Opinion ID: 2144159
Heading Depth: 1
Heading Rank: 7

Heading: Governmental/Proprietary Function

Text: Class plaintiffs allege that the City was engaged in a proprietary function, as opposed to a governmental function, by leasing the tunnel to utility and telecommunication companies. Thus, according to class plaintiffs, the Tort Immunity Act does not apply to this case, and the City is not immune from liability as a matter of law. The trial court rejected this contention, reasoning that the Act did away with the governmental/proprietary function distinction. The appellate court affirmed, relying on its decision in Corral v. Chicago Park District, 277 Ill.App.3d 357, 213 Ill.Dec. 832, 660 N.E.2d 89 (1995). We agree with the trial and appellate courts. Under the doctrine of sovereign or governmental immunity, a governmental unit is immune from tort liability. The doctrine originates in the common law principle that the King can do no wrong, and the more logical and practical principle that there can be no legal right against the authority that makes the law on which the right depends. Burdinie v. Village of Glendale Heights, 139 Ill.2d 501, 506, 152 Ill.Dec. 121, 565 N.E.2d 654 (1990) (and authorities cited therein). The doctrine of sovereign immunity runs counter to the basic concept of tort law that liability follows negligence. Molitor v. Kaneland Community Unit District No. 302, 18 Ill.2d 11, 20, 163 N.E.2d 89 (1959); accord 18 McQuillen on Municipal Corporations § 53.02.10, at 131-32 (3d rev. ed. 1993); C. Rhyne, The Law of Local Government Operations § 32.2, at 1042 (1980). To mitigate the harshness and injustice of the sovereign immunity doctrine, courts and state legislatures developed exceptions to the rule. A major exception that was engrafted onto the common law doctrine of sovereign immunity was the governmental/proprietary function distinction. 18 McQuillen on Municipal Corporations § 53.02.10, at 132 (3d rev. ed. 1993); C. Rhyne, The Law of Local Government Operations § 32.2, at 1042 (1980). Under this exception to governmental immunity, when a municipality performs a governmental function, the municipality is acting as the arm or agent of the state and, thus, is immune from liability for the torts committed by its officers and employees. When the municipality performs a proprietary or corporate function, the municipality is liable for the tortious conduct of its officers and employees. Whether a governmental function exists is determined from the nature of the duty to be discharged or the act to be done. If the duty or act involves the general public benefit, rather than a corporate or business undertaking for the municipality's corporate benefit, then the function is governmental whether the duty be directly imposed on the municipality or is voluntarily assumed. Merrill v. City of Wheaton, 379 Ill. 504, 507-08, 41 N.E.2d 508 (1942); Gebhardt v. Village of LaGrange Park, 354 Ill. 234, 236, 238, 188 N.E. 372 (1933); accord 18 McQuillen on Municipal Corporations §§ 53.23, 53.29 et seq. (3d rev. ed. 1993); C. Rhyne, The Law of Local Government Operations § 32.2, at 1042 (1980). This court conceded long ago that the governmental/proprietary function distinction is vague and difficult to apply. It is not often easy to determine in a particular case whether the activity is governmental or proprietary. Roumbos v. City of Chicago, 332 Ill. 70, 74-75, 163 N.E. 361 (1928). Further, a study of cases from other states reveals a wide, unreconcilable divergence as to what functions or activities are governmental and what are proprietary. Many states have abandoned the distinction. 18 McQuillen on Municipal Corporations § 53.24.10 (3d rev. ed. 1993); C. Rhyne, The Law of Local Government Operations § 32.2, at 1042-44 (1980). However, as we have repeatedly noted, this court abolished sovereign immunity in 1959. Molitor, 18 Ill.2d at 21-22, 163 N.E.2d 89. In response to Molitor, the legislature in 1965 enacted the Tort Immunity Act. Also, the 1970 Illinois Constitution abolishes the doctrine of sovereign immunity, except as the legislature may provide by statute. Ill. Const. 1970, art. XIII, § 4. The Tort Immunity Act adopted the general principle that local governmental units are liable in tort, but limited this liability with an extensive list of immunities based on specific government functions. Based on these developments, governmental units are liable in tort on the same basis as private tortfeasors unless a tort immunity statute imposes conditions upon that liability. Barnett v. Zion Park District, 171 Ill.2d 378, 386, 216 Ill.Dec. 550, 665 N.E.2d 808 (1996); Burdinie, 139 Ill.2d at 506-07, 152 Ill.Dec. 121, 565 N.E.2d 654. We have explained that the governmental/proprietary function distinction was developed as an exception to and engrafted onto the sovereign immunity doctrine. We have noted that the sovereign immunity doctrine has been abolished and that a governmental unit is liable in tort on the same basis as a private tortfeasor absent an immunity statute. Accordingly, we hold that the governmental/proprietary function distinction does not preclude the application of the Tort Immunity Act. See Barnett, 171 Ill.2d at 387-88, 216 Ill.Dec. 550, 665 N.E.2d 808; List v. O'Connor, 19 Ill.2d 337, 340, 167 N.E.2d 188 (1960); Corral v. Chicago Park District, 277 Ill.App.3d 357, 361-64, 213 Ill. Dec. 832, 660 N.E.2d 89 (1995); Smith v. Godin, 61 Ill.App.3d 480, 481, 18 Ill.Dec. 754, 378 N.E.2d 218 (1978).