JUDGMENT OF THE APPELLATE COURT OF ILLINOIS, THIRD DISTRICT, RENDERED IN 2004 IN CASE NO. 3–03–0563
Subject Matter: Gross error of law and manifest disregard of law as grounds to set aside arbitral awards in the United States.
Finding: Even though the parties had filed cross-motions for summary judgment and agreed that they had been given an opportunity to provide to the arbitrator all relevant information, the award was vacated on grounds that the arbitrator’s failure to hold an evidentiary hearing to resolve significant disputed issues of fact constituted a gross error of law.
Claimant: Professional Realty and Development Corporation (USA)
Respondent: Sloan Electric (USA)
Place of Court Proceedings: Illinois, United States
Applicable Law: U.S. Arbitration Law
A general contractor, Professional Realty & Development Corporation (PRDC), subcontracted with Sloan to perform “design build” electrical work at a housing project in Illinois, United States. PRDC notified Sloan that PRDC intended to terminate the subcontract on the grounds that Sloan had failed to provide an acceptable electrical system design plan, and had proposed to install poor quality fixtures. A few days later, PRDC served Sloan with a notice of termination.