Arbitration Is Over. Now What? Enforcing and Challenging Arbitration Awards in Illinois.

In recent years, arbitration has become an increasinglypopular method of alternative dispute resolution. Many companies, both largeand small, include or are beginning to include arbitration clauses in theircontracts and user agreements in order to reduce the time and money they spendin court. If you are thinking about initiating arbitration or have already goneto arbitration, it is important to know how to enforce or challenge the award.

What is Arbitration?

Arbitration is a form of alternative dispute resolution. Itis similar to a traditional lawsuit in many respects, but differs in severalimportant ways. First, arbitration is a creature of contract. Only parties andissues that are subject to an arbitration clause may be subject to arbitration.Second, arbitration is, for the most part, entirely private. Everything ishandled by and filed with a private company, such as the American ArbitrationAssociation.

Third, arbitration typically moves much faster than a moretraditional lawsuit. Oftentimes arbitration clauses or the arbitrationcompany’s rules have time frames for when an arbitration hearing needs to becompleted. Fourth, arbitration is much more informal than a traditionallawsuit. For example, the arbitrator may relax the Rules of Evidence at the arbitration hearing. Finally, thearbitration hearing could be heard by one or multiple arbitrators depending onthe circumstances.

How Do I Enforce anArbitration Award?

In order to enforce an arbitration award in Illinois, youwill need to follow the procedures set forth in the Illinois Uniform Arbitration Act (the “UAA”) . It is possible thatyour arbitration clause states that you must follow the Federal Arbitration Act , but this article will assume it does notand will only address the UAA .

Section 11 of the UAA states, “Upon application of a party, the court shall confirm an award, unlesswithin the time limits hereinafter imposed grounds are urged for vacating ormodifying or correcting the award, in which case the court shall proceed asprovided in Sections 12 and 13.” 710 ILCS 5/11. This means that unless theother party files a motion to vacate, modify, or correct the award within thespecified time frame, the court must confirm the award.

Essentially, the court “converts” the award into a judgmentin favor of the party that won at arbitration. After the court confirms theaward and enters judgment, you can enforce the judgment in post-judgmentproceedings if you were awarded money damages.

How Do I Challenge anArbitration Award?

If you are dissatisfied with the arbitration award, you mustfile a motion to vacate, modify, or correct the award within 90 days ofreceiving the award. See 710 ILCS 5/12(b)and 710 ILCS 5/13(a) . However, you must keep in mind that judicial reviewof arbitration awards is extremely limited. If you file a motion to vacate theaward, it must be for one of the reasons set forth in Section 12(a) of the UAA .If you file a motion to modify or correct, the award, it must also be for oneof the reasons set forth in Section 13(a) of the UAA . If you fail to file theappropriate motion within 90 days of receiving the award, it is likely thatjudge will deny your motion regardless of the reason you filed it.