied certiorari, affirming the administrative decision on liability and compensatory and punitive damages. The Appellate Court (First District, Sixth Division) affirmed the Commission on liability and compensatory damages, but reversed on punitive damages. According to the Appellate Court, it made no difference whether the challenged conduct merited an award of punitive damages, since the Commission lacked the authority to award them in the first place. In so holding, the Appellate Court refused to follow Page v. City of Chicago, in which Division One of the First District had held that the Chicago Human Rights Ordinance does permit awards of punitive damages by the Commission.

The Supreme Court affirmed the First District. Although the Commission argued that it had the power to award punitive damages pursuant to Cook County’s broad home rule authority, the Supreme Court disagreed. As an administrative agency, the Commission had no inherent power: its powers were limited to those granted to it by the legislature, and any actions it takes must be authorized by statute. According to the Human Rights Ordinance, the Commission may grant a wide range of forms of relief, including cease and desist orders, awards of damages and costs and fees, and orders to rehire. The Commission pointed out that the list of permissible forms of relief wasn’t exclusive, but the Court held that that made no difference. As an administrative agency, the Commission was without common law authority, and therefore couldn’t award punitive damages without express language saying so. The Court pointed out that a number of different state statutes expressly authorized administrative agencies to award punitive damages, and finding such authority merely by implication was inconsistent with the view that punitive damages are not favored in the law. Rejecting Page, the Court declined to find that policy considerations required implying the power to award punitive damages, specifically pointing again to the disfavored status of punitive damages in the law, as well as to the risks involved in assessing punitive damages when the defendant is merely vicariously liable for the actions of an employee. Finding no basis for deviating from the established rule that administrative agencies have only the power they are expressly given, the Court held that the Cook County Commission on Human Rights lacks any power to award punitive damages.

When Words Are Not Text: Don’t Bring a Knife to a Gun Fight

Appellate advocacy often comes down to a conflict over the meaning of words. The Supreme Court’s opinion in Vance v. Ball State Univ. provides graphic proof that not all fights over terminology are created equal. Advocates must understand the nature of the battlefield presented by their particular case.

Vance was an employment discrimination case based upon a hostile environment theory. Under prior precedent, an employer is liable for the actions of a co-worker of the plaintiff only if the employer is negligent. However, if the person creating the hostile environment is a “supervisor,” the employer is vicariously liable and the plaintiff need not prove negligence. The employee in question in Vance had the authority to direct some of plaintiff’s work activities, but did not have authority to fire, demote, or otherwise discipline plaintiff. The controlling issue was whether the employee qualified as a “supervisor.” Some courts of appeals had employed a narrow definition of the term, confining it to persons with authority to cause tangible changes in the plaintiff’s employment condition. Other courts and the Equal Employment Opportunity Commission construed the term broadly.

The majority opinion in Vance opted for the narrow interpretation, finding that requiring a “supervisor” to have the power to take tangible employment actions against the plaintiff was implicit in the court’s prior holding, and that such a rule was more easily applied.

For attorneys practicing outside the employment arena, the case bears an important lesson. The employee argued, among other things, that the definition of “supervisor” did not necessarily require disciplinary or hiring and firing authority, but extended to those persons who had authority to direct the employee’s work. The Supreme Court noted that the term “supervisor” had both a broad and a narrow meaning, both in law and in common usage. But finding a proper definition for the term was not the real issue:

[P]etitioner is misguided in suggesting that we should approach the question presented here as if “supervisor” were a statutory term. “Supervisor” is not a term used by Congress in Title VII. Rather, the term was adopted by this Court in [our prior opinions] as a label for the class of employees whose misconduct may give rise to vicarious employer liability. Accordingly, the way to understand the meaning of the term “supervisor” for present purposes is to consider the interpretation that best fits within the highly structured framework that those cases adopted.

In other words, it is a mistake to treat the judicially-created “supervisor” rule like a “text” such as a statutory term or contractual provision. The question is not what the term means in the abstract, but what the court meant when it created the underlying rule. This in turn requires the parties to delve into the details of the prior cases to determine the jurisprudential reasoning behind the use of the phrase.

Several observations seem appropriate. First, it is quite possible that plaintiff’s counsel was misled by the fact that plaintiff was asserting a statutory cause of action. If the case were purely a common law matter, the parties would likely disagree over whether a particular requirement—“proximate causes” for instance—was satisfied, but they would probably not argue over the definition of “proximate cause”; the term would be recognized as a judicial construct. Employment discrimination law exists in a sort of no-man’s land with Title VII setting forth very broad requirements, but with courts giving shape to its real content through a half century of case law. It is easy to confuse these court-created constructions with actual positive law.

Second, the Vance case illustrates that while some justices are confirmed textualists when construing statutues and shun appeals to legislative history, they remain receptive to arguments rooted in judicial history.

Finally, it appears that the deference given to the interpretations of the law by administrative agencies is substantially reduced when the agency attempts to interpret a judicial construct such as the supervisor rule. The Supreme Court gave the EEOC’s construction of supervisor short shrift, holding that it was entitled to deference so far as it was persuasive. This contrasts markedly with recent cases holding that agency construction of statutes and regulations are entitled to special deference in the agency’s field of expertise.

Advocates must carefully assess the nature of the real issue at conflict in a given case. An adept and persuasive construction of a judicially-created term may be useless when the court responds, “But that is not what we meant.” Such an advocate is like the black-clad master swordsman in Raiders of the Lost Ark who brandishes his scimitar with great skill—until Indiana Jones simply pulls out his revolver and shoots him.

Florida Appellate Court Clarifies Knowledge Base for Corporate Representative Deponents

On March 20, 2013, Florida’s Fourth District Court of Appeal issued an opinion clarifying the procedure for designating, and producing, a corporate representative for deposition pursuant to Florida Rule of Civil Procedure 1.310(b)(6). In Carriage Hills Condominium, Inc. v. JBH Roofing and Constructors, Inc., 109 So. 3d 329 (Fla. 4th DCA 2013), a roofing contractor brought an action against a condominium owners’ association for breach of contract and other claims. JBH noticed for deposition the “corporate representative of [the Association] with the most knowledge of the allegations contained in the complaint.” The Association designated its president to appear at the deposition, during which the witness testified as to her opinions and beliefs. In analyzing whether summary judgment was properly entered in favor of JBH, the Fourth District held that JBH did not properly notice the Association’s corporate representative for deposition and the Association did not designate the proper deponent, per Rule 1.310(b)(6).

As the Fourth District explained, Rule 1.310(b)(6) was borrowed from a 1970 amendment to its federal counterpart, Federal Rule of Civil Procedure 30(b)(6), and is designed, in part, to streamline litigation. The rule imposes burdens upon both parties; the party seeking the discovery is required to describe, with reasonable particularity, the matter(s) for examination and the responding party must then produce one or more witnesses who can testify as to the corporation’s knowledge of the specified topics. “This enables the deposing party to gather information from the corporation by way of a human being named by that corporation to serve as the corporation’s voice.” As the corporation’s “voice,” the deponent does not testify about matters within his or her personal knowledge, but rather speaks for the corporation.

The Fourth District confirmed that Rule 1.310(b)(6) does not require – or even contemplate, for that matter – that the corporation produce the witness with the “most knowledge” on the specified topic(s); in fact, the witness is not required to possess any personal knowledge at all. Rather, the corporation must prepare the witness, whether from documents, past employees, or other sources, so that the witness can give “complete, knowledgeable, and binding answers on behalf of the corporation.” The appellate court’s conclusion is consistent with federal cases interpreting the corollary federal rule. See, e.g., United States v. Taylor, 166 F.R.D. 356, 361 (M.D.N.C. 1996).

When a Rule 1.310(b)(6) deposition is properly noticed and conducted, the testimony of the witness “is deemed to be the testimony of the corporation itself.” Thus, the testimony is binding on the corporation. The appellate court noted that this does not mean that the testimony conclusively establishes a fact and estops the corporation from offering other evidence on the issue. Rather, “testimony given at a Rule 1.310(b)(6) deposition is evidence which, like other deposition testimony, can be contradicted.” 

The Carriage Hills Court noted that in the case before it, the deposition was not properly noticed, per Rule 1.310(b)(6), because JBH’s notice did not request the Association to designate a witness “to testify on its behalf . . . about matters known or reasonably available to the organization.” Rather, it requested the deposition of the corporate representative with “the most knowledge of the allegations in the complaint.” The deposition notice also failed to designate with reasonable particularity the issues to be examined. In response to the defective notice, the Association produced a person it believed had the “most knowledge” of the allegations in the complaint, despite the fact that the deponent testified that she disagreed with many of the corporation’s positions and simply gave her opinions and beliefs. Thus, the Association failed to satisfy its burden under the rule, as it did not prepare the witness to testify regarding the corporation’s position.

Utilized properly, Rule 1.310(b)(6) gives the corporation being deposed more control by permitting it to select and prepare a witness to testify on its behalf. In exchange for that control, the corporation is required to “have the right person present at the deposition.”

Does The Income Withholding for Support Act Require Strict Compliance?

Our preview of newly petitions for leave to appeal allowed by the Illinois Supreme Court in the closing days of the just-ended May term continues with Schultz v. Performance Lighting, Inc., a decision from the Second District.

The plaintiff in Schultz obtained a divorce in 2009. She was awarded $600 every two weeks in child support from her ex-husband. At the time, the ex-husband was working for the defendant in Schultz.

In Illinois, the Income Withholding for Support Act was enacted in order to provide custodial parents with a method to more easily collect court-ordered support payments from their former spouses. The plaintiff served a notice to withhold income for support on the defendant, personally serving the ex-husband’s attorney at the same time. Section 35 of the Act places a duty on a payor, once served with a notice, to pay over the ordered portion of the obligor’s income to the State Disbursement Unit. According to the Act:

The income withholding notice shall:

* * *

(9) include the Social Security number of the obligor; and

(10) include the date that withholding for current support terminates, which shall be the date of termination of the current support obligation set forth in the order for support; and

(11) contain the signature of the obligor or the printed name and telephone number of the authorized representative of the public office, except that the failure to contain the signature of the obligor or the [identifying information for the public office] shall not affect the validity of the income withholding notice. 750 ILCS 28/20(c)

The plaintiff’s notice contained neither the ex-husband’s Social Security number, nor the termination date for the support obligation. So: does the statute require strict compliance, such that the notice’s shortcomings should be fatal, or is substantial compliance enough?

The defendant made no payments to the State Disbursement Unit on the ex-husband’s account. Subsequently, the defendant sued her ex-husband’s employer, alleging that the defendant had breached a statutory duty to pay, triggering a statutory $100 per day penalty. The trial court held that strict compliance was required by the statute and dismissed the plaintiff’s complaint.

The Second District affirmed. Two reasons compelled a finding that strict compliance was required by the statute, according to the Court. First, the Court relied upon a line of authority holding that when a statute uses the word “shall,” and imposes a penalty or consequence for non-compliance, the duty imposed is mandatory and strict compliance is required. Although there was no penalty for failure to include the missing information in the notice, the Court noted that knowing non-compliance with a valid notice to withhold triggered an automatic penalty. Second, the Court invoked expressio unius est exclusio alterius, the ancient legal maxim teaching that an enumerated list is presumptively exclusive. Here, the statute’s statement that non-compliance with the signature requirement doesn’t invalidate the notice implies that non-compliance with the other requirements does invalidate the notice.

Schultz will likely be decided in the first half of 2014.

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