By Joshua Pagan
•
09 May, 2019
In recent years, arbitration has become an increasingly popular method of alternative dispute resolution. Many companies, both large and small, include or are beginning to include arbitration clauses in their contracts and user agreements in order to reduce the time and money they spend in court. If you are thinking about initiating arbitration or have already gone to arbitration, it is important to know how to enforce or challenge the award. What is Arbitration? Arbitration is a form of alternative dispute resolution. It is similar to a traditional lawsuit in many respects, but differs in several important ways. First, arbitration is a creature of contract. Only parties and issues that are subject to an arbitration clause may be subject to arbitration. Second, arbitration is, for the most part, entirely private. Everything is handled by and filed with a private company, such as the American Arbitration Association. Third, arbitration typically moves much faster than a more traditional lawsuit. Oftentimes arbitration clauses or the arbitration company’s rules have time frames for when an arbitration hearing needs to be completed. Fourth, arbitration is much more informal than a traditional lawsuit. For example, the arbitrator may relax the Rules of Evidence at the arbitration hearing. Finally, the arbitration hearing could be heard by one or multiple arbitrators depending on the circumstances. How Do I Enforce an Arbitration Award? In order to enforce an arbitration award in Illinois, you will need to follow the procedures set forth in the Illinois Uniform Arbitration Act (the “UAA”) . It is possible that your arbitration clause states that you must follow the Federal Arbitration Act , but this article will assume it does not and will only address the UAA . Section 11 of the UAA states, “Upon application of a party, the court shall confirm an award, unless within the time limits hereinafter imposed grounds are urged for vacating or modifying or correcting the award, in which case the court shall proceed as provided in Sections 12 and 13.” 710 ILCS 5/11. This means that unless the other party files a motion to vacate, modify, or correct the award within the specified time frame, the court must confirm the award. Essentially, the court “converts” the award into a judgment in favor of the party that won at arbitration. After the court confirms the award and enters judgment, you can enforce the judgment in post-judgment proceedings if you were awarded money damages. How Do I Challenge an Arbitration Award? If you are dissatisfied with the arbitration award, you must file a motion to vacate, modify, or correct the award within 90 days of receiving the award. See 710 ILCS 5/12(b) and 710 ILCS 5/13(a) . However, you must keep in mind that judicial review of arbitration awards is extremely limited. If you file a motion to vacate the award, 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 one of the reasons set forth in Section 13(a) of the UAA . If you fail to file the appropriate motion within 90 days of receiving the award, it is likely that judge will deny your motion regardless of the reason you filed it. If you have any questions, feel free to contact Attorney Joshua Pagan at 312-332-7555 or jpagan@lavellelaw.com .