Opinion

Jordan v. Macedo

  • 2025 IL 130687
Court
Illinois Supreme Court
Filed
Mar 20, 2025
Status
Published
Cited by
1 cases
Authority
More cited than 54.6%

The opinion

2025 IL 130687

IN THE

SUPREME COURT

OF

THE STATE OF ILLINOIS

(Docket No. 130687)

IRMA JORDAN, Appellant, v. ESMERELDA MACEDO, Appellee.

Opinion filed March 20, 2025.

JUSTICE CUNNINGHAM delivered the judgment of the court, with opinion.

Chief Justice Theis and Justices Neville, Overstreet, Holder White, Rochford,

and O’Brien concurred in the judgment and opinion.

OPINION

¶1 The plaintiff, Irma Jordan, filed a negligence complaint in the circuit court of

Cook County against the defendant, Esmerelda Macedo, which was referred to

Cook County’s mandatory arbitration program. The arbitrator found in favor of

Jordan in the amount of $13,070, and neither party rejected the award. Jordan then

submitted the award to the circuit court for judgment.

¶2 The circuit court entered judgment on the arbitration award. That same day,

Jordan filed in the circuit court a “Motion to Tax Costs and Award Prejudgment

Interest.” Jordan’s motion sought prejudgment interest on her award amount, as

well as statutory costs to which she asserted she was entitled as the prevailing party.

The circuit court denied Jordan’s motion on the basis that the arbitration award

“contained the full amount which would be reduced to a judgment in the absence

of a timely filed rejection.”

¶3 The appellate court affirmed the part of the circuit court’s judgment denying

Jordan’s motion for statutory costs but reversed the part of the circuit court’s

judgment denying Jordan’s motion for prejudgment interest. 2024 IL App (1st)

230079. For the following reasons, we reverse the judgment of the appellate court

in part and affirm in part.

¶4 BACKGROUND

¶5 On October 12, 2021, Jordan filed a negligence complaint against Macedo in

the circuit court of Cook County after they were involved in a car accident. Jordan’s

complaint sought, inter alia, recovery for her medical expenses totaling more than

$14,000. The circuit court referred the matter to Cook County’s mandatory

arbitration program.

¶6 Following the arbitration hearing, the arbitrator made an award in favor of

Jordan in the amount of $13,070. Neither party rejected the award pursuant to Cook

County Circuit Court Rule 25.11 (eff. Apr. 1, 2021).

¶7 Jordan then submitted the arbitration award to the circuit court for entry of the

judgment. On November 28, 2022, the circuit court entered judgment on the

arbitration award.

¶8 That same day, Jordan filed in the circuit court a “Motion to Tax Costs and

Award Prejudgment Interest.” The motion sought prejudgment interest on the

arbitration award, as well as mandatory statutory costs pursuant to section 5-108 of

the Code of Civil Procedure (Code) (735 ILCS 5/5-108 (West 2022)). Specifically,

Jordan sought to recover $524.55 in prejudgment interest and $685.28 in statutory

costs, which included filing fees, an alias summons fee, and the sheriff’s summons

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fee. In her motion, Jordan argued that, as the prevailing party who had obtained a

judgment in her favor through the arbitration award, she was entitled to

reimbursement for these statutory costs as well as prejudgment interest.

¶9 The circuit court denied Jordan’s motion. The court’s written order stated: “The

Arbitration Award contained the full amount which would be reduced to a judgment

in the absence of a timely filed rejection (which is the situation here).”

¶ 10 Jordan appealed the circuit court’s judgment denying her motion. In addressing

Jordan’s argument that she was entitled to the statutory costs, the appellate court

relied upon this court’s holding in Cruz v. Northwestern Chrysler Plymouth Sales,

Inc., 179 Ill. 2d 271, 279 (1997), that the prevailing party in an arbitration

proceeding may not subsequently seek statutory attorney fees in the circuit court.

2024 IL App (1st) 230079, ¶¶ 20-24. Based on Cruz, the appellate court held that

Jordan was required to present her request for costs to the arbitrator. Id. ¶ 24. The

appellate court recognized Jordan’s argument that she was only entitled to statutory

costs after being declared the prevailing party but stated that nothing prohibited her

from requesting the costs in advance. Id. ¶ 25. According to the appellate court, the

arbitrator could have then added the costs to the award amount, which would have

allowed Macedo to understand her full liability before accepting or rejecting the

award. Id. The appellate court stated that “[t]his is the procedure envisioned by the

mandatory arbitration system.” Id.

¶ 11 In a footnote, the appellate court noted that, in December 2016, this court

amended Rule 92 to add paragraph (e), which provides: “ ‘Costs shall be

determined by the arbitration panel pursuant to law. The failure of the arbitration

panel to address costs shall not constitute a waiver of a party’s right to recover costs

upon entry of judgment.’ ” Id. ¶ 25 n.3 (quoting Ill. S. Ct. R. 92(e) (eff. Jan. 1,

2017)). The appellate court found this amendment implied that, previously, “a party

who failed to present a request to recover costs from the arbitrator could not later

recover costs upon the entry of judgment from the circuit court.” Id. The appellate

court further noted that Cook County did not adopt a similar amendment to its local

rules, which “signifies that a party’s failure to present a request for costs to the

arbitration panel constitutes a waiver of a party’s right to recover costs upon entry

of judgment.” Id. Accordingly, the appellate court held that, because Jordan had

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failed to present her request for costs to the arbitrator, the circuit court did not err

in denying her request for costs. Id. ¶ 25.

¶ 12 However, the appellate court agreed with Jordan’s argument that she could

request prejudgment interest in the circuit court, as she was not entitled to

prejudgment interest until judgment on the arbitration award was entered. Id. ¶ 28.

The appellate court stated:

“[W]hile the parties are required to submit all claims for damages to the

arbitrator, prejudgment interest is not ‘damages.’ *** Rather, the award of

prejudgment interest is a ministerial function for the trial court. [Citation.]

Therefore, an award of prejudgment interest does not qualify as a modification

of the substantive provisions of the award or a grant of monetary relief in

addition to the sums awarded by the arbitrators.” Id. ¶ 30.

The appellate court accordingly reversed the part of the circuit court’s order

denying Jordan’s motion for prejudgment interest and affirmed the part of the

circuit court’s order denying Jordan’s motion for statutory costs. Id. ¶ 33.

¶ 13 Justice Mikva concurred in part and dissented in part. Id. ¶¶ 36-52 (Mikva, J.,

concurring in part and dissenting in part). Justice Mikva concurred with the

majority’s conclusion that Jordan was entitled to prejudgment interest despite never

requesting it from the arbitrator. Id. ¶ 37. But “for all the reasons that the majority

was correct in reaching that conclusion,” she believed it was wrong to conclude that

Jordan was not also entitled to the statutory costs. Id.

¶ 14 Justice Mikva stated that, “[a]s with prejudgment interest, an award of statutory

costs bears no relationship to the underlying injury” and that an award of such costs

is a “purely ministerial act.” Id. ¶ 41. She further found that Cruz is inapplicable to

this matter, as statutory attorney fees can be substantial and require the circuit court

to consider the time, labor, and skill involved in litigating the case, which the circuit

court cannot know when the case was decided by an arbitrator. Id. ¶¶ 45-47. In

contrast, Justice Mikva noted that statutory costs are limited, ministerial, and

automatic. Id. ¶ 48. “Nothing in the award of costs requires any understanding

about the issues, the difficulty of litigating the case, or the effectiveness of counsel.”

Id.

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¶ 15 Regarding the failure of Cook County to adopt an amendment to its local rules

similar to the amendment to Rule 92, Justice Mikva found that fact to reflect a prior

understanding in Cook County that costs would not be considered by an arbitrator.

Id. ¶ 50. According to Justice Mikva, “[t]he amendment to Rule 92 was to allow

arbitrators to consider and calculate costs, while ensuring that prevailing parties

would still be able to collect costs if arbitrators failed at taking on this new

responsibility.” Id.

¶ 16 This court granted Jordan’s petition for leave to appeal. Ill. S. Ct. R. 315(a) (eff.

Dec. 7, 2023).

¶ 17 ANALYSIS

¶ 18 At issue in this appeal is whether the trial court correctly denied Jordan’s motion

for statutory costs. 1 The trial court concluded that it could not grant statutory costs

because the arbitration award included the full amount Jordan was entitled to

recover in this case and Jordan did not reject the award. To determine whether the

trial court’s decision was correct, this court must determine whether Jordan was

required to request statutory costs during the arbitration hearing or if she could seek

those costs in the trial court after it entered judgment on the arbitration award.

Whether the trial court has authority to award such costs is a question of law, which

we review de novo. Vicencio v. Lincoln-Way Builders, Inc., 204 Ill. 2d 295, 299

(2003).

¶ 19 When a case is referred to the Cook County Mandatory Arbitration Program,

the responsibility of deciding the law and facts of the case “is expressly vested in

the arbitrators.” Cruz, 179 Ill. 2d at 279. “The arbitrator will issue an award (the

decision) based on the evidence presented at the hearing and prepare an Award

Form.” Cook County Cir. Ct. R. 25.10 (eff. Apr. 1, 2021). Once the arbitrator has

made its award, the parties must accept or reject the award within 14 days. Cruz,

179 Ill. 2d at 279; Cook County Cir. Ct. R. 25.11 (eff. Apr. 1, 2021). The award is

then submitted for entry of judgment to the trial court, which has “no real function”

in the case beyond entering the judgment. Cruz, 179 Ill. 2d at 279; Ill. S. Ct. R.

1

As noted, the trial court also held that it could not award Jordan prejudgment interest.

That ruling, which was reversed by the appellate court, is not at issue in this appeal.

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92(c) (eff. Jan. 1, 2017).

Here, after the trial court entered judgment on the arbitration award in the

amount of $13,070, Jordan sought statutory costs pursuant to section 5-108 of the

Code, which provides:

“If any person sues in any court of this state in any action for damages personal

to the plaintiff, and recovers in such action, then judgment shall be entered in

favor of the plaintiff to recover costs against the defendant, to be taxed, and the

same shall be recovered and enforced as other judgments for the payment of

money, except in the cases hereinafter provided.” 735 ILCS 5/5-108 (West

2022).

¶ 20 There is no dispute that Jordan filed a lawsuit against Macedo and successfully

recovered, making section 5-108 applicable to her case. The only question is

whether Jordan waived her right to collect the statutory costs because she did not

request them from the arbitrator.

¶ 21 We find that the answer to this question is provided by Illinois Supreme Court

Rule 92(e) (eff. Jan. 1, 2017). That provision, which was added to Rule 92 in

December 2016, states: “Costs shall be determined by the arbitration panel pursuant

to law. The failure of the arbitration panel to address costs shall not constitute a

waiver of a party’s right to recover costs upon entry of judgment.” Id.

¶ 22 The language of Rule 92(e) clearly supports Jordan’s contention that she did

not waive her right to statutory costs. The rule expressly states that a party may

request statutory costs upon entry of judgment, even if those costs were not

determined by the arbitrator.

¶ 23 Nevertheless, Macedo contends that Rule 92(e) is inapplicable in this case and

that Jordan did waive her right to statutory costs. Macedo argues that Rule 92(e)

should be read as stating that a party is required to submit a request for costs to the

arbitrator and, if the party fails to do so, the party has waived the right to seek costs

in the trial court. In other words, according to Macedo, Rule 92(e)’s no-waiver rule

only applies when the party first submits a request for costs to the arbitrator but the

arbitrator does not address that request. That did not occur in this case because

Jordan did not submit her request for costs to the arbitrator. Consequently, Macedo

argues, Jordan waived her right to seek costs in the trial court. We disagree.

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¶ 24 Macedo’s reading of Rule 92(e) is inconsistent with the actual language of the

rule. Rule 92(e) does, in fact, state that costs are to be determined by the arbitrator,

thereby encouraging parties to submit their requests for costs during arbitration. Id.

(“Costs shall be determined by the arbitration panel ***.”). However, the rule also

unequivocally states that, if the arbitrator does not make that determination, the

prevailing party does not waive the right to seek costs in the trial court upon

judgment of the arbitration award. Macedo’s reading of Rule 92(e) would require

us to read language into the rule stating that the no-waiver provision only applies if

the prevailing party first requests costs before the arbitrator. This, of course, we

may not do. Ferris, Thompson & Zweig, Ltd. v. Esposito, 2017 IL 121297, ¶ 22

(when interpreting an Illinois Supreme Court rule, courts will not depart from the

plain language of the rule by reading into it exceptions, limitations, or conditions

that conflict with the expressed intent). By its plain terms, Rule 92(e) states that if

statutory costs are not addressed by the arbitrator—for any reason, including a

party’s failure to submit costs to the arbitrator—the prevailing party retains the right

to seek those costs in the trial court.

¶ 25 The appellate court found the fact that the Cook County circuit court did not

adopt an amendment similar to Rule 92(e) in its local rules “signifies that a party’s

failure to present a request for costs to the arbitration panel constitutes a waiver of

a party’s right to recover costs upon entry of judgment.” 2024 IL App (1st) 230079

¶ 25 n.3 (majority opinion). This analysis is incorrect.

¶ 26 Cook County’s mandatory arbitration program is governed by the Circuit Court

Rules of Cook County. Jones v. State Farm Mutual Automobile Insurance Co.,

2018 IL App (1st) 170710, ¶ 12. Illinois Supreme Court Rule 86(c) (eff. Jan. 1,

1994) explicitly allows each judicial circuit court to adopt local rules for the

conduct of arbitration proceedings that are consistent with Illinois Supreme Court

rules. Importantly though, as stated in Rule 86(c), the circuit court rules must be

consistent with Illinois Supreme Court rules. Jones, 2018 IL App (1st) 170710,

¶ 22. “This court has long held that although circuit courts share some authority

with this court to make rules, the rules promulgated by the circuit court are subject

to review by this court and may not conflict with this court’s rules.” Vision Point

of Sale, Inc. v. Haas, 226 Ill. 2d 334, 357 (2007).

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¶ 27 Contrary to the appellate court’s reasoning, the Cook County circuit court’s

silence on the issue of statutory costs does not mean that a party waives the right to

seek those costs in the trial court by failing to request them in arbitration. It merely

establishes that Rule 92(e) is the sole governing authority on this matter. There is

no valid reason to deem Rule 92(e) inapplicable here, particularly since local rules

must defer to Illinois Supreme Court rules. See Jones, 2018 IL App (1st) 170710,

¶ 23. Therefore, Rule 92(e)’s directive that a party does not waive the right to seek

statutory costs in the trial court is applicable to Cook County arbitration

proceedings.

¶ 28 To summarize, we hold that, pursuant to the plain language of Rule 92(e),

statutory costs can and should be sought during an arbitration proceeding. However,

if for some reason those costs are not addressed, the prevailing party is entitled to

seek the costs in the trial court upon entry of judgment on the arbitration award.

¶ 29 We note that this holding is not at odds with our decision in Cruz. Cruz held

that circuit courts have no authority to consider petitions for attorney fees following

judgment on an arbitration award. Cruz, 179 Ill. 2d at 281. Cruz did not address the

question of statutory costs and did not address the language of Rule 92(e), the

controlling authority in this case.

¶ 30 In addition, as correctly explained by Justice Mikva in her partial dissent in this

case in the appellate court below, our ruling in Cruz was based on the fact that

attorney fee awards can be substantial and require knowledge of the case. 2024 IL

App (1st) 230079, ¶ 47 (Mikva, J., concurring in part and dissenting in part) (citing

Cruz, 179 Ill. 2d at 281). This is not the case for the statutory costs at issue in this

matter, which are mandatory, limited, and ministerial. A losing party who accepts

an arbitration award might be caught off guard by additional requests for attorney

fees; however, the same cannot be said for statutory costs pursuant to section 5-

108. Thus, Cruz’s ruling has no impact on our analysis in this case, which we

emphasize is limited to statutory costs pursuant to section 5-108, and the plain

language of Rule 92(e).

¶ 31 In short, Jordan was entitled to seek statutory costs in the trial court after it

entered judgment on the arbitration award. Although Rule 92(e) clearly intends for

statutory costs to be addressed by the arbitrator, parties do not waive the right to

seek costs in the trial court if they fail to submit a request for costs to the arbitrator.

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Stated another way, both the arbitration proceeding and the trial court are proper

forums in which parties may seek statutory costs pursuant to section 5-108.

¶ 32 The trial court accordingly erred in denying Jordan’s motion requesting

statutory costs. We thus reverse that part of the appellate court’s judgment that

affirmed the denial of Jordan’s motion requesting statutory costs. We also affirm

the part of the appellate court’s judgment reversing the denial of Jordan’s motion

requesting prejudgment interest.

¶ 33 CONCLUSION

¶ 34 For the foregoing reasons, the judgment of the appellate court is affirmed in

part and reversed in part. The judgment of the circuit court denying the plaintiff’s

motion is reversed, and the cause is remanded to the circuit court.

¶ 35 Appellate court judgment affirmed in part and reversed in part.

¶ 36 Circuit court judgment reversed.

¶ 37 Cause remanded.

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This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

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