v.
Village of Dolton
2023 IL App (1st) 211662-U No. 1-21-1662 Order filed May 19, 2023 Fifth Division
NOTICE: This order was filed under Supreme Court Rule 23 and is not precedent except in the limited circumstances allowed under Rule 23(e)(1). ______________________________________________________________________________ IN THE APPELLATE COURT OF ILLINOIS FIRST DISTRICT __________________________________________________________________________ DAVID GRAHAM, ) Appeal from the ) Circuit Court of Plaintiff-Appellee and Cross-Appellant, ) Cook County ) v. ) ) VILLAGE OF DOLTON and ROBERT COLLINS, JR., ) No. 17 L 9898 ) Defendants ) ) (Village of Dolton, Defendant-Appellant and Cross- ) Honorable Appellee; and Robert Collins, Jr., Defendant-Cross ) James E. Snyder, Appellee). ) Judge presiding.
JUSTICE NAVARRO delivered the judgment of the court. Presiding Justice Delort and Justice Lyle concurred in the judgment. ORDER ¶1 Held: Where Public Employee Disability Act (5 ILCS 345/0.01 et seq. (West 2016)) benefits plaintiff received under a settlement agreement with defendant are wages under the Illinois Wage Payment and Collection Act (820 ILCS 115/1 et seq. (West 2016)) and the Illinois Wage Payment and Collection Act awards costs and reasonable attorney fees to a prevailing employee under the statute, we affirm the circuit court’s conclusion that plaintiff was entitled to attorney fees and costs. However, where the court did not explain its drastic reduction in the attorney fees and costs requested by plaintiff in a fees and costs petition, we reverse the court’s award and remand the matter for a new hearing on that petition. We also deny defendants’ motion to dismiss plaintiff’s cross-appeal and strike his docketing statement, which was taken with the case. ¶2 Following a settlement agreement between plaintiff, David Graham, and defendant, the Village of Dolton, to resolve claims under the Illinois Wage Payment and Collection Act (IWPCA) (820 ILCS 115/1 et seq. (West 2016)), among other laws, Graham filed a petition for attorney fees and costs. The circuit court awarded Graham $100,000 in attorney fees and costs based upon the settlement agreement. The Village appealed, and in Graham v. Village of Dolton, 2021 IL App (1st) 200030-U, we reversed the circuit court and remanded the matter to determine whether Graham was entitled to attorney fees and costs pursuant to a statute. On remand, Graham filed a supplemental petition for attorney fees and costs pursuant to, in part, the IWPCA, and requested approximately $213,000 combined. The court granted his petition, but reduced his requested amount to $100,000 without providing an explanation and only awarded him attorney fees. ¶3 On appeal, the Village contends that the circuit court erred in determining that Graham was entitled to attorney fees under the IWPCA. And in a cross-appeal, Graham primarily contends that the court erred when it reduced his requested amount of attorney fees in his supplemental petition. Although we agree with the court that Graham was entitled to attorney fees under the IWPCA, we find that the court erred when it reduced his requested amount to $100,000 without providing a sufficient explanation and potentially did not award him any costs. For the reasons that follow, while we affirm in part, we also reverse in part and remand the matter for a new hearing on Graham’s supplemental petition for attorney fees and costs. We also deny defendant Robert Collins, Jr., and the Village’s motion to dismiss Graham’s cross-appeal and strike his docketing statement, which was taken with the case.
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¶4 I. BACKGROUND
¶5 A. Appeal No. 1
¶6 Graham worked as a police officer in the Village. Beginning in 2010, he made whistleblower complaints to the Federal Bureau of Investigation and the Cook County State’s
Attorney concerning suspected violations of law committed by officials and officers within the Village. In 2013, Graham suffered an injury while on duty. The year after, he suffered a severe head injury, which required him to take intermittent time off. In 2015, the Village appointed Robert
Collins, Jr., as chief of police, and Graham made various whistleblower complaints to him. Two years later, Graham’s doctor instructed him to refrain from working due to his head injury until he received medical clearance. Later that year, Collins informed Graham that he longer had any benefit time remaining and began deducting Graham’s sick and benefit time for when Graham was off work. In response, Graham told Collins that, because his injuries occurred while on duty, he was covered under the Public Employee Disability Act (PEDA) (5 ILCS 345/0.01 et seq. (West
2016)). To this end, Graham demanded the return of the benefit and sick time that had been
deducted. Following this demand, the Village did not pay Graham his regular salary. As a result, in September 2017, Graham sued the Village and Collins alleging violations of the Whistleblower
Act (740 ILCS 174/1 et seq. (West 2016)), PEDA (5 ILCS 345/0.01 et seq. (West 2016)), and the IWPCA (820 ILCS 115/1 et seq. (West 2016)).
¶7 In July 2019, Graham and the Village reached a settlement agreement that, in part, required
Graham to release the Village and Collins from any and all claims arising out of Graham’s
employment with the Village with limited exceptions. Additionally, the agreement required that, upon execution, Graham be placed on a paid leave of absence under PEDA for a total of 14 months.
In addition, Graham and the Village consented to an agreed order of dismissal, but that:
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“[t]he [Circuit] Court shall retain jurisdiction for purposes of allowing Graham to file a Petition seeking to recover his costs and attorney’s fees. The parties shall
provide an Agreed Briefing Schedule. The Parties acknowledge that Graham is the prevailing party for purposes of his petition for attorney’s fees and costs.”
Although the settlement agreement included Graham releasing Collins from claims, Collins was not a signatory to the agreement.
¶8 Thereafter, Graham filed a petition for attorney fees and costs in the circuit court asserting, in part, that he was entitled to such under the IWPCA as the prevailing party pursuant to the settlement agreement and his benefits under PEDA from the settlement agreement were wages for purposes of the IWPCA. In total, Graham sought $142,605 in attorney fees and $13,301.88 in costs, which represented expenses incurred from the initiation of the case up until, and including, Graham’s petition. On December 6, 2019, the circuit court granted Graham’s petition for attorney fees and costs. Initially, the court found that, pursuant to the settlement agreement, Graham was the prevailing party and entitled to attorney fees and costs. The court highlighted that the Village
did not object to the hourly rate of Graham’s attorney or his paralegal, and the court found that the rate charged by both was “customary.” The court next asserted that it reviewed Graham’s petition
for “the skill and standing of [Graham’s] attorney, the nature of the case, the novelty of the issues, the significance of the case, the degree of responsibility, the benefit of the client and the reasonable connection between the fees sought and the amount involved in the litigation.” Following that
review, the court determined that Graham was entitled to “reasonable attorney’s fees and costs” in the amount of $100,000. Although the court listed various factors it relied upon in determining the award, it did not provide an explicit explanation as to why it reduced the amount of fees and costs
Graham requested.
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¶9 The Village appealed from the circuit court’s judgment contending that it erred by determining the parties’ settlement agreement constituted a contractual undertaking by the Village to pay for Graham’s attorney fees and costs. Graham v. Village of Dolton, 2021 IL App (1st)
200030-U (Graham I). In February 2021, this court agreed with the Village and concluded that the settlement agreement did not contain an express provision providing that the Village would pay
Graham’s attorney fees and costs in the underlying action. Id. ¶¶ 18, 20. Thus, we disagreed with the circuit court that Graham was entitled to recover his attorney fees and costs from the Village pursuant to the settlement agreement. Id. ¶ 20. We noted the court did not address Graham’s argument that he was entitled to attorney fees and costs under the IWPCA, and therefore, we reversed and remanded the matter for the court to address whether Graham was entitled to attorney fees and costs pursuant to a statute. Id. Given this conclusion and remedy, we found it unnecessary to address contentions made by Graham in a cross-appeal that the court erred in reducing his requested attorney fees and costs. Id.
¶ 10 B. Appeal No. 2 (The Instant Appeal)
¶ 11 Upon remand to the circuit court, Graham filed a supplemental petition for attorney fees and costs pursuant to both the IWPCA and the Whistleblower Act asserting that, because he was the prevailing party in light of the settlement agreement, he was entitled to attorney fees and costs under both statutes. Graham contended that the benefits he obtained in the settlement agreement
pursuant to PEDA were wages, as defined by the IWPCA, and he was entitled to attorney fees for the work performed on all counts of his complaint, not just those counts related to the IWPCA.
Graham further posited that any perceived disparity between the benefit provided to him under the settlement agreement and the attorney fees did not, standing alone, justify reducing the attorney fees award. Lastly, Graham asserted that his attorney’s hourly rates were reasonable. As a result, 211666
Graham sought $198,722.75 in attorney fees, which consisted of fees for the work performed in the circuit court prior to the appeal in Graham I (and subject to his initial petition for attorney fees), fees incurred in connection with Graham I and fees for briefing the supplemental petition.
Additionally, Graham sought $14,960.04 in costs, which consisted primarily of costs incurred prior to the appeal in Graham I (and subject to his initial petition for costs) and costs incurred in connection with Graham I. Graham supported his supplemental petition with various items of evidence, including invoices for legal work and costs. The Village opposed Graham’s supplemental petition arguing that he was not entitled to attorney fees and costs under either statute, and even if he was, a substantial reduction in fees and costs was warranted.
¶ 12 On November 24, 2021, the circuit court found that Graham was the prevailing party based on the settlement agreement and he was “therefore entitled to fees under [the IWPCA].” The court
concluded that “[t]he reasonable attorney’s fees were determined by an evidentiary hearing in the proceedings prior to the appeal in the amount of $100,000.00.” Consequently, the court granted
Graham’s petition for “attorneys’ fees” in the amount of $100,000. It did not state that it awarded
Graham any costs and did not explain its fee award beyond referencing the prior proceedings.
¶ 13 Thereafter, the Village timely appealed the circuit court’s judgment and Graham filed a cross-appeal naming the Village and Collins as cross-appellees.
¶ 14 II. ANALYSIS
¶ 15 A. The Village’s Appeal
¶ 16 The Village contends that the circuit court erred in determining that Graham was entitled to attorney fees and costs under the IWPCA where benefits pursuant to PEDA do not constitute wages within the meaning of the IWPCA, and the IWPCA does not award attorney fees and costs based on an employee prevailing, as such a standard does not appear in the statute.
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¶ 17 We begin with the Village’s argument that benefits pursuant to PEDA do not constitute wages within the meaning of the IWPCA. When we interpret a statute, our primary goal is to determine and give effect to the intent of our legislature in enacting the particular provision at issue. Cassidy v. China Vitamins, LLC, 2018 IL 122873, ¶ 17. “The statutory language, given its plain and ordinary meaning, is generally the most reliable indicator of that legislative intent.” Id.
When the language of a statute is clear and unambiguous, we must adhere to its plain language and meaning. Wilkins v. Williams, 2013 IL 114310, ¶ 22. Because whether benefits pursuant to
PEDA constitute “wages” under the IWPCA is a question of statutory interpretation, we review this issue de novo. State ex rel. Leibowitz v. Family Vision Care, LLC, 2020 IL 124754, ¶ 35.
¶ 18 This issue requires us to analyze the interplay of the IWPCA and PEDA. The IWPCA applies to nearly every employee and employer in the State of Illinois with limited exceptions not relevant here. 820 ILCS 115/1 (West 2016). In part, the statute requires that an employer timely
pay its employee and prohibits certain deductions from an employee’s wages. 820 ILCS 115/4, 115/9 (West 2016). The purpose of the IWPCA is to provide an employee with a cause of action against his employer for the payment of wages owed to them without risk of retaliation from his employer. Byung Moo Soh v. Target Marketing Systems, Inc., 353 Ill. App. 3d 126, 129 (2004);
Miller v. Kiefer Specialty Flooring, Inc., 317 Ill. App. 3d 370, 374 (2000). Such an action is akin to a claim for breach of contract. McCleary v. Wells Fargo Securities, L.L.C., 2015 IL App (1st)
141287, ¶ 29. Under section 14(a) of the IWPCA:
“Any employee not timely paid wages, final compensation, or wage supplements by his or her employer as required by this Act shall be entitled to recover through
a claim filed with the Department of Labor or in a civil action, but not both, the amount of any such underpayments and damages of 5% of the amount of any such
211668 underpayments for each month following the date of payment during which such underpayments remain unpaid. In a civil action, such employee shall also recover costs and all reasonable attorney’s fees.” 820 ILCS 115/14(a) (West 2016).
Under the IWPCA, “wages” are “defined as any compensation owed an employee by an employer pursuant to an employment contract or agreement between the 2 parties, whether the amount is determined on a time, task, piece, or any other basis of calculation.” 820 ILCS 115/2 (West 2016).
¶ 19 Meanwhile, PEDA provides that:
“Whenever an eligible employee suffers any injury in the line of duty which causes him to be unable to perform his duties, he shall continue to be paid by the employing public entity on the same basis as he was paid before the injury, with no deduction
from his sick leave credits, compensatory time for overtime accumulations or vacation, or service credits in a public employee pension fund during the time he is unable to perform his duties due to the result of the injury.” 5 ILCS 345/1(b) (West
2016).
PEDA was enacted to “provide for a continuation of full pay for law enforcement officers,” among others, “who suffer disabling injuries in the line of duty.” Gibbs v. Madison County Sheriff’s
Department, 326 Ill. App. 3d 473, 477 (2001).
¶ 20 In Bahr v. Bartlett Fire Protection District, 383 Ill. App. 3d 68 (2008), this court addressed a similar issue to the one at issue in this appeal. There, we determined that a firefighter, who was the plaintiff in an action against his employer, was entitled to an additional six months of benefits under PEDA for an injury he sustained while on the job. Id. at 75. After making this finding, this
court addressed whether the plaintiff was entitled to attorney fees under the Attorneys Fees in Wage Actions Act. Id. at 78-79. At the time, the Attorneys Fees in Wage Actions Act provided for 211669 reasonable attorney fees for an employee-plaintiff when he or she brought “ ‘an action for wages earned *** and establishe[d] by the decision of the court or jury that *** [those wages were] justly due and owing.’ ” Id. at 79 (quoting 705 ILCS 225/1 (West 2004)). Because “the plaintiff was entitled to an additional six months of benefits under [PEDA],” we found he was entitled to attorney fees under the Attorneys Fees in Wage Actions Act. Id. Thus, under Bahr, PEDA benefits were considered “wages earned” for purposes of the Attorneys Fees in Wage Actions Act.
¶ 21 Importantly, at the time Bahr was decided, the IWPCA did not provide a right to attorney fees or costs. Only beginning in 2011 did the IWPCA allow for a right to attorney fees and costs.
See Pub. Act 96-1407, § 10 (eff. Jan. [1], 2011) (amending 820 ILCS 115/14). And thus, before
2011, in order to recover attorney fees or costs for lawsuits brought under the IWPCA, a plaintiff had to seek relief under the Attorneys Fees in Wage Actions Act. See Thomas v. Weatherguard
Construction Co., 2015 IL App (1st) 142785, ¶ 72 (observing that, “[p]rior to the 2011 amendment, attorney fees could be sought in [IWPCA] suits, under the Attorneys Fees in Wage Actions Act”).
The 2011 amendment “merely changed the source of the statutory authority for a remedy that was already available to claimants.” Id. If PEDA benefits were considered “wages earned” for purposes of the Attorneys Fees in Wage Actions Act (see Bahr, 383 Ill. App. 3d at 79), it logically follows that they are considered “wages” for purposes of the IWPCA, which has a broad definition of “any compensation owed an employee by an employer pursuant to an *** agreement between the 2 parties.” (Emphasis added.) 820 ILCS 115/2 (West 2016); see also Kerner v. State Employees’
Retirement Systems, 72 Ill. 2d 507, 513 (1978) (when a statute uses the word “any,” that implies a legislative intent for a broad definition).
¶ 22 Still, the Village posits that the term “wages” in the IWPCA connotes payment for only work actually performed. However, nothing in the IWPCA supports such a construction. First, as
211670 noted, the statute’s use of the word “any” to modify “compensation” signals a broad construction
of the term “compensation.” See id. Second, in 1984, our legislature changed the definition of “wages” for purposes of the IWPCA from “compensation for labor or services rendered” to “any
compensation owed an employee by an employer pursuant to an employment contract or agreement between the 2 parties.” Pub. Act 83-198 (eff. Jan. [1], 1984) (amending Ill. Rev. Stat.
1983 ch. 48, ¶ 39m-2) (the predecessor statute to 820 ILCS 115/2). This evinces a legislative intent to make the definition of “wages” in the IWPCA broader than just payment for work actually performed. Moreover, in Anderson v. Illinois Bell Telephone Co., 961 F. Supp. 1208, 1217 (N.D.
Ill. 1997), a federal court rejected an argument that the “application of the IWPCA is contingent
on an employee actually performing services” where “to be consistent with the legislative intent, the term ‘wages’ must be broadly construed to encompass a wide range of compensation due employees.” We likewise reject the Village’s argument that the term “wages” in the IWPCA connotes payment for only work actually performed.
¶ 23 Based on Bahr, the purpose of PEDA being enacted, which was to provide continuance of full pay to law-enforcement officers who are injured on the job (see Gibbs, 326 Ill. App. 3d at 477) and the broad definition of “wages” under the IWPCA given the use of “any” (see Kerner, 72 Ill.
2d at 513), the circuit court correctly found that the PEDA benefits Graham received through his settlement agreement with the Village were wages under the IWPCA.
¶ 24 Having concluded that Graham’s PEDA benefits are wages for purposes of the IWPCA, we next must determine on what standard the IWPCA awards attorney fees and costs, which again is a question of statutory interpretation that we review de novo. Leibowitz, 2020 IL 124754, ¶ 35.
The IWPCA provides that, where an employee is “not timely paid wages*** by his or her employer as required by this Act,” he or she “shall be entitled to recover through a claim *** in a civil action.
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*** In a civil action, such employee shall also recover costs and all reasonable attorney’s fees.”
820 ILCS 115/14(a) (West 2016). There is no explicit standard in section 14(a) for an award of attorney fees and costs other than the party being eligible be an “employee.” However, multiple decisions analyzing section 14(a) have implied the standard of prevailing. See Niiranen v. Carrier
One, Inc., 2022 WL 103722, at *8 (N.D. Ill. Jan. 11, 2022) (acknowledging that “[p]laintiffs are entitled to recover costs and reasonable attorney’s fees should they prevail on their IWPCA *** claims”); Gunn v. Stevens Security & Training Services, Inc., 2020 WL 5593747, at *2 (N.D. Ill.
Sept. 18, 2020) (asserting that, “[a]s prevailing parties under the *** IWPCA, [p]laintiffs are entitled to an award of their reasonable attorney fees”); Thomas v. Weatherguard Construction
Co., 2018 IL App (1st) 171238, ¶ 71 (observing the purpose of the attorney-fee provision in the IWPCA is to “protect[ ] exploited workers” and such workers “would not be in a position to pursue a civil action without the statute’s incentive of fee recovery by the prevailing attorney”). 1
¶ 25 Nevertheless, the Village cites Nagel v. Gerald Dennen & Co., 272 Ill. App. 3d 516, 525-
26 (1995), where this court observed that the “[IWPCA] does not authorize an award of attorney fees to the prevailing party.” Nagel, however, was published in 1995, and at the time, it was true
that the IWPCA did not authorize an award of attorney fees to the prevailing party. And thus, in 1995, the source of an award of attorney fees for actions under the IWPCA would have been through the Attorneys Fees in Wage Actions Act. See Thomas, 2015 IL App (1st) 142785, ¶ 72.
But, as previously discussed, Public Act 96-1407, which became effective in 2011, amended the