Henley v. Economy Fire & Casualty Co.

505 N.E.2d 1091, 153 Ill. App. 3d 66, 106 Ill. Dec. 300, 1987 Ill. App. LEXIS 2133
CourtAppellate Court of Illinois
DecidedFebruary 23, 1987
Docket85-3742
StatusPublished
Cited by4 cases

This text of 505 N.E.2d 1091 (Henley v. Economy Fire & Casualty Co.) 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
Henley v. Economy Fire & Casualty Co., 505 N.E.2d 1091, 153 Ill. App. 3d 66, 106 Ill. Dec. 300, 1987 Ill. App. LEXIS 2133 (Ill. Ct. App. 1987).

Opinion

JUSTICE CAMPBELL

delivered the opinion of the court:

Defendant, Economy Fire & Casualty Company (Economy), appeals from a summary judgment which vacated and set aside the second amended arbitration award decided in favor of Economy and ordered the parties to rearbitrate the uninsured-motorist claim filed by plaintiff, Dorothy Henley. On appeal, Economy contends that the trial court erred in vacating the award because the Uniform Arbitration Act (the Act) (Ill. Rev. Stat. 1983, ch. 10, par. 101 et seq.) provides no statutory grounds for its determination. For the following reasons, we affirm the judgment of the trial court.

The underlying uninsured-motorist claim arose from an automobile collision involving motor vehicles driven by plaintiff and Vernell Baldwin, an uninsured motorist. At the time of the accident, plaintiff was insured by Economy under a policy which provided indemnification up to $10,000 for injuries caused by uninsured motorists. The policy also contained an arbitration clause which stated that any disputed insured-motorist claims would be submitted to a panel of three arbitrators. As a result of the dispute involved in plaintiff’s claim, the matter was submitted to arbitration. Plaintiff appointed Francis Baumgart as her arbitrator. Economy appointed Ronald Broida, and Baumgart and Broida selected Michael Berman as the neutral arbitrator.

At the arbitration hearing on May 1, 1981, Raymond Armand, a co-worker of plaintiff’s, testified that approximately 3:30 p.m. on June 1, 1979, he was waiting in his car, directly behind plaintiff’s car, at the traffic signal at the intersection of Leavitt and Division. Plaintiff’s car was the first car at the light. When the light turned green, Armand saw plaintiff proceed southbound into the middle of the intersection, where her car was struck by Baldwin’s car, which was heading eastbound. Armand stated that Baldwin had been speeding. He had seen plaintiff attempt to swerve to avoid the collision, but the effort was too late. Armand also had heard Baldwin apologizing to plaintiff after the collision.

Plaintiff testified to essentially the same facts as did Armand, adding that before she had proceeded into the intersection, she had looked to both sides, but had not seen Baldwin’s automobile until it was too late to do anything but attempt to swerve out of the way. A Chicago police officer also testified on plaintiff’s behalf as to the damage to the automobiles.

Following the testimony of plaintiff’s witnesses, Arbitrator Berman inquired if plaintiff intended to call any other occurrence witnesses. Plaintiff responded that she would be calling only medical witnesses unless defendant called an occurrence witness, in which case, she might call a rebuttal witness. Arbitrator Berman then inquired if there were any motions to be made regarding liability. In response, the following colloquy ensued:

“ECONOMY: Well, perfunctorily, I’ll make a motion on directed verdict, because the testimony of the Plaintiff herself is she failed to see the other car before the accident, the other vehicle before the accident.
* * *
BERMAN: Is that the basis for your motion?
ECONOMY: Yes.
BERMAN: Counsel, any response?
PLAINTIFF: She said she did see the car. She swerved to avoid it. Independent witnesses have testified she had the green light. She proceeded in the intersection and she did swerve to avoid it. She saw the other vehicle before the crash. She had the green light. She, I think *** Liability is, I would argue, for the Finder of Fact,”

Following a short adjournment during which the arbitrators deliberated over Economy’s motion, Arbitrator Berman delivered the following decision, in pertinent part:

“Based on the evidence that we have heard from the actual occurrence witness *** and the Petitioner ***, it becomes a question of fact as to whether or not the light *** was green or red for the respective drivers as she entered the intersection. However, on the issue as to whether or not she actually saw the other driver prior to entering the intersection, we feel that the evidence is highly speculative.
* * *
The case of Thomas [v.] The Yellow Cab *** stands for the proposition that a green light does not give a driver an absolute right to enter an intersection without maintaining a proper lookout.
* * *
If the other driver was close enough to the intersection to be involved in a collision, he obviously was observable if [petitioner] *** had, in fact, looked using due care and caution for their own safety.
* * *
[Tit’s the conclusion of the arbitrators that a directed finding for Respondent be entered ***.”

Subsequently, the above oral decision was reduced to writing in a decision, dated May 18, 1981, addressed to Economy’s attorneys and signed by Arbitrator Berman. Copies of the decision were allegedly sent to Arbitrators Broida and Baumgart, as well as to Sam Jaffe, purportedly plaintiff’s attorney of record. 1 The written decision stated that it had been “the unanimous decision of all Arbitrators, to wit: Francis R Baumgart, Ronald Broida and Michael H. Berman” to grant Economy’s motion for a directed finding. The decision was signed only by Berman.

A few days later, a dispute arose as to whether the decision had actually been “unanimous.” When Baumgart read the written decision, he wrote a letter to Berman, dated May 22, 1981, stating that he had not agreed to the directed finding and requested that his position be reflected in the record. Baumgart stated in his deposition that the arbitrators had not voted for a directed finding. In fact, when Berman had announced the oral decision to the parties at the hearing, Baumgart assumed Berman meant “majority” decision, not “unanimous” decision. In contradiction to Baumgart’s statement, Berman stated in his deposition that prior to the issuance of the written decision, he had received a letter from Baumgart, dated May 11, 1981, which stated that he totally supported the decision. However, Berman further stated that following the May 11 letter, Baumgart telephoned Berman and told him that because he was “getting a lot of heat” from plaintiff’s attorney, he was going to have to write a letter to Berman renouncing the fact that he had been part of the unanimous decision. The May 22 letter followed.

On June 16, 1981, plaintiff’s attorney wrote a letter to Berman requesting reconsideration of the decision based upon case law set forth and discussed in the letter. After consulting with Broida, Berman notified plaintiff’s attorney in a letter, dated June 25, 1981, that the request for reconsideration was denied on the ground that the arbitrators lacked jurisdiction to consider the request because more than 20 days had elapsed since the May 18 decision.

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Bluebook (online)
505 N.E.2d 1091, 153 Ill. App. 3d 66, 106 Ill. Dec. 300, 1987 Ill. App. LEXIS 2133, Counsel Stack Legal Research, https://law.counselstack.com/opinion/henley-v-economy-fire-casualty-co-illappct-1987.