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Case Law Update: Arbitration in Class Action

Carr v. Gateway, Inc., no. 109485 presented the question as to whether trial court properly denied defendant’s motion to compel arbitration of claims contained in plaintiff’s class action based on language in computer purchase agreements waiving right to litigate disputes in court and agreeing to resolve disputes through binding arbitration. Appellate Court found that enforcement of arbitration clause was precluded where: (1) language of agreement called for arbitration to be conducted in specific arbitration forum that was no longer in existence; and (2) identification of specific forum formed integral part of agreement. This case will impact Illinois cases.