R.A. Bright Construction, Inc. v. Weis Builders, Inc.

930 N.E.2d 565, 402 Ill. App. 3d 248
CourtAppellate Court of Illinois
DecidedJune 9, 2010
Docket3-09-0910
StatusPublished
Cited by6 cases

This text of 930 N.E.2d 565 (R.A. Bright Construction, Inc. v. Weis Builders, 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
R.A. Bright Construction, Inc. v. Weis Builders, Inc., 930 N.E.2d 565, 402 Ill. App. 3d 248 (Ill. Ct. App. 2010).

Opinions

JUSTICE SCHMIDT

delivered the opinion of the court:

Plaintiff, R.A. Bright Construction, Inc. (Bright), brought this breach of contract action against defendant, Weis Builders, Inc. (Weis), in the circuit court of Will County. Defendant filed a motion to dismiss or, in the alternative, to stay the action and compel arbitration. The trial court denied Weis’s motion. Weis filed this interlocutory appeal, claiming the trial court erred when denying its motion to compel arbitration.

BACKGROUND

Weis entered into a contract with Wal-Mart Stores, Inc., for the construction of a Wal-Mart Supercenter store in Lockport, Illinois. Weis is a Minnesota corporation that maintains offices in four states. Weis, as general contractor, engaged Bright to act as a subcontractor to perform concrete work and underground utilities work on the project. Bright is an Illinois corporation with its principle place of business in Plainfield, Illinois. Around October 20, 2006, Bright and Weis entered into a written subcontract agreement wherein Bright agreed to perform the concrete work for $2,930,000. Around November 14, 2006, Weis and Bright entered into a second written subcontract agreement wherein Bright agreed to perform the underground utilities work for $679,567. The record is clear that both subcontract agreements were properly signed by each party. There are no allegations of fraud or misrepresentations leading to the formation of these contracts. From the record, it appears that each party freely entered into the contracts with full knowledge of the contractual terms and conditions.

A dispute between the parties arose in which Bright claimed it was owed $765,701 under both contracts. Weis denies that Bright is entitled to these monies. On November 18, 2008, Bright sued. In response, Weis filed a “motion to dismiss and compel arbitration or, alternatively, to stay proceedings and to compel arbitration,” claiming that the Federal Arbitration Act (FAA) (9 U.S.C. §1 et seq. (2006)) mandated arbitration of this matter. Before Weis’s motion could be heard, Bright filed an amended complaint seeking to foreclose a mechanics lien against Wal-Mart in the disputed amount. Thereafter, hearings were held on Weis’s motion.

The trial court took the matter under advisement, then on October 14, 2009, denied Weis’s motions. This interlocutory appeal followed.

ANALYSIS

Our standard of review is de novo. Melena v. Anheuser-Busch, Inc., 219 Ill. 2d 135, 847 N.E.2d 99 (2006). Concerning the substance of this appeal, Weis argues that the trial court erred by failing to compel arbitration. Specifically, Weis notes that section 2 of the FAA has been interpreted by our supreme court to compel “judicial enforcement of arbitration agreements ‘in any *** contract evidencing a transaction involving commerce.’ ” Melena v. Anheuser-Busch, Inc., 219 Ill. 2d at 142, 847 N.E.2d at 103, quoting 9 U.S.C. §2 (1994). Therefore, Weis concludes, section 2 of the FAA mandates this matter proceed to arbitration.

Bright disagrees. Initially, Bright claims the FAA is not applicable to this matter for two reasons. First, Bright argues the FAA only applies to matters affecting interstate commerce and since its activity was solely intrastate, the FAA is not applicable. Alternatively, Bright contends that even if we find its activity involved interstate commerce and that the clause was indeed an arbitration clause, the trial court’s denial of Weis’s motion was still proper. This is so, Bright argues, as the applicable clause violates the Illinois Building and Construction Contract Act (815 ILCS 665/1 et seq. (West 2006)).

The FAA states, “A written provision in *** a contract evidencing a transaction involving commerce to settle by arbitration a controversy thereafter arising out of such contract or transaction, or the refusal to perform the whole or any part thereof, *** shall be valid, irrevocable, and enforceable, save upon such grounds as exist at law or in equity for the revocation of any contract.” 9 U.S.C. §2 (2006).

In Melena, after noting that it was called upon to apply the FAA, our supreme court stated that when “construing a federad statute, we generally look to federal decisions for its [sic] interpretation of the statutory provisions.” Melena, 219 Ill. 2d at 141, 847 N.E.2d at 103. The first step of analysis taken by the Melena court, after briefly mentioning the FAA’s history and purpose, focused on the language in section 2 of the FAA that makes it applicable only when an arbitration clause exists “ ‘in any *** contract evidencing a transaction involving commerce.’ ” Melena, 219 Ill. 2d at 142, 847 N.E.2d at 103, quoting 9 U.S.C. §2 (1994). Likewise, we must first determine whether the contract at issue involves commerce.

The United States Supreme Court has noted the FAA was enacted pursuant to Congress’s substantive power to regulate interstate commerce and admiralty (Prima Paint Corp. v. Flood & Conklin Mfg. Co., 388 U.S. 395, 18 L. Ed. 2d 1270, 87 S. Ct. 1801 (1967)) and that it is preemptive of state laws hostile to arbitration. Southland Corp. v. Keating, 465 U.S. 1, 79 L. Ed. 2d 1, 1045 S. Ct. 852 (1984). The Court has found that the words “involving commerce” in section 2 of the FAA “signal! ] an intent to exercise Congress’ commerce power to the full.” Allied-Bruce Terminix Cos. v. Dobson, 513 U.S. 265, 277, 130 L. Ed. 2d 753, 766, 115 S. Ct. 834, 841 (1995).

We find Allied-Bruce to be particularly instructive to this matter. Allied-Bruce involved a suit from a homeowner claiming that Allied-Bruce failed to fulfil its contractual obligation to keep a home free from termite damage. Allied-Bruce Terminix Cos. v. Dobson, 628 So. 2d 354, 355 (Ala. 1993). Allied-Bruce moved to stay the lawsuit and compel arbitration pursuant to an arbitration clause in the contract. Allied-Bruce, 628 So. 2d at 355. Allied-Bruce argued that “because they are out-of-state entities, and because some of the materials used in fulfilling their duties imposed by the termite bond were brought into Alabama from out-of-state, the bond has at least a ‘slight nexus’ with interstate commerce” and, as such, section 2 of the FAA in conjunction with the arbitration clause in the bond mandates that the matter proceed to arbitration. Allied-Bruce Terminix Cos. v. Dobson, 628 So. 2d 354, 355 (Ala. 1993).

The Alabama Supreme Court disagreed.

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930 N.E.2d 565, 402 Ill. App. 3d 248, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ra-bright-construction-inc-v-weis-builders-inc-illappct-2010.