Village of Westville v. Loitz Bros. Const. Co., Inc.
Decision Date | 21 January 1988 |
Docket Number | No. 4-87-0521,4-87-0521 |
Citation | 165 Ill.App.3d 338,519 N.E.2d 37 |
Court | United States Appellate Court of Illinois |
Parties | , 116 Ill.Dec. 447 VILLAGE OF WESTVILLE, Vermilion County, Illinois, Plaintiff-Appellant, v. LOITZ BROS. CONSTRUCTION CO., INC., Defendant-Appellee. |
Wendell W. Wright, Wright Law Offices, Danville, for plaintiff-appellant.
Richard T. West, Follmer & West, Urbana, for defendant-appellee.
On June 18, 1986, Loitz Bros. Construction Company, Inc. (Loitz), filed a demand for arbitration with the American Arbitration Association and served the demand on the village of Westville (Westville). The dispute for which Loitz sought arbitration arose out of a construction contract between O'Neil Brothers Construction Company, Inc. (O'Neil), and Westville for the construction of a sanitary sewer system. Loitz was a subcontractor of O'Neil and was approved by Westville to be a subcontractor. On June 10, 1986, O'Neil assigned its rights to pursue claims under the contract to Loitz and also authorized Loitz to proceed in its name in the pursuit of said claims. The contract between O'Neil and Westville contained a "broad form" of arbitration agreement which provided:
On January 28, 1987, Westville filed a motion for stay of the arbitration proceeding in the circuit court of Vermilion County. On May 6, 1987, O'Neil was added as a party claimant to the arbitration proceeding before the American Arbitration Association. On May 19, 1987, a hearing was conducted to consider the motion for stay of arbitration proceedings. On July 8, 1987, the circuit court entered an order denying the motion for stay of arbitration and directing the parties to proceed to arbitration. It is from this order that Westville appeals.
As both parties agree, upon application to a court to stay arbitration proceedings, the only issue to be considered by the court is whether there is an agreement to arbitrate, and this question is to be summarily determined. Lester Witte & Co. v. Lundy (1981), 98 Ill.App.3d 1100, 54 Ill.Dec. 489, 425 N.E.2d 1; Ill.Rev.Stat.1985, ch. 10, par. 102(a), (b).
Westville's principal contention on appeal is that no valid assignment of a right to arbitrate has occurred in this case. They base this contention upon a "non-assignability" clause in the contract. However, as the court stated in Kennedy v. Deere & Co. (1986), 142 Ill.App.3d 781, 785, 96 Ill.Dec. 957, 960, 492 N.E.2d 199, 202:
Additionally, as the court stated in Saltzberg v. Fishman (1984), 123 Ill.App.3d 447, 452, 78 Ill.Dec. 782, 786, 462 N.E.2d 901, 905:
Furthermore, as the court stated in Ozdeger v. Altay (1978), 66 Ill.App.3d 629, 632-33, 23 Ill.Dec. 446, 448-49, 384 N.E.2d 82, 84-85, in construing an arbitration agreement similar to the one at issue in the instant case:
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