Stemple v. PickerillStemple v. Pickerill
Lead Opinion
delivered the opinion of the court:
This сase involves the aftermath of a mandatory arbitration decision in favor of the plaintiffs. The defendants filed a rejection of the arbitration award, but several months later changed their minds and sought to withdraw their rejection. The trial court allowed the withdrawal and barred the plaintiffs from filing their own rejection of the arbitration award. The plaintiffs appealed. We reverse and remand.
On August 26, 2005, the plaintiffs, Chris and Donna Stemple, filed a complaint against the defendants, Charles K. Pickerill and Charles L. Pickerill, doing business as Charley’s Auto Service, alleging that the defendants had sold them an engine that failed to operate despite the defendants’ warranties and representations that it would operate. The complaint sought $25,000 in damages and contained four claims: breach of express warranty (count I), breach of implied warranties (count II), violation of the Illinois Consumer Fraud and Deceptive Business Practices Act (
In January 2006, the case was set for mandatory arbitration approximately three months later. On March 22, 2006, the plaintiffs filed a noticе pursuant to Supreme Court Rule 90 (210 Ill. 2d R. 90), attaching the documents they planned to introduce as evidence at the arbitration. The defendants did not file a Rule 90 notice. The arbitration took place on April 20, 2006. The same day, the arbitrators found in favor of the plaintiffs on count I of the complaint and entered an award totaling $8,149.50, which included damages, attorney fees, and costs. The arbitrators found in favor of the defendants on counts II, III, and IV The defendants filed a rejection of the arbitration award on May 11, 2006.
On June 7, 2006, the plaintiffs filed a motion to bar the defendants from presenting any witnesses, evidence, or defense at trial, based on the defendants’ failure to file a Rule 222 disclosure. The motion noted that the defendants had not filed a Rule 90 notice either. On June 19, 2006, the defendants filed a response to the plaintiffs’ motion, asserting that they had “communicated” to the plaintiffs that they did not intend to introduce or use at trial any documents other than those already identified by the plaintiffs. At the same time, the defendants filed a motion to strike and dismiss counts III and IV of the complaint for failure to plead fraud with
The trial court held a pretrial conference with the parties on August 17, 2006. According to a bystander’s report included in the record on appeal, the conference occurred in the trial judge’s chambers and proceeded as follows:
“[The trial court] inquired as to who had rejected the Arbitration Award. When the lawyers told [the court] that the Defendants had rejected, [the court] stated that this rejection was ill-advised, and that the Defendants were likely to have a judgment entered against them, at triаl, substantially larger than the Arbitration Award against Defendants.”
The trial court then asked the plaintiffs’ attorney if the plaintiffs would accept a settlement offer in the amount of the arbitration award, in the event that the defendants offered that amount. The plaintiffs’ attorney conferred with his clients and told the court that the plaintiffs would not accept such an offer, as the plaintiffs had sustained additional damages, costs, and expenses since the time of the arbitration.
The trial court then told the defendants’ attorney that the defendants could move to withdraw their rejection of the arbitratiоn award, and that if they did so, the trial court would enter a judgment based on the arbitration award. The plaintiffs’ attorney objected, arguing that there was no legal basis either for vacating the rejection of the arbitration award or for permitting the defendants to move to withdraw it. The plaintiffs’ attorney stated that if the trial court granted a motion to withdraw the rejection of the arbitration award, the plaintiffs then would wish to file a rejection of the arbitration award, and he argued that the plaintiffs were entitled to a jury trial under the circumstances of the case. According to the defendants, at this point, the trial court stated its understanding that the plaintiffs could not file their own rejection of the arbitration award. The trial court then advised the defendants to file a motion to withdraw their rejection of the award, set a 14-day deadline for filing such a motion, and set a briefing schedule culminating in a hearing date for the motion.
The defendants’ motion to withdraw their rejection of the arbitration award was filed late, and the plaintiffs objected to the motion on that basis as well as on the merits, arguing that there was no legal basis on which to permit the withdrawal of the rejection and that doing so would bе unfair to them. After requiring the defendants to file another motion seeking the court’s permission for the late filing of their motion to withdraw the rejection, the trial court granted both of the defendants’ motions. The plaintiffs appealed, raising essentially the same arguments as below.
We hold that the trial court erred in permitting the defendants to withdraw their earlier rejection of the arbitration award. To show why, we examine the purpose and history of the mandatory arbitration program. The mandatory arbitration system was authorized by the legislature in 1986 (see Ill. Rev. Stat. 1987, ch. 110, par. 2 — 1001A) and established the following year via the adoption of Supreme Court Rules 86 through 95. The program was modeled on mandatory arbitration programs used in other states. See 134 Ill. 2d R. 86, Introductory Comments. According to the comments of the Rules Committee, the purpose of mandatory arbitration is to provide a “vehicle for an early, economical and fair resolution of monetary disputes.” 134 Ill. 2d R. 86, Introductory Comments, at 87; see also Akpan v. Sharma,
In order to protect the constitutional right to a trial by jury, Rule 93 grants litigants who have been ordered to arbitration the right to reject the arbitrators’ award. Gershak v. Feign,
As we note, no party participating in good faith may be forced to accept an arbitration award. The trial court’s actions here — denying the plaintiffs the oрportunity to file their own rejection of the award while permitting the defendants to withdraw their earlier rejection of the arbitration award — had the effect of forcing the plaintiffs to accept the arbitration award and were improper on that basis alone. 166 Ill. 2d R. 93(a); Gershak,
Supreme court rules are construed using the same principles that guide our construction of statutes. People v. Campbell,
We begin with the plain language of the supreme court rules governing mandatory arbitration. Although Rule 93 establishes a method by which a party may reject an arbitration award, there is no provision authorizing a party to later “withdraw” that rejection. Illinois courts have expressed their disapproval of judicial tinkering with the mandatory arbitration process as established through these rules. Rule 93 sets 30 days as the time in which a party must decide whether to accept
Nor is there any provision permitting courts to modify the mandatory arbitration procedures as they see fit. If we were to condone a party’s “withdrawal” of an earlier rejection of an arbitration award, we would be required to articulate guidelines about the circumstances in which such a withdrawal may properly be granted. This court is not the Supreme Court Rules Committee. We decline to amend the rules by establishing new rules or procedures authorizing the withdrawal of a rejection of an arbitration award.
As we commented on an earlier occasion, courts have a limited role following the issuance of an arbitration award:
“[T]here is but one procedure for challenging an award entered in a mandatory arbitration proceeding: a party must file a timely notice of rejection of the award and request a trial. *** The role of the circuit court in such a proceeding is limited, and once the arbitration panel has made its award, the award is deemed an all- or-nothing proposition and the parties must accept or reject the award in its entirety.” Magee v. Garrеau,332 Ill. App. 3d 1070 , 1074-75 (2002).
In Magee, we held that when the arbitration award was not timely rejected, the trial court could not enter a settlement and “had no choice but to enter judgment on the award.” Magee,
“We agree with Lollis [u. Chicago Transit Authority, 238 111. App. 3d 583, 585 (1992),] that Supreme Court Rule 92(c) places the obligation on the parties to bring a motion to enter judgment on the award. Rule 92(c) has no provision that allows the trial court to enter a judgment on its own motion.”
In all of these cases, appellate courts rejected procedures that were not expressly
Nor does permitting the withdrawal of a rejection necessarily serve the purpose of the mandatory arbitration program, achieving an expeditious resolution of the dispute. A party who later realizes that rejecting the arbitration award was a mistake has a well-established route open to avoid the delay and expense of proceeding to trial: a settlement offer. The statistics on the number of cases that are settled versus those that proceed to trial demonstrate that, quite often, both sides of a dispute are amenable to settlement short of trial. There may be times, as in this case, where the other party does not wish to settle for the amount of the arbitration award, but this merely requires the first party to negotiate further to reach a mutually acceptable resolution. Once a party has properly rejected an arbitration award, a trial court may not unilaterally impose that award as the outcome of the case.
There are cases in which courts have not adhered to the strict language of Rule 93, but only when some other supreme court rule demanded it. For instance, in Hornburg v. Esparza,
Where no other supreme court rule requires a more lenient approach, we have not hesitated to enforce the mandatory arbitration rules strictly. In Liebovich Steel & Aluminum Co. v. Advance Iron Works, Inc.,
The special concurrence suggests that we should interpret Rule 93(a) similarly to section 2 — 1105(a) of the Code of Civil Procedure (
We note that permitting the withdrawal of a previous rejection of an arbitration award does not appear to be a common practice in Illinois trial courts. We have discovered only one reported case mentioning (but not discussing) such a withdrawal. See Avery v. Sabbia, 301 111. App. 3d 839, 842-43 (1998). In that case, it appears that the defendants did not object to the plaintiffs’ motion to withdraw their rejection of the award, and thus the entry of judgment on the award was more in the nature of a settlement acceptable to both parties. As discussed above, a later settlement in the amount of the arbitration award is perfectly appropriate when both parties eventually decide that they prefer not to proceеd to trial. Avery does not contribute to our examination of the issue of withdrawals of rejections because it contains no analysis of that issue. We also note that none of the Illinois judicial circuits that have created mandatory arbitration programs have established any local rules addressing the issue, confirming that permitting withdrawals of rejections has no formal approval by any court and that the informal practice of permitting withdrawal is not widespread. Of course, any local rules regarding mandatory arbitration must be consistent with the supreme court rules. 155 111. 2d R. 86(c). Those rules contain no provisions authorizing the withdrawal of a party’s rejection of a mandatory arbitration award.
The Illinois mandatory arbitration program was based in part on similar programs in other states, and thus foreign law might offer guidance on the issue. Unfortunately, there is a dearth of relevant case law in other jurisdictions as well as in our own. However, one case from California, a state with a well-established arbitration program, offers a helpful analysis of the issue. In Marracino v. Brandstetter,
The appellate court affirmed the trial court’s refusal to allow the defendant to withdraw his rejection of the arbitration award. Marracino,
All of the analysis in Marracino is equally applicable here. Nothing in the supreme court rules (or the local rules) authorizes the withdrawal of a previous rejection of an arbitration award, and permitting such a withdrawal creates the risk of unfairly imposing the arbitration award on a party that would have rejected it. Moreover, courts are not free to create their own rules and procedures in an attempt to provide for such a withdrawal. For all of the foregoing reasons, the judgment of the circuit court of Du Page County is reversed, and the cause is remanded for further proceedings.
Reversed and remanded.
ZEN OFR J-) concurs.
Concurrence Opinion
specially concurring:
The majority holding is as follows: “We hold that the trial court erred in permitting the defendants to withdraw their earlier rejection of the arbitration award.” 377 111. App. 3d at 790.
I believe that the holding should be: We hold that the trial court erred in permitting the defendants to withdraw their earliеr rejection of the arbitration award without allowing the plaintiffs to reject the award.
I believe that the trial court had the inherent authority to allow a withdrawal of the rejection as an exercise of discretion. However, the trial court should then have allowed the plaintiffs to file a rejection within the time provided to reject the award (30 days), computed from the time of the entry of the order granting the
“In order to protect the constitutional right to a trial by jury, Rule 93 grants litigants who have been ordered to аrbitration the right to reject the arbitrators’ award. Gershak v. Feign,317 Ill. App. 3d 14 , 25 (2000). Thus, no party that has participated in good faith in the arbitration can be forced to accept an arbitration award. Cf. 145 Ill. 2d R. 91 (permitting a trial court to debar a party from rejecting an arbitration award where the party did not attend or participate in the arbitration in good faith). A party wishing to reject an arbitration award must meet certain requirements, however. Pursuant to Rule 93(a), any party wishing to reject an arbitration award must file a notice of rejection within 30 days and must pay a fee unless the fee is waived by the сourt on the basis of indigence. 166 Ill. 2d Rs. 93(a), (c). If one party files a notice of rejection, any other party wishing to reject the award may rely on that notice and need not file his or her own notice of rejection.166 Ill. 2d 93 (a).
As we note, no party participating in good faith may be forced to accept an arbitration award. The trial court’s actions here — denying the plaintiffs the opportunity to file their own rejection of the award while permitting the defendants to vacate their earlier rejection of the arbitration award — had the effect of forcing the plaintiffs to accept the arbitration award and were improper on that basis alone. 166 Ill. 2d R. 93(a); Gershak,317 Ill. App. 3d at 25 .”377 Ill. App. 3d at 791 .
The purpose of mandatory arbitration is to provide a “vehicle for an early, economical and fair resolution of monetary disputes.” 134 Ill. 2d R. 86, Introductory Comments, at 87; see also Akpan v. Sharma,
There are other scenarios where the facts, circumstances, and equities of the case may entitle the movant to withdraw the rejection of the award. So long as the trial court allows any other party that did not reject the award the opportunity to reject the award, the rights of all parties will be protected and there will be a vehicle for an early, economical, and fair resolution of monetary disputes.
The majority determines that there is no rule allowing for the withdrawal of a rejeсtion. The majority concludes that the absence of a declaration of intent regarding withdrawal requires the conclusion that the legislature and the supreme court did not intend to allow the withdrawal of a rejection. I submit that the absence of any mention of withdrawal of a rejection is not a clear indication of an intent to prohibit such a withdrawal. I submit that the issue is not mentioned because no legislation or rule can cover all possible circumstances that could unfold during the process of resolving disputes. I submit that nothing suggests that the legislature and the supreme court concludеd that rejections cannot be withdrawn under any circumstance, as the majority has held. Absence of evidence is not necessarily evidence of absence. People v. Mata,
The purpose behind a rejection is to allow a party the right to a trial. Analogically, if a party files a jury demand and later determines that he desires to waive the right, he is allowed to do so, provided that other parties that did not file a demand are given the oрportunity to do so. See
The majority cites to Avery,
The majority finds clarity in a vacuum and then determines that rejections cannot be withdrawn. The majority has also implicitly determined that the trial court does not have the authority to allow or disallow rejections for reasons that are not set forth in the rule. See Gershak v. Feign,
The majority’s view of interpreting the rules as tinkering with them is problematic. Were we to conclude that a rule does not provide for an interpretation merely because an issue or term is not included in the rule, then we would not be determining the intent of the supreme court. On the contrary, we would be determining that anything that the court did not explicitly consider or address is prohibited. Sometimes, this fosters the purpose behind the rule. Sometimes, it does not. In this case, it does not. In any event, it does not correctly determine the intent of the enactors.
Notes
he majority mentions that Rule 93(a) is designed to protect the right to a jury trial. 377 111. App. 3d at 791. However, the term “jury” is not contained in the rule. It would seem the rule does require interpretation to include that which is not specified in the rule.