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Klehr v. Illinois Farmers Insurance Company
984 N.E.2d 524
Ill. App. Ct.
2013
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Background

  • Plaintiff Megan Klehr sought uninsured motorist relief via arbitration under Illinois Insurance Code 143a and AAA rules.
  • Arbitration proceeded before the AAA with defendant Illinois Farmers Insurance Co requesting discovery from Klehr.
  • Klehr refused discovery, arguing it was impermissible under the arbitration clause or outside the 180-day discovery window.
  • Klehr filed a circuit court declaratory judgment action seeking to declare the discovery period closed or limited to 180 days.
  • The circuit court dismissed the action for lack of jurisdiction/appropriateness, and Klehr appealed.
  • The issue centers on whether judicial review of an interlocutory arbitration discovery order is ripe before final arbitration award; the court ultimately affirms on ripeness grounds and dismisses the action as premature.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether circuit court has jurisdiction to review an interlocutory discovery order pre-final award Klehr seeks declaratory relief to interpret AAA discovery under 143a Courts cannot review interlocutory discovery before final award Court held ripeness lacking; action premature

Key Cases Cited

  • Beahringer v. Page, 204 Ill. 2d 363 (2003) (declaratory judgments require an actual controversy and ripeness)
  • Morr-Fitz, Inc. v. Blagojevich, 231 Ill. 2d 474 (2008) (ripeness depends on fit for decision and hardship)
  • Donaldson, Lufkin & Jenrette Futures, Inc. v. Barr, 124 Ill. 2d 435 (1988) (courts defer to arbitration to determine arbitrability)
  • Phoenix Ins. Co. v. Rosen, 242 Ill. 2d 48 (2011) (public policy favors arbitration to resolve disputes efficiently)
  • In re Luis R., 239 Ill. 2d 295 (2010) (subject-matter jurisdiction exists for justiciable declaratory suits)
  • Klehr v. Illinois Farmers Ins. Co., 2013 IL App (1st) 121843 (2013) (affirmed holding declaratory action premature before arbitration final)
Read the full case

Case Details

Case Name: Klehr v. Illinois Farmers Insurance Company
Court Name: Appellate Court of Illinois
Date Published: Jan 22, 2013
Citation: 984 N.E.2d 524
Docket Number: 1-12-1843
Court Abbreviation: Ill. App. Ct.