STAY OF PREMATURE ARBITRATION DID NOT RENDER SUBSEQUENT PROCEEDINGS OR AWARD VOID
Where a court of appeals reversed a lower court’s order compelling arbitration, and mandated a stay of ongoing arbitration proceedings, the proceedings conducted in arbitration both before and after the institution of the stay were not void. The case surrounded a coverage dispute under an automobile insurance policy. The lower court had improperly compelled arbitration prior to determining whether coverage existed under the policy. After the court of appeals reversed, remanded, and stayed arbitration, the lower court found coverage existed and the arbitration resumed. The arbitrator then issued an award for the insureds, and the insurer appealed, contending the stay of the premature arbitration effectively voided all subsequent arbitral proceedings. Quoting a legal dictionary, the court held: “A stay does not vacate anything, but it is instead only the postponement or halting of a proceeding, judgment, or the like.” United Automobile Insurance Co. v. Wilson, Case No. 1-09-3061 (Ill. Ct. App. Jan. 18, 2011).
This post written by Michael Wolgin.
