Is Binding Arbitration Really Binding in Illinois?

In a recent Illinois Appellate Court case, the Second District determined that a party could seek reconsideration from the arbitrator regarding a binding arbitration award where the arbitration agreement entered into by the parties did not spell out when the binding arbitration award would be final. In Smola v. Greenleaf Orthopedic Associates, S.C., et al., 2012 IL App (2d) 111277, the arbitration agreement between the plaintiff and the defendant did not note there was finality of the arbitrator award once provided, and the plaintiff sought reconsideration of the arbitrator’s award against him before the Trial Court confirmed the award. Pursuant to a motion by the defendant, and noting that the Illinois Uniform Arbitration Ace (“Act”) was silent as to whether there could be reconsideration, the Trial Court denied plaintiff’s request for reconsideration by the arbitrator. The Second District Appellate Court reversed stating that since the Act was silent, and the parties did not note a specific agreement as to the “finality” of any award, the arbitrator should have been allowed to determine whether his award was final or capable of being “reconsidered.”

Tip for practitioner: The result in the Smola case may have been averted by providing verbiage in the arbitration agreement noting the arbitrator’s award to be final.

This decision may be found at:
http://www.state.il.us/court/Opinions/AppellateCourt/2012/2ndDistrict//2111277.pdf