Brookner v. Gen. Motors Corp.

2019 IL App (3d) 170629

129 N.E.3d 694

432 Ill.Dec. 476

Eric BROOKNER, Plaintiff-Appellant,

v.GENERAL MOTORS CORPORATION; West Jeff Auto Sales, LLC, d/b/a Hawk Cadillac ; and U.S. Bank, N.A., Defendants

(West Jeff Auto Sales, LLC, d/b/a Hawk Cadillac, Defendant-Appellee).

Appeal No. 3-17-0629

Appellate Court of Illinois, Third District.

Opinion filed May 22, 2019

PRESIDING JUSTICE SCHMIDT delivered the judgment of the court, with opinion.

¶ 1 The plaintiff, Erik Brookner, filed a civil complaint against several defendants, including the only defendant that is a party to this appeal, West Jeff Auto Sales, LLC, d/b/a Hawk Cadillac (dealership), based on Brookner's purchase of a vehicle. The dealership filed a motion to compel arbitration, which the trial court granted after finding Brookner signed an arbitration agreement as part of the vehicle purchase. The court stayed all further proceedings. Brookner appealed. On appeal, he challenges the court's decision to grant the motion to compel arbitration. We affirm.

¶ 2 FACTS

¶ 3 In March 2017, Brookner filed a civil complaint alleging, inter alia , that the dealership was liable for breach of written warranty, breach of implied warranty, and a violation of the Consumer Fraud and Deceptive Business Practices Act ( 815 ILCS 505/1 et seq. (West 2014)). The complaint alleged that on October 17, 2015, Brookner purchased a new 2016 Cadillac Escalade from the dealership for $ 84,000. However, he claimed that the dealership gave him a 2015 Cadillac Escalade instead. This vehicle had various nonconformities and defects, including engine problems. Further, the complaint alleged that the dealership committed intentional and willful fraud by forging Brookner's signature on documents related to the 2015 Escalade.

¶ 4 Documents attached to the complaint included a retail installment contract dated October 17, 2015, for a 2016 black Escalade. Also included were service invoices dated December 20, 2016, and February 7, 2017, for a 2015 black Escalade. The vehicle identification number (VIN) in the installment contract for the 2016 Escalade differed from the VIN in the service invoices for the 2015 Escalade.

¶ 5 The dealership filed a motion to compel arbitration and/or dismiss the complaint and stay further proceedings. The dealership alleged that Brookner's civil complaint was filed in contravention of an arbitration agreement that he signed on October 17, 2015. The dealership attached a copy of the arbitration agreement to the motion. The agreement essentially stated that if any dispute arose over the vehicle, such dispute would go to an arbitrator and any court proceedings would be stayed. The arbitration agreement contained a signature above the name "Eric R. Brookner" but was not signed on behalf of the dealership.

¶ 6 Brookner then filed a motion requesting an evidentiary hearing on the validity of the arbitration agreement. He alleged that the signature on the document was not his, and he did not give anyone the authority to sign his name on his behalf. Brookner asserted in the affidavit attached to the motion that he had signed purchase documents for a 2016 Escalade including a retail installment contract, order for a motor vehicle, odometer statement, and sales tax transaction return. In the lower left hand corner of the order for motor vehicle it reads: "I HAVE READ, SIGNED AND RECEIVED COPIES OF THE ARBITRATION RIDER * * * WHEN I SIGNED THIS ORDER AND AGREE THEY ARE PART OF THIS ORDER." Brookner's initials appear underneath this language.

¶ 7 Brookner also filed a motion for a protective order and to compel the dealership to produce original documents. Brookner alleged that the dealership told him that he had signed documents related to a 2015 Escalade and that U.S. Bank, N.A., delivered copies of these documents to him. He alleged that the signatures on those documents were not his.

¶ 8 In his response to the dealership's motion to compel arbitration and/or dismiss, Brookner questioned the validity of the arbitration agreement because the signature was not his and because the document was not signed by anyone from the dealership. Further, Brookner emphasized that the document had not been authenticated via affidavit and was therefore an improper basis for the dealership's motion.

¶ 9 The dealership filed a reply in which it gave its account of the sale of an Escalade to Brookner. The dealership claimed that Brookner came in on October 3, 2015, and told salesperson Melinda McCorkle he wanted to buy a new Escalade. McCorkle showed him a 2016 black Escalade, but it lacked the accessories Brookner wanted so he told her he was not interested. Brookner returned to the dealership on October 12, 2015, and told McCorkle that he wanted to buy "a grey Cadillac Escalade with Kona interior and power running boards, and that the vehicle's year did not matter." The dealership did not have such a vehicle, but on October 15, 2015, the dealership's sales manager located a "dark granite metallic" 2015 Escalade, so he left a voicemail for Brookner about it. On October 17, 2015, Brookner returned to the dealership, looked at the 2015 Escalade, and decided to purchase it. The sales manager prepared a manager's sheet including the information for the 2015 Escalade. While preparing the documents necessary for the sale, the dealership's finance manager inadvertently inserted information for the 2016 Escalade McCorkle originally showed Brookner. Brookner signed the documents, including the arbitration agreement. On the same day, the dealership's finance director realized that some of the documents referred to the incorrect vehicle. He called Brookner, explained the situation, and requested that Brookner come in to re-sign some documents. Two days later, Brookner returned to the dealership and signed several revised documents, which were subsequently bundled with some of the original documents. Affidavits from McCorkle, the finance manager, the sales manager, and the finance director were attached to the reply.

¶ 10 The dealership's reply also alleged that Brookner knew he had purchased a 2015 Escalade, evidenced in part by the fact that he obtained insurance for a 2015 Escalade and that he never told the dealership he was given the wrong vehicle until he filed his civil complaint. The reply also alleged that Brookner brought the 2015 Escalade into the dealership for service several times over a 13-month period.

¶ 11 On August 22, 2017, the trial court heard arguments on the dealership's motion to compel arbitration. The court granted the dealership's motion after finding that "[w]hether the Plaintiff signed purchase documents for a 2015 or a 2016 Escalade, he a [sic ] signed a document compelling arbitration in the event of a dispute." The court ordered all further proceedings stayed pending the outcome of arbitration. The court also denied the motion for an evidentiary hearing as to whether the arbitration agreement was forged.

¶ 12 Brookner appeals.

¶ 13 ANALYSIS

¶ 14 On appeal, Brookner argues that the trial court erred when it granted the dealership's motion to compel arbitration. Specifically, he contends that the court should have held an evidentiary hearing on whether the arbitration agreement was forged. The bottom line with regard to the underlying dispute is that Brookner claims he purchased a 2016 vehicle but received a 2015 vehicle. The dealership claims Brookner knew he was purchasing and did purchase a 2015 vehicle.

¶ 15 Initially, we note that this is an appeal from an interlocutory order; nonetheless, this court has jurisdiction pursuant to Illinois Supreme Court Rule 307(a)(1) (eff. July 1, 2017) because motions to compel arbitration are analogous to motions seeking injunctive relief. Nagle v. Nadelhoffer, Nagle, Kuhn, Mitchell, Moss & Saloga, P.C. , 244 Ill. App. 3d 920, 924, 184 Ill.Dec. 304, 613 N.E.2d 331 (1993). "The only question before us on an interlocutory appeal of this type is whether there was a sufficient showing to sustain the order of the trial court granting or denying the relief sought." Bass v. SMG, Inc. , 328 Ill. App. 3d 492, 496, 262 Ill.Dec. 471, 765 N.E.2d 1079 (2002).

¶ 16 Contrary to Brookner's claim, de novo is not the appropriate standard of review. When factual findings are made, the decision of whether to compel arbitration is not made as a matter of law. See Amalgamated Transit Union, Local 900 v. Suburban Bus Division of the Regional Transportation Authority , 262 Ill. App. 3d 334, 337, 199 Ill.Dec. 630, 634 N.E.2d 469 (1994) (holding de novo was the appropriate standard of review of a trial court's decision on a motion to compel arbitration that involved only the legal issue of whether the dispute was arbitrable). Here, the trial court made factual findings that Brookner signed the arbitration agreement and that it was in fact valid. Accordingly, we review the court's decision in this case for an abuse of discretion. See Federal Signal Corp. v. SLC Technologies, Inc. , 318 Ill. App. 3d 1101, 1105, 252 Ill.Dec. 910, 743 N.E.2d 1066 (2001).

¶ 17 "At a hearing to compel arbitration, the only issue for the trial court is whether an agreement exists to arbitrate the dispute in question." Nagle , 244 Ill. App. 3d at 925, 184 Ill.Dec. 304, 613 N.E.2d 331 (citing Nelson v. Roger J. Lange & Co. , 229 Ill. App. 3d 909, 911, 171 Ill.Dec. 539, 594 N.E.2d 391 (1992) ). Whether a contract to arbitrate exists must be determined by the trial court, not an arbitrator. Menard County Housing Authority v. Johnco Construction, Inc. , 341 Ill. App. 3d 460, 463, 275 Ill.Dec. 741, 793 N.E.2d 221 (2003). " ‘[I]f the opposing party denies the existence of the agreement to arbitrate, the court shall proceed summarily to the determination of the issue so raised * * *.’ " Id. (quoting 710 ILCS 5/2(a) (West 2000)). "[T]he [Uniform Arbitration] Act contemplates a substantive disposition of the issues presented to the court." Cohen v. Blockbuster Entertainment, Inc. , 338 Ill. App. 3d 171,...