Illinois Appellate Court Renders One-Sided Arbitration Agreement Unenforceable, Setting Precedent

In a significant development in arbitration law, the Illinois appellate court has ruled that the arbitration agreement between an assisted living facility and a resident was unenforceable due to its one-sided nature. In the case of Hwang v. Pathway LaGrange Property Owner, the court found that the agreement “lacked the consideration necessary to form a valid contract”, meaning that Hwang, the injured resident, received no benefit, and Aspired, the assisted living facility, did not suffer any detriment from signing the arbitration agreement. This ruling establishes a precedent emphasizing the necessity of reciprocal benefits and obligations in arbitration agreements.