Aguirre v. AT & T WIRELESS SERVICES

75 P.3d 603
CourtCourt of Appeals of Washington
DecidedSeptember 2, 2003
Docket51276-5-I
StatusPublished
Cited by3 cases

This text of 75 P.3d 603 (Aguirre v. AT & T WIRELESS SERVICES) is published on Counsel Stack Legal Research, covering Court of Appeals of Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Aguirre v. AT & T WIRELESS SERVICES, 75 P.3d 603 (Wash. Ct. App. 2003).

Opinion

75 P.3d 603 (2003)
118 Wash.App. 236

Jeananne AGUIRRE, individually and on behalf of all the members of the Class of Persons similarly situated, Respondent,
v.
AT & T WIRELESS SERVICES, a foreign corporation, Appellant.

No. 51276-5-I.

Court of Appeals of Washington, Division 1.

September 2, 2003.

*604 Kelly T. Noonan, Michael P. McGinn, Carl J. Marquardt, Seattle, WA, for Appellant.

David E. Breskin, Daniel F. Johnson, Seattle, WA, for Respondent.

COLEMAN, J.

AT & T Wireless Services, Inc. appeals an order awarding postjudgment interest to Jeananne Aguirre. Aguirre filed a class action lawsuit against AT & T. The trial court approved a settlement in which AT & T agreed to pay Aguirre's attorney fees in the event that the settlement survived any appeals. A third party appealed the settlement. Two years later, after termination of the appeal but before the expiration of the time for seeking further review, Aguirre moved for postjudgment interest. The trial court granted the motion, awarding interest from the date of its order approving the settlement. We reverse because the parties' settlement agreement provided that AT & T's obligation to pay was contingent on the exhaustion of any appeals. Accordingly, no interest accrued on the attorney fee award until that point.

FACTS

On March 25, 1998, Aguirre filed a class action lawsuit against AT & T, alleging that the company charged some of its customers with local taxes that they did not owe. Aguirre and AT & T signed a settlement agreement in February 2000. AT & T agreed to provide customers who had paid the improper taxes with coupons toward telephone accessories. AT & T also agreed to pay Aguirre's attorney fees, up to $1,411, 146. Because a third party was also suing AT & T and settling with Aguirre would affect her case, the settlement provided that AT & T would not disburse coupons and attorney fees until the conclusion of all appeals.[1] Section 5.2 of the settlement reads:

[AT & T] shall have no obligation to pay any of Plaintiff's attorneys' fees and expenses unless and until this settlement becomes Final, as defined in Section 2.9 herein. Within ten days of the Effective Date, Defendants will pay the attorneys' fees and expenses, provided for in Section 5.1, to Plaintiff's Counsel.

The agreement defines the "Effective Date" as "the first date by which all the events and conditions specified in Section 8 of this Agreement have been met and occur." Section 8.1 sets forth six "events" that must occur before the agreement becomes effective. The two final triggering events are:

(e) the Court has entered the Final Judgment substantially in the form [provided in the agreement].
*605 (f) the Final Judgment has become "Final" as defined in Section 2.9.

The definition of "Final" does not appear in Section 2.9, however. That section instead contains the definition for the term "Final Judgment," which is defined as "the Final Judgment and Order of Dismissal of the action provided for in Section 9 below." The definition of "Final" appears directly above the definition of "Final Judgment," in Section 2.8. The record indicates that the definition of "Final" was originally contained in Section 2.9, but the parties renumbered the sections in a later draft without changing the reference in the attorney fee provision. Section 2.8 defines the term "Final" as

the later of: (a) the date of final affirmance or the expiration of the time for a petition for a writ of certiorari and if certiorari is granted the date of final review and decision pursuant to that grant; (b) the date of final dismissal of any appeal or petition for review or decision on review by the Washington Supreme Court, or any final dismissal of any proceeding on certiorari; or (c) if no appeal is filed, the expiration date for the filing of notice of any appeal from the Court's judgment approving the settlement and entry of the Final Judgment.

As specified in the agreement, the court entered the "Final Judgment" approving the settlement and dismissing the case. Two years later, Aguirre filed a motion for an award of postjudgment interest, calculated from the date the court entered the "Final Judgment." Because the appealing party still had the opportunity to seek a writ of certiorari with the United States Supreme Court, Aguirre had not yet received the coupons and attorney fees. The trial court granted the motion for postjudgment interest on the attorney fee award.

AT & T moved for reconsideration, arguing that the interest award conflicted with the parties' agreement that the settlement would not become effective until any appeals had been exhausted. The trial court denied the motion, stating that the definition of "Final" in Section 2.8 was irrelevant since the attorney fee provision referred to Section 2.9. The court therefore concluded that the court's order approving the settlement triggered AT & T's obligation to pay attorney fees. While the court acknowledged that AT & T might have intended to define "Final" in Section 2.8, the court ruled that the language of the attorney fees section, which refers to Section 2.9, was controlling. AT & T appealed the interest award to this court.

STANDARD OF REVIEW

This case presents issues of statutory interpretation and construction of a settlement agreement. These are both questions of law, which we review de novo. Tyrrell v. Farmers Ins. Co. of Wash., 140 Wash.2d 129, 132-33, 994 P.2d 833 (2000).

DISCUSSION

AT & T argues that the trial court erred in awarding postjudgment interest because Aguirre did not have the right to the settlement proceeds until all appeals had been exhausted or the time period for seeking review had expired. We agree. The agreement provided that the settlement would not become effective and AT & T would have no obligation to pay the attorney fees until all appeals were exhausted. The trial court's "Final Judgment" merely approved the terms of that settlement and commenced the appeal period. Accordingly, statutory interest did not accrue until Aguirre had the right to use of the funds, i.e., at the termination of appellate review.

The purpose of awarding interest on a judgment is to compensate a party having the right to use money, when it has been denied use of that money. Ernst Home Ctr., Inc. v. Sato, 80 Wash.App. 473, 488, 910 P.2d 486 (1996) (citing Hansen v. Rothaus, 107 Wash.2d 468, 473, 730 P.2d 662 (1986)). Accordingly, interest generally accrues on judgments from the date at which the judgment is entered. RCW 4.56.110(2) ("judgments shall bear interest from the date of entry...").

But where a party's right to recover on a judgment does not arise until a future contingency occurs, courts have held that postjudgment interest accrues from the date the party has a right to collect the funds. In re *606 Marriage of Young v. Young, 44 Wash.App. 533, 534, 723 P.2d 12 (1986); Herzog v. Herzog,

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Jay Merrill, V Pemco Mutual Insurance Company
Court of Appeals of Washington, 2017
Waddell v. L.V.R v. Inc.
125 P.3d 1160 (Nevada Supreme Court, 2006)
Lindsay v. Pacific Topsoils, Inc.
120 P.3d 102 (Court of Appeals of Washington, 2005)

Cite This Page — Counsel Stack

Bluebook (online)
75 P.3d 603, Counsel Stack Legal Research, https://law.counselstack.com/opinion/aguirre-v-at-t-wireless-services-washctapp-2003.