NorthShore University Healthsystem v. The Illinois Department of Revenue

Summary

The Illinois Appellate Court affirmed dismissal of NorthShore University Healthsystem’s complaint challenging an administrative law judge’s refusal to dismiss a school district’s petitions concerning NorthShore’s property tax exemptions. The court held that the Illinois Department of Revenue had authority over the proceedings and that any error in accepting allegedly deficient hearing petitions was voidable, not void. NorthShore was therefore required to exhaust its administrative remedies before seeking judicial review.

Holdings

1. A hearing request's failure to comply with the statutory requirement to state alleged mistakes or new evidence may make the request erroneous or defective, but it does not deprive the Department or its administrative law judge of personal jurisdiction, subject matter jurisdiction, or statutory authority to consider the petition and rule on a motion to dismiss.
2. NorthShore was required to exhaust its administrative remedies before seeking judicial review or collateral relief from the administrative law judge's interlocutory order.
3. The circuit court properly dismissed NorthShore's complaint under section 2-619 because NorthShore had not exhausted its administrative remedies and the alleged defect in the hearing requests did not support collateral judicial attack.

Questions Presented

1. Whether the Illinois Department of Revenue and its administrative law judge lacked authority to consider the school district's hearing requests because the requests did not specify alleged mistakes or new evidence as required by section 8-35(b) of the Property Tax Code.
2. Whether NorthShore could collaterally attack the administrative law judge's interlocutory order in circuit court without first exhausting its administrative remedies.
3. Whether the circuit court properly dismissed NorthShore's complaint for lack of subject matter jurisdiction under section 2-619.

Disposition

affirmed