Board of Commissioners of the Wood Dale Public Library District v. County of Du Page

In Board of Commissioners of the Wood Dale Public Library District v. County of Du Page (1984), 103 Ill. 2d 422, 469 N.E.2d 1370 the supreme court ruled that interest on proceeds retained by the county treasurer need not be returned to local governments even though the county treasurer was ordered to pay interest on such proceeds in the future. In Wood Dale, the supreme court clearly had the power to order past interest to be paid but declined to do so. When speaking of payment of restitutional relief, the court stated that "such relief is not required in every case ." (103 Ill. 2d 422, 431, 469 N.E.2d 1370). Therefore, we find that Wood Dale stands for the proposition that payment of past interest is not necessarily required. In Wood Dale, the Illinois Supreme Court used the tests set out in the U.S. Supreme Court case of Chevron Oil v. Huson (1971), 404 U.S. 97, 92 S. Ct. 349, 30 L. Ed. 2d 296, to determine whether it should award interest retroactively. First, the decision must establish a new principle of law or be an issue of first impression. Second, the Court must look at the prior history and find whether retroactivity will further or retard operation of the new rule. Finally, the Court must weigh the inequity or "injustice or hardship" of applying the rule retroactively.