ADR and Mediation

Webb v. Frawley

Federal 7th Circuit Court
Civil Court
Arbitration
Citation
Case Number: 
No. 16-3336
Decision Date: 
May 24, 2017
Federal District: 
N.D. Ill., E. Div.
Holding: 
Affirmed and reversed in part

Dist. Ct. did not err in granting defendant’s motion to compel arbitration in one plaintiff’s lawsuit alleging that defendant-co-worker defrauded him and interfered with his employment with parties’ employer-securities and investment banking firm, where said employment contract contained clause calling for arbitration before FINRA with respect to “matters relating to your employment.” Record showed that said plaintiff was person associated with FINRA, due to said plaintiff’s employment with parties’ employer, even though plaintiff was not employed by said employer at time instant lawsuit had been filed. However, Dist. Ct. erred in granting same motion to compel arbitration with respect to second plaintiff, who had not signed relevant employment contract containing instant arbitration clause.

House Bill 3288

Topic: 
Abused and Neglected Child Reporting Act

(Cassidy, D-Chicago) removes a list of specified persons who are currently required to immediately report suspected cases of child abuse or neglect to DCFS.  Instead, it provides that any person, agency, organization, or entity that knows or in good faith suspects a child may be an abused child or a neglected child shall immediately report or cause a report to be made to the Department. Scheduled for hearing in House Human Services March 8.

 

People v. Daily

Illinois Appellate Court
Criminal Court
Aggravated DUI
Citation
Case Number: 
2016 IL App (4th) 150588
Decision Date: 
Friday, December 16, 2016
District: 
4th Dist.
Division/County: 
Coles Co.
Holding: 
Affirmed in part and vacated in part; remanded with directions.
Justice: 
TURNER

(Modified upon denial of rehearing 2/21/17.) Defendant pled guilty to aggravated DUI and unlawful possession of a converted motor vehicle. Court sentenced him to concurrent terms of 24 years for DUI and 14 years for unlawful possession of a converted motor vehicle. Habitual criminal statute mandates Class X sentencing for repeat offenders who meet its requirements; statute has no language exempting convictions under Vehicle Code. Defendant was subject to Class X sentencing under Section 5-4.5-95(b) of Unified Code, and thus his 24-year sentence fell within appropriate sentencing range. Defendant is entitled to 94 days of sentencing credit, and also should be awarded $5-per-day credit against his eligible fines. Certain fines vacated as they were improperly imposed by circuit clerk. (KNECHT and STEIGMANN, concurring.)

Senate Bill 9

Topic: 
Business Opportunity Tax Act

(Hutchinson, D-Chicago Heights) creates the Business Opportunity Tax that imposes a tax on all entities that issue a Form W-2 or a Form 1099 to a resident of Illinois. It imposes a sliding scale of taxation based on the employer’s total Illinois payroll as follows. (1) if the taxpayer’s total Illinois payroll for the taxable year is less than $100,000, then the annual tax is $225; (2) if the taxpayer’s total Illinois payroll for the taxable year is $100,000 or more but less than $250,000, then the annual tax is $750; (3) if the taxpayer’s total Illinois payroll for the taxable year is $250,000 or more but less than $500,000, then the annual tax is $3,750; (4) if the taxpayer’s total Illinois payroll for the taxable year is $500,000 or more but less than $1,500,000, then the annual tax is $7,500; and (5) if the taxpayer’s total Illinois payroll for the taxable year is $1,500,000 or more, then the annual tax is $15,000.

The following are exempt from taxation under this Act: (1) governmental employers described in Section 707 of the Illinois Income Tax Act; and (2) not-for-profit corporations that are exempt from taxation under Sections 501(c) or 501(d) of the Internal Revenue Code or organized under the General Not For Profit Corporation Act of 1986. Senate Amendment No. 2 becomes the bill and was just filed. It is part of the “grand bargain” being attempted by Senate leaders.

 

Midland Funding LLC v. Hilliker

Illinois Appellate Court
Civil Court
Arbitration
Citation
Case Number: 
2016 IL App (5th) 160038
Decision Date: 
Friday, December 16, 2016
District: 
5th Dist.
Division/County: 
St. Clair Co.
Holding: 
Affirmed.
Justice: 
CATES

Court properly denied Plaintiff's motion to compel arbitration of a counterclaim filed by Defendant credit card holder, whose credit card debt Plaintiff had purchased from credit card issuer. Defendant's counterclaim alleged violation of Collection Agency Act and Consumer Fraud Act because Plaintiff failed to attach assignment documents to its complaint. Defendant was prejudiced by Plaintiff's belated demand for arbitration, and delay in filing discovery responses. Plaintiff has, by its conduct, waived arbitration.(SCHWARM and GOLDENHERSH, concurring.)

Guarantee Trust Life Insurance Company v. Platinum Supplemental Insurance, Inc.

Illinois Appellate Court
Civil Court
Arbitration
Citation
Case Number: 
2016 IL App (1st) 161612
Decision Date: 
Friday, December 9, 2016
District: 
1st Dist.
Division/County: 
Cook Co., 6th Div.
Holding: 
Affirmed.
Justice: 
ROCHFORD

Life insurance company filed suit against insurance company and its founder for claims stemming from marketing agreement. That agreement contains no provisions for resolution of dispute/breach by litigation rather than by arbitration. Thus, Plaintiff's claims are subject to mandatory arbitration as provided in agreement. Stay of Plaintiff's litigation is warranted because there may be no need for further litigation after resolution of arbitration. (HOFFMAN and CUNNINGHAM, concurring; HOFFMAN, specially concurring).

Keefe v. Allied Home Mortgage Corporation

Illinois Appellate Court
Civil Court
Arbitration
Citation
Case Number: 
2016 IL App (5th) 150360
Decision Date: 
Saturday, November 26, 2016
District: 
5th Dist.
Division/County: 
St. Clair Co.
Holding: 
Reversed and remanded.
Justice: 
CATES

Court erred in finding parties' arbitration agreement enforceable and in granting Defendants' motion to compel arbitration. The National Arbitration Forum (NAF) is no longer able to conduct arbitrations involving consumer loans. The unavailability of NAF and absence of 1999 NAF Code leave parties without their designated arbitrator and rules specifically chosen to govern arbitration. Designation of NAF as arbitral forum and term mandating use of 1999 NAF Code were integral to parties' arbitration agreement.(MOORE, concurring; SCHWARM, dissenting.)

G3 Analytics, LLC v. Hughes Socol Piers Resnick & Dym Ltd.

Illinois Appellate Court
Civil Court
Arbitration
Citation
Case Number: 
2016 IL App (1st) 160369
Decision Date: 
Tuesday, November 8, 2016
District: 
1st Dist.
Division/County: 
Cook Co., 2d Div.
Holding: 
Affirmed.
Justice: 
HYMAN

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.)

State Farm Fire and Casualty Company v. Watts Regulator Company

Illinois Appellate Court
Civil Court
Arbitration
Citation
Case Number: 
2016 IL App (2d) 160275
Decision Date: 
Thursday, September 29, 2016
District: 
2d Dist.
Division/County: 
McHenry Co.
Holding: 
Affirmed.
Justice: 
JORGENSEN

Plaintiff insurer filed subrogation action to recover payments it made to its insured. Defendant moved to compel arbitration as parties were signatories to Arbitration Forums' Arbitration Agreement. Amendment to Arbitration Agreement unambiguously provides that filing date of insured's claim, rather than event date or date of loss, determines whether claim was subject to compulsory arbitration. Judicial estoppel applies only to inconsistent factual positions, not inconsistent legal positions.(HUTCHINSON and ZENOFF, concurring.)