2017 IL App (1st) 162207
Ill. App. Ct.2017Background
- Ann Sanders entered a residence agreement (with an arbitration addendum) with Victory Centre of River Woods on March 1, 2013.
- Sanders suffered diabetic shock, was hospitalized, and died on May 21, 2013.
- Shirley Hayes, as independent administrator of Sanders’s estate, sued alleging negligence and sought damages under the Wrongful Death Act, the Family Expense Act (Rights of Married Persons Act), and the Survival Act.
- Defendant moved under section 2-619 to dismiss the survival and family expense claims as subject to the agreement’s binding arbitration clause and asked the court to stay the wrongful death claim pending arbitration.
- The trial court held the survival and family expense claims were arbitrable and dismissed them, but denied the requested stay of the wrongful death claim; defendant appealed under Supreme Court Rule 307(a).
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the court should stay the wrongful death claim pending arbitration of survival and family-expense claims | Hayes argued arbitration provisions are unenforceable; alternatively, if enforceable, the wrongful death claim should proceed first | Victory Centre argued arbitration clause covers survival and family-expense claims and the wrongful death action should be stayed pending arbitration under the Uniform Arbitration Act | Reversed: court must stay the wrongful death claim until arbitration of arbitrable claims concludes |
Key Cases Cited
- Certain Underwriters at Lloyd’s, London v. Boeing Co., 385 Ill. App. 3d 23 (applying abuse-of-discretion review principles)
- Bass v. SMG, Inc., 328 Ill. App. 3d 492 (discussing policy reasons to allow arbitration to proceed first and the risk of inefficient dual proceedings)
- Casablanca Trax, Inc. v. Trax Records, Inc., 383 Ill. App. 3d 183 (noting preference for staying court proceedings when arbitrable and nonarbitrable issues are interrelated)
- Kelso-Burnett Co. v. Zeus Development Corp., 107 Ill. App. 3d 34 (endorsing stays when arbitration may serve judicial economy)
- Kostakos v. KSN Joint Venture No. 1, 142 Ill. App. 3d 533 (stating arbitration first may eliminate need for court proceedings and furthers judicial economy)