Shackelford v. Allstate Fire and Casualty Insurance Company
2017 IL App (1st) 162607
| Ill. App. Ct. | 2017Background
- Holly Shackelford was injured as a passenger after a car collision and pursued an uninsured-motorist claim under Allstate's policy; the parties agreed to arbitration.
- An arbitrator awarded Shackelford $16,000 on June 30, 2015, but the award was qualified: "all applicable set-offs and liens to be resolved by the Parties and their Attorneys."
- Shackelford sued, seeking confirmation of the arbitration award and statutory interest under 735 ILCS 5/2-1303; she alleged Allstate had not paid the award or interest and sought class treatment for similar claimants.
- After filing, Allstate tendered $14,000 to Shackelford; she amended to seek confirmation and interest.
- The trial court dismissed her amended complaint with prejudice under section 2-615; the appellate majority reversed and remanded, holding she stated a claim for confirmation and interest calculation, while a dissent argued she failed to seek confirmation before suing.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the complaint states a claim to confirm the arbitrator's award | Shackelford argued she properly sought entry of judgment confirming the award | Allstate argued the complaint failed to state a claim | Court: Complaint states a viable claim for confirmation; reverse dismissal |
| Whether interest under §2-1303 accrues on the arbitrator's award despite a qualification for set-offs | Shackelford argued §2-1303 authorizes interest from the award date and set-offs do not bar accrual on the net amount | Allstate argued the award was too indefinite because of unresolved set-offs to permit interest | Court: Interest accrues from award date on award less appropriate set-offs; account for prior $14,000 payment |
| Whether unresolved/unliquidated set-offs prevent interest accrual | Shackelford: Unliquidated set-offs do not defeat interest on the liquidated portion | Allstate: The set-offs make amount uncertain so interest should not accrue | Court: Follows weight of authority allowing interest on net amount; Owens limited to its specific facts |
| Whether plaintiff needed to first petition to confirm the award before suing for payment of interest | Shackelford proceeded directly by complaint seeking confirmation and interest | Allstate and dissent: Plaintiff had to apply to confirm under the Uniform Arbitration Act before obtaining statutory interest | Court (majority): Complaint sufficed to seek confirmation and interest; dissent disagreed, arguing statutory procedure required prior confirmation petition |
Key Cases Cited
- Illinois State Toll Highway Authority v. Heritage Standard Bank & Trust Co., 157 Ill.2d 282 (1993) (§2-1303 treats interest on awards as prejudgment interest accruing from award date)
- Marshall v. Burger King Corp., 222 Ill.2d 422 (2006) (standard of review for section 2-615 dismissal)
- Owens v. Stokoe, 170 Ill. App. 3d 179 (1988) (interest denied where large contested set-offs made debt too indefinite)
- Ryan v. Kontrick, 304 Ill. App. 3d 852 (1999) (section 2-1303 sets rate for post-award/prejudgment interest)
- Recreational Development Co. v. American Construction Co., 749 P.2d 1002 (Colo. App. 1987) (arbitration award is liquidated for interest purposes; interest allowed on balance after set-offs)