Village of Bartonville v. Lopez
2017 IL 120643
| Ill. | 2017

Background

  • Salvador Lopez, a Bartonville police officer, faced termination charges filed with the Board of Fire and Police Commissioners; a collective-bargaining agreement (CBA) between the Village and the Policemen’s Benevolent Labor Committee (the Union) included a grievance procedure and a discipline chapter but was silent on whether discipline was arbitrable.
  • The Board scheduled a hearing outside the 30-day window of 65 ILCS 5/10-2.1-17 after discussions of scheduling; Lopez filed a prehearing declaratory action arguing the Board lost jurisdiction for delay, but the Board proceeded on October 3, 2014, with Union counsel participating in cross-examination and closing argument.
  • The Board found cause and discharged Lopez; defendants did not seek Administrative Review of the Board decision under the Administrative Review Law.
  • After the Board decision became final, the Union filed a grievance and demanded arbitration under the CBA claiming termination violated the contract’s just-cause/progressive-discipline provisions and that the grievance procedure was the contract’s exclusive remedy.
  • The Village sued for declaratory judgment and to stay arbitration, arguing arbitration was barred by the Board’s final decision, the Administrative Review Law, and res judicata; the trial court granted summary judgment for the Village finding waiver and no contractual basis to arbitrate disciplinary matters.
  • The appellate court reversed and remanded, but the Illinois Supreme Court reversed the appellate court and affirmed the trial court, holding the Union waived arbitration and res judicata barred the grievance.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether the disciplinary termination is subject to grievance arbitration under the CBA CBA did not create an arbitration alternative to Board proceedings; Board hearing and final decision preclude arbitration Silence in CBA favors arbitration; arbitration required unless parties clearly excluded discipline Held for Village: even if CBA silent, Union waived arbitration by participating before Board and failing to seek stay; arbitrator need not decide
Whether defendants waived the right to arbitrate by participating in the Board hearing Participation in Board hearing and failure to seek stay or to assert arbitration deprived them of the right Participation did not waive arbitration because grievance arose only after final discharge Held for Village: participation and failure to timely invoke contractual arbitration constituted waiver
Whether res judicata bars arbitration after the Board’s final decision Board’s adjudicatory hearing produced a final judgment; res judicata bars relitigation of same transaction Arbitration raises different legal standard (just cause) so causes differ; res judicata inapplicable Held for Village: transactional test applies — same operative facts and relief; res judicata bars grievance/arbitration
Whether Municipal Code/Administrative Review Law preclude arbitration as alternate remedy Board decision is subject only to Administrative Review Law; parties cannot relitigate by arbitration Statute permits arbitration as alternative/supplemental due process; contractual arbitration not displaced Held: Statute allows arbitration as alternative, but here waiver/res judicata prevent invoking arbitration after Board process concluded

Key Cases Cited

  • Donaldson, Lufkin & Jenrette Futures, Inc. v. Barr, 124 Ill. 2d 435 (1988) (when arbitration clause is broad and scope unclear, arbitrator should decide substantive arbitrability)
  • Home Ins. Co. v. Cincinnati Ins. Co., 213 Ill. 2d 307 (2004) (summary judgment standard and de novo review)
  • River Park, Inc. v. City of Highland Park, 184 Ill. 2d 290 (1998) (transactional test for identity of cause of action in res judicata analysis)
  • Hughey v. Industrial Comm’n, 76 Ill. 2d 577 (1979) (res judicata principle and purposes)
  • Peregrine Fin. Grp., Inc. v. Ambuehl, 309 Ill. App. 3d 101 (1999) (arbitration rights may be limited by res judicata where issues were previously reached)
  • Village of Creve Coeur v. Fletcher, 187 Ill. App. 3d 116 (1989) (cannot pursue both administrative review through commission process and arbitration of same disciplinary decision)
  • Peoria Firefighters Local 544 v. Korn, 229 Ill. App. 3d 1002 (1992) (res judicata bars arbitration where underlying facts, relief, and parties are identical and prior administrative/court process was completed)
  • City of Rockford v. Unit Six of the Policemen’s Benevolent & Protective Ass'n, 362 Ill. App. 3d 556 (2005) (res judicata precluded union grievance after board hearing and court review where union failed to seek stay)
  • Board of Governors v. Illinois Educ. Labor Relations Bd., 170 Ill. App. 3d 463 (1988) (party who elects administrative remedies and fails to seek stay cannot later force arbitration)
  • Monmouth Pub. Sch. Dist. No. 38 v. Pullen, 141 Ill. App. 3d 60 (1985) (prior arbitration award can have res judicata effect on same issue)
  • Marco v. Doherty, 276 Ill. App. 3d 121 (1995) (administrative adjudications have res judicata effect when proceedings are adjudicatory/judicial in nature)
  • Ryherd v. Gen. Cable Co., 124 Ill. 2d 418 (1988) (arbitral findings on contractual just cause distinct from tort claims; Ryherd not a res judicata case)
  • Schroeder Murchie Laya Assocs., Ltd. v. 1000 West Lofts, LLC, 319 Ill. App. 3d 1089 (2001) (contractual right to arbitrate may be waived by inconsistent conduct)
  • Yates v. Doctor’s Associates, Inc., 193 Ill. App. 3d 431 (1990) (party’s conduct inconsistent with arbitration clause may constitute waiver)
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