I recently litigated the enforceability of a contractual arbitration provision contained in an electrical subcontract for work on a high-end residential project in the Chicago suburbs. The subcontractor fighting arbitration argued that the clause, drafted by the general contractor, was so one-sided against it, that it was unconscionable under Illinois law. [Among other things, the …
Tag Archives: procedural unconscionability
Contractual Arbitration Clauses and Unconscionability – IL 4th Dist. Case Note
Courts generally favor contractual arbitration clauses. The reason is that they (in theory at least) save litigants’ time and money and also reduce court congestion. Arbitration provisions appear in varied business settings ranging from franchise agreements and personal services contracts to employment agreements and most everything in between. Willis v. Captain D’s , 2015 IL App (5th) 140234-U examines an arbitration clause in the employment contract …
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Unconscionability: Substantive and Procedural – Illinois Case Snapshot
The Case: Rosenbach v. NorStates Bank, 2014 IL App (2d) 131162-U Facts Summary: Plaintiff LLC member who guaranteed commercial real estate loan sues the lender after lender makes (allegedly) unauthorized loan advances, declares a default against the LLC and seizes over $200,000 of the plaintiff’s personal funds that were pledged to induce the loan to the LLC. Plaintiff’s claims are for breach of contract and a …
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