Dan's Trucking, Inc. v. Kerr Contractors, Inc.

332 P.3d 1154, 183 Wash. App. 133
Court of Appeals of Washington·Decided August 19, 2014·No. No. 44342-2-II·Published·Cited by 8 cases

Opinion

Bjorgen, A.C.J.

¶1 Kerr Contractors Inc. and Liberty Mutual Insurance Group Inc., a/k/a Safeco Insurance Company of America (Kerr), appeal a superior court order granting a motion by Dan’s Trucking Inc. to strike Kerr’s request for a trial de novo following an arbitrator’s decision awarding Dan’s Trucking $6,979.57 in attorney fees. Kerr contends that the trial court erred in granting the motion to strike because it was entitled to a trial de novo under Mandatory Arbitration Rule (MAR) 7.1. We hold that because resolution of the parties’ attorney fees issue remained within mandatory arbitration, Kerr was entitled to a trial de novo on that issue under MAR 7.1. Accordingly, we reverse the trial court’s order granting Dan’s Trucking’s [137] motion to strike and remand for trial de novo on the attorney fee issue.

FACTS

¶2 The Washington State Department of Transportation awarded a contract to Kerr to make improvements to State Route 14 in Clark County, Washington. Kerr subcontracted with Dan’s Trucking to haul asphalt for the highway improvement project. A dispute arose between the parties, and Dan’s Trucking filed a complaint against Kerr for breach of contract and negligence in Thurston County Superior Court. The superior court transferred the case to mandatory arbitration. Prior to the arbitration hearing, the parties settled Dan’s Trucking’s underlying claims but did not resolve the amount of attorney fees to be awarded to Dan’s Trucking. Kerr memorialized the parties’ settlement agreement in an e-mail that stated, “We received authority from our client for the following offer: 1. Payment from Kerr to Dan’s of $3,971.38; and 2. Fees in an amount to be determined by the arbitrator; 3. In exchange for dismissal.” Clerk’s Papers (CP) at 28. Kerr also sent the following e-mail to the arbitrator indicating that the parties had settled their primary dispute:

As I said in my voicemail to you yesterday, the parties have settled this matter, and therefore we need to cancel the arbitration hearing scheduled for tomorrow, 6/28.
However, as part of the settlement, the parties have agreed that you will decide the amount of attorney fees awarded to Dan’s. Our preference would be to brief the issue and then hold a telephonic hearing on the matter with you.

CP at 29. The arbitrator subsequently awarded $6,979.57 in attorney fees to Dan’s Trucking. The form on which the arbitrator entered his arbitration award contained the following preprinted language:

Twenty days after the award has been filed with the clerk, if no party has sought a trial de novo, the prevailing party, on notice [138] to all parties, may present to the Assigned Judge a judgment on the arbitration award for entry as final judgment in this case.

CP at 21.

¶3 After Kerr timely requested a trial de novo, Dan’s Trucking filed a motion in superior court to strike Kerr’s request, asserting that Kerr was not entitled to a trial de novo under MAR 7.1 because the parties had privately settled their dispute. The motion further asserted that the arbitrator was acting as a private arbitrator under the Uniform Arbitration Act (UAA), chapter 7.04A RCW, when he decided the amount of attorney fees to be awarded to Dan’s Trucking, rather than as an arbitrator under MAR 3.2. Following a hearing, the trial court entered an order granting Dan’s Trucking’s motion to strike Kerr’s request for a trial de novo. The trial court later entered a judgment against Kerr awarding Dan’s Trucking $6,979.57 in attorney fees, the amount determined appropriate through arbitration, as well as $11,663.17 in supplemental attorney fees. Kerr timely appeals.

ANALYSIS

I. Request for a Trial De Novo

¶4 The issue raised by this appeal is whether the trial court erred in granting Dan’s Trucking’s motion to strike Kerr’s request for a trial de novo. Our resolution of this issue turns on whether the arbitrator’s award of attorney fees to Dan’s Trucking was governed by the UAA or by chapter 7.06 RCW as implemented by the MARs. If the award was governed by the UAA, the trial court properly granted Dan’s Trucking’s motion to strike Kerr’s request for a trial de novo. If the award was governed by chapter 7.06 RCW as implemented by the MARs, the trial court erred because Kerr was entitled to a trial de novo under MAR 7.1. We hold that the MARs governed the arbitrator’s attorney fee determination and, therefore, the trial court erred by granting Dan’s Trucking’s motion to strike Kerr’s request for a trial de novo.

[139] ¶5 The application of court rules to a set of facts is a question of law that we review de novo. Russell v. Maas, 166 Wn. App. 885, 889, 272 P.3d 273, review denied, 174 Wn.2d 1016 (2012). As with other court rules, we interpret the MARs “as though they were drafted by the Legislature.” Wiley v. Rehak, 143 Wn.2d 339, 343, 20 P.3d 404 (2001). Thus, we construe the MARs consistently with their purpose “to reduce congestion in the courts and delays in hearing civil cases.” Perkins Coie v. Williams, 84 Wn. App. 733, 737, 929 P.2d 1215 (1997); Wiley, 143 Wn.2d at 343. We also give effect to the plain meaning of a court rule, as “discerned from reading the rule as a whole, harmonizing its provisions, and using related rules to help identify the legislative intent embodied in the rule.” State v. Chhom, 162 Wn.2d 451, 458, 173 P.3d 234 (2007).

¶6 Chapter 7.06 RCW, as implemented by the MARs, requires the mandatory arbitration of certain civil claims. RCW 7.06.010-.030; MAR 1.2. In Thurston County, mandatory arbitration proceedings apply to civil “[cjlaims valued up to $50,000, exclusive of interest and costs.” MAR 1.2; Thurston County Local MAR 1.2. The MARs do not apply to arbitration by private agreement or under other statutes, unless the parties so stipulate. MAR 1.1; MAR 8.1. MAR 7.1 provides that an aggrieved party to a mandatory arbitration decision may request a trial de novo in the superior court.

¶7 With exceptions not relevant to our circumstances, the UAA governs private agreements to arbitrate disputes. RCW 7.04A.030. The UAA does not apply to arbitration under the MARs. RCW 7.04A.030(3). RCW 7.04A.230 governs judicial review of contractually agreed arbitration awards under the UAA and does not contain a right to a trial de novo.1

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Dan's Trucking, Inc. v. Kerr Contractors, Inc., 332 P.3d 1154, 183 Wash. App. 133 (Wash. Ct. App. 2014).

332 P.3d 1154 (Dan's Trucking, Inc. v. Kerr Contractors, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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