State Farm Insurance v. Jacquez

749 N.E.2d 462, 322 Ill. App. 3d 652, 255 Ill. Dec. 361, 2001 Ill. App. LEXIS 360
CourtAppellate Court of Illinois
DecidedMay 9, 2001
Docket1 — 99—1713
StatusPublished
Cited by12 cases

This text of 749 N.E.2d 462 (State Farm Insurance v. Jacquez) 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
State Farm Insurance v. Jacquez, 749 N.E.2d 462, 322 Ill. App. 3d 652, 255 Ill. Dec. 361, 2001 Ill. App. LEXIS 360 (Ill. Ct. App. 2001).

Opinion

JUSTICE BURKE

delivered the opinion of the court:

Following mandatory arbitration in this negligence action, the circuit court entered judgment on the arbitration award in favor of plaintiff State Farm Insurance Co. and against defendant Juan Jacquez. On appeal, defendant contends that the trial court erred in barring his rejection of the award and that plaintiff waived any objection to his rejection of the award. Defendant also contends that the court erred in entering judgment for damages in excess of the amount sought in plaintiffs complaint and by allowing plaintiff to amend its complaint after the arbitration hearing. Although plaintiff did not file an appellee’s brief, we will consider this appeal pursuant to the principles set forth in First Capitol Mortgage Corp. v. Talandis Construction Corp., 63 Ill. 2d 128, 131-33, 345 N.E.2d 493 (1976).

In March 1998, plaintiff filed a negligence action against defendant alleging that his driving caused an automobile accident with Stella Dorsey, who was insured by plaintiff under a policy that provided coverage for “property damages ***, medical payments and uninsured motorists coverage.” In the complaint, plaintiff alleged that the collision caused damages to Dorsey’s car in the amount of $8,353.21. The complaint also alleged that plaintiff had paid “the sum of $8,799.50 in uninsured motorist benefits and medical bills” to Dorsey and on her behalf. In both the caption of the complaint and the prayer for relief, plaintiff sought judgment for damages in the amount of $9,152.71, plus costs.

In August 1998, the trial court assigned the case to mandatory arbitration. An arbitration hearing was held in October 1998. The arbitration panel found in favor of plaintiff and awarded it $17,161.46 in damages. The award noted that defendant failed to appear at the hearing “pursuant to Plaintiffs Rule 237 Notice, and there was no prejudice to Plaintiff.” A court date for judgment on the award was set for December 1998.

Defendant filed a timely notice of rejection of the award, and in December 1998 the court set a jury trial for March 1999. On the date set for trial, plaintiff filed a motion to bar defendant’s rejection of the award based solely on defendant’s failure to appear at the arbitration hearing. In its motion, plaintiff alleged that defendant had been served with a Rule 237 (166 Ill. 2d R. 237) notice to appear and that he failed to file a motion to excuse his appearance or continue the hearing. In response, defendant alleged that he was “present through counsel” at the hearing and his attorney participated in good faith and in a meaningful manner. The trial court granted plaintiffs motion and entered judgment on the award.

Defendant filed a postjudgment motion seeking vacation or remittitur of the award. He argued that the award was almost double the amount sought in the complaint and exceeded the total contained in plaintiffs Rule 90(c) (166 Ill. 2d R. 90(c)) packet. Defendant further argued that the award was unreasonable because his request for additional discovery had been denied and plaintiff had never amended its complaint. In denying defendant’s motion and upholding the arbitration award, the court entered an order finding that the complaint was “sufficient as to the amount sought in the paragraphs & body of the complaint” and granting plaintiffs oral motion to amend the complaint to match the proofs. The order further stated that defendant had notice of the amount of damages sought and, “by answering *** and exchanging discovery and pre-arbitration matters,” could not claim that he lacked notice.

On appeal, defendant contends that the trial court erred in debarring his rejection of the arbitration award. He contends that such a drastic sanction was unwarranted because plaintiff suffered no prejudice as a result of his absence from the hearing. In conjunction with this argument, defendant contends that the court could have imposed alternative sanctions that would have been less harsh, such as barring his testimony at trial or assessing fees and costs.

Where a party to mandatory arbitration proceedings appeals from sanctions imposed, the standard of review is an abuse of discretion. State Farm Insurance Co. v. Kazakova, 299 Ill. App. 3d 1028, 1031, 702 N.E.2d 254 (1998). An abuse of discretion occurs when the trial court rules arbitrarily. Johnson v. Saenz, 311 Ill. App. 3d 693, 697, 725 N.E.2d 774 (2000).

Supreme Court Rule 90 provides that a party may be debarred from rejecting an arbitration award for failing to comply with a notice pursuant to Rule 237(b). 166 Ill. 2d Rs. 90(g), 237(b). This sanction may be imposed when the party fails to be present either in person or by counsel at the arbitration hearing, and where the arbitration panel finds that the party failed to participate in good faith and in a meaningful manner. 145 Ill. 2d R. 91; see West Bend Mutual Insurance Co. v. Herrera, 292 Ill. App. 3d 669, 674, 682 N.E.2d 645 (1997). A party who appears at the arbitration hearing through counsel, but not in person, may still be debarred from rejecting the award for failure to appear pursuant to a Rule 237 notice. Gore v. Martino, 312 Ill. App. 3d 701, 703, 728 N.E.2d 495 (2000); Hinkle v. Womack, 303 Ill. App. 3d 105, Ill, 707 N.E.2d 705 (1999).

In reviewing the imposition of the sanction of debarment, courts have considered the circumstances of the case and the purpose of the supreme court rules on the arbitration process, which is to prevent abuse and uphold the integrity of the process. See Johnson, 311 Ill. App. 3d at 697. Courts have also considered whether there was a “deliberate and pronounced disregard” for the rules or the court. Gore, 312 Ill. App. 3d at 704. This court has held that the trial court abused its discretion in imposing the sanction of debarment where a party’s failure to appear in person at the arbitration hearing was reasonable and not intended to make a mockery of the arbitration proceedings. Johnson, 311 Ill. App. 3d at 698-99 (reversing debarment where the defendant, who did not appear pursuant to a Rule 237 notice, did not have a fluent command of English and claimed to have been misdirected to the courthouse); see also Gore, 312 Ill. App. 3d at 704-05 (reversing debarment where the plaintiffs appeared in person but arrived late at the hearing). Further, courts have reversed orders of debarment where parties have appeared at the arbitration hearing but were found to have failed to participate in the hearing in good faith. State Farm, 299 Ill. App. 3d at 1030-34 (reversing debarment where the arbitration panel had found that the defendant, who appeared but did not speak English, failed to participate in good faith); West Bend, 292 Ill. App. 3d at 672-77 (reversing debarment where the trial court had found bad-faith participation of a non-English-speaking defendant who failed to testify or provide an interpreter).

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Bluebook (online)
749 N.E.2d 462, 322 Ill. App. 3d 652, 255 Ill. Dec. 361, 2001 Ill. App. LEXIS 360, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-farm-insurance-v-jacquez-illappct-2001.