William B. Lucke, Inc. v. Spiegel

266 N.E.2d 504, 131 Ill. App. 2d 532, 1970 Ill. App. LEXIS 1129
CourtAppellate Court of Illinois
DecidedDecember 16, 1970
Docket54598
StatusPublished
Cited by23 cases

This text of 266 N.E.2d 504 (William B. Lucke, Inc. v. Spiegel) 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
William B. Lucke, Inc. v. Spiegel, 266 N.E.2d 504, 131 Ill. App. 2d 532, 1970 Ill. App. LEXIS 1129 (Ill. Ct. App. 1970).

Opinion

Mr. PRESIDING JUSTICE STAMOS

delivered the opinion of the court:

Third-party defendants (hereinafter referred to as defendants) appeal from the judgment confirming an arbitration award in favor of third-party plaintiff (hereinafter referred to as plaintiff).

On December 23, 1965, defendants executed a contract with plaintiff for renovation of certain premises damaged by fire and weather. Article 3 of the contract provided:

“CONTRACT SUM — The Owner [defendants] shall pay the Contractor (plaintiff) for the performance of the Contract subject to the additions and deductions provided therein in current funds, the sum of FORTY EIGHT THOUSAND SIX HUNDRED TWENTY FIVE dollars. ($48,625.00) FINAL CONTRACT PRICE BASED ON TIME & MATERIAL NOT TO EXCEED AMOUNT SHOWN (T&M BASED ON 10% OVERHEAD, 12% PROFIT)"

The contract further provided that any controversy arising out of its terms was to be submitted to arbitration under the Rules of the American Arbitration Association. Pursuant to this provision a controversy as to the balance due plaintiff was submitted to arbitration on September 18, 1967.

During the arbitration of the above matter, WiUiam B. Lucke, Inc., a sub-contractor involved in renovation and repair of defendant’s premises, filed suit on October 10, 1967, against defendants for moneys due and owing it. Subsequently, plaintiff was made an additional party defendant. Before a final adjudication of the prime cause of action, the arbitrators issued their award in the controversy between plaintiff and defendant. The award provided:

“A. An award in the amount of $17,883.04 is made in favor of the claimant, HI-LITE CONSTRUCTION DIVISION OF JO-SU, INC. (plaintiff), the details of which are as foHows:
Contract price................................$48,625.00
Extras allowed................................ 26,041.92
Total $74,666.92
Less allowances............................... — 8,721.00
Remainder $65,945.92
Payments made by Respondent (defendants)......$49,257.00
Total $16,688.92
Less back charges allowed....................... 544.61
. Balance $16,144.31
Plus 6% interest from March 1, 1967 to
November 30, 1968..........................$ 1,738.73
TOTAL amount of Award if paid by
November 30, 1968...........................$17,883.04”

The award further provided that defendants were to pay a reimbursement of $231.12 for plaintiff’s advancement of costs plus 6% interest from December 1, 1968, until the award is paid.

On December 31, 1968, plaintiff filed its third-party action against defendants in the pending cause instituted by Lucke. Plaintiff alleged the arbitration award and prayed for judgment thereon. Defendants moved to strike plaintiff’s third-party action, but the motion was denied.

On April 10, 1969, the court entered judgment in favor of Lucke and against plaintiff and defendants in the aggregate sum of $2,281.16. Subsequently, on June 20, 1969, the court entered judgment in the third-party action in the amount of $16,607.54 1 thereby confirming the arbitration award in favor of plaintiff and against defendants. Defendants appeal and contend that the court erred in confirming the arbitration award and in failing to vacate it for the following reasons:

(1) The arbitrators erred in their conclusion as to the amount of the basic contract price in that;
(a) their conclusion was against the manifest weight of the evidence,
(b) they disregarded well accepted principles of law, and
(c) they changed the contract under the guise of interpretation.
(2) One of the arbitrators was unduly prejudiced.

OPINION

The confirmation of arbitration awards is governed by Section 11 of the Uniform Arbitration Act (Ill. Rev. Stat. 1961, ch. 10, par. Ill) which provides:

“Upon application of a party, the court shall confirm an award, unless within the time limits hereinafter imposed grounds are urged for vacating or modifying or correcting the award, in which case the court shall proceed as provided in Sections 12 and 13.” 2

Since defendants requested vacation of the award, Section 12 (a) governs and provides:

“Upon application of a party, the court shall vacate an award where:
(1) The award was procured by corruption, fraud or other undue means;
(2) There was evident partiality by an arbitrator appointed as a neutral or corruption in any one of the arbitrators or misconduct prejudicing the rights of any party;
(3) The arbitrators exceeded their powers;
(4) The arbitrators refused to postpone the hearing upon sufficient cause being shown therefore or refused to hear evidence material to the controversy or otherwise so conducted the hearing contrary to the provisions of Section 5, 3 as to prejudice substantially the rights of a party; or
(5) There was no arbitration agreement and the issue was not adversely determined in proceedings under Section 2 4 and the party did not participate in the arbitration hearing without raising the objection; but the fact that the relief was such that it could not or would not be granted by a court of law or equity is not ground for vacating or refusing to confirm the award.”

Section 12 (d) provides:

“If the application to vacate is denied and no motion to modify or correct the award is pending, the court shall confirm the award.”

The limited nature of the grounds for vacation as provided in the current Section 12 is in accordance with the prior development of the law (Historical & Practical Notes, SHA, Ch. 110, § 112) and reflective of the well recognized principle that courts should look with favor upon arbitration as a method of settling controversies. Brown v. Atwood (1922), 224 Ill.App. 77; Cohen v. Myers (1969), 115 Ill.App.2d 286.

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Bluebook (online)
266 N.E.2d 504, 131 Ill. App. 2d 532, 1970 Ill. App. LEXIS 1129, Counsel Stack Legal Research, https://law.counselstack.com/opinion/william-b-lucke-inc-v-spiegel-illappct-1970.