Illinois 2023-2024 Regular Session

Illinois House Bill HB5477 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB5477 Introduced , by Rep. Marcus C. Evans, Jr. SYNOPSIS AS INTRODUCED: See Index Amends the Uniform Arbitration Act. Allows a party to serve upon another party a demand for arbitration or a notice of intention to arbitrate, specifying the agreement under which arbitration is sought and the name and address of the party serving the notice and stating that unless the party served applies to stay the arbitration within 20 days after service the party shall be precluded from objecting that a valid agreement was not made or has not been complied with and from asserting in court the bar of a limitation of time. Provides that in an arbitration brought by a consumer or employee that requires the drafting party to pay certain fees and costs before the arbitration can proceed, if the fees or costs to initiate an arbitration proceeding are not paid within 30 days after the due date, the drafting party is in material breach of the arbitration agreement, is in default of the arbitration, and waives its right to compel arbitration. Sets forth various actions a party may take if the drafting party materially breaches the arbitration agreement. Includes sanctions an arbitrator or court may impose for materially breaching the agreement. Provides that, if a party is represented by an attorney, papers to be served on the party shall be served upon the attorney for that party, and any agreement which discriminates against or penalizes a party for retaining the services of counsel in an arbitration is null and void. In a provision regarding venue, provides that: if the name of the county is not specified, the application shall be brought in the county where the party seeking arbitration resides or is doing business, and other proceedings affecting arbitration are to be brought in the county where at least one of the parties resides or is doing business or where the arbitration was held or is pending; if there are multiple parties seeking arbitration against the same party or parties, the proceeding may be brought in any court and county where any of the parties seeking arbitration resides or is doing business or where the arbitration was held or is pending; and if there is no county in which the proceeding may be brought, the proceeding may be brought in any county. LRB103 35069 LNS 65022 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB5477 Introduced , by Rep. Marcus C. Evans, Jr. SYNOPSIS AS INTRODUCED: See Index See Index Amends the Uniform Arbitration Act. Allows a party to serve upon another party a demand for arbitration or a notice of intention to arbitrate, specifying the agreement under which arbitration is sought and the name and address of the party serving the notice and stating that unless the party served applies to stay the arbitration within 20 days after service the party shall be precluded from objecting that a valid agreement was not made or has not been complied with and from asserting in court the bar of a limitation of time. Provides that in an arbitration brought by a consumer or employee that requires the drafting party to pay certain fees and costs before the arbitration can proceed, if the fees or costs to initiate an arbitration proceeding are not paid within 30 days after the due date, the drafting party is in material breach of the arbitration agreement, is in default of the arbitration, and waives its right to compel arbitration. Sets forth various actions a party may take if the drafting party materially breaches the arbitration agreement. Includes sanctions an arbitrator or court may impose for materially breaching the agreement. Provides that, if a party is represented by an attorney, papers to be served on the party shall be served upon the attorney for that party, and any agreement which discriminates against or penalizes a party for retaining the services of counsel in an arbitration is null and void. In a provision regarding venue, provides that: if the name of the county is not specified, the application shall be brought in the county where the party seeking arbitration resides or is doing business, and other proceedings affecting arbitration are to be brought in the county where at least one of the parties resides or is doing business or where the arbitration was held or is pending; if there are multiple parties seeking arbitration against the same party or parties, the proceeding may be brought in any court and county where any of the parties seeking arbitration resides or is doing business or where the arbitration was held or is pending; and if there is no county in which the proceeding may be brought, the proceeding may be brought in any county. LRB103 35069 LNS 65022 b LRB103 35069 LNS 65022 b A BILL FOR
2	2	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB5477 Introduced , by Rep. Marcus C. Evans, Jr. SYNOPSIS AS INTRODUCED:
3	3	See Index See Index
4	4	See Index
5	5	Amends the Uniform Arbitration Act. Allows a party to serve upon another party a demand for arbitration or a notice of intention to arbitrate, specifying the agreement under which arbitration is sought and the name and address of the party serving the notice and stating that unless the party served applies to stay the arbitration within 20 days after service the party shall be precluded from objecting that a valid agreement was not made or has not been complied with and from asserting in court the bar of a limitation of time. Provides that in an arbitration brought by a consumer or employee that requires the drafting party to pay certain fees and costs before the arbitration can proceed, if the fees or costs to initiate an arbitration proceeding are not paid within 30 days after the due date, the drafting party is in material breach of the arbitration agreement, is in default of the arbitration, and waives its right to compel arbitration. Sets forth various actions a party may take if the drafting party materially breaches the arbitration agreement. Includes sanctions an arbitrator or court may impose for materially breaching the agreement. Provides that, if a party is represented by an attorney, papers to be served on the party shall be served upon the attorney for that party, and any agreement which discriminates against or penalizes a party for retaining the services of counsel in an arbitration is null and void. In a provision regarding venue, provides that: if the name of the county is not specified, the application shall be brought in the county where the party seeking arbitration resides or is doing business, and other proceedings affecting arbitration are to be brought in the county where at least one of the parties resides or is doing business or where the arbitration was held or is pending; if there are multiple parties seeking arbitration against the same party or parties, the proceeding may be brought in any court and county where any of the parties seeking arbitration resides or is doing business or where the arbitration was held or is pending; and if there is no county in which the proceeding may be brought, the proceeding may be brought in any county.
6	6	LRB103 35069 LNS 65022 b LRB103 35069 LNS 65022 b
7	7	LRB103 35069 LNS 65022 b
8	8	A BILL FOR
9	9	HB5477LRB103 35069 LNS 65022 b HB5477 LRB103 35069 LNS 65022 b
10	10	HB5477 LRB103 35069 LNS 65022 b
11	11	1 AN ACT concerning civil law.
12	12	2 Be it enacted by the People of the State of Illinois,
13	13	3 represented in the General Assembly:
14	14	4 Section 5. The Uniform Arbitration Act is amended by
15	15	5 changing Sections 6 and 17 and by adding Sections 1.1, 2.1,
16	16	6 2.2, 2.3, and 2.4 as follows:
17	17	7 (710 ILCS 5/1.1 new)
18	18	8 Sec. 1.1. Definitions. As used in this Act:
19	19	9 "Consumer" means an individual who seeks, uses, or
20	20	10 acquires, by purchase or lease, any goods or services for
21	21	11 personal, family, or household purposes.
22	22	12 "Employee" means any current employee, former employee, or
23	23	13 applicant for employment. "Employee" includes any person who
24	24	14 is, was, or who claims to have misclassified as an independent
25	25	15 contractor or otherwise improperly placed into a category
26	26	16 other than employee or applicant for employment.
27	27	17 (710 ILCS 5/2.1 new)
28	28	18 Sec. 2.1. Notice of intention to arbitrate. A party may
29	29	19 serve upon another party a demand for arbitration or a notice
30	30	20 of intention to arbitrate, specifying the agreement under
31	31	21 which arbitration is sought and the name and address of the
32	32	22 party serving the notice, or of an officer or agent if the
33	33
34	34
35	35
36	36	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB5477 Introduced , by Rep. Marcus C. Evans, Jr. SYNOPSIS AS INTRODUCED:
37	37	See Index See Index
38	38	See Index
39	39	Amends the Uniform Arbitration Act. Allows a party to serve upon another party a demand for arbitration or a notice of intention to arbitrate, specifying the agreement under which arbitration is sought and the name and address of the party serving the notice and stating that unless the party served applies to stay the arbitration within 20 days after service the party shall be precluded from objecting that a valid agreement was not made or has not been complied with and from asserting in court the bar of a limitation of time. Provides that in an arbitration brought by a consumer or employee that requires the drafting party to pay certain fees and costs before the arbitration can proceed, if the fees or costs to initiate an arbitration proceeding are not paid within 30 days after the due date, the drafting party is in material breach of the arbitration agreement, is in default of the arbitration, and waives its right to compel arbitration. Sets forth various actions a party may take if the drafting party materially breaches the arbitration agreement. Includes sanctions an arbitrator or court may impose for materially breaching the agreement. Provides that, if a party is represented by an attorney, papers to be served on the party shall be served upon the attorney for that party, and any agreement which discriminates against or penalizes a party for retaining the services of counsel in an arbitration is null and void. In a provision regarding venue, provides that: if the name of the county is not specified, the application shall be brought in the county where the party seeking arbitration resides or is doing business, and other proceedings affecting arbitration are to be brought in the county where at least one of the parties resides or is doing business or where the arbitration was held or is pending; if there are multiple parties seeking arbitration against the same party or parties, the proceeding may be brought in any court and county where any of the parties seeking arbitration resides or is doing business or where the arbitration was held or is pending; and if there is no county in which the proceeding may be brought, the proceeding may be brought in any county.
40	40	LRB103 35069 LNS 65022 b LRB103 35069 LNS 65022 b
41	41	LRB103 35069 LNS 65022 b
42	42	A BILL FOR
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47	47
48	48	See Index
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67	67	1 party is an association or corporation, and stating that
68	68	2 unless the party served applies to stay the arbitration within
69	69	3 20 days after service the party shall be precluded from
70	70	4 objecting that a valid agreement was not made or has not been
71	71	5 complied with and from asserting in court the bar of a
72	72	6 limitation of time. Notice or demand shall be served in the
73	73	7 same manner as a summons or by registered or certified mail,
74	74	8 return receipt requested. An application to stay arbitration
75	75	9 must be made by the party served within 20 days after service
76	76	10 upon the party of the notice or demand or the party shall be so
77	77	11 precluded. Notice of such application shall be served in the
78	78	12 same manner as a summons or by registered or certified mail,
79	79	13 return receipt requested. Service of the application may be
80	80	14 made upon the adverse party or upon the adverse party's
81	81	15 attorney if the attorney's name appears on the demand for
82	82	16 arbitration or the notice of intention to arbitrate. Service
83	83	17 of the application by mail shall be timely if the application
84	84	18 is posted within the prescribed period. Any provision in an
85	85	19 arbitration agreement or arbitration rules which waives the
86	86	20 right to apply for a stay of arbitration or proscribes a manner
87	87	21 of notifying a party of an intention to commence arbitration
88	88	22 that is more burdensome than that described in this Section is
89	89	23 null and void.
90	90	24 (710 ILCS 5/2.2 new)
91	91	25 Sec. 2.2. Fees and costs of arbitration initiation;
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102	102	1 invoice; breach of agreement; sanctions.
103	103	2 (a) In an arbitration brought by a consumer or employee
104	104	3 that requires, either expressly or through application of
105	105	4 State or federal law or the rules of the arbitrator, the
106	106	5 drafting party to pay certain fees and costs before the
107	107	6 arbitration can proceed, if the fees or costs to initiate an
108	108	7 arbitration proceeding are not paid within 30 days after the
109	109	8 due date, the drafting party is in material breach of the
110	110	9 arbitration agreement, is in default of the arbitration, and
111	111	10 waives its right to compel arbitration under Section 2.
112	112	11 After an employee or consumer meets the filing
113	113	12 requirements necessary to initiate an arbitration, the
114	114	13 arbitrator shall immediately provide an invoice for any fees
115	115	14 and costs required before the arbitration can proceed to all
116	116	15 of the parties to the arbitration. The invoice shall be
117	117	16 provided in its entirety, shall state the full amount owed and
118	118	17 the date that payment is due, and shall be sent to all parties
119	119	18 by the same means on the same day. To avoid delay, absent an
120	120	19 express provision in the arbitration agreement stating the
121	121	20 number of days in which the parties to the arbitration must pay
122	122	21 any required fees or costs, the arbitrator shall issue all
123	123	22 invoices to the parties as due upon receipt.
124	124	23 (b) If the drafting party materially breaches the
125	125	24 arbitration agreement and is in default under subsection (a),
126	126	25 the employee or consumer may:
127	127	26 (1) withdraw the claim from arbitration and proceed in
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138	138	1 a court of appropriate jurisdiction; or
139	139	2 (2) compel arbitration in which the drafting party
140	140	3 shall pay reasonable attorney's fees and costs related to
141	141	4 the arbitration.
142	142	5 (c) If the employee or consumer withdraws the claim from
143	143	6 arbitration and proceeds with an action in a court of
144	144	7 appropriate jurisdiction under paragraph (1) of subsection
145	145	8 (b), the statute of limitations with regard to all claims
146	146	9 brought or that relate back to any claim brought in
147	147	10 arbitration shall be tolled as of the date of the first filing
148	148	11 of a claim in a court, arbitration forum, or other dispute
149	149	12 resolution forum.
150	150	13 (d) If the employee or consumer proceeds with an action in
151	151	14 a court of appropriate jurisdiction, the court shall impose
152	152	15 sanctions on the drafting party in accordance with Section
153	153	16 2.4.
154	154	17 (710 ILCS 5/2.3 new)
155	155	18 Sec. 2.3. Fees and costs of arbitration continuance;
156	156	19 invoice; breach of agreement; sanctions.
157	157	20 (a) In an arbitration brought by a consumer or employee,
158	158	21 either expressly or through application of State or federal
159	159	22 law or the rules of the arbitrator, that the drafting party pay
160	160	23 certain fees and costs during the pendency of an arbitration
161	161	24 proceeding, if the fees or costs required to continue the
162	162	25 arbitration proceeding are not paid within 30 days after the
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173	173	1 due date, the drafting party is in material breach of the
174	174	2 arbitration agreement, is in default of the arbitration, and
175	175	3 waives its right to compel the employee or consumer to proceed
176	176	4 with that arbitration as a result of the material breach.
177	177	5 The arbitrator shall provide an invoice for any fees and
178	178	6 costs required for the arbitration proceeding to continue to
179	179	7 all of the parties to the arbitration. The invoice shall be
180	180	8 provided in its entirety, shall state the full amount owed and
181	181	9 the date that payment is due, and shall be sent to all parties
182	182	10 by the same means on the same day. To avoid delay, absent an
183	183	11 express provision in the arbitration agreement stating the
184	184	12 number of days in which the parties to the arbitration must pay
185	185	13 any required fees or costs, the arbitrator shall issue all
186	186	14 invoices to the parties as due upon receipt. Any extension of
187	187	15 time for the due date shall be agreed upon by all parties.
188	188	16 (b) If the drafting party materially breaches the
189	189	17 arbitration agreement and is in default under subsection (a),
190	190	18 the employee or consumer may unilaterally elect to:
191	191	19 (1) withdraw the claim from arbitration and proceed in
192	192	20 a court of appropriate jurisdiction. If the employee or
193	193	21 consumer withdraws the claim from arbitration and proceeds
194	194	22 with an action in a court of appropriate jurisdiction, the
195	195	23 statute of limitations with regard to all claims brought
196	196	24 or that relate back to any claim brought in arbitration
197	197	25 shall be tolled as of the date of the first filing of a
198	198	26 claim in any court, arbitration forum, or other dispute
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209	209	1 resolution forum;
210	210	2 (2) continue the arbitration proceeding, if the
211	211	3 arbitrator agrees to continue administering the
212	212	4 proceeding, notwithstanding the drafting party's failure
213	213	5 to pay fees or costs. The neutral arbitrator may institute
214	214	6 a collection action at the conclusion of the arbitration
215	215	7 proceeding against the drafting party that is in default
216	216	8 of the arbitration for payment of all fees associated with
217	217	9 the arbitration proceeding brought by a consumer or
218	218	10 employee, including the cost of administering any
219	219	11 proceedings after the default;
220	220	12 (3) petition the court for an order compelling the
221	221	13 drafting party to pay all arbitration fees that the
222	222	14 drafting party is obligated to pay under the arbitration
223	223	15 agreement or the rules of the arbitrator;
224	224	16 (4) pay the drafting party's fees and proceed with the
225	225	17 arbitration proceeding. As part of the award, the employee
226	226	18 or consumer shall recover all arbitration fees paid on
227	227	19 behalf of the drafting party without regard to any
228	228	20 findings on the merits in the underlying arbitration; or
229	229	21 (5) if the employee or consumer withdraws the claim
230	230	22 from arbitration and proceeds in a court of appropriate
231	231	23 jurisdiction under paragraph (1), both of the following
232	232	24 apply:
233	233	25 (A) The employee or consumer may bring a motion,
234	234	26 or a separate action, to recover all attorney's fees
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245	245	1 and all costs associated with the abandoned
246	246	2 arbitration proceeding.
247	247	3 (B) The recovery of arbitration fees, interest,
248	248	4 and related attorney's fees shall be without regard to
249	249	5 any findings on the merits in the underlying action or
250	250	6 arbitration.
251	251	7 The court shall impose sanctions on the drafting party in
252	252	8 accordance with Section 2.4.
253	253	9 (c) If the employee or consumer continues in arbitration
254	254	10 under paragraphs (2) through (4) of subsection (b), the
255	255	11 arbitrator shall impose appropriate sanctions on the drafting
256	256	12 party, including monetary sanctions, issue sanctions, evidence
257	257	13 sanctions, or terminating sanctions.
258	258	14 (710 ILCS 5/2.4 new)
259	259	15 Sec. 2.4. Breach of arbitration agreement; monetary
260	260	16 sanctions; additional sanctions.
261	261	17 (a) The court shall impose a monetary sanction against a
262	262	18 drafting party that materially breaches an arbitration
263	263	19 agreement pursuant to subsection (a) of Section 2.2 or
264	264	20 subsection (a) of Section 2.3, by ordering the drafting party
265	265	21 to pay the reasonable expenses, including attorney's fees and
266	266	22 costs, incurred by the employee or consumer as a result of the
267	267	23 material breach.
268	268	24 (b) In addition to the monetary sanction described in
269	269	25 subsection (a), the court may order any of the following
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280	280	1 sanctions against a drafting party that materially breaches an
281	281	2 arbitration agreement under subsection (a) of Section 2.2 or
282	282	3 subsection (a) of Section 2.3, unless the court finds that the
283	283	4 one subject to the sanction acted with substantial
284	284	5 justification or that other circumstances make the imposition
285	285	6 of the sanction unjust:
286	286	7 (1) an evidence sanction by an order prohibiting the
287	287	8 drafting party from conducting discovery in the civil
288	288	9 action;
289	289	10 (2) a terminating sanction by:
290	290	11 (A) an order striking out the pleadings or parts
291	291	12 of the pleadings of the drafting party; or
292	292	13 (B) an order rendering a judgment by default
293	293	14 against the drafting party; or
294	294	15 (3) a contempt sanction by an order treating the
295	295	16 drafting party as in contempt of court.
296	296	17 (710 ILCS 5/6) (from Ch. 10, par. 106)
297	297	18 Sec. 6. Representation by attorney.
298	298	19 A party has the right to be represented by an attorney at
299	299	20 any proceeding or hearing under this Act. A waiver thereof
300	300	21 prior to the proceeding or hearing is ineffective. If a party
301	301	22 is represented by an attorney, papers to be served on the party
302	302	23 shall be served upon the attorney for that party. Any
303	303	24 agreement which discriminates against or penalizes a party for
304	304	25 retaining the services of counsel in an arbitration is null
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315	315	1 and void.
316	316	2 (Source: Laws 1961, p. 3844.)
317	317	3 (710 ILCS 5/17) (from Ch. 10, par. 117)
318	318	4 Sec. 17. Venue.
319	319	5 (a) An initial application shall be made to the court of
320	320	6 the county in which the agreement provides the arbitration
321	321	7 hearing shall be held or, if the hearing has been held, in the
322	322	8 county in which it was held. Otherwise the application shall
323	323	9 be made in the county where the adverse party resides or has a
324	324	10 place of business or, if he has no residence or place of
325	325	11 business in this State, to the court of any county. All
326	326	12 subsequent applications shall be made to the court hearing the
327	327	13 initial application unless the court otherwise directs.
328	328	14 (b) If the name of the county is not specified, the
329	329	15 application shall be brought in the county where the party
330	330	16 seeking arbitration resides or is doing business, and other
331	331	17 proceedings affecting arbitration are to be brought in the
332	332	18 county where at least one of the parties resides or is doing
333	333	19 business or where the arbitration was held or is pending.
334	334	20 (c) If there are multiple parties seeking arbitration
335	335	21 against the same party or parties, the proceeding may be
336	336	22 brought in any court and county where any of the parties
337	337	23 seeking arbitration resides or is doing business or where the
338	338	24 arbitration was held or is pending. All subsequent
339	339	25 applications shall be made to the court hearing the initial
340	340
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350	350	1 application unless the court otherwise directs.
351	351	2 (d) If there is no county in which the proceeding may be
352	352	3 brought under this Section, the proceeding may be brought in
353	353	4 any county.
354	354	5 (Source: Laws 1961, p. 3844.)
355	355	HB5477- 11 -LRB103 35069 LNS 65022 b 1 INDEX 2 Statutes amended in order of appearance HB5477- 11 -LRB103 35069 LNS 65022 b HB5477 - 11 - LRB103 35069 LNS 65022 b 1 INDEX 2 Statutes amended in order of appearance
356	356	HB5477- 11 -LRB103 35069 LNS 65022 b HB5477 - 11 - LRB103 35069 LNS 65022 b
357	357	HB5477 - 11 - LRB103 35069 LNS 65022 b
358	358	1 INDEX
359	359	2 Statutes amended in order of appearance
360	360
361	361
362	362
363	363
364	364
365	365	HB5477 - 10 - LRB103 35069 LNS 65022 b
366	366
367	367
368	368
369	369	HB5477- 11 -LRB103 35069 LNS 65022 b HB5477 - 11 - LRB103 35069 LNS 65022 b
370	370	HB5477 - 11 - LRB103 35069 LNS 65022 b
371	371	1 INDEX
372	372	2 Statutes amended in order of appearance
373	373
374	374
375	375
376	376
377	377
378	378	HB5477 - 11 - LRB103 35069 LNS 65022 b