Opinion ID: 3135446
Heading Depth: 3
Heading Rank: 2

Heading: Exhaustion and the Variance Procedure

Text: We next turn to defendants’ contention that plaintiffs failed to exhaust their administrative remedies by failing to seek a variance before the Department. We initially note that the circuit court dismissed the amended complaint with prejudice on the grounds of lack of standing, ripeness and failure to exhaust administrative remedies. With respect to the exhaustion-of-remedies ground, the circuit court did not consider whether plaintiffs were required to seek a variance before proceeding; this issue was not raised by defendants until sometime in the appellate court. Instead, the exhaustion argument in the circuit court centered around whether plaintiffs should have to slog through a disciplinary proceeding and suffer loss of their licences, or at least wait to be cited and sued, before challenging the rule in circuit court. The appellate court affirmed the dismissal with prejudice on the sole grounds of ripeness. It did not reach the exhaustion-of-remedies issue, finding it was unnecessary to reach it given its holding on ripeness. We must reject the defendants’ exhaustion argument for several reasons. First, the Pharmacy Practice Act of 1987 (Pharmacy Act) (225 ILCS 85/11 et seq. (West 2004)) does not provide any procedure for the filing of a claim by a party who has conscientious objections to the rule and whose rights might be chilled by the rule. Nor does it provide any procedure that would govern the agency’s decision with respect to a variance from the rule. Specifically, the variance statute reads as follows: “Duties of the Department. The Department shall exercise the powers and duties prescribed by the Civil Administrative Code of Illinois for the administration of Licensing Acts and shall exercise such powers and duties necessary for effectuating the purpose of this Act. However, the following powers and duties shall be exercised only upon action and -17- report in writing of a majority of the Board of Pharmacy to take such action: (a) Formulate such rules, not inconsistent with law and subject to the Illinois Administrative Procedure Act, as may be necessary to carry out the purposes and enforce the provisions of this Act. The Director may grant variances from any such rules as provided for in this Section;