Searching over 5,500,000 cases.


searching
Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.

Ambassadors Travel Service, Inc. v. Jordan

September 13, 2001

AMBASSADORS TRAVEL SERVICE, INC., PLAINTIFF-APPELLEE
v.
GERTRUDE W. JORDAN, DIRECTOR OF EMPLOYMENT SECURITY OF THE STATE OF ILLINOIS, DEFENDANT-APPELLANT



Appeal from the Circuit Court for the 10th Judicial Circuit, Peoria County, Illinois No. 00-MR-143 Honorable Richard E. Grawey Judge, Presiding

The opinion of the court was delivered by: Justice Breslin

Released for publication October 30, 2001.

AMBASSADORS TRAVEL SERVICE, INC., PLAINTIFF-APPELLEE
v.
GERTRUDE W. JORDAN, DIRECTOR OF EMPLOYMENT SECURITY OF THE STATE OF ILLINOIS, DEFENDANT-APPELLANT

Appeal from the Circuit Court for the 10th Judicial Circuit, Peoria County, Illinois No. 00-MR-143 Honorable Richard E. Grawey Judge, Presiding

The opinion of the court was delivered by: Justice Breslin

PUBLISHED

 Defendant Gertrude Jordan, Director of the Department of Employment Security of the State of Illinois (the Department), appeals the trial court's decision reversing a decision by the Department to increase the contribution rate of plaintiff Ambassadors Travel Service, Inc., for the state's unemployment trust fund. We affirm the trial court's decision and hold that when the business of one employer is sold to another employer, the unemployment experience rating record of the predecessor does not transfer to the successor if the successor does not purchase the same entity on which the predecessor's experience rate was based.

FACTS

The facts of this case are not in dispute. In 1997, Peoria Travel Bureau (PTB), a travel agency, had three offices located in Peoria, Illinois, and one office located in Normal, Illinois. Caterpillar, Inc., provided 70% to 75% of PTB's business. In the fall of that year, Caterpillar informed PTB that it would be changing agencies. Within the next few months, PTB consolidated two of its Peoria offices, closed the office that handled the majority of the Caterpillar accounts, and discharged 43 employees. PTB's office in Normal was closed shortly afterwards. Because of the loss of business, PTB's revenues fell from approximately $30 million in 1997 to $6 million in 1998. While approximately 90% of PTB's business was commercial and 10% was leisure in 1997, the following year PTB's leisure operations represented 80% of the business and its commercial operations represented 20%.

Ambassadors was a travel company that started in business in 1989. On November 30, 1998, it purchased PTB for $250,000. The sale included PTB's office equipment, office furniture, and customer list. As part of the bargain, the president and owner of PTB agreed not to compete with Ambassadors for a specified period. Eight of PTB's twelve remaining employees were hired by Ambassadors.

In September of 1999, Ambassadors submitted a report to the Department for the purpose of determining whether Ambassadors should be considered PTB's successor under the Unemployment Insurance Act (Act) (820 ILCS 405/100 et seq. (West 2000)). After receiving the report, the Department notified Ambassadors that it would be considered PTB's successor and that its contribution rate for the unemployment trust fund for 1999 would increase from 0.6% to 4.0% accordingly.

Ambassadors filed an application with the Director requesting review of the rate determination. That application was denied. Ambassadors filed a written protest and a petition for a hearing. In response, the Director's representative issued a written recommendation to the Director suggesting that the revised contribution rate be upheld. Ambassadors filed an objection and demanded a hearing. After a hearing, the Director's representative again recommended to uphold the higher contribution rate. Ambassadors filed a written objection with the Director.

On April 4, 2000, the Director issued a final decision that upheld the revised contribution rate. Thereafter, Ambassadors filed a complaint for administrative review with the circuit court of Peoria County, Illinois. The circuit court reversed, determining that ...


Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.