Anderson v. Pineda

819 N.E.2d 1157, 354 Ill. App. 3d 85, 289 Ill. Dec. 357, 2004 Ill. App. LEXIS 1379
CourtAppellate Court of Illinois
DecidedNovember 18, 2004
Docket1-04-0222
StatusPublished
Cited by8 cases

This text of 819 N.E.2d 1157 (Anderson v. Pineda) 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
Anderson v. Pineda, 819 N.E.2d 1157, 354 Ill. App. 3d 85, 289 Ill. Dec. 357, 2004 Ill. App. LEXIS 1379 (Ill. Ct. App. 2004).

Opinion

PRESIDING JUSTICE REID

delivered the opinion of the court:

Defendants David Pineda and Baslisa Pineda appeal from a trial court order barring them from rejecting an arbitration award and entering judgment in favor of plaintiff Neal J. Anderson in the amount of $30,000. On appeal, defendants contend that the trial court erred in barring them from rejecting the arbitration award because debarment is an improper sanction for a prearbitration discovery violation and the sanction is unduly harsh. For the reasons that follow, we affirm.

On August 20, 2002, plaintiff filed a complaint to recover for injuries suffered in a traffic accident with a car driven by defendant David Pineda. David Pineda’s mother, Baslisa Pineda, the owner of the car David was driving, was also named as a defendant. Plaintiff alleged that defendants negligently caused the accident. Defendants answered, denying negligence.

Plaintiff served defendants with written discovery requests, including interrogatories and a request to produce documents. When defendants did not comply with the discovery requests, plaintiff moved to compel defendants to answer the requests. The trial court granted the motion on July 10, 2003, advising defendants that failure to comply with the order by July 24, 2003, would result in defendants being barred from testifying and presenting evidence at trial or arbitration. On July 24, defendants returned unsigned answers to plaintiffs interrogatories but did not produce the requested documents.

On July 31, 2003, plaintiff filed a petition for a rule to show cause to be issued against defendants because they had given inadequate, unresponsive, and unsigned answers to the interrogatories and had not responded to plaintiffs request for production of documents. On August 12, 2003, after a hearing on plaintiffs petition, the trial court granted plaintiffs petition in part, barring defendants from testifying and presenting evidence at trial or arbitration.

The case proceeded to mandatory arbitration on October 7, 2003. Although there is no transcript of the arbitration hearing in the record, both parties agree that at the hearing defendants’ participation was limited to presenting opening and closing arguments and cross-examining plaintiff. The arbitration panel found in favor of plaintiff in the amount of $30,000 and did not make a finding of bad-faith participation by either party.

Defendants filed a notice of rejection of the arbitration award on October 20, 2003. Plaintiff then filed a motion to debar defendants from rejecting the award. Plaintiff cited Glover v. Barbosa, 344 Ill. App. 3d 58 (2003), in alleging that defendants’ bad faith warranted sanctions under Supreme Court Rule 91(b) (145 Ill. 2d R. 91(b)) because:

“At no time did the Defendants’ [sic] seek to move to remove the sanctions imposed by [the order preventing them from testifying or presenting evidence at trial or arbitration],
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[At the arbitration hearing,] [t]he Defendants offered no evidence and did not testify.
* * *
Defendants’ continued failure to comply with discovery orders demonstrates an unwillingness to participate in the arbitration process and this litigation in good faith.”

Defendants responded by admitting negligence in failing to yield the right of way. They argued that because they had admitted negligence, there was no need for them to testify at the hearing, so their failure to do so did not indicate a lack of good faith or meaningful participation. Under such circumstances, they argued, Rule 91(b) sanctions were not warranted.

In its reply to defendants’ response, plaintiff pointed out that defendants never attempted to remove the sanctions imposed on them by the July 10 or August 12 order.

The trial court granted plaintiffs motion, on January 12, 2004, ordering:

“Defendants are debarred from rejecting the award under Rule 91(b) for the following[:]
a. The Defendants have failed to participate in the arbitration process in a good faith manner, namely repeat failures to comply with discovery; and
b. The Defendants have failed to explain the failures by way of affidavit and/or response to plaintiffs motion.”

Judgment was entered in favor of plaintiff on the arbitration award.

Defendants contend that the trial court erred in barring them from rejecting the arbitration award based on their conduct before, rather than during, the arbitration hearing.

Parties to mandatory arbitration have a presumptive right to reject the arbitration award unless they are subject to sanctions barring rejection. Knight v. Guzman, 291 Ill. App. 3d 378, 380 (1997). Supreme Court Rule 91(b) requires that parties to an arbitration hearing participate in good faith and in a meaningful manner and allows a trial court to impose sanctions, including barring the offending party from rejecting the award, if a party fails to do so. 145 Ill. 2d R. 91(b). This court will not disturb sanctions imposed by a trial court under Supreme Court Rule 91(b) unless we find that the trial court has abused its discretion. State Farm Insurance Co. v. Gebbie, 288 Ill. App. 3d 640, 644 (1997).

In arguing their case, defendants rely on Amro v. Bellamy, 337 Ill. App. 3d 369 (2003). In response, plaintiff relies on Glover v. Barbosa, 344 Ill. App. 3d 58 (2003). Because, in these two cases, this court has taken two contrary approaches to resolving the issue at bar, our analysis begins with an examination of each and a decision as to which case to follow.

In Amro, defendant was barred from testifying after missing two discovery deadlines. Defendant did nothing to modify or vacate the order barring him from testifying, nor did he comply with plaintiffs discovery requests. At the mandatory arbitration hearing, defendant presented opening and closing statements and cross-examined plaintiff but did not present any evidence or testimony. The trial court imposed sanctions debarring defendant from rejecting the arbitration award “because of sanctions for failure to comply with discovery.” Amro, 337 Ill. App. 3d at 371.

On appeal in Amro, this court held that the trial court had abused its discretion in barring rejection. In making its decision, the court referred to the facts that the arbitration panel did not find, and the record did not otherwise indicate, that defendant had participated in the hearing in bad faith. Further, the court held that the trial court erred in imposing sanctions because the language of the trial court’s debarment order indicated that the trial court “[cjlearly *** debarred defendant from rejecting the arbitration award on the basis of his conduct before the hearing, which it cannot do [under Rule 91(b)].” (Emphasis in original.) Amro, 337 Ill. App. 3d at 372.

In Glover, after failing to comply with discovery, defendant was barred from presenting evidence and testimony at trial or arbitration.

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Bluebook (online)
819 N.E.2d 1157, 354 Ill. App. 3d 85, 289 Ill. Dec. 357, 2004 Ill. App. LEXIS 1379, Counsel Stack Legal Research, https://law.counselstack.com/opinion/anderson-v-pineda-illappct-2004.