ADR and Mediation

House Billl 4428

Topic: 
Attorney statute of repose
(Sandack, R-Lombard) amends the Code of Civil Procedure statute of repose for attorneys by tolling the six-year statute of repose if the client is still represented by the attorney or the attorney knowingly conceals the act or omission. The period of limitations will not begin to run until the person is no longer represented by the attorney or until the client should have known of the injury. Introduced and referred to House Rules Committee.
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Public Act 98-506

Topic: 
Driving and cell phones
(D'Amico, D-Chicago; Mulroe, D-Chicago) prohibits using a hand-held cell phone or personal digital assistant while driving. Exempts the use of a hands-free or voice-operated mode, which may include the use of a headset. It also exempts using an electronic communication device that is activated by pressing a single button to initiate or terminate a voice communication. Second or subsequent convictions are moving violations. The fine is a maximum of $75 for the first offense, $100 for the second offense, $125 for the third offense, and $150 for the fourth or subsequent offense. Effective Jan. 1, 2014.
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Green v. U.S. Cash Advance Illinois, LLC

Federal 7th Circuit Court
Green v. U.S. Cash Advance Illinois, LLC
Civil Court
Arbitration
Citation
Case Number: 
No. 13-1262
Decision Date: 
July 30, 2013
Federal District: 
N.D. Ill., E. Div.
Holding: 
Vacated and remanded
Dist. Ct. erred in denying defendant’s request to stay instant lawsuit alleging violations of Truth in Lending Act and to direct parties to participate in arbitration pursuant to arbitration clause contained in parties’ loan agreement, where defendant asked for appointment of substitute arbitrator under 9 USC section 5, and where Dist. Ct. found that arbitration clause was void because identity of original arbitrator mentioned in arbitration clause formed integral part of arbitration clause. Dist. Ct. should have appointed substitute arbitrator where: (1) arbitration clause merely required that arbitrator abide by Code of Procedure of Nat’l Arbitration Forum, rather than required that Forum itself conduct arbitration; and (2) record showed that Forum had ceased conducting arbitrations at time of instant request. Ct. further found that identity of arbitrator was not so important so as to void entire arbitration clause and also noted that under Code, parties could seek remedy under 9 USC section 5 if they were denied opportunity to arbitrate dispute before Forum. (Dissent filed.)

Unsettled Settlements: Understanding Mediation Agreements

By Jonah Orlofsky
August
2013
Article
, Page 418
Mediation is an alternative to litigation, but parties sometimes end up disagreeing about the mediation itself. Mediation agreements can help resolve those disputes.

Bovay v. Sears, Roebuck & Co.

Bovay v. Sears, Roebuck & Co.
Illinois Appellate Court
Civil Court
Arbitration
Citation
Case Number: 
2013 IL App (1st) 120789
Decision Date: 
Friday, July 19, 2013
District: 
1st Dist.
Division/County: 
Cook Co., 6th Div.
Holding: 
Affirmed.
Justice: 
REYES
Court properly denied company's motion to compel arbitration of claims brought by plaintiffs, who were Sears credit card holders in a consolidated class action alleging that company unlawfully disclosed confidential data to third parties. Credit card agreement provided for arbitration upon election of either party. Court properly ruled that company knew of its right to arbitrate and could have asserted it for years after complaints were filed, but did not. Company failed to show it would have been futile to assert its right to arbitrate, and its substantial delay in demanding arbitration caused prejudice to plaintiffs. (LAMPKIN and GORDON, concurring.)

Klehr v. Ill. Farmers Ins. Co

Illinois Supreme Court PLAs
Klehr v. Ill. Farmers Ins. Co
Civil Court
Arbitration
Citation
PLA issue Date: 
May 29, 2013
Docket Number: 
No. 115693
District: 
1st Dist.
This case presents issue as to whether trial court properly dismissed for lack of subject-matter jurisdiction plaintiff’s action seeking declaration that arbitrator could not direct plaintiff to respond to defendant’s discovery request in underlying arbitration proceeding. Record showed that arbitration proceeding was still pending at time of instant action, and Appellate Court found that while trial court had subject-matter jurisdiction to consider plaintiff’s action, dismissal was nevertheless proper since issue raised in instant action was not ripe for judicial review at present time where Uniform Arbitration Act contemplated review of arbitrator’s discovery order only at conclusion of arbitration as part of motion to vacate arbitrator’s award.

Statutes of Limitation and Arbitration: Limiting Your Client’s Exposure

By Edward J. Underhill
May
2013
Article
, Page 244
Don't assume that general statutes of limitation apply to Illinois arbitration claims - think about including a clause in your arbitration agreements to limit your client's exposure.

Senate 1898

Topic: 
Required liability coverage for drivers
(Biss, D-Skokie) increases the required minimum liability insurance policies for drivers as follows: bodily injury or death to any one person from $20,000 to $50,000; bodily injury or death to more than one person from $40,000 to $100,000; and injury or destruction of property of others from $15,000 to $40,000. Scheduled for hearing this Tuesday in Senate Transportation Committee.
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Senate Bill 1636

Topic: 
UM arbitration
(Mulroe, D-Chicago) makes arbitration binding in UM cases regardless of the amount that is awarded. Under current law, UM arbitration is not binding if an award is made more than $50,000 for one person’s injuries or $100,000 for two or more person’s injuries. Scheduled for hearing this Tuesday in Senate Insurance Committee.
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Senate Bill 31

Topic: 
Collaborative law for family law cases
(Noland, D-Elgin) codifies by statute the Uniform Law Commission’s proposed alternative dispute resolution for family law cases that is now being done by private agreement between litigants. It includes a variety of process requirements such as treatment of settlement communications as confidential, establishment of an evidentiary privilege for settlement discussions, lawyer disqualification if the process fails, and informal discovery procedures. House Bill 1029 and 1239 are identical bills.
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