Opinion ID: 2525352
Heading Depth: 1
Heading Rank: 11

Heading: Primary Jurisdiction When Section 4(d)(6) Claims Involve Damages

Text: ¶ 41 Plaintiff's next argument, and the main issue in this appeal, concerns whether a section 4(d)(6) claim that seeks damages can be brought in the circuit court pursuant to the doctrine of primary jurisdiction. While it is clear that section 4(d)(6) claims must originally be brought in the MVRB, section 13 allows for a dealer to bring a claim for damages in the circuit court. Thus, if there is a claim under section 4(d)(6) that also seeks damages, it would appear the different sections of the statute are at odds with one another. The two provisions must be reconciled to resolve the tension between them. The question, then, is what is the best way to do so under the Act, keeping in mind the constitutional separation of powers issue addressed by this court in Fields. Further, if the legislature meant to deprive the circuit courts of original jurisdiction over such claims, it needed to do so explicitly. ¶ 42 The proper solution, argues plaintiff, is the doctrine of primary jurisdiction, whereby the claim must be brought originally in the circuit court and can then be referred out to the MVRB for a determination of good cause. If good cause is not found for the termination, the case is returned to the circuit court, which had retained jurisdiction, to determine damages. Defendants counter that the proper procedure is the two-step process advocated by the appellate court below, where a section 4(d)(6) claim is brought originally in the MVRB and, if the MVRB rules in favor of the dealer, the dealer may then seek damages in the circuit court pursuant to section 13. ¶ 43 Under the doctrine of primary jurisdiction, when a court has jurisdiction over a matter, it should, on some occasions, stay the judicial proceedings pending referral of the controversy, or a portion of it, to an administrative agency having expertise in the area. People v. NL Industries, 152 Ill.2d 82, 95, 178 Ill.Dec. 93, 604 N.E.2d 349 (1992). The doctrine of primary jurisdiction is `concerned with promoting proper relationships between the courts and administrative agencies charged with particular regulatory duties.' Skilling, 163 Ill.2d at 288, 206 Ill.Dec. 110, 644 N.E.2d 1163 (quoting Kellerman v. MCI Telecommunications Corp., 112 Ill.2d 428, 444, 98 Ill.Dec. 24, 493 N.E.2d 1045 (1986), quoting United States v. Western Pacific R.R. Co., 352 U.S. 59, 63, 77 S.Ct. 161, 1 L.Ed.2d 126 (1956)). Under primary jurisdiction, a matter should be referred to an administrative agency when it has a specialized or technical expertise that would help resolve the controversy, or where there is need for uniform administrative standards. Skilling, 163 Ill.2d at 288-89, 206 Ill.Dec. 110, 644 N.E.2d 1163. ¶ 44 For the primary jurisdiction doctrine to be applicable, the circuit court must have original or concurrent jurisdiction over the subject matter of the dispute. NL Industries, 152 Ill.2d at 95, 178 Ill.Dec. 93, 604 N.E.2d 349; Skilling, 163 Ill.2d at 288, 206 Ill.Dec. 110, 644 N.E.2d 1163. Again, while the circuit courts have original jurisdiction over all justiciable matters, the legislature may vest exclusive original jurisdiction in an administrative agency. Skilling, 163 Ill.2d at 287, 206 Ill.Dec. 110, 644 N.E.2d 1163. However, if the legislature chooses to divest the circuit courts of original jurisdiction, it must do so explicitly. Skilling, 163 Ill.2d at 287, 206 Ill.Dec. 110, 644 N.E.2d 1163. We must turn to the statute and employ the tools of statutory interpretation to determine if the legislature intended to divest the circuit courts of jurisdiction to hear section 4(d)(6) claims that seek damages. ¶ 45 All provisions of a statutory enactment are viewed as a whole. People ex rel. Sherman v. Cryns, 203 Ill.2d 264, 279, 271 Ill.Dec. 881, 786 N.E.2d 139 (2003). Words and phrases must be interpreted in light of other relevant provisions of the statute and must not be construed in isolation. Cryns, 203 Ill.2d at 279-80, 271 Ill.Dec. 881, 786 N.E.2d 139. To determine the legislature's intent, the court may properly consider not just the statute's language, but also the purpose and necessity for the law, the evils sought to be remedied, and the goals to be achieved. Cryns, 203 Ill.2d at 280, 271 Ill.Dec. 881, 786 N.E.2d 139. The intent of the legislature `can be ascertained from a consideration of the entire Act, its nature, its object and the consequences that would result from construing it one way or the other.' Cryns, 203 Ill.2d at 280, 271 Ill.Dec. 881, 786 N.E.2d 139 (quoting Fumarolo v. Chicago Board of Education, 142 Ill.2d 54, 96, 153 Ill.Dec. 177, 566 N.E.2d 1283 (1990)). ¶ 46 Here, the statute is silent as to whether the MVRB has exclusive jurisdiction to hear section 4(d)(6) claims involving damages. We are aware of the requirement that the legislature must explicitly divest a circuit court of jurisdiction on a justiciable matter. However, because the statute in question was amended by the legislature in direct response to this court's ruling in Fields, we find that the legislature clearly intended to divest the circuit court of jurisdiction. ¶ 47 Plaintiff's proposal of primary jurisdiction does not pass constitutional muster. For the circuit court to have and retain primary jurisdiction over the claim, it must first have original or concurrent jurisdiction over the subject matter of the dispute. NL Industries, 152 Ill.2d at 95, 178 Ill.Dec. 93, 604 N.E.2d 349; Skilling, 163 Ill.2d at 288, 206 Ill.Dec. 110, 644 N.E.2d 1163. This court was clear, however, that determinations of good cause by a circuit court are unconstitutional violations of the separations of powers doctrine. Fields, 163 Ill.2d at 479, 206 Ill.Dec. 694, 645 N.E.2d 946. Therefore, claims under section 4(d)(6) cannot be brought at any time in the circuit courts. The circuit courts do not have subject matter jurisdiction over those claims, and thus have no original or concurrent jurisdiction to retain while the matter is farmed out to the MVRB for the good-cause determination. ¶ 48 Plaintiff argues, and the court recognizes, that to deprive the circuit courts of original jurisdiction and vest it in an administrative agency, the legislature must make such deprivation explicit. In NL Industries this court had to determine whether a circuit court possessed concurrent jurisdiction with Illinois Pollution Control Board over cost-recovery actions under the Illinois Environmental Protection Act. NL Industries, 152 Ill.2d at 96, 178 Ill.Dec. 93, 604 N.E.2d 349. The court first looked to the statutory language to determine intent, which stated `[t]he costs and damages provided for in this Section may be imposed by the Board in an action brought before the Board in accordance with Title VIII of this Act   .' (Emphases omitted.) NL Industries, 152 Ill.2d at 97, 178 Ill.Dec. 93, 604 N.E.2d 349 (quoting Ill.Rev.Stat.1987, ch. 111½, ¶ 1022.2(i)). The court noted that, while it appears that the legislature intended that cost recovery actions could be filed before the board, no language in that section explicitly precluded the circuit courts from hearing such cases. Further, later paragraphs in that same section referred to cost-recovery actions filed before the circuit court, leading this court to conclude that such actions may be properly filed there. NL Industries, 152 Ill.2d at 97, 178 Ill.Dec. 93, 604 N.E.2d 349. ¶ 49 Later amendments to the Illinois Environmental Protection Act also presume that jurisdiction is vested in the circuit courts to hear cost recovery, as the amendments refer to orders to pay costs `by the Board or a court of competent jurisdiction.' (Emphasis omitted.) NL Industries, 152 Ill.2d at 98, 178 Ill.Dec. 93, 604 N.E.2d 349 (quoting Ill.Rev.Stat.1989, ch. 111½, ¶ 1022.2(m)(5)(C)). After looking at the amendments, reading the statute as a whole, and examining the legislative history, this court concluded the circuit court should be vested with concurrent jurisdiction to hear cost-recovery actions under the Illinois Environmental Protection Act. NL Industries, 152 Ill.2d at 100, 178 Ill. Dec. 93, 604 N.E.2d 349. ¶ 50 In Skilling, this court needed to determine whether, in a workers' compensation claim for injuries suffered on the job, jurisdiction was exclusive with the administrative agency (the Industrial Commission) or if it was concurrent with the circuit court. Skilling, 163 Ill.2d at 286, 206 Ill.Dec. 110, 644 N.E.2d 1163. The statutory section at issue stated that all questions arising under the Workers' Compensation Act that had not been settled by agreement of the parties `shall, except as otherwise provided, be determined by the Commission.' Skilling, 163 Ill.2d at 286, 206 Ill.Dec. 110, 644 N.E.2d 1163 (quoting 820 ILCS 305/18 (West 1992)). Another section stated that any disputed questions of law shall be determined by the Commission. Skilling, 163 Ill.2d at 286, 206 Ill. Dec. 110, 644 N.E.2d 1163. The court concluded that the Act's pronouncement that `[a]ll questions arising under this Act    shall    be determined by the Commission' was insufficient to divest the circuit courts of jurisdiction. Skilling, 163 Ill.2d at 287, 206 Ill.Dec. 110, 644 N.E.2d 1163 (quoting 820 ILCS 305/18 (West 1992)). Citing to NL Industries, this court noted that there the Pollution Control Board and the circuit court had concurrent jurisdiction because no language in the Environmental Protection Act specifically excluded the circuit courts from deciding such cases, and [s]ince exclusionary language is similarly absent from the Workers' Compensation Act, we reach the same conclusion herein. Skilling, 163 Ill.2d at 287, 206 Ill.Dec. 110, 644 N.E.2d 1163. ¶ 51 The present case is distinguishable from the situations presented in NL Industries and Skilling. First, unlike in NL Industries and Skilling, the administrative body here (the MVRB) was created specifically to handle determinations of good cause because this court in Fields held that circuit courts were not competent to determine good cause lest they violate the separation of powers principle. This is not simply a situation where the MVRB may have more expertise and time to make good-cause determinations, but rather the circuit court is constitutionally prohibited from doing so via separation of powers. ¶ 52 Further, a full reading of the Act, including the reasons behind the amendments following Fields, makes clear that the legislature intended to deprive the circuit courts of jurisdiction to make good cause determinations and thus no concurrent jurisdiction exists. Unlike in NL Industries, where the Illinois Environmental Protection Act makes reference to recovery cost claims being brought in the Pollution Control Board or circuit court, nowhere in section 4(d)(6) or 12 of the Franchise Act does the statute speak of claims being brought before the MVRB or circuit court. Rather, the only body referred to as a place to bring those claims is the MVRB. The language of section 4(d)(6) claims tracks very closely with the language of section 4(e)(8), which this court in Fields held could never be brought in the circuit court. ¶ 53 Primary jurisdiction is not applicable in this case. The circuit court is not authorized to make a good-cause determination. Therefore there is no concurrent jurisdiction, and without concurrent or original jurisdiction, there can be no primary jurisdiction. NL Industries, 152 Ill.2d at 95, 178 Ill.Dec. 93, 604 N.E.2d 349. A case cannot be brought originally in the circuit court and then referred out by that court if that court has no jurisdiction over the subject matter in the first place. See Board of Education of Warren Township High School District 121 v. Warren Township High School Federation of Teachers, Local 504, 128 Ill.2d 155, 164, 131 Ill.Dec. 149, 538 N.E.2d 524 (1989). ¶ 54 The only workable approach is the two-step approach of the appellate court. The dealer may bring a section 4(d)(6) claim in the MVRB, where the Franchise Act has prescribed specific detailed procedures for handling such claims. Then, if no good cause is found for the termination of the dealer's franchise, a claim can be filed in the circuit court for damages. While the legislature could have been more explicit in divesting the circuit court of jurisdiction, under the narrow circumstances here, and considering that the legislature amended the statute after Fields to create the MVRB to determine issues such as good cause, it becomes clear, reading the statute as a whole, that the legislature intended this to be a two-step process. ¶ 55 Plaintiff argues that this two-step process runs afoul of the doctrine of res judicata. Plaintiff claims that, once a dealer prevails in the MVRB, there is no second cause of action to refile that same claim under section 13 for damages. Plaintiff argues that [i]f a dealer has the `option' to file before the court or MVRB as argued by [d]efendants, once a decision is rendered by the Board, the dealer has elected its forum and is precluded from seeking damages that it could have obtained by filing in the circuit court in the first instance. Defendants counter that all res judicata would do in the situation where a dealer prevails at the MVRB and proceeds to circuit court on damages is preclude the manufacturer from relitigating the issue of good cause for the termination, as determined by the MVRB. ¶ 56 Under the doctrine of res judicata, a final judgment on the merits rendered by a court of competent jurisdiction acts as a bar to a subsequent suit between the parties involving the same cause of action. River Park, Inc. v. City of Highland Park, 184 Ill.2d 290, 302, 234 Ill.Dec. 783, 703 N.E.2d 883 (1998). This bar extends to what was actually decided in the first action, as well as those matters that could have been decided in that suit. River Park, Inc., 184 Ill.2d at 302, 234 Ill.Dec. 783, 703 N.E.2d 883. There are three requirements that must be satisfied for res judicata to apply: (1) a final judgment on the merits rendered by a court of competent jurisdiction; (2) an identity of cause of action; and (3) an identity of parties, or their privies. River Park, Inc., 184 Ill.2d at 302, 234 Ill.Dec. 783, 703 N.E.2d 883. It is well established that res judicata can preclude litigation of causes of action or issues already addressed in an administrative proceeding that is judicial in nature. Osborne v. Kelly, 207 Ill.App.3d 488, 491, 152 Ill.Dec. 422, 565 N.E.2d 1340 (1991). ¶ 57 Plaintiff's argument is without merit. Certainly, res judicata can act as a bar to bringing a claim in the circuit court that was properly decided in the MVRB. However, it would not act as a bar to a damages claim in the circuit court resulting from an MVRB finding that a termination lacked good cause under section 4(d)(6). We agree with defendants that all res judicata would do is bar the manufacturer from relitigating the issue of good cause for the termination as determined by the MVRB. However, since the MVRB is not empowered to award damages, the issue of damages would not be barred by res judicata in a circuit court. Damages would not be decided in the MVRB, and moreover they could not be decided in the MVRB hearing. Therefore, res judicata would not act as a bar to bringing a damages claim in the circuit court. ¶ 58 Plaintiff cites to Bagnola v. SmithKline Beecham Clinical Laboratories, 333 Ill.App.3d 711, 267 Ill.Dec. 358, 776 N.E.2d 730 (2002), for its proposition that the mere fact that the MVRB cannot grant the remedy of damages does not mean that the causes of action are different for res judicata purposes. Bagnola concerned a police officer who had tested positive for cocaine and been threatened with discharge from the force. The laboratories testing his urine for cocaine destroyed the evidence. An administrative hearing held before the police board of the City of Chicago recommended discharge, rejecting the plaintiff's argument that the charges should be dismissed due to the lab's destruction of evidence. On administrative review, the circuit court, after conducting a hearing on the merits, affirmed the decision of the board. Bagnola, 333 Ill.App.3d at 714-16, 267 Ill.Dec. 358, 776 N.E.2d 730. At the same time, the plaintiff had filed a separate action in the circuit court over the spoliation of evidence in the administrative proceeding. The circuit court granted summary judgment, finding the claim was barred by res judicata because it had already been litigated in the administrative proceeding and subsequent circuit court review. Bagnola, 333 Ill.App.3d at 716-17, 267 Ill.Dec. 358, 776 N.E.2d 730. On appeal, the appellate court affirmed summary judgment, finding the plaintiff's separate circuit court case was barred by res judicata and collateral estoppel. Bagnola, 333 Ill.App.3d at 726, 267 Ill.Dec. 358, 776 N.E.2d 730. ¶ 59 Bagnola is distinguishable from this case. In Bagnola, the plaintiff could make his claim for spoliation in either the police board or the circuit court. Nothing in the case indicates the circuit court did not have jurisdiction to hear a spoliation claim. Here, however, this court has determined that a circuit court does not have jurisdiction to entertain a claim under section 4(d)(6) of the Act. If there was concurrent jurisdiction between the MVRB and the circuit court to hear section 4(d)(6) claims, then a dealer would be barred, under res judicata, from bringing a subsequent section 4(d)(6) damages claim in the circuit court if he had previously chosen to bring the same claim in the MVRB where damages were not available. In this circumstance, however, where a section 4(d)(6) claim can be brought only in the MVRB, and damages awarded only in the circuit court, res judicata would not bar a subsequent circuit court damages claim where the MVRB had determined no good cause existed to terminate a franchise under section 4(d)(6).