Plaintiffs, in the business of identifying, developing and filing qui tam lawsuits, hired 2 Chicago law firms to investigate and prosecute potential claims under Illinois and federal False Claims Acts, and terminated the relationship after Defendants spent several months investigating the claims. After Plaintiffs did not pay Defendants' legal fees, Defendants demanded mediation under ADR provision of fee agreement. Federal Arbitration Act, rather than Illinois law, governed ADR provision due to the fee agreement's ties to interstate commerce. As Plaintiffs filed declaratory judgment action arguing that entire fee agreement was invalid, question of its enforceability must be decided by an arbitrator, and not a court. (NEVILLE and MASON, concurring.)
Illinois Appellate Court
Civil Court
Arbitration