ADR and Mediation

House Bill 1029

Topic: 
Uniform Collaborative Law Act.
(Gabel, D-Evanston) creates the Uniform Collaborative Law Act for family law cases that is a form of alternative-dispute resolution. Contains provisions concerning the requirements of collaborative law agreements; the beginning and conclusion of the collaborative law process; proceedings before a tribunal; disqualification of collaborative lawyers; disclosure of information; standards of professional responsibility and mandatory reporting; procedures for protecting parties from violent or coercive behavior; confidentiality; privileges; and the authority of a tribunal if a collaborative agreement does not meet the requirements of the Act. Just introduced. Same bill as Senate Bill 31 (Noland, D-Elgin).

Smola v. Greenleaf Orthopedic Associates, S.C.

Illinois Appellate Court
Civil Court
Arbitration
Citation
Case Number: 
2011 IL App (2d) 111277
Decision Date: 
Thursday, December 27, 2012
District: 
2d Dist.
Division/County: 
Lake Co.
Holding: 
Vacated and remanded.
Justice: 
HUTCHINSON
Illinois Uniform Arbitration Act is silent as to whether an arbitrator may reconsider the merits of an award before the award becomes final. Thus, arbitrator has authority to entertain a motion to reconsider as long as parties' agreement does not prohibit arbitrator from doing so, including language that an award would be final when issued. (McLAREN and HUDSON, concurring.)

Kenny v. Kenny Industries

Illinois Appellate Court
Civil Court
Arbitration
Citation
Case Number: 
2012 IL App (1st) 111782
Decision Date: 
Tuesday, July 24, 2012
District: 
1st Dist.
Division/County: 
Cook Co., 2d Div.
Holding: 
Affirmed.
Justice: 
HARRIS
(Modified upon denial of rehearing 9/4/12.) Court properly denied holding company's motion for release from judgment confirming arbitrator's final award in favor of trust. Arbitrator's final award addressed all installment payments due under share purchase agreement (SPA), as award made clear it contemplated future installment payments and payments due as of date of judgment. Merger doctrine is inapplicable, as company did not attempt to attack underlying judgment but sought to enforce its contractual right of setoff against any payment due to trust under SPA. (QUINN and CONNORS, concurring.)

Brown v. Delfre

Illinois Appellate Court
Civil Court
Arbitration
Citation
Case Number: 
2012 IL App (2d) 111086
Decision Date: 
Thursday, March 29, 2012
District: 
2d Dist.
Division/County: 
Lake Co.
Holding: 
Reversed and remanded with directions.
Justice: 
JORGENSEN
Plaintiff, who played for Chicago Bears, sued Defendants for alleged malfeasance as to $750,000 investments Plaintiff made with Defendants. Parties' arbitration agreement stated that arbitration will be conducted by and according to rule of NASD, but did not name NASD or FINRA as arbitrator, and thus did not specify the arbitral forum that would conduct arbitration. Designation of arbitrator was not integral to agreement, but parties' primary intent was to arbitrate their disputes. Court erred in finding arbitration agreement unenforceable; case remanded to allow arbitration. (BOWMAN and HUTCHINSON, concurring.)

House Bill 4676

Topic: 
Consumer Remedies Protection Act
(Golar, D-Chicago) voids consumer adhesion contracts as a matter of public policy and creates a private right of action for consumers whose rights are violated. Authorizes recovery of actual and statutory damages in addition to attorney's fees and costs. Scheduled for hearing next Wednesday in House Judiciary Committee I.

Senate Bill 3726

Topic: 
Arbitration report
(Harmon, D-Oak Park) amends the Code of Civil Procedure to repeal a provision requiring the Supreme Court to evaluate the effectiveness of mandatory court-annexed arbitration and report the results of the evaluation to the General Assembly annually. Just introduced and referred to the Senate Committee on Assignments for referral to a substantive committee.

Heinen v. Northrop Grumman Corp.

Federal 7th Circuit Court
Civil Court
Arbitration
Citation
Case Number: 
No. 10-3408
Decision Date: 
February 7, 2012
Federal District: 
N.D. Ill., E. Div.
Holding: 
Affirmed
Dist. Ct. did not err in dismissing instant complaint alleging that defendant-employer failed to pay plaintiff-employee relocation costs as promised where parties had entered into "Dispute Resolution Process" that required both parties to arbitrate "employment-related" disputes. Ct. rejected plaintiff's claim that arbitration clause covered only issues contained in separate employment contract. Ct. also rejected defendant's request for sanctions, even though it deemed instant appeal frivolous, where defendant had not made said request in separate motion, as required under Fed. R. App. P. 38.

Clanton v. Ray

Illinois Appellate Court
Civil Court
Arbitration
Citation
Case Number: 
2011 IL App (1st) 101894
Decision Date: 
Friday, December 30, 2011
District: 
1st Dist.
Division/County: 
Cook Co., 5th Div.
Holding: 
Reversed and remanded.
Justice: 
J. GORDON
Plaintiff was in two unrelated auto accidents, with two different Defendants; suits were consolidated. Parties agreed to participate in voluntary binding arbitration, and agreed to high/low terms as part of their arbitration agreement, but agreement specifically barred parties from disclosing these high/low agreements to arbitrator. Arbitrator's written decision revealed he had knowledge of high/low terms. If two defendants are responsible for plaintiff's indivisible injury, the fact that one defendant's liability is capped does not preclude applicability of joint and several liability. Award must be vacated because arbitrator exceeded authority granted to him by parties, as he was not permitted to know about high/low terms; and award cannot be reinstated because it is ambiguous as to applicability of joint and several liability. (EPSTEIN and McBRIDE, concurring.)

Carter v. SSC Odin Operating Co., LLC

Illinois Supreme Court PLAs
Civil Court
Arbitration
Citation
PLA issue Date: 
January 25, 2012
Docket Number: 
No. 113204
District: 
5th Dist.
This case presents question as to whether trial court properly denied defendant's motion to arbitrate plaintiff's wrongful death claims arising out of defendant's provision of nursing home services to plaintiff's decedent? Appellate Court, in affirming trial court, found that instant arbitration agreements were void due to lack of mutual obligation to arbitrate disputes where agreements excluded from arbitration disputes that were under $200,000, and where defendant effectively did not own any such claims against plaintiff. In its petition for leave to appeal, defendant argued that enforceability of arbitration agreement does not depend on equivalency of obligation to arbitrate under circumstances of case. Defendant also challenged Appellate Court holding that wrongful death claims are not arbitrable even if agreement to arbitrate was signed by decedent. (Partial dissent filed.)

Gore v. AllTel Communication, LLC

Federal 7th Circuit Court
Civil Court
Arbitration
Citation
Case Number: 
No. 11-2089
Decision Date: 
January 19, 2012
Federal District: 
S.D. Ill.
Holding: 
Reversed and remanded
In class action alleging violations of Ill. Consumer Fraud and Deceptive Practices Act, as well as breach of contract arising out of contention that defendant rendered plaintiff's GSM phone and equipment useless and refused to honor features and prices stemming from agreement between plaintiff and defendant's predecessor, Dist. Ct. erred in denying defendant's motion to compel arbitration, even though applicable arbitration clause was not contained in predecessor's agreement, but was contained in invoice issued to plaintiff by defendant. Language of instant arbitration clause was sufficiently broad to encompass instant dispute, where clause applied to any of defendant's services and equipment, and where instant lawsuit was predicated on defendant's (as opposed to predecessor's) actions in rendering his GSM phone inoperable. Moreover, arbitrator, as opposed to court, must decide whether arbitration clause was procedurally unconscionable.