State of Illinois
92nd General Assembly
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92_HB3057

 
                                               LRB9200641NTsb

 1        AN ACT concerning arbitration.

 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:

 4        Section 0.01.  Short title.  This Act may be cited as the
 5    Uniform Arbitration Act (2000).

 6        Section 1.  Definitions.  In this Act:
 7        (1)  "Arbitration  organization"  means  an  association,
 8    agency, board, commission, or other entity  that  is  neutral
 9    and   initiates,  sponsors,  or  administers  an  arbitration
10    proceeding  or  is  involved  in  the   appointment   of   an
11    arbitrator.
12        (2)  "Arbitrator" means an individual appointed to render
13    an  award,  alone  or  with  others, in a controversy that is
14    subject to an agreement to arbitrate.
15        (3)  "Court" means a circuit court of this State.
16        (4)  "Knowledge" means actual knowledge.
17        (5)  "Person" means an individual, corporation,  business
18    trust, estate, trust, partnership, limited liability company,
19    association,    joint   venture,   government;   governmental
20    subdivision, agency, or instrumentality; public  corporation;
21    or any other legal or commercial entity.
22        (6)  "Record"  means  information  that is inscribed on a
23    tangible medium or that is stored in an electronic  or  other
24    medium and is retrievable in perceivable form.

25        Section 2.  Notice.
26        (a)  Except  as  otherwise provided in this Act, a person
27    gives notice to another  person  by  taking  action  that  is
28    reasonably  necessary  to inform the other person in ordinary
29    course, whether or not the other person acquires knowledge of
30    the notice.
 
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 1        (b)  A person has notice if the person has  knowledge  of
 2    the notice or has received notice.
 3        (c)  A  person  receives  notice  when  it  comes  to the
 4    person's attention or the notice is delivered at the person's
 5    place of residence  or  place  of  business,  or  at  another
 6    location  held  out  by  the person as a place of delivery of
 7    such communications.

 8        Section 3.  When Act applies.
 9        (a)  This Act governs an agreement to arbitrate  made  on
10    or after the effective date of this Act.
11        (b)  This  Act  governs  an  agreement  to arbitrate made
12    before the effective date of this Act if all the  parties  to
13    the  agreement or to the arbitration proceeding so agree in a
14    record.
15        (c)  On or after  July  1,  2002,  this  Act  governs  an
16    agreement to arbitrate whenever made.

17        Section 4.  Effect of agreement to arbitrate; nonwaivable
18    provisions.
19        (a)  Except as otherwise provided in subsections (b)  and
20    (c),   a  party  to  an  agreement  to  arbitrate  or  to  an
21    arbitration proceeding may waive or, the parties may vary the
22    effect of,  the  requirements  of  this  Act  to  the  extent
23    permitted by law.
24        (b)  Before  a  controversy  arises that is subject to an
25    agreement to arbitrate, a party to the agreement may not:
26             (1)  waive or  agree  to  vary  the  effect  of  the
27        requirements  of Section 5(a), 6(a), 8, 17(a), 17(b), 26,
28        or 28;
29             (2)  agree to unreasonably restrict the right  under
30        Section  9  to notice of the initiation of an arbitration
31        proceeding;
32             (3)  agree to unreasonably restrict the right  under
 
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 1        Section  12  to  disclosure  of  any  facts  by a neutral
 2        arbitrator; or
 3             (4)  waive the right under Section 16 of a party  to
 4        an  agreement  to arbitrate to be represented by a lawyer
 5        at any proceeding or  hearing  under  this  Act,  but  an
 6        employer  and a labor organization may waive the right to
 7        representation by a lawyer in a labor arbitration.
 8        (c)  A party to an agreement to arbitrate or  arbitration
 9    proceeding  may  not  waive,  or the parties may not vary the
10    effect of, the requirements of this section or Section  3(a),
11    (c), 7, 14, 18, 20(c)  or (d), 22, 23, 24, 25(a)  or (b), 29,
12    30, 31, or 32.

13        Section 5.  Application for judicial relief.
14        (a)  Except  as  otherwise  provided  in  Section  28, an
15    application for judicial relief under this Act must  be  made
16    by  motion  to  the court and heard in the manner provided by
17    law or rule of court for making and hearing motions.
18        (b)  Unless a civil action  involving  the  agreement  to
19    arbitrate  is  pending,  notice  of  an initial motion to the
20    court under this Act must be served in the manner provided by
21    law  for  the  service  of  a  summons  in  a  civil  action.
22    Otherwise, notice of the motion must be given in  the  manner
23    provided  by  law  or  rule  of  court for serving motions in
24    pending cases.

25        Section 6.  Validity of agreement to arbitrate.
26        (a)  An agreement contained in  a  record  to  submit  to
27    arbitration  any  existing  or subsequent controversy arising
28    between the parties to the agreement is  valid,  enforceable,
29    and irrevocable except upon a ground that exists at law or in
30    equity for the revocation of a contract.
31        (b)  The  court  shall  decide  whether  an  agreement to
32    arbitrate exists or a controversy is subject to an  agreement
 
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 1    to arbitrate.
 2        (c)  An  arbitrator  shall  decide  whether  a  condition
 3    precedent  to  arbitrability has been fulfilled and whether a
 4    contract  containing  a  valid  agreement  to  arbitrate   is
 5    enforceable.
 6        (d)  If  a  party to a judicial proceeding challenges the
 7    existence of, or claims that a controversy is not subject to,
 8    an agreement to arbitrate,  the  arbitration  proceeding  may
 9    continue  pending final resolution of the issue by the court,
10    unless the court otherwise orders.

11        Section 7.  Motion to compel or stay arbitration.
12        (a)  On motion  of  a  person  showing  an  agreement  to
13    arbitrate  and alleging another person's refusal to arbitrate
14    pursuant to the agreement:
15             (1)  if the refusing party does not appear  or  does
16        not  oppose the motion, the court shall order the parties
17        to arbitrate; and
18             (2)  if the refusing party opposes the  motion,  the
19        court  shall  proceed  summarily  to decide the issue and
20        order the parties to arbitrate unless it finds that there
21        is no enforceable agreement to arbitrate.
22        (b)  On motion of a person alleging that  an  arbitration
23    proceeding has been initiated or threatened but that there is
24    no  agreement to arbitrate, the court shall proceed summarily
25    to decide the issue. If the court  finds  that  there  is  an
26    enforceable  agreement  to  arbitrate,  it  shall  order  the
27    parties to arbitrate.
28        (c)  If  the  court  finds  that  there is no enforceable
29    agreement,  it  may  not  pursuant  to   subsection   (a)  or
30    (b)  order the parties to arbitrate.
31        (d)  The  court  may  not  refuse  to  order  arbitration
32    because  the  claim  subject  to  arbitration  lacks merit or
33    grounds for the claim have not been established.
 
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 1        (e)  If a  proceeding  involving  a  claim  referable  to
 2    arbitration  under  an  alleged  agreement  to  arbitrate  is
 3    pending in court, a motion under this section must be made in
 4    that court. Otherwise a motion under this section may be made
 5    in any court as provided in Section 27.
 6        (f)  If  a  party  makes  a  motion to the court to order
 7    arbitration, the court on just terms shall stay any  judicial
 8    proceeding that involves a claim alleged to be subject to the
 9    arbitration  until  the  court renders a final decision under
10    this section.
11        (g)  If the court orders arbitration, the court  on  just
12    terms  shall  stay  any  judicial  proceeding that involves a
13    claim subject to the arbitration. If a claim subject  to  the
14    arbitration  is  severable,  the  court may limit the stay to
15    that claim.

16        Section 8.  Provisional remedies.
17        (a)  Before an arbitrator is appointed and is  authorized
18    and  able  to  act,  the  court, upon motion of a party to an
19    arbitration proceeding and for good cause shown, may enter an
20    order for provisional remedies to protect  the  effectiveness
21    of  the  arbitration  proceeding to the same extent and under
22    the same conditions as if the controversy were the subject of
23    a civil action.
24        (b)  After an arbitrator is appointed and  is  authorized
25    and able to act:
26             (1)  the   arbitrator  may  issue  such  orders  for
27        provisional remedies, including interim  awards,  as  the
28        arbitrator  finds  necessary to protect the effectiveness
29        of the arbitration proceeding and to promote the fair and
30        expeditious resolution of the controversy,  to  the  same
31        extent   and   under   the  same  conditions  as  if  the
32        controversy were the subject of a civil action and
33             (2)  a party to an arbitration proceeding  may  move
 
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 1        the  court for a provisional remedy only if the matter is
 2        urgent and the arbitrator is not able to  act  timely  or
 3        the arbitrator cannot provide an adequate remedy.
 4        (c)  A  party  does  not  waive a right of arbitration by
 5    making a motion under subsection (a)  or (b).

 6        Section 9.  Initiation of arbitration.
 7        (a)  A person  initiates  an  arbitration  proceeding  by
 8    giving  notice  in  a  record  to  the  other  parties to the
 9    agreement to arbitrate  in  the  agreed  manner  between  the
10    parties  or,  in  the  absence  of agreement, by certified or
11    registered mail, return receipt requested and obtained, or by
12    service as authorized for the commencement of a civil action.
13    The notice must describe the nature of  the  controversy  and
14    the remedy sought.
15        (b)  Unless a person objects for lack or insufficiency of
16    notice  under  Section 15(c)  not later than the beginning of
17    the arbitration hearing,  the  person  by  appearing  at  the
18    hearing  waives  any objection to lack of or insufficiency of
19    notice.

20        Section  10.   Consolidation  of   separate   arbitration
21    proceedings.
22        (a)  Except as otherwise provided in subsection (c), upon
23    motion  of  a  party  to  an  agreement to arbitrate or to an
24    arbitration proceeding, the court may order consolidation  of
25    separate  arbitration  proceedings  as  to all or some of the
26    claims if:
27             (1)  there are separate agreements to  arbitrate  or
28        separate arbitration proceedings between the same persons
29        or  one  of  them  is  a party to a separate agreement to
30        arbitrate or a separate  arbitration  proceeding  with  a
31        third person;
32             (2)  the   claims   subject  to  the  agreements  to
 
                            -7-                LRB9200641NTsb
 1        arbitrate  arise  in  substantial  part  from  the   same
 2        transaction or series of related transactions;
 3             (3)  the  existence of a common issue of law or fact
 4        creates the possibility of conflicting decisions  in  the
 5        separate arbitration proceedings; and
 6             (4)  prejudice   resulting   from   a   failure   to
 7        consolidate  is not outweighed by the risk of undue delay
 8        or prejudice to the rights  of  or  hardship  to  parties
 9        opposing consolidation.
10        (b)  The   court  may  order  consolidation  of  separate
11    arbitration proceedings as to some  claims  and  allow  other
12    claims to be resolved in separate arbitration proceedings.
13        (c)  The  court may not order consolidation of the claims
14    of a party to an agreement  to  arbitrate  if  the  agreement
15    prohibits consolidation.

16        Section  11.   Appointment  of  arbitrator;  service as a
17    neutral arbitrator.
18        (a)  If the parties to an agreement to arbitrate agree on
19    a method for appointing an arbitrator, that  method  must  be
20    followed,  unless  the  method fails. If the parties have not
21    agreed on a method, the agreed method fails, or an arbitrator
22    appointed fails or is unable to act and a successor  has  not
23    been  appointed,  the  court,  on  motion  of  a party to the
24    arbitration proceeding,  shall  appoint  the  arbitrator.  An
25    arbitrator  so  appointed has all the powers of an arbitrator
26    designated  in  the  agreement  to  arbitrate  or   appointed
27    pursuant to the agreed method.
28        (b)  An  individual who has a known, direct, and material
29    interest in the outcome of the arbitration  proceeding  or  a
30    known,  existing,  and  substantial relationship with a party
31    may not serve as an arbitrator required by an agreement to be
32    neutral.
 
                            -8-                LRB9200641NTsb
 1        Section 12.  Disclosure by arbitrator.
 2        (a)  Before accepting appointment, an individual  who  is
 3    requested   to   serve  as  an  arbitrator,  after  making  a
 4    reasonable inquiry, shall disclose  to  all  parties  to  the
 5    agreement  to arbitrate and arbitration proceeding and to any
 6    other arbitrators any known facts that  a  reasonable  person
 7    would  consider  likely  to  affect  the  impartiality of the
 8    arbitrator in the arbitration proceeding, including:
 9             (1)  a financial or personal interest in the outcome
10        of the arbitration proceeding; and
11             (2)  an existing or past relationship  with  any  of
12        the   parties  to  the  agreement  to  arbitrate  or  the
13        arbitration proceeding, their counsel or representatives,
14        a witness, or another arbitrators.
15        (b)  An  arbitrator  has  a  continuing   obligation   to
16    disclose  to  all  parties  to the agreement to arbitrate and
17    arbitration proceeding and to any other arbitrators any facts
18    that the arbitrator learns after accepting appointment  which
19    a  reasonable  person  would  consider  likely  to affect the
20    impartiality of the arbitrator.
21        (c)  If  an  arbitrator  discloses  a  fact  required  by
22    subsection (a)  or (b)  to be disclosed and  a  party  timely
23    objects  to  the  appointment  or  continued  service  of the
24    arbitrator based upon the fact disclosed, the  objection  may
25    be  a  ground  under  Section 23(a)(2)  for vacating an award
26    made by the arbitrator.
27        (d)  If  the  arbitrator  did  not  disclose  a  fact  as
28    required by subsection (a) or (b), upon timely objection by a
29    party, the court under Section 23(a)(2)  may vacate an award.
30        (e)  An arbitrator appointed as a neutral arbitrator  who
31    does  not  disclose a known, direct, and material interest in
32    the  outcome  of  the  arbitration  proceeding  or  a  known,
33    existing,  and  substantial  relationship  with  a  party  is
34    presumed  to  act  with  evident  partiality  under   Section
 
                            -9-                LRB9200641NTsb
 1    23(a)(2).
 2        (f)  If the parties to an arbitration proceeding agree to
 3    the  procedures  of  an arbitration organization or any other
 4    procedures for challenges to arbitrators before an  award  is
 5    made,  substantial  compliance  with  those  procedures  is a
 6    condition precedent to a motion to vacate an  award  on  that
 7    ground under Section 23(a)(2).

 8        Section  13.   Action by majority.  If there is more than
 9    one arbitrator, the powers of an arbitrator must be exercised
10    by a majority of the  arbitrators,  but  all  of  them  shall
11    conduct the hearing under Section 15(c).

12        Section   14.   Immunity  of  arbitrator;  competency  to
13    testify; attorney's fees and costs.
14        (a)  An arbitrator or an arbitration organization  acting
15    in  that  capacity is immune from civil liability to the same
16    extent as a judge of a  court  of  this  State  acting  in  a
17    judicial capacity.
18        (b)  The  immunity  afforded  by this section supplements
19    any immunity under other law.
20        (c)  The failure of an arbitrator to  make  a  disclosure
21    required  by  Section  12 does not cause any loss of immunity
22    under this section.
23        (d)  In   a   judicial,   administrative,   or    similar
24    proceeding, an arbitrator or representative of an arbitration
25    organization  is  not  competent  to  testify, and may not be
26    required to produce records as  to  any  statement,  conduct,
27    decision,   or   ruling   occurring  during  the  arbitration
28    proceeding, to the same extent as a judge of a court of  this
29    State acting in a judicial capacity. This subsection does not
30    apply:
31             (1)  to  the extent necessary to determine the claim
32        of   an   arbitrator,   arbitration   organization,    or
 
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 1        representative  of the arbitration organization against a
 2        party to the arbitration proceeding; or
 3             (2)  to a hearing on a motion  to  vacate  an  award
 4        under  Section  23(a)(1) or (2) if the movant establishes
 5        prima facie that a ground for vacating the award exists.
 6        (e)  If a person commences  a  civil  action  against  an
 7    arbitrator, arbitration organization, or representative of an
 8    arbitration  organization  arising  from  the services of the
 9    arbitrator, organization, or representative or  if  a  person
10    seeks  to  compel  an  arbitrator  or  a representative of an
11    arbitration organization to testify  or  produce  records  in
12    violation  of  subsection (d), and the court decides that the
13    arbitrator, arbitration organization, or representative of an
14    arbitration organization is immune from  civil  liability  or
15    that  the arbitrator or representative of the organization is
16    not competent to  testify,  the  court  shall  award  to  the
17    arbitrator,   organization,   or   representative  reasonable
18    attorney's fees and other reasonable expenses of litigation.

19        Section 15.  Arbitration process.
20        (a)  An arbitrator may conduct  an  arbitration  in  such
21    manner as the arbitrator considers appropriate for a fair and
22    expeditious  disposition  of  the  proceeding.  The authority
23    conferred upon the arbitrator  includes  the  power  to  hold
24    conferences  with  the  parties to the arbitration proceeding
25    before the hearing and, among other  matters,  determine  the
26    admissibility,  relevance,  materiality  and  weight  of  any
27    evidence.
28        (b)  An  arbitrator  may  decide  a  request  for summary
29    disposition of a claim or particular issue:
30             (1)  if all interested parties agree; or
31             (2)  upon request of one party  to  the  arbitration
32        proceeding  if  that  party  gives  notice  to  all other
33        parties to the proceeding, and the other parties  have  a
 
                            -11-               LRB9200641NTsb
 1        reasonable opportunity to respond.
 2        (c)  If  an  arbitrator  orders a hearing, the arbitrator
 3    shall set a time and place and give notice of the hearing not
 4    less than five days before the hearing begins. Unless a party
 5    to the arbitration proceeding makes an objection to  lack  or
 6    insufficiency  of  notice not later than the beginning of the
 7    hearing, the party's appearance at  the  hearing  waives  the
 8    objection.  Upon  request  of  a  party  to  the  arbitration
 9    proceeding and for good cause shown, or upon the arbitrator's
10    own  initiative,  the arbitrator may adjourn the hearing from
11    time to time as necessary but may not postpone the hearing to
12    a time later than that fixed by the  agreement  to  arbitrate
13    for  making  the  award unless the parties to the arbitration
14    proceeding consent to a later date. The arbitrator  may  hear
15    and   decide  the  controversy  upon  the  evidence  produced
16    although a party who was duly  notified  of  the  arbitration
17    proceeding  did not appear. The court, on request, may direct
18    the arbitrator to conduct the hearing promptly and  render  a
19    timely decision.
20        (d)  At  a  hearing  under subsection (c), a party to the
21    arbitration proceeding has a right to be  heard,  to  present
22    evidence  material  to  the controversy, and to cross-examine
23    witnesses appearing at the hearing.
24        (e)  If an arbitrator ceases or is unable to  act  during
25    the  arbitration proceeding, a replacement arbitrator must be
26    appointed in accordance  with  Section  11  to  continue  the
27    proceeding and to resolve the controversy.

28        Section  16.   Representation  by  lawyer.  A party to an
29    arbitration proceeding may be represented by a lawyer.

30        Section   17.    Witnesses;    subpoenas;    depositions;
31    discovery.
32        (a)  An   arbitrator   may   issue  a  subpoena  for  the
 
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 1    attendance of a witness and for the production of records and
 2    other evidence at any hearing and  may  administer  oaths.  A
 3    subpoena  must  be  served  in  the  manner  for  service  of
 4    subpoenas  in a civil action and, upon motion to the court by
 5    a party to the  arbitration  proceeding  or  the  arbitrator,
 6    enforced  in  the  manner  for  enforcement of subpoenas in a
 7    civil action.
 8        (b)  In order to make the proceedings fair,  expeditious,
 9    and  cost  effective, upon request of a party to or a witness
10    in an arbitration proceeding,  an  arbitrator  may  permit  a
11    deposition  of any witness to be taken for use as evidence at
12    the hearing, including a witness who cannot be subpoenaed for
13    or is unable  to  attend  a  hearing.  The  arbitrator  shall
14    determine the conditions under which the deposition is taken.
15        (c)  An  arbitrator  may  permit  such  discovery  as the
16    arbitrator  decides  is  appropriate  in  the  circumstances,
17    taking  into  account  the  needs  of  the  parties  to   the
18    arbitration  proceeding  and  other  affected persons and the
19    desirability of making the proceeding fair, expeditious,  and
20    cost effective.
21        (d)  If  an arbitrator permits discovery under subsection
22    (c), the arbitrator may order  a  party  to  the  arbitration
23    proceeding  to comply with the arbitrator's discovery-related
24    orders, issue subpoenas for the attendance of a  witness  and
25    for  the  production  of  records  and  other  evidence  at a
26    discovery proceeding, and take action against a  noncomplying
27    party to the extent a court could if the controversy were the
28    subject of a civil action in this State.
29        (e)  An  arbitrator  may  issue  a  protective  order  to
30    prevent    the    disclosure   of   privileged   information,
31    confidential   information,   trade   secrets,   and    other
32    information  protected  from disclosure to the extent a court
33    could if the controversy were the subject of a  civil  action
34    in this State.
 
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 1        (f)  All  laws  compelling  a  person  under  subpoena to
 2    testify and all fees for attending a judicial  proceeding,  a
 3    deposition,  or  a discovery proceeding as a witness apply to
 4    an arbitration proceeding as  if  the  controversy  were  the
 5    subject of a civil action in this State.
 6        (g)  The    court    may    enforce    a    subpoena   or
 7    discovery-related order  for  the  attendance  of  a  witness
 8    within this State and for the production of records and other
 9    evidence  issued  by  an  arbitrator  in  connection  with an
10    arbitration  proceeding  in  another  State  upon  conditions
11    determined by  the  court  so  as  to  make  the  arbitration
12    proceeding  fair, expeditious, and cost effective. A subpoena
13    or discovery-related order issued by an arbitrator in another
14    State must be served  in  the  manner  provided  by  law  for
15    service  of  subpoenas  in  a civil action in this State and,
16    upon motion to the  court  by  a  party  to  the  arbitration
17    proceeding or the arbitrator, enforced in the manner provided
18    by law for enforcement of subpoenas in a civil action in this
19    State.

20        Section  18.   Judicial enforcement of preaward ruling by
21    arbitrator.  If an arbitrator  makes  a  preaward  ruling  in
22    favor of a party to the arbitration proceeding, the party may
23    request  the  arbitrator  to  incorporate  the ruling into an
24    award under Section 19. A prevailing party may make a  motion
25    to  the  court  for  an  expedited order to confirm the award
26    under Section 22, in which case  the  court  shall  summarily
27    decide  the motion. The court shall issue an order to confirm
28    the award unless the court vacates, modifies, or corrects the
29    award under Section 23 or 24.

30        Section 19.  Award.
31        (a)  An arbitrator shall make a record of an  award.  The
32    record  must  be  signed  or  otherwise  authenticated by any
 
                            -14-               LRB9200641NTsb
 1    arbitrator who concurs with the award. The arbitrator or  the
 2    arbitration  organization  shall  give  notice  of the award,
 3    including  a  copy  of  the  award,  to  each  party  to  the
 4    arbitration proceeding.
 5        (b)  An award must be made within the time  specified  by
 6    the  agreement  to  arbitrate  or,  if not specified therein,
 7    within the time ordered by the court. The court may extend or
 8    the parties to the arbitration  proceeding  may  agree  in  a
 9    record to extend the time. The court or the parties may do so
10    within or after the time specified or ordered. A party waives
11    any  objection  that  an award was not timely made unless the
12    party gives notice of the objection to the arbitrator  before
13    receiving notice of the award.

14        Section 20.  Change of award by arbitrator.
15        (a)  On  motion  to  an  arbitrator  by  a  party  to  an
16    arbitration  proceeding, the arbitrator may modify or correct
17    an award:
18             (1)  upon a ground stated  in  Section  24(a)(1)  or
19        (3);
20             (2)  because the arbitrator has not made a final and
21        definite  award  upon a claim submitted by the parties to
22        the arbitration proceeding; or
23             (3)  to clarify the award.
24        (b)  A motion under  subsection  (a)  must  be  made  and
25    notice  given  to all parties within 20 days after the movant
26    receives notice of the award.
27        (c)  A party to  the  arbitration  proceeding  must  give
28    notice  of  any  objection to the motion within 10 days after
29    receipt of the notice.
30        (d)  If a motion to the court is  pending  under  Section
31    22,  23,  or  24,  the  court  may  submit  the  claim to the
32    arbitrator to consider  whether  to  modify  or  correct  the
33    award:
 
                            -15-               LRB9200641NTsb
 1             (1)  upon  a  ground  stated in Section 24(a)(1)  or
 2        (3);
 3             (2)  because the arbitrator has not made a final and
 4        definite award upon a claim submitted by the  parties  to
 5        the arbitration proceeding; or
 6             (3)  to clarify the award.
 7        (e)  An  award  modified  or  corrected  pursuant to this
 8    section is subject to Sections 19(a), 22, 23, and 24.

 9        Section 21.  Remedies; fees and expenses  of  arbitration
10    proceeding.
11        (a)  An  arbitrator  may  award punitive damages or other
12    exemplary relief if such an award is authorized by law  in  a
13    civil  action  involving  the  same  claim  and  the evidence
14    produced at the hearing justifies the award under  the  legal
15    standards otherwise applicable to the claim.
16        (b)  An  arbitrator  may award reasonable attorney's fees
17    and other reasonable expenses of arbitration if such an award
18    is authorized by law in a civil  action  involving  the  same
19    claim  or  by the agreement of the parties to the arbitration
20    proceeding.
21        (c)  As to all remedies other than  those  authorized  by
22    subsections  (a)  and  (b),  an  arbitrator  may  order  such
23    remedies  as  the  arbitrator  considers just and appropriate
24    under the circumstances of the  arbitration  proceeding.  The
25    fact  that such a remedy could not or would not be granted by
26    the court is not a ground for refusing to  confirm  an  award
27    under Section 22 or for vacating an award under Section 23.
28        (d)  An  arbitrator's  expenses  and  fees, together with
29    other expenses, must be paid as provided in the award.
30        (e)  If an arbitrator awards punitive  damages  or  other
31    exemplary  relief  under subsection (a), the arbitrator shall
32    specify in the award the basis in  fact  justifying  and  the
33    basis  in  law authorizing the award and state separately the
 
                            -16-               LRB9200641NTsb
 1    amount of the punitive damages or other exemplary relief.

 2        Section 22.  Confirmation of award.  After a party to  an
 3    arbitration proceeding receives notice of an award, the party
 4    may  make  a  motion to the court for an order confirming the
 5    award at which time the court shall issue a confirming  order
 6    unless the award is modified or corrected pursuant to Section
 7    20 or 24 or is vacated pursuant to Section 23.

 8        Section 23.  Vacating award.
 9        (a)  Upon   motion   to  the  court  by  a  party  to  an
10    arbitration proceeding, the court shall vacate an award  made
11    in the arbitration proceeding if:
12             (1)  the award was procured by corruption, fraud, or
13        other undue means;
14             (2)  there was:
15                  (A)  evident   partiality   by   an  arbitrator
16             appointed as a neutral arbitrator;
17                  (B)  corruption by an arbitrator; or
18                  (C)  misconduct by  an  arbitrator  prejudicing
19             the rights of a party to the arbitration proceeding;
20             (3)  an  arbitrator  refused to postpone the hearing
21        upon  showing  of  sufficient  cause  for   postponement,
22        refused to consider evidence material to the controversy,
23        or  otherwise  conducted  the hearing contrary to Section
24        15, so as to prejudice  substantially  the  rights  of  a
25        party to the arbitration proceeding;
26             (4)  an arbitrator exceeded the arbitrator's powers;
27             (5)  there was no agreement to arbitrate, unless the
28        person participated in the arbitration proceeding without
29        raising the objection under Section 15(c)  not later than
30        the beginning of the arbitration hearing; or
31             (6)  the  arbitration  was  conducted without proper
32        notice of the initiation of an arbitration as required in
 
                            -17-               LRB9200641NTsb
 1        Section 9 so as to prejudice substantially the rights  of
 2        a party to the arbitration proceeding.
 3        (b)  A  motion under this section must be filed within 90
 4    days after the movant receives notice of the  award  pursuant
 5    to  Section  19  or  within 90 days after the movant receives
 6    notice of a modified or corrected award pursuant  to  Section
 7    20,  unless the movant alleges that the award was procured by
 8    corruption, fraud, or other undue means, in  which  case  the
 9    motion  must be made within 90 days after the ground is known
10    or by the exercise of reasonable care would have  been  known
11    by the movant.
12        (c)  If the court vacates an award on a ground other than
13    that   set  forth  in  subsection  (a)(5),  it  may  order  a
14    rehearing. If the award is vacated  on  a  ground  stated  in
15    subsection (a)(1)  or (2), the rehearing must be before a new
16    arbitrator.  If  the  award  is vacated on a ground stated in
17    subsection (a)(3), (4), or (6), the rehearing may  be  before
18    the  arbitrator  who  made  the  award  or  the  arbitrator's
19    successor.  The  arbitrator  must  render the decision in the
20    rehearing within the same time as that  provided  in  Section
21    19(b)  for an award.
22        (d)  If  the court denies a motion to vacate an award, it
23    shall confirm the award unless a motion to modify or  correct
24    the award is pending.

25        Section 24.  Modification or correction of award.
26        (a)  Upon  motion  made  within  90 days after the movant
27    receives notice of the award pursuant to Section 19 or within
28    90 days after the movant receives notice  of  a  modified  or
29    corrected  award  pursuant  to  Section  20,  the court shall
30    modify or correct the award if:
31             (1)  there    was    an     evident     mathematical
32        miscalculation  or  an evident mistake in the description
33        of a person, thing, or property referred to in the award;
 
                            -18-               LRB9200641NTsb
 1             (2)  the arbitrator has made an award on a claim not
 2        submitted  to  the  arbitrator  and  the  award  may   be
 3        corrected  without  affecting  the merits of the decision
 4        upon the claims submitted; or
 5             (3)  the award is imperfect in a matter of form  not
 6        affecting  the  merits  of  the  decision  on  the claims
 7        submitted.
 8        (b)  If a motion made under subsection  (a)  is  granted,
 9    the  court  shall  modify or correct and confirm the award as
10    modified or corrected. Otherwise, unless a motion  to  vacate
11    is pending, the court shall confirm the award.
12        (c)  A  motion  to modify or correct an award pursuant to
13    this section may be joined with a motion to vacate the award.

14        Section 25.   Judgment  on  award;  attorney's  fees  and
15    litigation expenses.
16        (a)  Upon  granting an order confirming, vacating without
17    directing a rehearing, modifying, or correcting an award, the
18    court shall enter a judgment  in  conformity  therewith.  The
19    judgment may be recorded, docketed, and enforced as any other
20    judgment in a civil action.
21        (b)  A court may allow reasonable costs of the motion and
22    subsequent judicial proceedings.
23        (c)  On  application of a prevailing party to a contested
24    judicial proceeding under Section 22, 23, or  24,  the  court
25    may  add  reasonable  attorney's  fees  and  other reasonable
26    expenses of litigation  incurred  in  a  judicial  proceeding
27    after  the  award  is made to a judgment confirming, vacating
28    without directing a rehearing, modifying,  or  correcting  an
29    award.

30        Section 26.  Jurisdiction.
31        (a)  A  court  of this State having jurisdiction over the
32    controversy and the  parties  may  enforce  an  agreement  to
 
                            -19-               LRB9200641NTsb
 1    arbitrate.
 2        (b)  An  agreement to arbitrate providing for arbitration
 3    in this State confers exclusive jurisdiction on the court  to
 4    enter judgment on an award under this Act.

 5        Section  27.  Venue.  A motion pursuant to Section 5 must
 6    be made in the court of the county in which the agreement  to
 7    arbitrate specifies the arbitration hearing is to be held or,
 8    if  the  hearing has been held, in the court of the county in
 9    which it was held. Otherwise, the motion may be made  in  the
10    court  of any county in which an adverse party resides or has
11    a place of business or, if no adverse party has  a  residence
12    or  place  of  business  in  this  State, in the court of any
13    county in this State. All subsequent motions must be made  in
14    the  court  hearing  the  initial  motion  unless  the  court
15    otherwise directs.

16        Section 28.  Appeals.
17        (a)  An appeal may be taken from:
18             (1)  an   order   denying   a   motion   to   compel
19        arbitration;
20             (2)  an order granting a motion to stay arbitration;
21             (3)  an  order confirming or denying confirmation of
22        an award;
23             (4)  an order modifying or correcting an award;
24             (5)  an order vacating an award without directing  a
25        rehearing; or
26             (6)  a final judgment entered pursuant to this Act.
27        (b)  An  appeal  under this section must be taken as from
28    an order or a judgment in a civil action.

29        Section 29.  Uniformity of application and  construction.
30    In  applying  and  construing this uniform act, consideration
31    must be given to the need to promote uniformity  of  the  law
 
                            -20-               LRB9200641NTsb
 1    with  respect  to  its subject matter among States that enact
 2    it.

 3        Section 30.  Electronic signatures in Global and National
 4    Commerce Act. The provisions of this Act governing the  legal
 5    effect,  validity, or enforceability of electronic records or
 6    signatures, and of contracts formed or performed with the use
 7    of such records or signatures conform to the requirements  of
 8    Section  102  of  the  Electronic  Signatures  in  Global and
 9    National Commerce Act, Pub. L. No.  106-229,  114  Stat.  464
10    (2000),  and  supersede,  modify,  and  limit  the Electronic
11    Signatures in Global and National Commerce Act.

12        Section 33.  Savings clause.  This Act does not affect an
13    action or proceeding commenced or right accrued  before  this
14    Act  takes  effect.  Subject  to  Section  3  of this Act, an
15    arbitration agreement made before the effective date of  this
16    Act is governed by the Uniform Arbitration Act.

17        Section  905.  The Illinois Public Labor Relations Act is
18    amended by changing Sections 7 and 8 as follows:

19        (5 ILCS 315/7) (from Ch. 48, par. 1607)
20        Sec. 7.  Duty to bargain.   A  public  employer  and  the
21    exclusive  representative  have the authority and the duty to
22    bargain collectively set forth in this Section.
23        For the purposes of this Act, "to  bargain  collectively"
24    means  the performance of the mutual obligation of the public
25    employer   or   his   designated   representative   and   the
26    representative of the public employees to meet at  reasonable
27    times,  including  meetings  in  advance of the budget-making
28    process, and to negotiate  in  good  faith  with  respect  to
29    wages,   hours,  and  other  conditions  of  employment,  not
30    excluded by Section 4 of this Act, or the negotiation  of  an
 
                            -21-               LRB9200641NTsb
 1    agreement,   or  any  question  arising  thereunder  and  the
 2    execution of a written contract incorporating  any  agreement
 3    reached  if  requested  by  either party, but such obligation
 4    does not compel either  party  to  agree  to  a  proposal  or
 5    require the making of a concession.
 6        The  duty "to bargain collectively" shall also include an
 7    obligation to negotiate  over  any  matter  with  respect  to
 8    wages,   hours   and  other  conditions  of  employment,  not
 9    specifically  provided  for  in  any   other   law   or   not
10    specifically  in  violation of the provisions of any law.  If
11    any other  law pertains, in part, to a matter  affecting  the
12    wages,  hours  and other conditions of employment, such other
13    law shall not be construed as limiting the duty  "to  bargain
14    collectively"   and   to  enter  into  collective  bargaining
15    agreements  containing  clauses  which   either   supplement,
16    implement,  or  relate  to  the  effect of such provisions in
17    other laws.
18        The duty "to bargain  collectively"  shall  also  include
19    negotiations  as  to  the  terms  of  a collective bargaining
20    agreement. The parties may, by mutual agreement, provide  for
21    arbitration  of  impasses  resulting  from their inability to
22    agree  upon  wages,  hours  and  terms  and   conditions   of
23    employment   to   be  included  in  a  collective  bargaining
24    agreement. Such arbitration provisions shall  be  subject  to
25    the   Illinois   "Uniform  Arbitration  Act  or  the  Uniform
26    Arbitration Act (2000), as applicable," unless agreed by  the
27    parties.
28        The  duty  "to bargain collectively" shall also mean that
29    no party to a collective bargaining contract shall  terminate
30    or  modify  such  contract,  unless  the  party desiring such
31    termination or modification:
32        (1)  serves a written notice upon the other party to  the
33    contract  of the proposed termination or modification 60 days
34    prior to the expiration date thereof, or in  the  event  such
 
                            -22-               LRB9200641NTsb
 1    contract  contains  no  expiration date, 60 days prior to the
 2    time it is proposed to make such termination or modification;
 3        (2)  offers to meet and confer with the other  party  for
 4    the  purpose  of  negotiating  a  new  contract or a contract
 5    containing the proposed modifications;
 6        (3)  notifies the Board within 30 days after such  notice
 7    of the existence of a dispute, provided no agreement has been
 8    reached by that time; and
 9        (4)  continues   in   full   force  and  effect,  without
10    resorting to strike or lockout, all the terms and  conditions
11    of  the  existing contract for a period of 60 days after such
12    notice is given to the other party or  until  the  expiration
13    date of such contract, whichever occurs later.
14        The  duties  imposed  upon employers, employees and labor
15    organizations by paragraphs (2), (3)  and  (4)  shall  become
16    inapplicable  upon an intervening certification of the Board,
17    under which the labor organization, which is a party  to  the
18    contract,  has  been  superseded  as  or  ceased  to  be  the
19    exclusive  representative  of  the  employees pursuant to the
20    provisions of subsection (a)  of Section 9, and the duties so
21    imposed shall not be construed as requiring either  party  to
22    discuss  or  agree  to  any  modification  of  the  terms and
23    conditions contained in a contract for  a  fixed  period,  if
24    such  modification  is  to become effective before such terms
25    and conditions can be reopened under the  provisions  of  the
26    contract.
27    (Source: P.A. 83-1012.)

28        (5 ILCS 315/8) (from Ch. 48, par. 1608)
29        Sec.  8.  Grievance Procedure.  The collective bargaining
30    agreement negotiated between the employer and  the  exclusive
31    representative shall contain a grievance resolution procedure
32    which shall apply to all employees in the bargaining unit and
33    shall  provide  for final and binding arbitration of disputes
 
                            -23-               LRB9200641NTsb
 1    concerning  the  administration  or  interpretation  of   the
 2    agreement  unless  mutually  agreed otherwise.  Any agreement
 3    containing a final and binding  arbitration  provision  shall
 4    also contain a provision prohibiting strikes for the duration
 5    of  the  agreement.  The grievance and arbitration provisions
 6    of any collective bargaining agreement shall  be  subject  to
 7    the   Illinois   "Uniform  Arbitration  Act  or  the  Uniform
 8    Arbitration Act (2000), as applicable,".  The costs  of  such
 9    arbitration  shall  be  borne equally by the employer and the
10    employee organization.
11    (Source: P.A. 83-1012.)

12        Section 910.  The Illinois Insurance Code is  amended  by
13    changing Section 809.1 as follows:

14        (215 ILCS 5/809.1)
15        Sec.  809.1.  Arbitration.  In  the  event  of  a dispute
16    between a  policyholder  and  an  insurer  as  to  whether  a
17    residence  or  commercial building covered by mine subsidence
18    insurance has been damaged by mine subsidence, a policyholder
19    shall have the right to submit that dispute to arbitration in
20    accordance with this Section.  No policyholder shall have the
21    right under this Section to submit to arbitration  any  issue
22    regarding  the amount of loss or damage caused to a residence
23    or commercial building by mine subsidence.
24        Arbitration may be initiated only after the  insurer  has
25    made  a  decision  that  the residence or commercial building
26    covered by mine subsidence insurance was not damaged by  mine
27    subsidence  and  so  notified  the  policyholder  in writing,
28    accompanied by a notice informing  the  policyholder  of  the
29    policyholder's  right  to arbitration and containing specific
30    reference to this Section.  Within 60 days after  receipt  by
31    the  policyholder  of  the notification, the policyholder may
32    initiate  arbitration  in  accordance  with  the   Commercial
 
                            -24-               LRB9200641NTsb
 1    Arbitration Rules of the American Arbitration Association, as
 2    then  in effect.  All costs of the arbitration shall be borne
 3    by the losing  party.   Appeals  from  the  decision  of  the
 4    arbitrators   shall   be   in  accordance  with  the  Uniform
 5    Arbitration Act or the Uniform  Arbitration  Act  (2000),  as
 6    applicable, as in effect in Illinois.
 7    (Source: P.A. 88-379.)

 8        Section  915.   The Uniform Arbitration Act is amended by
 9    changing Sections 19 and 23 as follows:

10        (710 ILCS 5/19) (from Ch. 10, par. 119)
11        Sec. 19.  Application of Act not retroactive.
12        (a)  This Act applies only to agreements made  subsequent
13    to the effective date of this Act.
14        (b)  This Act applies only if the Uniform Arbitration Act
15    (2000) does not apply.
16    (Source: Laws 1961, p. 3844.)

17        (710 ILCS 5/23) (from Ch. 10, par. 123)
18        Sec. 23. Repeal.
19        (a)  "An   Act   to   revise   the  law  in  relation  to
20    arbitrations and awards", approved June 11, 1917, as amended,
21    is repealed; provided, however, that  any  agreement  entered
22    into  prior  to  the  effective date of this Act to submit to
23    arbitration a dispute existing at the date of  the  agreement
24    shall  be  governed  by  said  Act  approved  June  11, 1917;
25    provided further, that this Act does not impair the  validity
26    of  any  proceeding  under  said Act, approved June 11, 1917,
27    commenced prior to the effective date of this Act.
28        (b)  Effective on July 1, 2002,  this  Act  is  repealed.
29    However,  this  Act  continues  to  apply after its repeal as
30    provided under Section 33  of  the  Uniform  Arbitration  Act
31    (2000).
 
                            -25-               LRB9200641NTsb
 1    (Source: Laws 1961, p. 3844.)

 2        Section  920.   The  Labor  Arbitration  Services  Act is
 3    amended by changing Section 2 as follows:

 4        (710 ILCS 10/2) (from Ch. 48, par. 2302)
 5        Sec.  2.   All  arbitration  proceedings   conducted   by
 6    Department of Labor arbitrators pursuant to this Act shall be
 7    subject  to  the provisions of the Uniform Arbitration Act or
 8    the Uniform Arbitration Act (2000), as applicable.
 9    (Source: P.A. 84-527.)

10        Section 925.  The Health Care Arbitration Act is  amended
11    by changing Sections 3 and 11 as follows:

12        (710 ILCS 15/3) (from Ch. 10, par. 203)
13        Sec.  3.   Applicability.   This  Act  shall apply to and
14    shall govern all agreements to arbitrate claims  arising  out
15    of  the  providing  of  health  care  services. Except  where
16    inconsistent with the provisions of this  Act,  the  "Uniform
17    Arbitration  Act  or  the  Uniform Arbitration Act (2000), as
18    applicable,", approved August 24, 1961, as now  or  hereafter
19    amended,   shall   apply   to  and  govern  all  health  care
20    arbitration agreements.
21    (Source: P.A. 80-1012.)

22        (710 ILCS 15/11) (from Ch. 10, par. 211)
23        Sec. 11.  Discovery.  Discovery shall be available to all
24    parties in arbitration proceedings as provided in the Uniform
25    Arbitration Act or the Uniform  Arbitration  Act  (2000),  as
26    applicable.   Any  party may apply to the court for necessary
27    orders.
28    (Source: P.A. 80-1012.)
 
                            -26-               LRB9200641NTsb
 1        Section  930.  The  Seed Arbitration Act  is  amended  by
 2    changing Section 75 as follows:

 3        (710 ILCS 25/75) (from Ch. 10, par. 251-75)
 4        Sec.  75.  Inapplicability of Uniform Arbitration Act and
 5    Health Care  Arbitration  Act.   Claims  to  which  this  Act
 6    applies are not subject to the Uniform Arbitration Act or the
 7    Uniform  Arbitration Act (2000), as applicable, or the Health
 8    Care Arbitration Act.
 9    (Source: P.A. 87-186.)

10        Section 935.  The Code of Civil Procedure is  amended  by
11    changing Section 2-1006A as follows:

12        (735 ILCS 5/2-1006A) (from Ch. 110, par. 2-1006A)
13        Sec. 2-1006A.  Uniform Arbitration Act. The provisions of
14    the  Uniform  Arbitration  Act or the Uniform Arbitration Act
15    (2000),  as  applicable,  shall  not  be  applicable  to  the
16    proceedings under this Part 10A of Article II.
17    (Source: P.A. 84-1308.)

18        Section  940.  The Condominium Property Act is amended by
19    changing Section 32 as follows:

20        (765 ILCS 605/32)
21        Sec.  32.  Alternate   dispute   resolution;   mediation;
22    arbitration.
23        (a)  The   declaration   or   bylaws   of  a  condominium
24    association may require mediation or arbitration of  disputes
25    in  which  the  matter  in controversy has either no specific
26    monetary value or a value of $10,000 or less, other than  the
27    levying  and collection of assessments, or that arises out of
28    violations  of  the  declaration,  bylaws,   or   rules   and
29    regulations  of  the  condominium association.  A dispute not
 
                            -27-               LRB9200641NTsb
 1    required to be  mediated  or  arbitrated  by  an  association
 2    pursuant  to its powers under this Section, that is submitted
 3    to  mediation  or  arbitration  by  the  agreement   of   the
 4    disputants, is also subject to this Section.
 5        (b)  The  Illinois Uniform Arbitration Act or the Uniform
 6    Arbitration Act  (2000),  as  applicable,  shall  govern  all
 7    arbitrations proceeding under this Section.
 8        (c)  The  association  may require the disputants to bear
 9    the costs of mediation or arbitration.
10    (Source: P.A. 89-41, eff. 6-23-95.)

11        Section  945.  The Motor Vehicle Franchise Act is amended
12    by changing Section 12 as follows:

13        (815 ILCS 710/12) (from Ch. 121 1/2, par. 762)
14        Sec. 12.  Arbitration; administrative proceedings;  civil
15    actions; determining good cause.
16        (a)  The  franchiser and franchisee may agree to submit a
17    dispute involving cancellation, modification, termination, or
18    refusal to extend or renew an existing franchise  or  selling
19    agreement,  or  refusal  to  honor succession to ownership or
20    refusal to allow a sale or transfer, or the  granting  of  an
21    additional  franchise of the same line make or the relocating
22    of an existing motor vehicle  dealership  within  or  into  a
23    relevant  market  area  where  the  same  line  make  is then
24    represented, or the proposed  arrangement  to  establish  any
25    additional motor vehicle dealership or other facility limited
26    to  the  sale  of  factory  repurchase vehicles or late model
27    vehicles,  to  arbitration.  Any  such  proceeding  shall  be
28    conducted under the provisions of the Uniform Arbitration Act
29    or the Uniform Arbitration Act (2000), as applicable, by a  3
30    member   panel  composed  of  one  member  appointed  by  the
31    franchisee and one member appointed  by  the  franchiser  who
32    together shall choose the third member.
 
                            -28-               LRB9200641NTsb
 1        An arbitration proceeding hereunder shall be commenced by
 2    written  notice to the franchiser by the objecting franchisee
 3    within 30 days from the date the dealer  received  notice  to
 4    cancel,  terminate, modify or not extend or renew an existing
 5    franchise or selling agreement or refusal to honor succession
 6    to ownership or refusal to honor a sale  or  transfer  or  to
 7    grant  or  enter  into  the  additional  franchise or selling
 8    agreement, or to relocate an existing motor vehicle dealer.
 9        The franchiser and the  franchisee  shall  appoint  their
10    respective  arbitrators  and  they  shall  select  the  third
11    arbitrator  within  14  days of receipt of such notice by the
12    franchiser.  The arbitrators shall commence  hearings  within
13    60  days  after all the arbitrators have been appointed and a
14    decision shall be rendered within 30 days after completion of
15    the hearing.
16        During the pendency of the  arbitration,  any  party  may
17    apply  to  a court of competent jurisdiction which shall have
18    power to modify or stay the  effective  date  of  a  proposed
19    additional  franchise  or selling agreement, or the effective
20    date of a proposed motor vehicle dealership relocation or the
21    effective date of a cancellation, termination or modification
22    or refusal to honor succession or refusal to allow a sale  or
23    transfer  or  extend  the  expiration  date of a franchise or
24    selling agreement pending a final determination of the issues
25    raised in the arbitration hearing  upon  such  terms  as  the
26    court may determine.  Any such modification or stay shall not
27    be  effective  for  more  than 60 days unless extended by the
28    court for good cause or unless  the  arbitration  hearing  is
29    then in progress.
30        (b)  If the franchiser and the franchisee have not agreed
31    to  submit  a  dispute, involving cancellation, modification,
32    termination, or  refusal  to  extend  or  renew  an  existing
33    franchise or selling agreement or refusal to honor succession
34    to  ownership  or  refusal to allow a sale or transfer or the
 
                            -29-               LRB9200641NTsb
 1    granting of an additional franchise of the same line make  or
 2    the  relocating  of  an existing motor vehicle dealership, or
 3    the proposed arrangement to establish  any  additional  motor
 4    vehicle  dealership  or other facility limited to the sale of
 5    factory  repurchase  vehicles  or  late  model  vehicles,  to
 6    arbitration under (a), a proceeding for a remedy  other  than
 7    damages shall be commenced upon receipt of a timely notice of
 8    protest  under  paragraph (6) of subsection (d)  or paragraph
 9    (6), (8), or (10) of subsection (e)  of  Section  4  of  this
10    Act,  before  the Motor Vehicle Review Board as prescribed by
11    Sections 12 and 29 of this Act.
12        During the pendency of a proceeding under this Section, a
13    party may apply to a court  of  competent  jurisdiction  that
14    shall  have  power  to modify or stay the effective date of a
15    proposed additional franchise or selling  agreement,  or  the
16    effective   date  of  a  proposed  motor  vehicle  dealership
17    relocation,  or  the  effective  date  of   a   cancellation,
18    termination,  or  modification, or extend the expiration date
19    of a franchise or  selling  agreement  or  refusal  to  honor
20    succession  to  ownership  or  refusal  to  approve a sale or
21    transfer pending a final determination  of the issues  raised
22    in  the  hearing  upon such terms as the court may determine.
23    Any modification or stay shall not be effective for more than
24    60 days unless extended by the court for good cause or unless
25    the hearing is then in progress.
26        (c)  In proceedings under (a)  or (b),  when  determining
27    whether  good  cause  has  been established for granting such
28    proposed additional franchise or selling  agreement,  or  for
29    relocating   an   existing   motor  vehicle  dealership,  the
30    arbitrators   or   Board   shall   consider   all    relevant
31    circumstances  in accordance with subsection (v) of Section 2
32    of this Act, including but not limited to:
33             (1)  whether the establishment  of  such  additional
34        franchise   or  the  relocation  of  such  motor  vehicle
 
                            -30-               LRB9200641NTsb
 1        dealership  is  warranted  by  economic   and   marketing
 2        conditions including anticipated future changes;
 3             (2)  the   retail   sales   and   service   business
 4        transacted  by  the  objecting  motor  vehicle  dealer or
 5        dealers and other motor vehicle dealers of the same  line
 6        make with a place of business in the relevant market area
 7        to be served by the additional franchise or the relocated
 8        motor   vehicle  dealership  during  the  5  year  period
 9        immediately preceding such  notice  as  compared  to  the
10        business available to them;
11             (3)  the investment necessarily made and obligations
12        incurred by the objecting motor vehicle dealer or dealers
13        and  other  motor  vehicle  dealers of the same line make
14        with a place of business in the relevant market  area  to
15        be  served  by  the additional franchise or the relocated
16        motor vehicle dealership  to  perform  their  obligations
17        under existing franchises or selling agreements; and, the
18        manufacturer  shall  give  reasonable credit for sales of
19        factory repurchase vehicles purchased  by  the  objecting
20        motor  vehicle  dealer or dealers and other motor vehicle
21        dealers of the same line make with the place of  business
22        in   the  relevant  market  area  to  be  served  by  the
23        additional  franchise  or  the  relocated  motor  vehicle
24        dealership, or the additional motor vehicle dealership or
25        other facility limited to the sale of factory  repurchase
26        or  late  model  vehicles,  at manufacturer authorized or
27        sponsored  auctions   in   determining   performance   of
28        obligations   under   existing   franchises   or  selling
29        agreements relating to total new vehicle sales;
30             (4)  the  permanency  of  the  investment   of   the
31        objecting motor vehicle dealer or dealers and other motor
32        vehicle  dealers  of  the  same line make with a place of
33        business in the relevant market area to be served by  the
34        additional  franchise  or  the  relocated  motor  vehicle
 
                            -31-               LRB9200641NTsb
 1        dealership;
 2             (5)  whether  it  is  beneficial or injurious to the
 3        public welfare for an additional franchise  or  relocated
 4        motor vehicle dealership to be established;
 5             (6)  whether  the  objecting motor vehicle dealer or
 6        dealers and other motor vehicle dealers of the same  line
 7        make with a place of business in the relevant market area
 8        to  be  served  by the additional franchisee or relocated
 9        motor   vehicle   dealership   are   providing   adequate
10        competition and convenient consumer care  for  the  motor
11        vehicles  of  the same line make owned or operated in the
12        area  to  be  served  by  the  additional  franchise   or
13        relocated motor vehicle dealership;
14             (7)  whether  the  objecting motor vehicle dealer or
15        dealers and other motor vehicle dealers of the same  line
16        make with a place of business in the relevant market area
17        to   be  served  by  the  additional  franchisee  or  the
18        relocated motor vehicle dealership  have  adequate  motor
19        vehicle  sales and service facilities, equipment, vehicle
20        parts and qualified personnel to reasonably  provide  for
21        the  needs  of the customer; provided, however, that good
22        cause shall not be shown solely by a desire  for  further
23        market penetration;
24             (8)  whether  the  establishment  of  an  additional
25        franchise or the relocation of a motor vehicle dealership
26        would be in the public interest;
27             (9)  whether  there  has been a material breach by a
28        motor vehicle dealer of the existing franchise  agreement
29        which creates a substantially detrimental effect upon the
30        distribution  of  the  franchiser's motor vehicles in the
31        affected motor vehicle dealer's relevant market  area  or
32        fraudulent   claims  for  warranty  work,  insolvency  or
33        inability to pay debts as they mature;
34             (10)  the  effect  of  an  additional  franchise  or
 
                            -32-               LRB9200641NTsb
 1        relocated motor  vehicle  dealership  upon  the  existing
 2        motor  vehicle  dealers  of  the  same  line  make in the
 3        relevant market area  to  be  served  by  the  additional
 4        franchisee or relocated motor vehicle dealership; and
 5             (11)  whether  the manufacturer has given reasonable
 6        credit to the objecting motor vehicle dealer  or  dealers
 7        and  other  motor  vehicle  dealers of the same line make
 8        with a place of business in the relevant market  area  to
 9        be  served by the additional franchise or relocated motor
10        vehicle dealership or additional motor vehicle dealership
11        or  other  facility  limited  to  the  sale  of   factory
12        repurchase  or  late  model vehicles, for retail sales of
13        factory  repurchase  vehicles  purchased  by  the   motor
14        vehicle  dealer  or dealers at manufacturer authorized or
15        sponsored auctions.
16        (d)  In proceedings under subsection  (a)  or  (b),  when
17    determining  whether  good  cause  has  been  established for
18    cancelling, terminating, refusing  to  extend  or  renew,  or
19    changing  or  modifying  the obligations of the motor vehicle
20    dealer as a condition to offering a renewal, replacement,  or
21    succeeding franchise or selling agreement, the arbitrators or
22    Board shall consider all relevant circumstances in accordance
23    with  subsection  (v) of Section 2 of this Act, including but
24    not limited to:
25             (1)  The amount of retail sales  transacted  by  the
26        franchisee  during a 5-year period immediately before the
27        date of the notice of proposed action as compared to  the
28        business available to the franchisee.
29             (2)  The investment necessarily made and obligations
30        incurred  by  the  franchisee  to perform its part of the
31        franchise.
32             (3)  The permanency of the franchisee's investment.
33             (4)  Whether it is injurious to the public  interest
34        for  the  franchise  to be cancelled or terminated or not
 
                            -33-               LRB9200641NTsb
 1        extended or modified, or the business  of  the  franchise
 2        disrupted.
 3             (5)  Whether   the  franchisee  has  adequate  motor
 4        vehicle sales and service facilities, equipment,  vehicle
 5        parts,  and  service  personnel to reasonably provide for
 6        the need of the customers for the same line make of motor
 7        vehicles handled by the franchisee.
 8             (6)  Whether the franchisee  fails  to  fulfill  the
 9        warranty  obligations  of the manufacturer required to be
10        performed by the franchisee.
11             (7)  The extent and materiality of the  franchisee's
12        failure to comply with the terms of the franchise and the
13        reasonableness and fairness of those terms.
14             (8)  Whether  the owners of the franchise had actual
15        knowledge of  the  facts  and  circumstances  upon  which
16        cancellation  or termination, failure to extend or renew,
17        or changing or modification of  the  obligations  of  the
18        franchisee   as   a  condition  to  offering  a  renewal,
19        replacement,   or   succeeding   franchise   or   selling
20        agreement.
21        (e)  If the franchiser and the franchisee have not agreed
22    to submit a dispute to arbitration, and the dispute  did  not
23    arise  under  paragraph  (6)  of subsection (d)  or paragraph
24    (6), (8), or (10) of subsection (e)  of  Section  4  of  this
25    Act,  then a proceeding for a remedy other than damages shall
26    be commenced by the objecting franchisee in the circuit court
27    of the county in  which  the  objecting  franchisee  has  its
28    principal  place  of business, within 60 days of the date the
29    franchisee received notice in writing by  the  franchiser  of
30    its  determination under any provision of this Act other than
31    the aforesaid Sections, or as otherwise prescribed by Section
32    13 of this Act.
33    (Source: P.A. 89-145, eff. 7-14-95.)
 
                            -34-               LRB9200641NTsb
 1        Section 999.  Effective date.  This Act takes  effect  on
 2    January 1, 2002.

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