Baldwin v. Ward Chrysler Center, INC

2026 IL App (5th) 250821-U
Appellate Court of Illinois·Decided March 26, 2026·No. 5-25-0821·Unpublished

Opinion

NOTICE

2026 IL App (5th) 250821-U NOTICE

Decision filed 03/26/26. The This order was filed under text of this decision may be NO. 5-25-0821 Supreme Court Rule 23 and is changed or corrected prior to the filing of a Petition for not precedent except in the

Rehearing or the disposition of IN THE limited circumstances allowed the same. under Rule 23(e)(1).

APPELLATE COURT OF ILLINOIS

FIFTH DISTRICT

LARRY BALDWIN, DEBRA BALDWIN, ) Appeal from the JAMES WARDEN, VICKI WARDEN, and ) Circuit Court of JEAN BULLOCK, ) Jackson County.

)

Plaintiffs-Appellees, )

)

v. ) No. 24-LA-79 )

WARD CHRYSLER CENTER, INC, ) MARK WARD, and RON WARD, ) Honorable ) Christy W. Solverson, Defendants-Appellants. ) Judge, presiding.

JUSTICE BOLLINGER delivered the judgment of the court.

Justices Vaughan and Hackett concurred in the judgment.

ORDER

¶1 Held: We affirm the circuit court’s order denying defendants’ motion to stay proceedings pending arbitration.

¶2 On November 21, 2024, plaintiffs Larry Baldwin, Debra Baldwin, James Warden, Vicki Warden and Jean Bullock filed a class action lawsuit against defendants Ward Chrysler Center, Inc., Mark Ward and Ron Ward for money damages. Plaintiffs alleged that defendants violated the Consumer Fraud and Deceptive Business Practices Act (Act) (815 ILCS 505/1 et seq. (West 2022)), surrounding new Chrysler vehicles purchased by them. More specifically, plaintiffs contended that defendants concealed the existence of factory-authorized rebates they and other similarly situated purchasers were entitled to receive. In response, defendants moved to stay the

proceedings in the circuit court and for an order requiring that the parties arbitrate their disputes, citing a binding arbitration agreement allegedly entered into between the parties at the time of purchase. Following a hearing on the motion, the circuit court denied defendants’ motion to stay proceedings and compel arbitration. This appeal timely followed.

¶3 I. BACKGROUND

¶4 On November 21, 2024, plaintiffs filed a multi-count class action complaint against defendants alleging a violation of the Act. Plaintiffs alleged that they and others purchased new Chrysler vehicles from defendant, Ward Chrysler Center, Inc. (dealership). It was alleged that defendants, Mark Ward and Ron Ward, were equal shareholders, officers, directors and authorized agents of the dealership. According to the complaint, the dealership was authorized by FCA US, LLC (Chrysler) to sell new Chrysler automobiles in accordance with a general franchise agreement entered into between the dealership and Chrysler. Further, it was alleged that Chrysler provided rebates to purchasers of those vehicles through the dealership and that the franchise agreement required the dealership to notify, remit and transfer the rebates to customers like plaintiffs.

¶5 Plaintiffs contended that defendants concealed the existence of those rebates they and other similarly situated purchasers were entitled to receive concerning the sale of thousands of new Chrysler vehicles and that defendants wrongly retained those rebates. Plaintiffs sought an order of the circuit court certifying a proposed class of similarly situated persons who purchased new Chrysler vehicles from the dealership and did not receive credit, payment or transfer of any authorized manufacturer rebate from Chrysler for each customer’s purchase of a new Chrysler vehicle between January 1, 2000, and the date of class certification. Plaintiffs further requested an award of punitive damages, reasonable costs and expenses, including reasonable attorney fees, and an award of interest at the maximum allowable rate.

¶6 On January 10, 2025, defendants filed a motion to stay proceedings in the circuit court pending arbitration. Defendants asserted that plaintiffs agreed to arbitrate the disputes raised in their complaint pursuant to standalone form arbitration agreements purportedly signed by plaintiffs arising out of their purchase of vehicles from the dealership. Copies of the arbitration agreements were attached and defendants cited the following language contained therein:

“Any claim or dispute, whether in contract, tort, statute, or otherwise (including the interpretation ad [sic] scope of this clause, and the arbitrability of the claim or dispute), between you and use [sic] or our employees, agents, successors, or assigns, which arise out of or relate to your credit application, purchase or condition of this vehicle, this contract or any resulting transaction relationship … shall, at your or our election, be resolved by neutral, binding arbitration and not by court action. Any claim or dispute is to be arbitrated by a single arbitrator on an individual basis and not as a class action. You expressly waive any right you may have to arbitrate a class action.”

¶7 Defendants contended that the arbitration agreements were expressly governed by Section 3 of the Federal Arbitration Act (FAA) (9 U.S.C. § 3 (2018)). Defendants contended that plaintiffs’ action fell within the scope of the arbitration agreements and that arbitration was required to proceed before the National Arbitration Forum, the American Arbitration Association, or any other organization selected by plaintiffs subject to the dealership’s approval. Defendants contended that plaintiffs circumvented the arbitration requirement by filing their lawsuit in the circuit court. Defendants requested an order staying the proceedings, including all discovery requests served by plaintiffs on defendants, and quashing third-party subpoenas issued by plaintiffs. Defendants further requested an award of attorney fees.

¶8 In response, plaintiffs asserted that the motion should be denied on the basis of fraud committed by defendants and the unconscionable nature of the arbitration agreements. More specifically, plaintiffs asserted that they were not given a meaningful opportunity to reject the terms of the arbitration agreements and that they would be able to demonstrate that in consideration of a “cost price disparity” the arbitration agreements would not be a sufficient remedy to make plaintiffs whole. Plaintiffs requested an order allowing sufficient time to conduct discovery concerning the issues raised in the motion and their response thereto, an evidentiary hearing on those issues, and an order denying the motion.

¶9 On March 18, 2025, after being granted leave to do so, plaintiffs filed a first amended class action complaint (FAC) premised on the same factual allegations as contained in the original complaint. The FAC asserted that defendants violated the Act and added a new count seeking a declaratory judgment regarding the arbitration agreements. More specifically, plaintiffs contended that the arbitration agreements were voidable and revocable as they were not properly formed, were fraudulently induced, and were unconscionable.

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Baldwin v. Ward Chrysler Center, INC, 2026 IL App (5th) 250821-U (Ill. Ct. App. 2026).

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