Johnson v. Illinois Alcohol & Other Drug Abuse Prof'l Certification Assoc., Inc.

2019 IL App (4th) 180562-U

BILL JOHNSON, Plaintiff-Appellee, v. ILLINOIS ALCOHOL & OTHER DRUG ABUSE

PROFESSIONAL CERTIFICATION ASSOCIATION, INC., Defendant-Appellant.

BILL JOHNSON, Plaintiff-Appellant, v. ILLINOIS ALCOHOL & OTHER DRUG ABUSE

PROFESSIONAL CERTIFICATION ASSOCIATION, INC., Defendant-Appellee.

NO. 4-18-0562

NO. 4-18-0575 cons.

APPELLATE COURT OF ILLINOIS FOURTH DISTRICT

June 20, 2019

NOTICE

This order was filed under Supreme Court Rule 23 and may not be cited as precedent by any party except in the limited circumstances allowed under Rule 23(e)(1).

Appeal from the Circuit Court of Sangamon County

No. 12L78

Honorable John W. Belz, Judge Presiding.

JUSTICE DeARMOND delivered the judgment of the court.

Presiding Justice Holder White and Justice Harris concurred in the judgment.

ORDER

¶ 1 Held: The appellate court affirmed defendant's appeal, finding the trial court did not err in granting summary judgment in plaintiff's favor and awarding him damages and attorney fees. The appellate court also affirmed plaintiff's appeal, finding the trial court did not err in determining a reasonable hourly rate for plaintiff's attorney.

¶ 2 In March 2012, plaintiff, Bill Johnson, filed a three-count complaint against defendant, Illinois Alcohol & Other Drug Abuse Professional Certification Association, Inc. (Association), for, inter alia, breach of contract and violation of the Illinois Wage Payment and Collection Act (Wage Payment Act) (820 ILCS 115/1 et seq. (West 2012)). In 2016, both parties moved for summary judgment, and the trial court granted Johnson's motion in its entirety. In December 2017, the court issued its order on damages. Thereafter, the court granted, in part, Johnson's petition for attorney fees.

¶ 3 In its appeal, the Association argues the trial court erred in (1) granting summary judgment in favor of Johnson, (2) awarding damages for unpaid vacation and sick days, (3) awarding an unpaid deferred compensation premium of $14,000 to Johnson, and (4) awarding attorney fees. In his appeal, Johnson argues the court erred in finding his attorney's reasonable hourly rate was $250 per hour instead of $325 per hour. We affirm both appeals.

¶ 4 I. BACKGROUND

¶ 5 A. Johnson's Employment with the Association

¶ 6 The Association is a private, not-for-profit organization that provides credentials and certifications for professionals in the fields of drug-and-alcohol abuse and mental-health counseling. Johnson served as executive director of the Association from June 1994 until 2010. He was named director emeritus in 2010 and remained in that position until he was terminated on April 1, 2011.

¶ 7 In 1999, Johnson and the Association entered into a deferred compensation agreement, whereby the Association's board agreed to continue his employment and he agreed to serve as the executive director until at least July 26, 2004. The agreement established an account to fund his deferred compensation and funds from that account would be used to pay the premium on a universal life insurance policy, which named Johnson as the insured and the Association as the beneficiary. The agreement also provided Johnson was to continue in his employment "subject to removal for cause or until otherwise terminated by either party by written notice to the other."

¶ 8 The Association hired Jessica Hayes to serve as its fiscal manager in 1998, and on July 1, 2009, she became its executive director. During this time, Johnson and Hayes were coworkers, and both worked for the Association's board, not each other. On August 27, 2009, Johnson, referring to himself as the chief executive officer (CEO), sent a letter to Hayes asking for the deferred compensation agreement to be extended until his retirement from the Association. The executive committee agreed to the extension.

¶ 9 On December 2, 2009, the Association held an executive committee meeting, and the committee voted and agreed on setting Johnson's retirement date as December 31, 2012. The executive committee also discussed Johnson's employment title and Dan Lustig, a member of the committee, suggested Johnson's title of CEO was "confusing to those trying to figure out where the 'buck stopped.' " The committee voted to create a new title for Johnson—director emeritus. In his position as director emeritus, Johnson worked for the board of directors.

¶ 10 The Association's policy and procedure guide requires employees to provide two weeks' written notice of resignation. On March 21, 2011, Hayes and Johnson engaged in an e-mail exchange in which Hayes believed he was bullying her. Hayes "called him to talk to him about that and have him stop sending bullying emails." According to Hayes, the phone line "was quiet for just a short period of time" before Johnson said, " 'Then I'm done working for you,' " and he would " 'not work for someone who thinks this way about [him].' " Johnson then said he would " 'have [his] check and [his] paperwork on Thursday.' "

¶ 11 Following the phone call, Hayes contacted executive committee member Dan Lustig and told him Johnson had verbally tendered his resignation. Later that day, Hayes sent an e-mail to Johnson in which she recalled his statement that he did not want to work for her and noted "that leads to a great deal of paperwork to be completed."

¶ 12 The following day, Johnson responded in an e-mail, noting he worked "for the Board" and would be submitting his letter of resignation to the board. He also stated he would not "work with anyone that makes false accusations" against his character. On March 23, 2011, Hayes e-mailed Johnson and said she had forwarded the March 22, 2011, e-mail, in which he stated his "intent to resign," to the executive committee. Johnson responded, noted he resented her sharing his personal correspondence with others, and said he would contact the executive committee directly. He also stated he "won't work with [Hayes] any longer."

¶ 13 Also on March 23, 2011, Johnson authored a letter to Hayes in which he inquired about his benefits and a severance. He described two letters between him and Gus Stieber, former president of the Association, regarding the conditions of his employment. Johnson assumed that when he left his employment in 2013, he would receive the vehicle he was driving and a "lump sum payment" as a severance.

¶ 14 On March 23, 2011, a special meeting of the executive committee was conducted by teleconference in which Valerie Arnett, Kellie Gage, Ginny Kich, and Dona Howell participated. Lustig was absent. The committee discussed Johnson's "tendered resignation on both March 21, 2011, verbally to Executive Director Jessica Hayes and on March 22, 2011 to Jessica Hayes via email." It was unanimously agreed that Johnson's resignation would be accepted effective immediately.

¶ 15 On March 24, 2011, Johnson wrote a letter to Arnett, the Association's president, in which he stated his statement of resignation "was said in a moment of anger" and resignation was not his intent. He suggested the possibility of continuing in his role as a consultant or working from home. Johnson asked to address the full board, if possible. In an affidavit, Johnson stated he never submitted a written letter of resignation to the board or anyone else.

¶ 16 On March 30, 2011, Arnett sent a letter to Johnson explaining it was "clear to the Executive Committee that the time has come to end [his] employment with the Association." In the absence of Johnson's resignation, the Association would terminate his employment. The letter proposed a severance package based on Johnson's resignation, effective April 1, 2011. Johnson would receive a lump-sum payment of $160,000 and title to the Association's vehicle that was in his possession. If Johnson did not accept the severance package, the letter indicated his "at-will employment with [the Association] remains terminated." Johnson did not resign or execute the proposed settlement agreement.

¶ 17 B. Johnson's Complaint

¶ 18 In March 2012, Johnson filed a three-count complaint at law against the Association. In count I, Johnson alleged a contract for employment existed between him and the Association and he performed his obligations under the contract by serving as director emeritus from 2009 until his termination on April 1, 2011. Johnson claimed the Association breached the agreement by terminating him, although it had a contract for a defined duration until December 31, 2012. Johnson also alleged the Association owed him $154,700 in salary from April 1, 2011, to December 31, 2012, $119,100 in deferred compensation, $12,677 in healthcare benefits, $105,300 in accumulated sick pay, $42,00 in vacation pay, and $17,493 for loss of an automobile supplied by the Association for his professional and personal use.

¶ 19 In count II, under the Wage Payment Act, Johnson alleged he demanded the various benefits owed him by the Association but the Association had not paid. Those benefits included vacation pay, sick pay, deferred compensation pay, and payment for healthcare benefits. Johnson also claimed the Association was liable for his attorney fees and other damages allowable under the Wage Payment Act.

¶ 20 In count III, Johnson alleged he received the termination letter via e-mail on March 30, 2011, at approximately 6 p.m. The following day, he attended an annual meeting pursuant to his role as director emeritus and was publicly recognized by the Association to the attendees. He continued performing his duties until April 1, 2011. Johnson alleged, by publicly recognizing him after he had been terminated, the Association intended to inflict emotional harm and distress on him. Because of this and other "outrageous actions," Johnson claimed the Association inflicted extreme emotional distress. The trial court ultimately dismissed count III with prejudice.

¶ 21 C. Summary Judgment

¶ 22 In June 2016, the Association filed a motion for summary judgment, claiming Johnson was an at-will employee and he could not maintain a claim for breach of...