Campuzano v. Peritz

875 N.E.2d 1234
CourtAppellate Court of Illinois
DecidedSeptember 28, 2007
Docket1-06-0119
StatusPublished
Cited by1 cases

This text of 875 N.E.2d 1234 (Campuzano v. Peritz) 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
Campuzano v. Peritz, 875 N.E.2d 1234 (Ill. Ct. App. 2007).

Opinion

875 N.E.2d 1234 (2007)

Lyda CAMPUZANO, Plaintiff-Appellee,
v.
Howard PERITZ and Revelie Peritz, Defendants-Appellants.

No. 1-06-0119.

Appellate Court of Illinois, First District, First Division.

September 28, 2007.

*1235 Parrillo, Weiss & O'Halloran, of Chicago, IL (Keely Truax, of Counsel), for Appellants.

Stephanie L. White of Sandman, Levy & Petrich, of Chicago, IL, for Appellee.

Presiding Justice CAHILL delivered the opinion of the court:

Defendants Howard and Revelie Peritz appeal a circuit court order barring them under Supreme Court Rule 91(b) (145 Ill.2d R. 91(b)) from rejecting an arbitration award in favor of plaintiff Lyda Campuzano. Defendants challenge the appropriateness of the sanction and the constitutionality of Rule 91(b). We affirm.

The parties were involved in a car accident. Plaintiff filed a negligence action alleging defendants were at fault. The case was assigned to mandatory arbitration and a discovery deadline was set for November 29, 2004. Plaintiff filed written discovery requests and notices to take defendants' depositions. Defendants did not respond to the discovery requests, prompting plaintiff to file a motion to compel. On October 25, 2004, the trial court entered a written order granting plaintiff's motion to compel and ordering defendants to appear for depositions by November 15, 2004, and answer plaintiff's interrogatories by November 8, 2004 (discovery order). The trial court wrote that failure to comply with discovery would result in an order barring defendants from testifying or presenting evidence at the arbitration and at trial. Defendant Howard, who was driving the car that hit plaintiff, appeared for his deposition on November 11, 2004. Defendant Revelie did not appear at her deposition. Both defendants failed to answer plaintiff's interrogatories.

An arbitration hearing was held on April 5, 2005. Both defendants were present and admitted negligence. The arbitrators noted the defendants were prevented from presenting evidence for failure to comply with discovery but concluded that all parties participated in the arbitration in good faith. An award was entered for plaintiff and against Howard.

*1236 On June 22, 2005, defendants moved in the trial court to vacate the discovery order sanctioning their failure to comply with plaintiff's discovery requests. Plaintiff responded by arguing the sanction was appropriate and moving to bar defendants' rejection of the arbitration award under Rule 91(b). Plaintiff argued defendants failed to participate at the arbitration in a meaningful manner due to the discovery order, which barred them from presenting evidence at the arbitration. The trial court denied defendants' motion to vacate, granted plaintiff's motion to bar rejection of the award and entered judgment on the award. Defendants appeal.

A trial court's decision to bar a party from rejecting an arbitration award is generally reviewed for an abuse of discretion. Zietara v. DaimlerChrysler Corp., 361 Ill.App.3d 819, 822, 297 Ill.Dec. 589, 838 N.E.2d 76 (2005). Where the decision turns solely on a question of law, de novo review will apply. Zietara, 361 Ill.App.3d at 822, 297 Ill.Dec. 589, 838 N.E.2d 76.

Rule 91(b) reads:

"Good-Faith Participation. All parties to the arbitration hearing must participate in the hearing in good faith and in a meaningful manner. If a panel of arbitrators unanimously finds that a party has failed to participate in the hearing in good faith and in a meaningful manner, the panel's finding and factual basis therefor shall be stated on the award. Such award shall be prima facie evidence that the party failed to participate in the arbitration hearing in good faith and in a meaningful manner and a court, when presented with a petition for sanctions or remedy therefor, may order sanctions as provided in Rule 219(c), including, but not limited to, an order debarring that party from rejecting the award, and costs and attorney fees incurred for the arbitration hearing and in the prosecution of the petition for sanctions, against that party." 145 Ill.2d R. 91(b).

The rule requires that parties participate in an arbitration hearing in good faith by subjecting the case to the type of adversarial testing that would be expected at a trial. Walker v. Lewis, 352 Ill.App.3d 952, 956, 288 Ill.Dec. 278, 817 N.E.2d 928 (2004). A party fails to participate in good faith where its actions amount to a deliberate disregard for the court and the rules. Walker, 352 Ill.App.3d at 956, 288 Ill.Dec. 278, 817 N.E.2d 928.

Defendants first argue debarment is inappropriate here because the arbitrators expressly found that the parties acted in good faith and there is no transcript of the arbitration hearing for the trial court to conclude otherwise. Defendants cite West Bend Mutual Insurance Co. v. Herrera, 292 Ill.App.3d 669, 674, 226 Ill.Dec. 862, 686 N.E.2d 645 (1997) (discouraging trial courts from finding bad faith where there has been no such finding by the arbitrators and where the trial court does not have the benefit of a transcript from the arbitration hearing); see also Walker, 352 Ill.App.3d at 959, 288 Ill.Dec. 278, 817 N.E.2d 928 (citing West Bend for the same proposition); Ruback v. Doss, 347 Ill.App.3d 808, 815, 283 Ill.Dec. 178, 807 N.E.2d 1019 (2004) (same). Plaintiff responds that those cases are distinguishable on the ground that defendants here failed to comply with the trial court's discovery order and were barred from testifying or presenting other evidence at the arbitration hearing as a result. Plaintiff cites Lopez v. Miller, 363 Ill.App.3d 773, 300 Ill.Dec. 574, 844 N.E.2d 1017 (2006).

The defendant in Lopez was barred from testifying or presenting other evidence at the arbitration hearing for failing to comply with discovery. Lopez, 363 Ill.App.3d *1237 at 775, 300 Ill.Dec. 574, 844 N.E.2d 1017. Both parties appeared at the arbitration, and although the defendant was barred from presenting evidence, the arbitrators found he participated in good faith. Lopez, 363 Ill.App.3d at 776, 300 Ill.Dec. 574, 844 N.E.2d 1017. An award was entered for the plaintiff and the defendant moved to reject the award. Lopez, 363 Ill.App.3d at 776, 300 Ill.Dec. 574, 844 N.E.2d 1017. The plaintiff moved to bar rejection under Rule 91(b) on the ground the defendant failed to comply with the trial court's order compelling him to be deposed. Lopez, 363 Ill.App.3d at 776, 300 Ill.Dec. 574, 844 N.E.2d 1017.

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Bluebook (online)
875 N.E.2d 1234, Counsel Stack Legal Research, https://law.counselstack.com/opinion/campuzano-v-peritz-illappct-2007.