Village of Wheeling v. Stavros

Plaintiff, Village of Wheeling, a municipal corporation, commenced this action in the circuit court of Cook County for an accounting, the imposition of a constructive trust, and other equitable relief against the defendants, including James Stavros. Pursuant to section 45 of the Civil Practice Act (Ill. Rev. Stat. 1975, ch. 110, par. 45), Stavros moved to dismiss that portion of the amended complaint directed against him on the ground that it failed to state a cause of action. The trial court granted Stavros' motion to dismiss, and plaintiff appeals. Count III of the amended complaint alleged that plaintiff had commenced this action on behalf of all citizens, residents and taxpayers of the Village; that during the years 1971, 1972, and 1973, Stavros received money from Zale Construction Company, Harmony Builders and Meister-Neiberg Company, in a total amount of $92,000, in order that they be given building permits and zoning changes by the Village. The complaint further recited that Stavros was in a position to and did control certain officials of the Village, including the building commissioner and a trustee and member of the zoning board of appeals; that Stavros manipulated their actions and was further able to prevent the construction of buildings in the Village unless payments were made to Stavros; that because of his position of control over Village officials, Stavros was able to demand and obtain money from prospective developers in order to obtain favorable zoning and permit approval from the Village which otherwise would not be given; and that as a result of Stavros' activities, certain Village officials violated their fiduciary duties to the Village. It was further charged that Stavros received the monies in order that he exercise his influence and control over Village officials to obtain necessary zoning changes and building permits and other Village approval; that Stavros used his influence and control to provide building permits and zoning changes for certain co-defendants; that in a Federal criminal action Stavros pleaded guilty to accepting the sum of $92,000; that Stavros' willing participation in a scheme to cause Village officials to breach their duty to the Village unjustly enriched Stavros and caused damage to the Village; and that any money received by Stavros to induce Village officials to breach their fiduciary duties to the Village is held in a constructive trust for the Village.