LD 1218
pg. 76
Page 75 of 94 An Act To Enact the Revised Uniform Arbitration Act Page 77 of 94
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LR 468
Item 1

 
is conditioned upon the party who contests the validity of an
arbitration agreement raising this objection no later than the
beginning of the arbitration hearing under Section 15(c) if the
party participates in the arbitration proceeding. See, e.g.,
Hwang v. Tyler, 253 Ill. App. 3d 43, 625 N.E.2d 243, appeal
denied, 153 Ill. 2d 559, 624 N.E.2d 807 (1993) (stating that if
issue not adversely determined under § 2 of UAA and if party
raised objection in arbitration hearing, party can raise
challenge to agreement to arbitrate in proceeding to vacate
award); Borg, Inc. v. Morris Middle Sch. Dist. No. 54, 3
Ill.App.3d 913, 278 N.E.2d 818 (1972) (finding that issue of
whether there is an agreement to arbitrate cannot be raised for
first time after the arbitration award); Spaw-Glass Constr.
Serv., Inc. v. Vista De Santa Fe, Inc., 114 N.M. 557, 844 P.2d
807 (1992) (holding that party who compels arbitration and
participates in hearing without raising objection to the
validity of arbitration agreement cannot afterwards attack
arbitration agreement).

 
The purpose of the language requiring a party participating in
an arbitration proceeding to raise an objection that no
arbitration agreement exists "not later than the beginning of
the arbitration hearing" is to insure that the party makes a
timely objection at the start of the arbitration hearing
rather than causing the other parties to go through the time
and expense of the arbitration hearing only to raise the
objection for the first time later in the arbitration process
or in a motion to vacate an award. A person who refuses to
participate in or appear at an arbitration proceeding retains
the right to challenge the validity of an award on the ground
that there was no arbitration agreement in a motion to vacate.

 
3. Section 23(a)(6) is a new ground of vacatur related to
improper notice as to the initiation of the arbitration
proceeding under Section 9. The notice requirement in Section
9 is a minimal one intended to meet due process concerns by
informing a person as to the controversy and remedy sought.
The notice of initiation of the arbitration proceeding is also
subject to reasonable variation by the parties' agreement. See
Section 4(b)(2).

 
4. The notice of initiation of arbitration is not intended
to be a formal pleading requirement. Thus, a party may waive
the objection in Section 9(b) by failing to make a timely
objection. Section 23(a)(6) also requires that there is
substantial prejudice to the other party before a court
vacates an award for improper notice of initiation.

 
5. If a court orders a rehearing, Section 23(c) provides
that the arbitrator must "render the decision in the rehearing


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