Can An Arbitration Agreement Apply Only to a Portion of a Contract ?
In Board of Managers of Chestnut Hills Condominium Ass'n v. Pasquinelli, Inc., 354 Ill. App. 3d 749, 754-57, 822 N.E.2d 12, 290 Ill. Dec. 730 (2004), an arbitration agreement was found to apply to a portion of the parties' contract regarding common property elements, but not to the parties' purchase contract.
The purchase contract, on which the condominium association's complaint was based, sought redress for defects not defined as common elements under either the limited warranty or the condominium declaration. Pasquinelli, 354 Ill. App. 3d at 757.
The Pasquinelli court then found the condominium association's allegations were not subject to mandatory arbitration, as the arbitration agreement only applied to the limited warranty covering common property elements. Pasquinelli, 354 Ill. App. 3d at 757.