Justia Arbitration & Mediation Opinion Summaries

Irma Jordan filed a negligence complaint against Esmerelda Macedo in the circuit court of Cook County following a car accident. The case was referred to mandatory arbitration, where the arbitrator awarded Jordan $13,070. Neither party rejected the award, and Jordan submitted it to the circuit court for judgment. Jordan then filed a motion seeking prejudgment interest and statutory costs, which the circuit court denied, stating the arbitration award included the full amount to be reduced to judgment.The appellate court affirmed the circuit court's denial of statutory costs but reversed the denial of prejudgment interest. The appellate court held that Jordan should have requested costs during arbitration, referencing the Cruz v. Northwestern Chrysler Plymouth Sales, Inc. decision. However, it agreed that prejudgment interest could be requested in the circuit court as it is not considered damages.The Supreme Court of Illinois reviewed the case and held that, according to Illinois Supreme Court Rule 92(e), statutory costs can be sought during arbitration, but failure to do so does not waive the right to seek them in the trial court upon entry of judgment. The court found that Rule 92(e) allows for statutory costs to be requested in the trial court even if not addressed by the arbitrator. The court reversed the appellate court's judgment regarding statutory costs and affirmed the judgment regarding prejudgment interest. The case was remanded to the circuit court for further proceedings consistent with this opinion. View "Jordan v. Macedo" on Justia Law

Jansen was a resident at a skilled nursing facility. Kotalik, with Jansen’s power of attorney for healthcare, signed a “Contract Between Resident and Facility” that provides all civil claims shall be resolved exclusively through mandatory mediation, and, if such mediation does not resolve the dispute, through binding arbitration. The contract waived claims for punitive damages and included a “termination upon death” provision. Jansen suffered several falls, resulting in injuries that contributed to or caused Jansen’s death. Her estate sued, arguing that the defendants had waived their right to mediate and/or arbitrate by participating in litigation for nearly a year, that the arbitration clause was procedurally and substantively unconscionable, and that Kotalik, as Jansen’s POA for healthcare, lacked the authority to execute an arbitration clause on Jansen’s behalf.The Illinois Supreme Court affirmed the denial of the motion. By the express terms of the contract, once the resident died, the contract ceased to exist, including the forum provision. The court did not address the other arguments. View "Clanton v. Oakbrook Healthcare Centre, Ltd." on Justia Law

In 2017, an arbitrator found that Western Illinois University violated its collective bargaining agreement with respect to layoffs. In 2018, the arbitrator entered a supplemental award, finding that the University failed to comply with the earlier award. The Illinois Educational Labor Relations Board then found that the University committed an unfair labor practice in violation of the Illinois Educational Labor Relations Act, 115 ILCS 5/14(a)(1), (8), by failing to comply with the two arbitration awards. The Act requires that public education employers arbitrate disputes arising under a collective bargaining agreement. Refusal to comply with the provisions of a binding arbitration award is an “unfair labor practice” under the Act. The appellate court vacated the Board’s decision.The Illinois Supreme Court agreed. An arbitrator in the public educational labor relations context exceeds his authority by reviewing a party’s compliance with his own award in contravention of the Act, which vests exclusive primary jurisdiction over arbitration awards with the Board. The Board may not limit the evidence it will consider in an unfair labor practice proceeding under the Act to the evidence before the arbitrator. Under the Act, arbitrators retain limited jurisdiction of the awards for the sole purpose of resolving remedial issues that may arise from the award itself. View "Western Illinois University v. Illinois Educational Labor Relations Board" on Justia Law