7-Eleven, Inc. v. Dar

842 N.E.2d 260, 363 Ill. App. 3d 41, 299 Ill. Dec. 521, 2005 Ill. App. LEXIS 1286
CourtAppellate Court of Illinois
DecidedDecember 27, 2005
Docket1-04-2859
StatusPublished
Cited by6 cases

This text of 842 N.E.2d 260 (7-Eleven, Inc. v. Dar) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
7-Eleven, Inc. v. Dar, 842 N.E.2d 260, 363 Ill. App. 3d 41, 299 Ill. Dec. 521, 2005 Ill. App. LEXIS 1286 (Ill. Ct. App. 2005).

Opinion

JUSTICE HALL

delivered the opinion of the court:

The respondent, K. Musley Dar, appeals from an order of the circuit court of Cook County denying his motion for postjudgment interest on his arbitration award. We affirm the decision of the circuit court.

This is the third appeal resulting from the arbitration of a dispute between the parties to a franchise agreement. In the first appeal, we determined that the petitioner wrongfully terminated the franchise agreement and that damages could be awarded for the breach of the implied covenant of good faith and fair dealing. However, because the arbitrator failed to decide all of the issues presented, we ordered the trial court to vacate the arbitration award and to order a rehearing before the arbitrator. See 7-Eleven, Inc. v. Dar, 321 Ill. App. 3d 560, 571, 748 N.E.2d 642 (2001).

On July 31, 2001, our supreme court, in the exercise of its supervisory authority, entered an order directing this court to vacate its judgment in the above-entitled case and to reconsider our opinion in light of its decision in Voyles v. Sandia Mortgage Corp., 196 Ill. 2d 288, 751 N.E.2d 1126 (2001). 7-Eleven, Inc. v. Dar, 195 Ill. 2d 598, 749 N.E.2d 985 (2001). Pursuant to that order, we vacated our judgment and reconsidered the merits of this case insofar as they are impacted by Voyles.

We again determined that the petitioner had wrongfully terminated the franchise agreement. However, in accordance with the supreme court’s opinion in Voyles, we held that the arbitrator had exceeded his authority when he awarded damages for breach of the covenant of good faith and fair dealing. We again determined that the arbitrator had exceed his authority by failing to determine all of the claims submitted to him, requiring once again that the whole award be vacated. We reversed the circuit court’s judgment confirming the arbitration award and remanded the case to the court “with directions that the court enter an order vacating the arbitration award and ordering a rehearing before the arbitrator consistent with this opinion.” 7-Eleven, Inc. v. Dar, 325 Ill. App. 3d 399, 410-11, 757 N.E.2d 515 (2001).

On remand, the circuit court vacated the arbitration award and remanded the case for a rehearing before the arbitrator in accordance with this court’s directions. The arbitrator issued a modified final award. The arbitrator determined that since this court has not overturned the finding of wrongful termination, that claim was not subject to redetermination. Following a hearing on the remaining issues, the additional adjusted gross income (AAGI) issue and whether the respondent was entitled to interest on his claims, the arbitrator awarded the respondent $195,720 for wrongful termination, $19,804.52 on his AAGI claim and prejudgment interest in the amount of $404.72.

The respondent filed a motion to confirm the arbitrator’s modified final award and for postjudgment interest. While acknowledging that the petitioner had paid the sum of $215,929.24, the respondent alleged that, pursuant to section 2 — 1303 of the Code of Civil Procedure (the Code) (735 ILCS 5/2 — 1303 (West 2002)), he was entitled to postjudgment interest on $195,720 from December 24, 1998, the original date of the arbitration award.

The parties filed cross-motions for summary judgment. The circuit court found that the respondent was not entitled to postjudgment interest. The court granted summary judgment to the petitioner and denied the respondent’s motion for summary judgment. This timely appeal followed.

ANALYSIS

I. Standard of Review

The court reviews motions for summary judgment de novo. Chubb Insurance Co. v. DeChambre, 349 Ill. App. 3d 56, 59, 808 N.E.2d 37 (2004).

II. Applicable Summary Judgment Principles Summary judgment is proper if, and only if, the pleadings, depositions, admissions, affidavits and other relevant matters on file show that there is no genuine issue of material fact and that the movant is entitled to judgment as a matter of law. DeChambre, 349 Ill. App. 3d at 59. A triable issue precluding summary judgment exists where material facts are disputed or where reasonable persons might draw different inferences from undisputed facts. DeChambre, 349 Ill. App. 3d at 59.

By filing cross-motions for summary judgment, the parties invite the court to determine the issues as a matter of law and enter judgment in favor of one of the parties. Wolfram Partnership, Ltd. v. LaSalle National Bank, 328 Ill. App. 3d 207, 765 N.E.2d 1012 (2001). Summary judgment should only be allowed when the right of the moving party is clear and free from doubt. Elliott v. Williams, 347 Ill. App. 3d 109, 112, 807 N.E.2d 506 (2004).

III. Discussion

The respondent contends that he is entitled to postjudgment interest on the award of $195,720 from the date of its original entry on December 29, 1998. Section 2 — 1303 of the Code provides in pertinent part as follows:

“Judgments recovered in any court shall draw interest at the rate of 9% per annum from the date of the judgment until satisfied ***. When judgment is entered on any award, report or verdict, interest shall be computed at the above rate, from the time when made or rendered to the time of entering judgment upon the same, and included in the judgment. Interest shall be computed and charged only on the unsatisfied portion of the judgment as it exists from time to time. The judgment debtor may by tender of payment of judgment, costs and interest accrued to the date of tender, stop the further accrual of interest on such judgment notwithstanding the prosecution of an appeal, or other steps to reverse, vacate or modify the judgment.” 735 ILCS 5/2 — 1303 (West 2002).

It is well settled that postjudgment interest is properly allowed on arbitration awards as well as on judgments. Edward Electric Co. v. Automation, Inc., 229 Ill. App. 3d 89, 106, 593 N.E.2d 833 (1992). However, our courts disagree as to whether an award of postjudgment interest is mandatory in chancery cases. See Contract Development Corp. v. Beck, 255 Ill. App. 3d 660, 672-73, 627 N.E.2d 760 (1994) (Appellate Court, Second District, recognized conflicting authorities but concluded that postjudgment interest on an arbitration award was mandatory). 1

This court has held that the decision to allow statutory interest in chancery matters lies within the sound discretion of the trial court.

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Bluebook (online)
842 N.E.2d 260, 363 Ill. App. 3d 41, 299 Ill. Dec. 521, 2005 Ill. App. LEXIS 1286, Counsel Stack Legal Research, https://law.counselstack.com/opinion/7-eleven-inc-v-dar-illappct-2005.