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Aurora Pizza Hut, Inc. v. Hayter

OPINION FILED DECEMBER 28, 1979.

AURORA PIZZA HUT, INC., D/B/A PIZZA HUT, PLAINTIFF-APPELLANT,

v.

VIRGINIA M. HAYTER, LOCAL LIQUOR COMMISSIONER OF HOFFMAN ESTATES, ET AL., DEFENDANTS-APPELLEES.



APPEAL from the Circuit Court of Cook County; the Hon. ARTHUR L. DUNNE, Judge, presiding.

MR. JUSTICE LORENZ DELIVERED THE OPINION OF THE COURT:

Plaintiff brought this action under the Administrative Review Act (Ill. Rev. Stat. 1977, ch. 110, par. 264 et seq.) to review the rulings of defendants Virginia Hayter, liquor commissioner of Hoffman Estates, and the State Liquor Control Commission denying plaintiff a renewal of its liquor license. The circuit court affirmed the rulings of Hayter (Hoffman Estates) and the State Liquor Control Commission (Commission). Plaintiff appeals from that judgment. On appeal, plaintiff contends that the licensing ordinances of Hoffman Estates violate due process because of an internal inconsistency; that the licensing ordinances of Hoffman Estates violate due process because they are inconsistent with the Illinois Liquor Control Act (Ill. Rev. Stat. 1977, ch. 43, par. 94 et seq.); that denial of a liquor license can only be made for the reasons found in the Illinois Liquor Control Act, and not for a reason found only in the licensing ordinances of Hoffman Estates; and that the licensing ordinances of Hoffman Estates violate the commerce clause of the United States Constitution.

Plaintiff received a liquor license from Hoffman Estates on May 1, 1977. On March 3, 1978, plaintiff applied to Hoffman Estates for a renewal of its liquor license. The application was denied because plaintiff failed to name a resident of Hoffman Estates as manager of the premises as required by article III, section 8-3-5(23) of the Hoffman Estates Municipal Code (municipal code). In its appeal to the Commission, plaintiff argued that sections 8-3-5(9) and 8-3-5(11) of the municipal code state that the manager of the license applicant need not be a resident of Hoffman Estates. Plaintiff further argued that section 2 of article VI and section 1 of article IV of the Illinois Liquor Control Act (Ill. Rev. Stat. 1977, ch. 43, pars. 120(10), 110) also state that the manager of the license applicant need not be a resident of the licensing political subdivision. These arguments were rejected by both the Commission and the circuit court.

OPINION

Plaintiff's initial argument raises the question of whether the licensing ordinances of Hoffman Estates require a manager of the premises to be a resident of Hoffman Estates. The relevant portions of article III, section 8-3-5 of the municipal code follow:

"No license shall be issued to:

(9) A corporation, if any officer, manager or director thereof, or any stock holder or stockholders owning directly or beneficially in the aggregate more than five per cent (5%) of the stock in such corporation, would not be eligible to receive a license hereunder for any reason other than citizenship and residence within the village.

(11) A person whose place of business is conducted by a manager or agent said manager or agent possesses the same qualifications required of the licensee:

(23) A corporation, unless the designated person operating as manager of the premises as required by Section 8-3-4 is a resident of the village." (Hoffman Estates Municipal Code, art. III, § 8-3-5.)

Plaintiff maintains that paragraphs (9) and (11), indicating that the manager need not be a resident of the village, are in conflict with paragraph (23) requiring that the manager of the premises be a resident of the village. Defendants, on the other hand, argue that the "manager" referred to in paragraphs (9) and (11) is not the same person as the "manager of the premises" referred to in paragraph (23). Thus, according to the defendants, no conflict exists.

• 1-3 Stripped of all language not relevant to this issue, paragraph (9) prohibits the issuance of a license to "[a] corporation, if any * * * manager * * * thereof, * * * would not be eligible to receive a license hereunder for any reason other than citizenship and residence within the village." (Emphasis added.) (Hoffman Estates Municipal Code, art. III, par. 8-3-5(9).) In comparison, paragraph (23) prohibits the issuance of a license to a corporation unless the person "operating as manager of the premises" is a resident of the village. An elementary canon of statutory construction teaches us that where the legislature uses certain words in one instance, and different words in another, different results were intended. (Illinois State Toll Highway Authority v. Karn (1973), 9 Ill. App.3d 784, 293 N.E.2d 162.) Applying this rule to the present case, we believe the legislators of Hoffman Estates were speaking of two different individuals when they drafted these paragraphs. Paragraph (23) involves the individual managing the premises for which the liquor license is issued; this individual is responsible for the day-to-day operations of these premises. Paragraph (9), however, involves the manager of the corporation, as a whole, which is applying for the liquor license; this individual is responsible for the general conduct and control of the entire corporation. (See Freeport Journal-Standard Publishing Co. v. Frederick W. Ziv Co. (1952), 345 Ill. App. 337, 103 N.E.2d 153; Dade County Dairies, Inc. v. Projected Planning Co. (Fla. App. 1963), 158 So.2d 565; and Gillian v. Consolidated Foods Corp. (1967), 424 Pa. 407, 227 A.2d 858.) Since these ordinances are directed at two different individuals, no conflict exists between them.

Plaintiff also contends that Hoffman Estates' requirement that the manager of the premises be a resident of Hoffman Estates conflicts with section 2 of article VI and section 1 of article IV of the Liquor Control Act. (Ill. Rev. Stat. 1977, ch. 43, par. 120(10), 110.) Section 2 of article VI is almost identical to article III, section 8-3-5(9) of the municipal code and states in pertinent part:

"No license of any kind issued by the State Commission or any local commission shall be issued to:

(10) A corporation, if any officer, manager or director thereof, * * * would not be eligible to receive a license hereunder for any reason other than citizenship and residence within the political ...


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