DO NOT CITE. SEE GR 14.1(a).
Court of Appeals Division I
State of Washington
Opinion Information Sheet
Docket Number: |
66753-0 |
Title of Case: |
Sara Robertshaw, Respondent V. Dolores Johnson, Appellant |
File Date: |
06/11/2012 |
SOURCE OF APPEAL
----------------
Appeal from King County Superior Court |
Docket No: | 10-2-16830-3 |
Judgment or order under review |
Date filed: | 01/07/2011 |
Judge signing: | Honorable Jeffrey M Ramsdell |
JUDGES
------
Authored by | Linda Lau |
Concurring: | Mary Kay Becker |
| J. Robert Leach |
COUNSEL OF RECORD
-----------------
Counsel for Appellant(s) |
| Mark J. Dynan |
| Dynan Conforti, P.S. |
| 2102 N Pearl St Ste 400 |
| Tacoma, WA, 98406-2550 |
Counsel for Respondent(s) |
| Douglas C Mcdermott |
| McDermott Newman, PLLC |
| 1001 4th Ave Ste 3200 |
| Seattle, WA, 98154-1003 |
IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON
SARA ROBERTSHAW, ) NO. 66753-0-I
)
Respondent, ) DIVISION ONE
)
v. )
)
DOLORES JOHNSON, ) UNPUBLISHED OPINION
)
Appellant. ) FILED: June 11, 2012
)
Lau, J. -- Dolores Johnson appeals the judgment entered on a mandatory
arbitration award in favor of Sara Robertshaw. Johnson argues that the trial court
should have reduced the arbitrator's award to reflect previous insurance payments to
Robertshaw. However, Johnson did not seek an offset at arbitration and failed to seek
review of the arbitration award by requesting a trial de novo following entry of the
arbitrator's award. Because the judgment entered on the arbitration award is not
appealable, we dismiss.
FACTS
As she crossed a street at a crosswalk, Sara Robertshaw was struck by a car
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driven by Dolores Johnson on October 30, 2007. Robertshaw sued Johnson in 2010.
She alleged negligence and sought damages. Johnson answered the complaint and
raised affirmative defenses of comparative fault and failure to mitigate damages. The
case was removed to mandatory arbitration. Following arbitration, the arbitrator found
Johnson to be 100 percent liable and awarded damages to Robertshaw of $12,444.
That amount included $4,662 in medical specials, $144 in lost wages, $6,500 in
general damages, and statutory costs and attorney fees of $1,238.
Neither party requested a trial de novo. Twenty-one days after the arbitrator's
final award was filed, Robertshaw filed a motion in King County Superior Court for entry
of judgment on the award. In response, Johnson asked the court to reduce the amount
awarded for medical specials by $4,437, the amount Johnson's insurer, State Farm,
had already paid to Robertshaw for medical treatment. Johnson proposed that the
court enter judgment for $8,0006. In support of this request, Johnson submitted the
declaration of a State Farm insurance adjuster who confirmed the amount of the prior
insurance payments. In reply, Robertshaw pointed out that Johnson did not plead
offset as an affirmative defense, did not present any evidence regarding her entitlement
to an offset at arbitration, and failed to request a trial de novo following arbitration. The
court entered judgment for the full amount of the arbitrator's award, $12,444, and
denied Johnson's motion to reconsider. Johnson appeals.
ANALYSIS
This case involves arbitration under chapter 7.06 RCW, which authorizes courts
to impose mandatory arbitration of civil suits where the amount claimed is $50,000 or
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less. RCW 7.06.020(1); Williams v. Tilaye, ___ Wn.2d ___, 272 P.3d 235, 238 (2012).
The purpose of authorizing mandatory arbitration in certain civil cases is to alleviate
court congestion and reduce delay in hearing civil cases. Malted Mousse, Inc. v.
Steinmetz, 150 Wn.2d 518, 526, 79 P.3d 1154 (2003); Dill v. Michelson Realty Co.,
152 Wn. App. 815, 819, 219 P.3d 726 (2009). The procedures to implement the
mandatory arbitration of civil actions are as provided in the Superior Court Mandatory
Arbitration Rules (MAR) adopted by our Supreme Court. RCW 7.06.030; Nevers v.
Fireside, Inc., 133 Wn.2d 804, 809, 947 P.2d 721 (1997).
The mechanism to obtain judicial review of a mandatory arbitration ruling is to
timely request a trial de novo. Malted Mousse, 150 Wn.2d at 529. RCW 7.06.050
provides the mechanism to seek review of an arbitration award and, if no request for a
trial de novo is made, the mechanism to reduce the arbitration award to judgment:
(1) Following a hearing as prescribed by court rule, the arbitrator shall file his
decision and award with the clerk of the superior court, together with proof of
service thereof on the parties. Within twenty days after such filing, any
aggrieved party may file with the clerk a written notice of appeal and request for
a trial de novo in the superior court on all issues of law and fact. Such trial de
novo shall thereupon be held, including a right to jury, if demanded.
. . . .
(2) If no appeal has been filed at the expiration of twenty days following
filing of the arbitrator's decision and award, a judgment shall be entered and may
be presented to the court by any party, on notice, which judgment when entered
shall have the same force and effect as judgments in civil actions.
MAR 6.3 expands upon the consequences of failing to request trial de novo:
Judgment. If within the 20-day period specified in rule 7.1(a) no party has
properly sought a trial de novo, the prevailing party on notice as required by CR
54(f) shall present to the court a judgment on the award of arbitration for entry as
the final judgment. A judgment so entered is subject to all provisions of law
relating to judgments in civil actions, but it is not subject to appellate review and
it may not be attacked or set aside except by a motion to vacate under CR 60.
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(Boldface omitted.)
Thus, according to the statutory scheme and the rules governing mandatory
arbitration, an arbitration award is not appealable. MAR 6.3; Cook v. Selland Constr.,
Inc., 81 Wn. App. 98, 912 P.2d 1088 (1996). If the aggrieved party fails to seek a trial
de novo within the deadline set forth in MAR 7.1(a), the prevailing party is entitled to an
entry of judgment on the award. MAR 6.3. Restricting judicial review of arbitration
awards promotes the legislative purposes of finalizing disputes, alleviating court
congestion, and reducing delay. Carpenter v. Elway, 97 Wn. App. 977, 984, 988 P.2d
1009 (1999).
The decision in Dill v. Michelson Realty is instructive. In Dill, the plaintiffs filed
suit under the Residential Landlord-Tenant Act of 1973, chapter 59.18 RCW, alleging
that the defendants unlawfully disposed of or destroyed their personal property. The
plaintiffs sought damages in excess of $125,000, but for purposes of arbitrability,
agreed to waive any claim in excess of $50,000. Following arbitration, the arbitrator
awarded damages of $45,000, but in a separate award, awarded approximately
$28,000 in attorney fees and costs.
The defendants did not request a trial de novo, but in moving for entry of
judgment on the arbitration award, asked the court to reduce the attorney fees so the
total award would not exceed $50,000. The superior court entered judgment on the
award, declining to reduce it as the defendants requested. Division Two of this court
dismissed the appeal because the defendants "decided against a trial de novo and
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instead filed an appeal that the arbitration rules do not allow." Dill, 152 Wn. App. at
822.
Parties that fail to request a trial de novo may not alter an arbitration award by
"requesting action by the Superior Court which would amend that award." Trusley v.
Statler, 69 Wn. App. 462, 465, 849 P.2d 1234 (1993). In Trusley, the plaintiff sued the
Statlers for breach of contract. Following mandatory arbitration, the arbitrator
dismissed the complaint but denied the Statlers' request for attorney fees under RCW
4.84.185. When they moved for entry of judgment on the award, the Statlers asked the
superior court to award attorney fees based on the offer of settlement statute, RCW
4.84.250. The trial court awarded fees. On appeal, Division Three of this court
concluded that since the Statlers failed to ask the arbitrator to award fees on the basis
requested and then did not seek a trial de novo, they were "limited to judgment on the
arbitrator's award." Trusley, 69 Wn. App. at 464. "Both parties, by not asking for a trial
de novo, accepted the arbitrator's award and may not alter it by requesting action by
the Superior Court which would amend that award." Trusley, 69 Wn. App. at 465.
As in Trusley, because Johnson did not seek review of the award, the trial court
could only enter judgment but could not amend the award. And as the trial court
correctly concluded, Mercier v. GEICO Indemnity Co., 139 Wn. App. 891, 903, 165
P.3d 375 (2007), does not compel a different result. In that case, Mercier sued GEICO,
his insurance company. Mercier had previously received a total of $35,000 in
payments from both GEICO and the tortfeasor's insurer. GEICO argued at arbitration
that it was entitled to offset the damages awarded by amount of insurance benefits
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already received by Mercier. The arbitrator ruled, however, that he lacked authority to
decide that issue and referred the matter to the superior court. Following arbitration,
the arbitrator awarded $36,000 in damages.
Neither party sought a trial de novo. In moving for entry of judgment, Mercier
proposed judgment for $36,000, while GEICO proposed judgment of $1,000. The trial
court applied the offset and entered judgment for $1,000. Mercier appealed. This court
observed that nothing in the mandatory arbitration rules prevented the arbitrator from
resolving all issues in the case, including offset. Nonetheless, we concluded that the
trial court did not improperly amend the award when it applied the offset. We pointed
out that in Trusley, the superior court revisited the arbitrator's decision to deny fees and
modified it. Whereas in Mercier, the arbitrator decided that offset was a coverage issue
beyond the scope of arbitration and expressly reserved the issue for the court. In
deciding that explicitly reserved issue, the trial court "merely completed the adjudication
of the undecided issues in the case." Mercier, 139 Wn. App. at 902.
Our decision in Mercier was premised on specific facts that are not present
here.1 The arbitrator did not decline to resolve any issues raised or refer any issues to
the court. Johnson did not ask the arbitrator to offset the damages and presented no
1 Johnson relies on several cases, including Tolson v. Allstate Ins. Co., 108 Wn.
App. 495, 32 P.3d 289 (2001), and Sherry v. Financial Indemnity Co., 160 Wn.2d 611,
615, 160 P.3d 31 (2007), that are inapplicable because they involve private arbitration
agreements under chapter 7.04A RCW. Such arbitrations are governed by different
procedures and standards for review. Both Tolson and Sherry also involved uninsured
motorist claim (UIM) arbitrations. Typically, UIM arbitration clauses limit arbitration to
the issues of liability and calculation of damages but do not include coverage issues.
See Price v. Farmers Ins. Co., 133 Wn.2d 490, 497, 946 P.2d 388 (1997).
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evidence on the issue. Because Johnson failed to request a trial de novo, the trial court
was required to enter judgment on the arbitration award. Having failed to seek review
of the award by requesting a trial de novo, the judgment entered on the award is not
appealable. Accordingly, we dismiss the appeal.
We deny Robertshaw's request for attorney fees on appeal under RCW
7.06.060(1), MAR 7.3, and RAP 18.9. Neither MAR 7.3 nor RCW 7.06.060(1) require
an award of fees since no trial de novo was held or requested. And the appeal is not
"so totally devoid of merit that there was no reasonable possibility of reversal." Streater
v. White, 26 Wn. App. 430, 435, 613 P.2d 187 (1980).
WE CONCUR:
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