Judge John J. Curry ruled in favor of Orland Park Mayor Keith Pekau and the Village of Orland Park in a lawsuit brought by former Village Manager Joseph La Margo.
Judge John J. Curry ruled in favor of Orland Park Mayor Keith Pekau and the Village of Orland Park in a lawsuit brought by former Village Manager Joseph La Margo.
Judge John J. Curry ruled in favor of Orland Park Mayor Keith Pekau and the Village of Orland Park in a lawsuit brought by former Village Manager Joseph La Margo.
Judge John J. Curry ruled in favor of Orland Park Mayor Keith Pekau and the Village of Orland Park in a lawsuit brought by former Village Manager Joseph La Margo.
IN THE CIRCUIT COURT OF COOK COUNTY, ILLINOIS,
COUNTY DEPARTMENT, LAW DIVISION
JOSEPH LA MARGO, )
)
Plaintiff, i
)
v. ) No. 201, 004136
)
VILLAGE OF ORLAND PARK, et al., )
) Call
)
Defendants, )
OPINION AND ORDER
THIS MATTER coming before the Court on the Cross Motions for Summary Judgment,
the Court having considered all the pleadings and briefs and having heard argument, and the Court
being fully advised in the premises, states as follows:
Plaintiff Joseph La Margo (“La Margo”) is a former Village Manager for Defendant
Village of Orland Park (“Village”). In 2020, La Margo filed a complaint against the Village and
Defendants Keith Pekau (“Pekau”), William R. Healy (“Healy”), and Keith Pekau for Mayor
(“KPFM”). La Margo's claims against the Village in his Second Amended Complaint (“SAC”),
the pleading which now controls this matter, include claims of breach of contract, defamation per
,, and intentional infliction of emotional distress (“IIED"). Also in the SAC, La Margo charges
Pekau, Healy, and KPEM with defamation per se and IIED. In responding to the SAC, the Village
filed counterclaims, which include breach of employment agreement, breach of resignation
agreement, breach of fiduciary duty, breach of duty of loyalty, and conversion. All of the partieshave filed motions for summary judgment seeking to have all claims against them dismissed. The
Village additionally moves to have summary judgment entered in its favor on each of its
counterclaims against La Margo
La Margo was employed as the Village Manager of the Village of Orland Park. By
ordinance, the Village Manager is the senior non-elected administrative official for the Village and
is accorded broad authority by ordinance to take executive action on behalf of the Village. As is
typical throughout all Chicago metropolitan suburban municipalities matching or exceeding the
Village’s size, the village manager is an important, visible municipal official who is accorded
broad decision-making power and authority to administer the business of the municipality and
enforce its laws. Indeed, in many circumstances, the village manager is as much the face of the
village as is the mayor or village president, and citizens will as likely deal with the village manager
as with the mayor on a broad range, if not the entire range, of municipal management,
administration, licensing, permitting, regulations and other administrative matters. ‘The Village
‘operated under the “managerial” form of government authorized by 65 ILCS 5/1 et seq. Therefore,
even though the Village Manager’s power and authority was broad, the legislative authority in the
Village resides with the Village Trustees, not with the Village Manager. Only the Trustees can
enact ordinances. The Mayor presides over all sessions of the Board of Trustees. The Mayor, of
course, is an elected official of the Village and is its paramount authority, superior to that of the
Village Manager.
In late 2018, when Pekau was Mayor of the Village, La Margo claims he had concerns
regarding two contractors which had done business with the Village in 2012. He was concerned
about whether the contractors were in violation of Village ordinances governing bids for Village
business and was involved in bid-rigging and collusion in obtaining Village business. Pekau hadbeen the owner of one of the contractors at the time. La Margo decided to commence an
investigation of Pekau and the contractors subsequent to several discussions he had with various
persons in the Village. SAC, #4 12-15. These persons included some trustees and village attorneys
and were apparently not politically affiliated with Pekau. In commencing the investigation, La
Margo did not disclose his concems or his decision to commence an investigation with Pekau or
any person immediately affiliated with him. In January 2019, La Margo engaged the Chicago law
firm of Jones Day to conduct the investigation of Pekau and the contractor on the bid-rigging
concern. Jones Day generated a preliminary report on the investigation, dated March 25, 2019,
which was provided to La Margo. Apparently, this report was not provided to any other person in
the Village. The report stated that the “record is insufficient to conclusively establish that there
were any clear violations of existing law or policy in ... the bidding processes involving those
contractors.” Pekau MSJ, Ex. 9 at p. 10. It further stated that the firm’s conclusions were “due in
part to [the firm’s] incomplete knowledge [of the facts], but ... also result{ ] from gaps in the
Village’s own ethies and purchasing policies.” Id.
La Margo’s January authorization of the Jones Day investigation coincided with the carly
days of the municipal campaign for Village offices to be elected on April 2, 2019. Pekau had
formed the “People over Polities” Party, which was backing three candidates for three Village
‘Trustee positions. On April 2° these three candidates won office, giving Pekau’s Party a working
majority on the Village Board. (Pekau, in the midst of his term as mayor, was not on the ballot.)
Presumably fueled by this election result, Pekau, according to La Margo, “called” La Margo into
his office on April 4, 2019 and “forced” him to resign. SAC, §¥ 23-24. La Margo did indeed
resign and an agreement, entitled “Full and Final Resignation and Severence and Release
Agreement” (“Resignation Agreement”) was signed by La Margo on April 29, 2019 andapparently rendered effective May 6, 2019. La Margo actually concluded his service as Village
Manager in April 2019. ‘The Resignation Agreement provided, in pertinent part, that the “Village
agrees that its Mayor and Board, as a Mayor and Board, shall not make any public statement during
‘a meeting that is disparaging to Employee.”
From January 2019 on, La Margo did not disclose any aspect of the Jones Day services,
including its billing and its March report, to Pekau or any person affiliated with him. The firm’s
billing only came to the attention of the Interim Village Manager, Tom Dubelbeis, when he
assumed office succeeding La Margo in April 2019. ‘The Jones Day bill or invoice charged a
“discounted” total fee of $34,474.75. Thereafter, the billing and the report came to the attention
of Pekau and the Village Board of Trustees.
The Jones Day investigation was a subject discussed by the Mayor and the Village Board
of Trustees (“Board”) during their executive (non-public) session of a Board Meeting on May 20,
2019. On the same day, Pekau gave a “Mayoral” press conference, in the course of which he
allegedly stated that La Margo had “violated the law”. Later, on May 29, 2019, Pckau held another
“Mayoral” press conference, and allegedly stated that La Margo had conducted a “clandestine
investigation...for political purposes”, had committed criminal acts through improper
dissemination of information and official misconduct, and had “questionable judgment” and
“nefarious political intentions.” In the press conference, Pekau allegedly stated that La Margo
committed “an obvious abuse of power that wasted $46,000 of taxpayer money on a politically
motivated fishing expedition against a duly elected mayor.” Pekau also allegedly stated in the
press conference that La Margo violated the law, including the Open Meetings Act, Also on that
day, Pckau transmitted emails to the media, which stated that the investigation was a “fabrication”,constituting a commission of criminal acts of official misconduct and inappropriate dissemination
of information, abuse of power, and use of public funds for political attacks.
It is also alleged that on or about May 29, 2019, Pekau also included the same statements
referenced above in his “official mayoral blog”. On May 29, 2019, Trustee Healy shared said on
line post on his social media. Later, at a Village Board Meeting on June 3, 2019, Healy stated,
among other things, that he would not vote to approve payment of the Jones Day invoice for the
investigation work, because to him the expense was incurred in excess of the limit on the village
manager’s spending authority. He also said that approval of the payment would signal approval
of use of public funds to finance opposition research against incumbent elected officials. On June
15, 2019, a local publication issued a report on these matters and included statements made by
Healy. It reported Healy as saying that Pekau deserved an apology for having his name “dragged
through the mud” and that the citizens deserved an apology for “the amount of money” spent on
the investigation. Healy was further quoted as saying he could not “imagine what may have driven
La Margo” and that he could not “speak to motivation”, but that “I think that the people opposed
to [Pekau] hoped to benefit from this."
La Margo alleges that on various occasions through April 2, 2021, Pekau repeated the
foregoing statements, or parts thereof, to others and further
fated that La Margo had been in
collusion with others to run a clandestine investigation for political purposes and without legal
authority. Its alleged that Pekau further stated that La Margo improperly accessed private records
and violated Pekau’s due process rights. He allegedly further stated that La Margo had unethically
exceeded his spending authority (and was “mis
pending” and otherwise “wasting” public funds),
was hired to obstruct Pekau, slandered him, and filed frivolous lawsuits. He also alleged thatPekau filed false claims against him to La Margo's professional association. Spurred by the
alleged statements made by Pekau and Healy in 2019, the instant litigation ensued,
Defendants all bring motions for summary judgment (“MSI's”) against La Margo. ‘The
Village additionally secks summary judgment in its favor and against La Margo on its
counterclaims. La Margo seeks summary judgment in his favor on the Village’s counterclaims in
his cross motion against the Village
Analysis and Opinion
L Tort Immunity Act Defense
‘The Village, Pekau (the mayor), and Healy (the village trustee) all contend that the tort
claims against them (defamation and intentional infliction of emotional distress) cannot survive
their defense of immunity under the Illinois Tort Immunity Act (“Act”), 743 ILCS 10/1-101 et seq,
‘The Act broadly provides an immunity to local governments and public officials on a wide array
of claims, The Village, as an Illinois municipal corporation, enjoys the protection of the Act
Pekau and Healy, as the clected mayor and trustee, also enjoy the protection of the Act, as
established by the Act’s definitions provisions. 745 ILCS 10/1-202; Brooks v. Daley, 2015 IL
App (1) 140392, € 18. The scope of the immunity for such protected persons and entities will
depend upon the application of specific provisions of the Act.
A. Tort Immunity Act Defense ~ Pekau, Healy and KPSM
Pekau and Healy argue that they are immune to the subject claims by operation of 745
ILCS 10/2-201, which provides, in pertinent part:
Except as otherwise provided by Statute, a public employce serving in a position involving
the determination of policy or the exercise of discretion is not liable for an injury resulting from hisact or omission in determining policy when acting in the exercise of such discretion even though
abused,
KPSM argues that if Pekau is immune by operation of statute, KPSM has no liability.
In brief, La Margo alleges that he was injured as a result of Pekau and Healy publicly
stating that he violated the law in authorizing expenditures in excess of his legal authority,
improperly and illegally conducted, with impermissible use of public funds, a secret and “bogus”
investigation against the mayor for political purposes, engaged in collusion to conduct the
investigation, abused his power, illegally accessed the mayor's private communications, and
“committed criminal acts of official misconduct”. However, there is no genuine issue of material
fact that these statements, made both orally and in writing, were first made in a village board
meeting and then in a press conference on May 20, 2019 and thereafter in other village meetings,
in press conferences and interviews, and on social media used by Pekau and Healy to promote
their actions as elected public officials.
‘The Court also finds that there is no genuine issue of material fact that the aforementioned
statements were in the context of Pekau and Healy's views on the expenditure of public funds
(including the authorization, or not, of legal bills incurred in excess of authority), the nature and
conduct of municipal officer investigations, the use of village funds or resources for political
purposes, the scope of a village manager's power and authority, and the propriety of actions take
by a village manager. All of the foregoing matters were matters of the determination of public
policy, which this Court finds as a matter of law. Reyes v. Board of Fduc., 2019 IL App (1"),
180593, (50-51. Indeed, all of the statements constituted the Defendants’ opinions and views
on these matters. All of the foregoing relate to public policy and are proper subjects for
consideration by municipal officials. La Margo has not identified one statement by any Defendantyy of the statements included personal
that fails to meet this description, ‘The fact that mar
references to him as acting in a horrendous manner (i
riminal”, “illegal”, “nefarious”,
“unethical”, “secretive”, “clandestine”, “unauthorized”, “political”, fomenting or fabricating a
“bogus investigation”, making “false statements”, making “misleading statements”, not “ethical”,
abusing power, “leaking” confidential investigation material, facilitating wrongful access to email,
violating the Open Meetings Act) does not disqualify any of the statements as Pekau and Healy's
views on public policy matters as described above. (For more detailed descriptions of the alleged
defamatory and tortious statements made by Pekau and Healy, see pp. 4-5 above, SAC, "j 28-63;
Pekau’s MSJ, pp. ifi-iv; Healy's MSJ, pp. 2-3.) Moreover, Pekau and Healy were entitled to
formal
comment on the actions, power, and authority of the Village’s village manager, both i
village meetings and in public, via social media and press conferences and interviews, and could
exercise discretion to do so. They had the discretion to take action (or not) in
spect of La Margo’s
past actions and decisions, including approval (or not) of the legal bills incurred in excess of
authority and the setting of any policy regarding village manager authority and conduct. See
Strauss v. City of Chicago, 2022 IL App 127149, 4 65-77.
Even if the statements were made with malign intent and intended to harm La Margo, those
intentions do not strip the statements of their nature as being acts related to the determination of
public policy and/or the exercise of public official discretion, Strauss, supra, 468, 475. Pekau and
Healy, as Mayor and Trustee respectively, had the authority to comment on the aforementioned
issues, underscored at p. 7 above, as well as the discretion to comment and take action (or decline
to take action) on them. Brooks v. Daley, 2015 IL App (I*) 140392, 4118; see also id, ‘Thus, 745
ILCS 10/2-201 grants immunity to Pekau and Healy for all of their alleged acts and statements
alleged in the SAC to comprise defamation and tortious acts. Strauss, supra, at {{]60-75. For thesereasons, La Margo may not bring claims of defamation and intentional infliction of emotional
distress against Pekau and Healy due to their immunity under § 2-201 of the Act, and Pekau and
Healy's MSJ’s as to Counts II and II] of the SAC are granted accordingly
KPSM argues that because Pekau is immune by operation of statute, as found herein, it too
cannot be held liable on Counts II and III. It does not cite any case law for the proposition
However, La Margo presented no response to KPSM’s MSJ, and therefore did not bring to the
Court's attention any authority for holding KPSM liable on these tort claims in the event Pekau
bi
enjoys a statutory immunity. Regardless, the campaign organization’s liability is wholly
dependent on the nature of Pekau’s liability, As Pekau enjoys a statutory immunity, itis not clear
that there is any theory of liability that would suggest that the claim against the organization should
survive. Stated otherwise, if'an immunity shields Pekau from liability, even if t is statutory, there
isno reasonable theory that would support advancing the same claims, based solely on some theory
(here unarticulated by La Margo) of respondeat superior against KPSM, Therefore, the Court finds
and holds that Pekau’s statutory immunity negates the tort liability claims against KPSM, and
KPSM’s motion for summary judgment is granted.
B. Tort Immunity A‘ Village
In view of the foregoing, the Village is immune under the Act by virtue of § 2-109, which
states that if the Village’s employce is not liable, the Village itself cannot be liable on the same
claim. As this Court has determined that Pekau and Healy enjoy immunity under § 2-201, they
cannot be held liable for the claims set forth in Counts II and III. As they cannot be held liable,
the Village in turn cannot be held liable for the same claims. 745 ILCS 10/2-109. Moreover, the
Village cannot be held liable on the defamation claim (Count II) under any circumstances (and at
least under the undisputed facts shown by the submissions) by virtue of § 2-107. In addition, evenif sections 107 and 109 were not considered (as they must be), La Margo fails to make out any
persuasive case that the Village is liable for the torts alleged in Counts II and II committed by the
other Defendants. There is no law cited by La Margo that establishes liability for these torts under
any theory of respondeat superior. See Townsel v. City of Chicago, 2020 IL App (1*) 191124;
Marlowe v. Wauconda, 91 Ill.App.3d 874, 882-83 (1980); see also Monell v. Department of Social
Services, 436 U.S. 658, 691 (1978); Village’s Sur-Response, filed Feb. 21, 2023, p. 5. For all the
foregoing reasons, the Village’s MSJ on Counts I and III is granted.
tk
Pekau, Healy, and KPFM also argue that they are entitled to summary judgment on the
ground of absolute privilege. An executive officer enjoys an absolute privilege against defamation
claims when the officer is acting within the scope of his official duties when making the
defamatory statement or communication, See Blair v Walker, 64 II.2d 1, 10 (1976). This rule of
law applies to Pekau, the mayor (and per its argument, KPSM, as discussed below). Geick v. Kay,
236 IIl.App.3d 868, 876 (2d Dist. 1992).
Pekau was a mayor, so the issue to be addressed is whether he was
ing within the seope
of his official duties” or not. The applicable standard is whether the alleged communication was
“reasonably related” to the mayor's official duties. Geick, supra, 236 IILApp.3d at 876-78. As
mayor, the chief executive officer of the village, Pekau’s duties included supervision of village
managers, the actions and authority of vi agers, approval of village expenses, village
expenses and budget, village investigations, political activity related to village employees and
representatives, all matters regarding the Village Code, and the policy related to and administration
ofall of the foregoing matters. One could alternatively describe these duties as set forth at page 7
10above. There are no genuine issues of material fact that the foregoing are included in the mayor's
duties, and the Court so finds. All of the alleged defamatory statements, described above, fell
within one or more of these subjects. ‘The fact that many, if not all, of the alleged defamatory
communications included personal attacks on the conduct and character of La Margo does not
detract from their nature as subjects of the type described above. For example, when Pekau, on
May 29, 2019 stated in a press conference, and later on social media, that La Margo had “violated
the law” and had engaged in criminal acts in starting the “politically motivated fishing expedition
[the ethies investigation]” against him, he was making statements related to expenditure of village
funds, the nature of village investigations, the village manager's spending authority governed by
the Village Code, and other subjects noted above. Accordingly, the statements were reasonably
related to the mayor’s duties. See id. ‘This is so even if the content of the statements were uncivil
and offensive to La Margo. See id.
; Loniello v. Fitzgerald, 42 Ill. App.3d 900, 901-02 (1* Dist
1976). Moreover, it is also so, even though some or all of the alleged statements can be
characterized as “political” or part of a political campaign. See Geick, supra, 236 IILApp.3d at
877-79. ‘The making of these communications at a political event or in a political campaign or for
political purposes does not change their nature as subjects related to mayoral duties. In other
words, Pekau can address matters of public interest related to his duties in the course of making a
political statement and still be covered by the privilege. (Although one can interpret the comments
as advancing Pekau’s profile while attacking the actions of his political opponents, it is not clear
exactly how the communications made through October 2019 were political in nature, other than
as statements made by a politician, because there was no election campaign pending when the
remarks were made.) Therefore, all of the alleged defamatory statements, were reasonably related
to Pekau’s duties, and the absolute privilege is implicated.
aAn issue raised by the parties is the context and manner of the communications and whether
they bar application of the absolute privilege because they are beyond the scope of the duties of
the office holder. La Margo claims that none of the alleged defamatory statements are covered by
the privilege. Clearly, however, statements made by Pekau in the course of village board meetings
in May, June, and October 2019, which were all of the meetings identified in the SAC, were related
to his duties, as they addressed some or all of the appropriate subject matters described above.
Those statements were plainly protected by the absolute privilege. See Blair, supra.; Meyer v
McKeown, 266 Ill. App.3d 324, 325 (3 Dist. 1994). The authorities are also clear in holding that
statements made in press conferences, press and media releases, and media interviews and
inquities fall within the scope of the absolute privilege. See Geick, supra, 236 IIL.App.3d at 871-
72, 876-78; Springer v. Harwig, 94 Ill.App.3d 281, 281-84 (1** Dist. 1981); Dolatowski v. Life
Printing and Pub. Co., 197 LApp.3d 23, 29 (1% Dist. 1990). Accordingly, all the alleged
defamatory statements made by Pekau in press conferences, press interviews, and the provision of
statements directly to the press are absolutely privileged.
La Margo challenges the applicability of the privilege with respect to a “blast” email sent
to hundreds of people through Pekau’s political account and postings on Pekau’s or KPSM’s
political website and social media. Again, simply because these methods of communication may
have clear political objectives or stand as pure political fora, they do not alter the character of
Pekau’s statements as reasonably related to his duti
as described above. ‘The can jointly stand
as communications related to his duties and as communications eliciting political support or
inducing political action, See Geick, supra, 236 Ill App.3d at 877-78. In addition, with respect to
the modality of these communications (emails, internet, and social media), the Court takes
guidance from a recent local federal case. In Logan v. City of Evanston, the plaintiff brought a
12claim against a city police chief for posting alleged defamatory information about him when
publicizing an on-going criminal investigation on the chiefs personal social media. 2022 U:
Dist. LEXIS 113928 (N.D. Ill. June 28, 2022). The district court held that even though the chief
used his own personal social media to make the statements, because they were statements
reasonably related to his duties to promote criminal investigations in the city, they were immunized
by the privilege. Id. at *10-*11. ‘This Court sees no reason to, come to a difference conclusion
here, Therefore, the fact that campaign or personal internet, email, or social media was used to
make the alleged defamatory statements, it did not denude them of their nature as within subjects
reasonably related to the duties of the mayor.
For ll the foregoing reasons, the Court finds that there is no genuine issue of material fact
which bars the Court from holding that Pekau enjoyed an absolute privilege in making all of the
alleged defamatory statements, as they bore upon subjects reasonably related to his duties as
mayor. The public interest counsels that this holding be made. Accordingly, summary judgment
is granted to Pekau on this ground, Because judgment is found in is favor on this ground, and he
is found to have no liability on Count II accordingly, KPSM cannot be held liable on the same
claims of defamation. ‘The discussion regarding imputed liability for KPSM set forth above applies
to it here in equal measure. Accordingly, KPSM’s motion for summary judgment on Count II is
granted on this ground as well.
B. Healy
Healy also argues that he is immunized by absolute privilege and cannot be held liable for
defamation. Absolute immunity also applies to legislators when acting within the scope of their
official duties, which would include the village trustees of Orland Park. See Meyer v McKeown,
266 IILApp.3d 324, 326-29 (3" Dist. 1994); Larson v Doner, 32 IlApp.2d 471, 474 (2™ Dist.
31961). However, the rule pertaining to legislators differs from that applying to executive officers,
like mayors. Meyer, supra, 266 Il]. App.3d at 326-29. In Illinois, the privilege as to legislators is
not as broad as that accorded to executive officers and is instead restricted to statements made by
the legislator in the course of legislative proceedings. Id. However, defamatory statements made
by a legislator during legislative proceedings which are not related to a distinct legislative matter
may not be covered by the immunity. See id.; Krueger v. Lewis, 342 Ill. App.3d 567, 474 (2003).
La Margo alleges that Healy defamed him by his remarks in the course of a Board of
‘Trustees Meeting conducted on June 3, 2019. Alll of those proceedings were official and are of
public record. Notably, La Margo fails to identify with specificity in either his complaint or in his
response to the motion for summary judgment what the alleged defamatory statements were. The
best evidence of the remarks specifically entered into the record of this case is Healy’s summary
of his remarks set forth at page 3 of his motion. The evidence shows that Healy was given the
opportunity to comment on certain bills submitted to the Board for approval, one of which was the
Jones Day invoice tendered for the Pckau investigation. Healy stated that he was not going to vote
approval and payment of the invoice. Healy specifically criticized Jones Day for submitting the
invoice, which was not pre-authorized by the Board, as required by ordinance (and was in an
amount exceeding the authority of La Margo to individually authorize). He further stated that
payment of the invoice would amount to tacit approval of use of village funds for “opposition
research against a mayor and his candidates”, He stated that the public would not benefit from
this payment, but that only a political action committee would benefit. He further stated that the
person responsible for the unauthorized spending should be responsible for the bills payment. He
also stated that there should be no “secret investigations”, and that if village officials wish to
investigate another official, it should be brought to the attention of the Board publicly,
14Healy's comments were directly related to his decision on whether to vote to approve the
Jones Day invoice. The comments, including those which only broadly suggested that La Margo
improperly participated in a secret investigation and allowed attomeys to provide services at a cost
in excess of his authority to authorize, conveyed his opinion on the broader meaning upon payment
of the invoice and the adverse precedent it would set. Such statements, since they were connected
to his vote on the matter, clearly come within the ambit of his legislative duties as he is charged
with carrying them out in an official public meeting of the Board. As such, they are protected by
the absolute immunity discussed above. fact that there can
be no liability for those statements in the Board meeting on June 3, 2019,
Regardless, it should be noted that Healy's statements in the course of the June 3, 2019
Board meeting do not even meet the threshold of defamation per se. Healy did not make any false
statements that La Margo (1) had committed a criminal offense; (2) was incapable of performing
his employment duties or lacked integrity in performing those duties; or (3) prejudiced him in his
profession. Moreover, Healy’s statements constituted only opinion, for which there is no liability
under a claim of defamation per se.
IL Statemei
Regardless of the application of the various immunities discussed above, to the extent that
La Margo has shown that either Healy or La Margo stated to any third person that La Margo had
violated an ordinance and exceeded his authority to authorize the Village to make payments in
excess of $20,000.00 by allowing Jones Day to perform legal services in connection with the
bidding process investigation, those statements are not actionable because the statements were
true. There is no genuine issue of material fact that La Margo was not authorized to engage a law
firm, Jones Day, to perform work in excess of $20,000.00 in charges. ‘There is also no genuine
15,issue of material fact that Jones Day charged more than that amount for its services. In addition,
there is no genuine issue of material fact that under the Village’s Director Payout Policy, a
resigning employee who did not participate in the IMRF Early Retirement Program does not
qualify for accrued sick time payout upon resignation. ‘There is no genuine issue of material fact
that in March 2019 resigning employee Karie Friling did not qualify for a payout of accrued sick
time under the policy. There is no genuine issue of material fact that La Margo authorized the
accrued sick time payout to Friling despite that fact that it was contrary to the Policy. Therefore,
any alleged statement that La Margo violated Village ordinance with respect to the Jones Day
investigation work and violated Village Policy with respect to authorizing sick time payout would
not be defamatory because the statements were not false. There can be no liability on the part of
the Defendants for any such statements,
The Court wishes to address two arguments raised by La Margo in relation to his actions
as Village Manager. First, he claims that he never had Jones Day engage in work that execeded
the $20,000 cost limit. He argues, as he argued at the time, that Jones Day’s invoice reflected three
separate legal tasks, each amounting to less than $20,000 in charges, and that he had authorized
cach task separately. Subsequent to the objections to the invoice raised by Pekau, it appears that
Jones Day supported this interpretation of the assignment and the invoices. However, there is only
one engagement letter for one general matter of an investigation into Pekau’s company’s practices
in the bidding process, with no indication that there are three distinct matters of engagement. In
addition, Jones Day issued only one set of invoices for the engagement, prior to June 3, 2019, with
no break down in the invoice for three separately billed matters. ‘The documents reflect only one
purpose for the engagement, the bidding process investigation, only one file created by Jones Day
for the matter, and only one invoice issued for their work, which of course exceeded the $20,000
16limit. Moreover, the majority of the village officials who reviewed this matter in 2019 concluded
that there was only one discrete legal assignment for which Jones Day was engaged, and that its
invoice was for all of the work for that one assignment. They rejected the contention that it was
the aggregate of three separate engagements. ‘There is no genuine issue of fact that the documents
disclosed the foregoing, rendering Defendants statements that the spending threshold wa:
exceeded as true,
Li
cewise, the argument that the added payout allowed to Friling was similar to prior
instances of such payouts given to other resigning employees does not render the decision any less
violative of the payout Policy. La Margo claims that he was privileged to have Jones Day do the
legal work at a cost in excess of the limit set by ordinance and to authorize the Friling sick time
payout because he had done so before without any later objection from the Board of Trustees and
without any consequential legal jeopardy. However, this argument flies in the face of the settled
law in this state that doctrine of estoppel against public bodies is not favored. Morgan Place of
Chicago v. City of Chicago, 2012 IL App (1) 091240, § 33. If a municipality is held bound
through equitable estoppel by the unauthorized acts of governmental employees, the municipality
would remain helpless to remedy errors and forced to permit violations to remain
perpetuity.
Id. at 40. La Margo has not raised any genuine issue of material fact which allows the Court to
draw the conclusion that he was permitted, due to prior acts in response to which there was no
objection, to violate the ordinance and the policy in 2018 and 2019. Likewise, village officials
were free to draw the conclusion, based on the record and the documents, that La Margo failed to
comply with the ordinance limiting his independent expenditure of public funds and with the
policy limiting the authorization of sick time payouts. ‘The Court’s foregoing findings are made
in light of these considerations.
7IV. Opinion
Moreover, the facts show that the alleged statements amounted to what is construed as
statements of opinion under the law of defamation. A statement of opinion is not actionable
defamation. Rose _v. Hollinger Int'l, Inc., 383 Il_App.3d 8, 13-14 (1™ Dist. 2008). Words
constituting merely subjective characterizations lacking precise and readily understood meaning
amount to statements of opinion which are not actionable, Id. at 13 Although all opinions imply
facts, the question of whether a statement of opinion is actionable is one of degree; the vaguer and
more generalized the opinion, the more likely the opinion is non-actionable as a matter of law. Id,
at 14, Ifa statement does not have a precise and readily understood meaning because of its broad
scope and lack of detail, it will be construed as non-actionable opinion. Id. at 15. Itis notable that
broad and conclusionary epithets made in a public and political context usually do not constitute
actionable defamation.
e.g, Brennan v. Kadner, 352 Ill.App.3d 963, 970 (1* Dist. 2004).
Indeed, the literary, public, or social context ofa statement is a major determinant as to whether it
is actionable defamation or not. Id.
‘There is no genuine issue of material fact that La Margo authorized the Jones Day
investigation of Pekau, without disclosing it to Pekau, mere months before a trustees election in
which Pekau backed certain candidates, one of which was Healy. Afier the election, which was
successful for Pekau and Healy, and after La Margo ended his employment as Village Manager,
Pekau and Healy first learned of the investigation, the costly bill for it, and the fact that La Margo
allowed that cost to accrue despite its amount in excess of his authorization to spend. As a
consequence of these revelations, Pekau and Healy went to the press and went on social media to
make the statements about La Margo described in the SAC and at pages 4 and 5 above. Pekau
alleged that La Margo was guilty of “official misconduct”, “criminal offense”, “abuse of power”,
18and “violation of the la
based on the foregoing. The statements are broad, generalized, and
non-specific. Further, the statements by the Defendants have to be viewed in context, that being
the making of statements concerning public, governmental, and political matters by public officials
about another public official. La Margo had acted without informing either Pekau or Healy (albeit
Healy did not become a trustee until early 2019) and, as stated and found above, he had acted
contrary to village ordinance and policy. Moreover, as also stated above, Mayor Pekau and
Manager La Margo were not compatible, and Pekau wanted La Margo out as soon as he achieved
majority support on the Village Board. In making the statements alleged, the Defendants were
acknowledging that an investigation had been conducted against Pekau, and upon hearing or
reading the statements, the public would be conscious of the fact that the Defendants were making
the statements as much for the purpose of a political defense to the investigation as for the purpose
of making accusations against La Margo. Given all of the undisputed facts and circumstances, it
is clear to the Court that the alleged defamatory statements, that is, those statements not already
shown to have been true, were protected statements of opinion and therefore not actionable.
V. Intentional Infliction of Emotional Distress Claim
La Margo also alleged that the Defendants are liable to him on a claim of intentional
infliction of emotional distress (“IED”). This is based on the fact that Pekau and Healy wrote and
made the statements described at pages 4 and 5 above. As stated, the Defendants are immune from
this claim by operation of statute. Regardless, the Court addresses the substance of the claim.
A nnecessary element of an IIED claim is that the tortious conduct alleged must be “extreme
and outrageous”. Public Fin. C avis, 60 IIl.2d 85, 89 (1976). As the Supreme Court has
Id.
observed, ITED liability “does not extend to mere insults, threats, annoyance: urther,
“(Iliability has been found only where the conduct has been so outrageous in character, and so
19extreme in degree, as to go beyond all possible bounds of decency.” Id. at 90. In recent years, the
Supreme Court has observed that ITED “|Jiability has been found only where the conduct has been
so outrageous in character, and so extreme in degree, as to go beyond all possible bounds of
decency, and to be regarded as atrocious, and utterly intolerable in a civilized community.”
Schweihs v. Chase Home Fin., LLC, 2016 IL 120041, 451. Although a variety of factors have
been suggested by the courts to consider in determining whether the alleged actions meets the
requi
degree of outrageousness, the outrageousness of the defendant’s conduct must be
determined in view of all the facts and circumstances pled and proved in a particular case. Id. at §
52. Depending on the facts presented to the court, a court may make a determination as to whether
the conduct alleged rises to the level of outrageousness necessary to sustain an IED cause of action
as a matter of law and in summary judgment proceedings. Id. at {¥ 48, 51-52, 60-61.
As stated above, La Margo violated the ordinance limiting his authority to authorize costs
at a $20,000 ceiling. ‘The purpose of the engagement of Jones Day was to conduct a confidential
investigation into Pekau’s company’s practices in past bids for village contracts. The investigation
concluded in a written report that no wrongdoing by Pekau’s company could be found. Pekau
learned about the investigation and its coneluding report after La Margo tendered his resignation
as Village Manager, a resignation which Pekau desired. As a consequence, Pekau reacted strongly
to the investigation and the manner in which La Margo engaged in it, including the consequence
of the law firm’s charge of $34,474.75 in fees. His reaction was based on the instigation of the
investigation, the secrecy of its conduct, its conclusion absolving him of wrongdoing, the use of
Village funds to obtain the investigation, and La Margo’s approval of the expense of the
investigation despite its cost in excess of his authority to spend without Board approval, La Margo
provided no evidence that any of the foregoing was not a fact or occurrence, Pekau clearly
20perceived La Margo to be aligned with his political adversaries. Pekau concluded that if the
investigation revealed any wrongdoing on Pekau’s company’s part during bidding, that the
conclusion would be communicated to the electorate to the detriment of Pekau’s party, which was
promoting trustee candidates in the spring 2019 election, including Healy.
Pekau’s reaction was to publicly denounce the investigation, its secrecy, and its purpose.
He also denounced La Margo’s authorization of the investigation despite its cost exceeding La
Margo’s authority. In so doing, he made the claims that La Margo's actions were criminal, an
abuse of power, official misconduct, unethical, and the like, as described at pages 4 and 5 above.
Pekau claimed that the investigation was politically motivated, Healy agreed with this assessment
and publicly made his own statements denouneing the seeret investigation, as set forth on pages 2
and 3 of his MSJ. Under the facts and circumstances, it is clear that Pekau and Healy wanted to
gamer public support for the cessation of “secret” investigations of Village officials, for the ending
of public funding of the same, and to shed light on the conduct of their political adversaries, i.e.,
the instigation and promotion of the “secret investigation” against Pekau and his party. ‘There is
no proof that the foregoing was not the case, and that the exclusive or primary purpose of the
statements was to harm La Margo. ‘There is also no proof that Defendants did not believe these
concems to be legitimate, and these objectives are reasonable under the circumstances. It is
indisputable that the method of funding and conducting internal investigations at the Village is a
proper matter of public concem, ‘Thus, Defendants’ objective in making the subject statements,
particularly any objective other than an intent to harm La Margo, was reasonably legitimate. This
is a proper factor to consider in determining the level of outrageousness of the alleged conduct.
Schweihs, supra, at 52. As such, it significantly detracts from La Margo’s claim that the conduct
was actionably outrageous.
aIt should be noted that a Margo has emphasized that his position was Village Manager
‘was non-partisan and that he was an appointed civil servant, not an elected official. ‘That fact is of
little consequence in this dispute, as the Village Manager was a public official nonetheless, and it
can be expected that the acts of such an official may be the subject of public comment by elected
officials, even in a political or partisan context. Moreover, an issue need not be partisan in order
to be political. Thus, the distinction made by La Margo between the Village Manager's position
and that of elected offi
als is of no legal significance in this matter.
In addition, the Defendants’ accusations that, essentially, La Margo had engaged in public
corruption and had acted, accordingly, criminally, unethically, and unprofessionally, while severe,
offensive, and distasteful, were not uncommon ones to be heard in the context of local government
and politics. Elected public officials are known to accuse their adversaries of bad conduct,
including criminal conduct. Although likely jarring to all concemed including the residents of the
Village, the extreme statements cannot be considered so singularly outrageous, “atrocious and
utterly intolerable in a civilized community”. Sadly, such statements are commonplace in
contemporary political discourse. And in Cook County, Illinois, where numerous local officials
have been convicted of crimes of public corruption over the years, and in a state where several
governors were likewise convicted, the accusations cannot have been received as so extraordinary
and unprecedented. Also notable is the fact that despite the alleged damaging nature of the
statements to one’s professional career, La Margo easily found re-employment as a village
manager shortly after his termination at a higher salary and is currently employed as the Village
Manager of Niles, Illinois at his highest salary yet. La Margo has failed to cite a case where the
sented in this ea
circumstances pi have given rise to an IED claim, Given the facts and
circumstances of this case, the Court finds that the conduct alleged to have been committed by
22Pekau and Healy, and shown by the record, does not rise to the level of extremity and
outrageousness necessary to sustain an ITED cause of action. Defendants are entitled to summary
judgment on the ITED claim, Count Il.
VI. La Margo's Breach of Contract Claim
Count [ of the SAC alleges that the Village breached its contract with La Margo (the subject
contract being the Resignation Agreement) because Pekau and Healy made public statements
during a meeting which were disparaging.
At the outset, the Court finds that the statements made by Pekau during the May 20, 2019
executive session, which was a closed meeting of the Board of Trustees, did not constitute a
violation of the non-disparagement provision, because the statements were not “public
statements”, which is a requirement of the provi
jon. The later release of the record of that meeting
publicly does not constitute a violation of the provision, as the provision does not make any
allowance for later publication of private statements. ‘The provision cannot be reasonably
interpreted as including the later release to the public of private statements made in closed
meetings
But the most serious problem with Count I stems from the Villages argument that La Margo
cannot establish any contract damages arising out of the alleged breaches
Damages are an
essential element of a breach of contract action. In Re Illinois Bell Tel. Link-Up Il, 2013 IL App
(1°) 113349, 4 19. Failure to establish the existence of ealeulable contract damages in response to
a Celotex- type MSI merits a finding that the defendant is entitled to judgment as a matter of law.
49 24-25, 29-30. It was La Margo's burden to establish a genuine issue of material fact
23regarding the existence of recoverable damages by some proof in response to the MSJ. Kimbrough
vy. Jewel Cos., Inc., 92 IIlApp.3d 813, 816, 819 (1* Dist. 1981).
Itis indisputable that La Margo was entitled to nine months severance pay, at an increased
salary rate, from the date of his resignation from Village employment. It is also indisputable that
without a lapse in such income, La Margo went on to work in two village manager positions for
two municipalities, each awarding him a higher salary than the one he was paid at the Village. The
fact that the first of those two positions was located in the State of Michigan and necessitated La
Margo’s out of state transportation is of no consequence, as those costs would not be the natural
result of the alleged breach, and he cites no authority to the contrary. His self-serving, unsupported
testimony that “no one” in Illinois “was touching him” is unavailing without some proof of the
same, Moreover, the claimed inereased costs incurred by La Margo to keep his extended family
in circumstances commensurate to those to which they were accustomed due to his work in
Michigan is also not an element of damages, as they too would not be a natural result of the alleged
breach, and he cites no authority to the contrary. ‘They cannot be considered damages because
they are not the consequences of the alleged breach of the Resignation Agreement, Finally, the
alleged resulting “emotional damage, embarrassment, immense stress” and family disruption are
not valid clements of recoverable contractual damages, at least under the facts and circumstances
of this casee. See Hanumadass v. Coffield, Ungaretti & Harris, 311 IIlApp.3d 94, 100 (1999);
Doe v. Roe, 289 IIL. App.3d 116, 130 (1997). La Margo fails to provide any proof of the possibility
of any recoverable contract damages suffered by him. As a result, the Village is entitled to
summary judgment on Count I,
24VII. ‘The Village”s Motion for Summary Judgment on the Counterclaim
‘inst La
seven-count counterclaim agi
‘The Village moves for summary judgment on it
Margo. These seven claims are (1) breach of employment agreement, (2) breach of fiduciary duty
— Jones Day expenditure, (3) breach of duty of loyalty — Jones Day expenditure, (4) breach of
fiduciary duty — sick time pay out, (5) breach of duty of loyalty — sick time pay out, (6) conversion
and (7) breach of the Resignation Agreement. ‘The Village alleges that La Margo’s wrongful
retention of Jones Day for the investigation which cost more than his authority to spend and his
authorization of impermissible sick time pay triggers liability for Counts I through VI. The Village
also alleges that La Margo disparaged Pekau in violation of the Resignation Agreement. In short,
there are multiple genuine issues of material fact which bear on each of these claims. Due to these
extent issues of fact, the Village cannot now establish that it is entitled to judgment as a matter of
law on any of these claims. For this reason, the Village’s MSJ on its Counterclaim is denied
without prejudice.
‘VII La Margo's Motion for Summary Judgment on the Village’s Counterclaim
In his cross motion for summary judgment, La Margo claims that he is entitled to judgment
as a matter of law on the Village's counterclaim, the seven counts thereof summarized above,
La Margo argues that he is entitled to dismissal of the Counterclaim due to the Citizen
Participation Act, 735 ILCS 110/1. The Village’s claims are not based on any
jon of La Margo’s
which is a product of his right to petition, speak, associate, or participate in government, Nor are
the claims intended to retaliate on the basis of such exercises, which in fact did not occur. The
Citizen Participation Act is inapplicable to this claim, and La Margo is not entitled to judgment on
this basis.
25La Margo argues that he is immunized by the Tort Immunity Act by operation of Section
2-201. ‘The Village claims that La Margo did not have the discretion to authorize the either of the
expenditures at issue. La Margo has not proven the contrary. As such, as he has not shown that
he had that discretion, the Act does not apply to these claims. La Margo is not emtitled to judgment
on this basis.
La Margo argues that his statements about Pekau are privileged, having been made only in
the course of this litigation. However, the Village has shown that it has proof that La Margo
disparaged Pekau at other times and outside the ambit of this litigation. The litigation privilege
does not apply. La Margo is not entitled to summary judgment based on this argument.
La Margo argues that the Resignation Agreement bars the Counterelaims. ‘The Village
clearly shows that the Agreement’s terms do not bar the claims against La Margo. The
indemnification provisions do not apply to these claims. The Agreement does not contain a release
for the actions alleged in the Counterclaim. La Margo is not entitled to summary judgment based
on this argument,
‘The Village has shown the existence of proof that La Margo both breached his fiduciary
duties and converted funds. Due to the existence of a genuine issue of material fact on these points,
La Margo is not entitled to summary judgment on these claims.
La Margo emphasizes in his submissions that in commencing the investigation, he was
adhering to his duties and obligations as village manager in policing the bidding process and
uncovering possible malfeasance. But La Margo cites no law supporting the conclusion that he
therefore had the right to breach the law that limited his spending authority. Moreover, his
objective could have been accomplished by means other than the path he took. He could have left
26the matter entirely at the hands of the village attorney, or he could have raised the concerns before
the Board of Trustees, or he could have reported the matter to state or federal prosecutors. He did
none of those things.
For all the foregoing reasons, La Margo’s MSI is denied without prejudice.
IX. Conelusic
For all the reasons set forth above, the Village, Pekau, KPFM, and Healy have established
that they are entitled to judgment as a matter of law. ‘Their motions for summary judgment on
Plaintiff's claims are granted, Judgment is entered in their favor and against Plaintiff on the
Second Amended Complaint.
In addition, the Village’s motion for summary judgment on its Counterclaim is denied
without prejudice. Likewise, La Margo’s motion for summary judgment on the Counterclaim is
denied without prejudice.
ORDER
IT IS HEREBY ORDERED THAT:
1, The Court finds that there is no genuine issue of material fact which would bar the entry
of summary judgment on the Second Amended Complaint in favor of the moving
Defendants, and that the moving Defendants have established through the record
entitlement to judgment in their favor as a matter of law;
2. Defendants’ Motions for Summary Judgment on the Second Amended Complaint are
GRANTED, and judgment is entered in favor of Defendants and against Plaintiff on
the Second Amended Complaint
23. Defendant Counterplaintiff Village of Orland Park's Motion for Summary Judgment
against Plaintiff on the Counterclaim is DENIED without prejudice, and
Plaintifi/Counterdefendant Joseph La Margo's Motion for Summary Judgment on the
Counterclaim is DENIED without prejudice.
4. This matter is set for further status on June 13, 2023 at 9:30 a.m,
Date: June 12, 2023 ENTER:
Circuit Judge
Judge JohnJ. Curry, Jr.
JUN 12 2023
Circuit Court-2126
Order of Court
28