Lohman Law Offices Ltd v. Ries

2022 IL App (1st) 210310-U
CourtAppellate Court of Illinois
DecidedApril 15, 2022
Docket1-21-0310
StatusUnpublished

This text of 2022 IL App (1st) 210310-U (Lohman Law Offices Ltd v. Ries) 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
Lohman Law Offices Ltd v. Ries, 2022 IL App (1st) 210310-U (Ill. Ct. App. 2022).

Opinion

2022 IL App (1st) 210310-U No. 1-21-0310 Order filed April 15, 2022 Fifth Division

NOTICE: This order was filed under Supreme Court Rule 23 and is not precedent except in the limited circumstances allowed under Rule 23(e)(1). ______________________________________________________________________________ IN THE APPELLATE COURT OF ILLINOIS FIRST DISTRICT ______________________________________________________________________________ LOHMAN LAW OFFICES LTD, ) Appeal from the ) Circuit Court of Plaintiff-Appellee, ) Cook County. ) v. ) No. 19 L 7091 ) MEREDITH RIES, ) Honorable ) Michael F. Otto, Defendant-Appellant. ) Judge, presiding.

JUSTICE CONNORS delivered the judgment of the court. Presiding Justice Delort and Justice Cunningham concurred in the judgment.

ORDER

¶1 Held: The circuit court did not abuse its discretion in finding defendant failed to show good cause for an extension of time to file a rejection of an arbitration award.

¶2 Defendant Meredith Ries appeals from the circuit court’s order denying her motion for

leave to file an untimely rejection of an arbitration award rendered in a breach of contract dispute No. 1-21-0310

for unpaid legal fees and costs commenced by plaintiff Lohman Law Offices Ltd. 1 On appeal,

defendant argues arbitration counsel’s inadvertence and defendant’s inability to pay the arbitration

rejection filing fee demonstrated good cause for an extension of time to reject the arbitration award.

We affirm.

¶3 On September 11, 2007, defendant executed a contract for legal services with plaintiff for

representation in a dispute for insurance coverage and repairs following a vehicular collision.

Plaintiff sent defendant regular invoices for services rendered, and defendant initially paid them.

She eventually fell behind on payment, resulting in an outstanding balance totaling $53,663.83,

consisting of $52,132.72 in attorney fees and $1531.11 in costs. Plaintiff brought this breach of

contract action against defendant, seeking a judgment of $53,663.83, prejudgment interest as

provided in the contract, costs, and any other relief the court deemed appropriate.

¶4 On August 12, 2019, defendant appeared pro se and later filed an answer denying the

allegations she owed plaintiff money. On January 10, 2020, counsel filed a substitute appearance

on defendant’s behalf.2

¶5 On February 27, 2020, the circuit court entered an order referring the case to commercial

mandatory arbitration. The arbitration hearing was conducted on October 8, 2020. The arbitrator

issued an award in favor of plaintiff and against defendant in the amount of $75,388.04, plus $294

in court costs. The arbitrator sent each party notice of the arbitration award via email on the same

1 The record interchangeably refers to plaintiff as “Lohman Law Offices, Ltd.” and “Lohman Law Offices, Ltd., as successor to the Law Offices of Robert G. Lohman III.” We adopt the party’s name as designated in the notice of appeal and reflected in the arbitration award of “Lohman Law Offices Ltd”.

2 Counsel representing defendant on appeal also represented her during arbitration proceedings.

-2- No. 1-21-0310

day. On October 26, 2020, defendant filed a “rejection of commercial calendar mandatory

arbitration award.”

¶6 On January 14, 2021, plaintiff filed a “motion to bar rejection and for entry of judgment on

award.” Plaintiff asserted defendant’s rejection filed on October 26, 2020, was untimely under

Cook County Circuit Court Rule 25.11 (Local Rule 25.11) (Cook County Cir. Ct. R. 25.11 (Dec.

1, 2014)), which requires a party to file a rejection within seven business days after receiving notice

of the arbitration award. Plaintiff argued defendant’s failure to file a timely rejection constituted a

waiver of her right of rejection under Local Rule 25.11.

¶7 On February 10, 2021, defendant filed a “motion for leave to file rejection of arbitration

award nunc pro tunc” pursuant to Illinois Supreme Court Rule 183 (eff. Feb. 16, 2011). Rule 183

grants a court discretionary authority to extend the time for filing any pleading for good cause

shown, even after the filing deadline has passed. See Gellert v. Jackson, 373 Ill. App. 3d 149, 151

(2007). Defendant argued good cause existed to grant an extension of time to reject the arbitration

award because her counsel incorrectly calendared the deadline. Counsel based the due date on the

30-calendar-day filing period set forth in Illinois Supreme Court Rule 93 (eff. Jan. 1, 1997), instead

of the 7-business-day period set forth in Local Rule 25.11. Defendant also argued she was unable

to pay the $750 rejection of arbitration award filing fee within the deadline prescribed by Local

Rule 25.11, and her counsel awaited that payment prior to filing the rejection.

¶8 On February 16, 2021, the circuit court entered an order (1) granting plaintiff’s motion to

bar defendant’s rejection and enter judgment; (2) denying defendant’s motion for leave to file

rejection; and (3) entering judgment on the arbitration award in favor of plaintiff and against

defendant in the amount of $75,388.04, plus $294 in court costs.

-3- No. 1-21-0310

¶9 On appeal, defendant argues the circuit court erred in denying her motion for leave to file

rejection because she established good cause for an extension of time to file her rejection.

Specifically, she established her attorney calendared the wrong filing deadline based on a conflict

between the due dates under Local Rule 25.11 (7 business days) and Rule 93 (30 calendar days).

She also argues her inability to pay the $750 rejection filing fee by the 7-business-day filing

deadline showed good cause for an extension of time to file her rejection.

¶ 10 The circuit court of Cook County utilizes a mandatory arbitration program approved by the

Illinois Supreme Court. See Cruz v. Northwestern Chrysler Plymouth Sales, Inc., 179 Ill. 2d 271,

273 (1997). Under the rules of the mandatory court-annexed arbitration, the circuit court does not

adjudicate the merits or decide the law and facts of the case, a role expressly vested in the

arbitrators. Id. at 279. Once the arbitration panel has made its award, the parties must accept or

reject the award in its entirety. Id. If no timely rejection of the award is filed, “the circuit court has

no real function beyond entering judgment on the award.” Id. Limiting a party’s remedy to filing

a rejection notice “ensures that the process will not be unnecessarily prolonged by attempts to

dispute the minutiae of an award.” Babcock v. Wallace, 2012 IL App (1st) 111090, ¶ 17.

¶ 11 Under the version of Local Rule 25.11 in effect here, a party must reject an arbitration

award within 7 business days of receiving notice of the award, accompanied by a “$750 rejection

fee.” 3 Cook County Cir. Ct. R. 25.11 (Dec. 1, 2014). Local Rule 25.11 provides a shorter deadline

to reject an arbitration award than Rule 93 (Ill. S. Ct. R. 93 (eff. Jan. 1, 1997)), which requires

3 Local Rule 25.11 was subsequently amended, effective April 1, 2021, allowing a party to reject an arbitration award within 14 calendar days after receiving notice of the arbitration award. Cook County Cir. Ct. R. 25.11 (Apr. 1, 2021). We note defendant’s October 26 rejection would also have been untimely had the amended rule been in effect.

-4- No. 1-21-0310

litigants to reject an arbitration award within 30 calendar days after the filing of the award with

the clerk of the court.

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Related

Greene v. City of Chicago
382 N.E.2d 1205 (Illinois Supreme Court, 1978)
Cruz v. Northwestern Chrysler Plymouth Sales, Inc.
688 N.E.2d 653 (Illinois Supreme Court, 1997)
Ianotti v. Chicago Park District
621 N.E.2d 185 (Appellate Court of Illinois, 1993)
Vision Point of Sale, Inc. v. Haas
875 N.E.2d 1065 (Illinois Supreme Court, 2007)
Gellert v. Jackson
867 N.E.2d 1275 (Appellate Court of Illinois, 2007)
Webster v. Hartman
749 N.E.2d 958 (Illinois Supreme Court, 2001)
Babcock v. Wallace
2012 IL App (1st) 111090 (Appellate Court of Illinois, 2012)
Seymour v. Collins
2015 IL 118432 (Illinois Supreme Court, 2015)
Schacht v. Lome
2016 IL App (1st) 141931 (Appellate Court of Illinois, 2016)
Jones v. State Farm Mutual Automobile Insurance Co.
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2022 IL App (1st) 210310-U, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lohman-law-offices-ltd-v-ries-illappct-2022.