Epstein and Sons Intern., Inc. v. Eua, Inc.

945 N.E.2d 18
CourtAppellate Court of Illinois
DecidedMarch 8, 2011
Docket1-09-1307
StatusPublished
Cited by1 cases

This text of 945 N.E.2d 18 (Epstein and Sons Intern., Inc. v. Eua, Inc.) 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
Epstein and Sons Intern., Inc. v. Eua, Inc., 945 N.E.2d 18 (Ill. Ct. App. 2011).

Opinion

945 N.E.2d 18 (2011)

A. EPSTEIN AND SONS INTERNATIONAL, INC., Plaintiff-Appellant,
v.
EPPSTEIN UHEN ARCHITECTS, INC., Defendant-Appellee.

No. 1-09-1307.

Appellate Court of Illinois, First District, Second Division.

January 11, 2011.
Modified upon denial of rehearing March 8, 2011.

*20 Much Shelist Denendberg Ament & Rubenstein, P.C., Chicago, IL (Scott R. Fradin, of counsel), for Appellant.

Schuyler, Roche & Crisham, P.C., Chicago, IL (Jeffrey T. Kubes, Jean M. Prendergast, Thomas W. Mulcahy and Margaret M. Fitzsimmons, of counsel), for Appellee.

OPINION

Justice HARRIS delivered the judgment of the court, with opinion.

Plaintiff, A. Epstein & Sons International Inc. (Epstein), appeals the judgment of the circuit court of Cook County granting defendant, Eppstein Uhen Architects, Inc.'s (EUA) motion for summary judgment pursuant to section 2-1005 of the Code of Civil Procedure (735 ILCS 5/2-1005 (West 2008)) and denying Epstein's motion for partial summary judgment. We reverse the judgment of the circuit court granting EUA's motion for summary judgment and affirm the circuit court's judgment denying Epstein's motion for partial summary judgment. We find that the terms in the parties' first alleged contract are ambiguous and require the aid of extrinsic evidence to determine the parties' intent. Therefore, summary judgment was not proper.

JURISDICTION

On April 24, 2009, the circuit court entered its final judgment denying Epstein's motion to reconsider. On May 22, 2009, Epstein filed its notice of appeal. Accordingly, this court has jurisdiction pursuant to Illinois Supreme Court Rules 301 and 303 governing appeals from final judgments entered below. Ill. S.Ct. R. 301 (eff.Feb.1, 1994); R. 303 (eff. May 30, 2008).

BACKGROUND

In December of 2002, Franciscan Communities, d/b/a St. Joseph Home of Chicago, hired EUA to provide professional design services for a construction project in Chicago, Illinois. EUA then called upon Epstein to submit a proposal for it to provide engineering design services for Franciscan's construction project. Epstein submitted a signed proposal on November 6, 2002, and EUA accepted it by signing it on December 2, 2002. Displeased with EUA's performance on its construction project, Franciscan filed an arbitration demand against EUA in December of 2007. In turn, EUA filed an arbitration demand upon Epstein in January 2008, asserting claims arising out of Franciscan's arbitration demand.

Epstein filed a petition to stay arbitration and complaint for declaratory judgment and injunctive relief in May of 2008. Epstein attached two documents to its petition that are at the center of the dispute between the parties. The first document, titled "MEPFP Engineering Services Proposal" is dated November 6, 2002 (November document). The second document attached to Epstein's petition is dated December 9, 2002, and titled "Architect-Consultant Agreement" (December document). The dispute is whether Epstein is bound by an arbitration provision which is set out in a third unattached document, AIA Document C141-1997 (AIA provision) that the December document purports to incorporate by reference.

The November document described the project; outlined the engineering design services, administrative services, and structural engineering services plaintiff *21 agreed to provide and in what manner; as well as set out fees and expenses. The November document also attached and incorporated terms and conditions of service. The terms and conditions of service state that EUA will be bound by the terms of the November document once it is executed. Furthermore, any modifications to those terms must be made in writing. Nothing in the November document mentions that disputes between the parties will be resolved in arbitration. The relevant provisions of the November document's terms and conditions of service are as follows:

"1. These Terms and Conditions of Services are an integral part of the Proposal dated November 6, 2002 between [Epstein] and [EUA].
2. * * * Upon execution of this Proposal by [EUA] * * *, [EUA] shall be bound by the Proposal and all of these Terms and Conditions of Service * * *. Any additions, deletions, or changes to the Proposal or these Terms and Conditions of Services shall be in writing and executed by both Parties.
3.(a)The services described in the Proposal constitute the Scope of Services that Epstein agrees to provide to [EUA] under this Agreement.
* * *
(c) If, during Epstein's performance of the Scope of Services, [EUA] requests, in writing, a change in the Scope of Services * * *, such Change in Service and method of compensation shall be agreed to in writing prior to Epstein being obligated to undertake such Change in Service. If Epstein performs such Change in Service and this Subparagraph (c) has not been complied with, Epstein shall be compensated at its then prevailing hourly rates.
(d)The Scope of the Project is set forth in the Proposal. The scope of the Project shall not be altered without the written consent of both Epstein and [EUA]. In the event that the parties consent to alter the scope of the Project, the Scope of Services and the fees and charges for the Project as set forth in this Agreement shall be adjusted in accordance with subparagraph (c) of this Paragraph 3.
* * *
21. This Agreement constitutes the entire integrated Agreement between [EUA] and Epstein, and supercedes all prior negotiations, representations, or agreements, whether written or oral except as are specifically incorporated into this Agreement by reference. This Agreement may not be amended except by written instrument signed by both [EUA] and Epstein.
22. This Agreement shall be governed by the laws of the State of Illinois."

Epstein signed the November document on November 6, 2002, and EUA signed it on December 6, 2002.

The December document stated that Epstein agreed to provide "Civil, Structural, and MEP-FP engineering consulting design services" for a fixed fee of $275,000. The December document also outlines how the construction documents are to be produced and stored, as well as billing and insurance provisions. Most importantly, the December document referenced an unattached document, the AIA provision, that requires disputes between the parties to be settled by arbitration. The December document provides in pertinent part as follows:

"Said Engineering Services shall be provided in accordance with the requirements set forth in the AIA Document C141-1997 Standard Form of Agreement *22 Between [EUA] and [Epstein] in its entirety (Pages 1-14) for the engineering service disciplines named above including such additional amendments as listed below:
A. Consulting services shall be as specified in [Epstein's] letter dated November 6, 2002."

EUA signed the December document on December 9, 2002 and Epstein signed it on December 16, 2002. Although not attached to the December document originally, Epstein attached the AIA provision to its petition, which in relevant part provided:

"§ 9.2.1 Any claim, dispute or other matter in question arising out of or related to this Agreement shall be subject to arbitration.

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945 N.E.2d 18, Counsel Stack Legal Research, https://law.counselstack.com/opinion/epstein-and-sons-intern-inc-v-eua-inc-illappct-2011.