Dolphus Mcgill v. James Beardon

372 P.3d 138, 193 Wash. App. 235
CourtCourt of Appeals of Washington
DecidedApril 11, 2016
Docket72926-8-I
StatusPublished
Cited by9 cases

This text of 372 P.3d 138 (Dolphus Mcgill v. James Beardon) 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
Dolphus Mcgill v. James Beardon, 372 P.3d 138, 193 Wash. App. 235 (Wash. Ct. App. 2016).

Opinion

*239 Leach, J.

¶1 — MAR 7.3 and RCW 7.06.060U) 1 require that the superior court assess costs and reasonable attorney fees against a party who asks for a trial de novo and does not improve his or her position at trial. Here, the parties disagree about how to determine if Dolphus McGill improved his position at a trial de novo.

¶2 James Bearden sued McGill for damages caused by an auto accident. An arbitrator awarded Bearden $44,000.00 in compensatory damages and $1,187.00 in statutory costs, for a total arbitration award of $45,187.00. McGill requested a trial de novo. The jury awarded Bearden less in compensatory damages, $42,500.00. But the trial court awarded more in costs, $3,296.39, for a total judgment against McGill of $45,796.39. Bearden then asked for an award of reasonable attorney fees. By comparing the total arbitration award with the total trial judgment, including all statutory costs, the trial court decided that McGill failed to improve his position at trial; the total judgment exceeded the total arbitration award. It awarded Bearden $71,800.00 in attorney fees. McGill appeals.

¶3 We hold that a court determines if a party improved its position at a trial de novo by comparing every element of monetary relief the arbitrator considered with the trial court’s award for those same elements. Here, this means the damages and statutory costs that both the arbitrator and trial court considered. It excludes those statutory costs requested only from the trial court. This comparison shows that McGill improved his position at a trial de novo. Thus, the trial court erred in awarding Bearden MAR 7.3 attorney fees. We reverse that award. Because McGill does not show that the trial court abused its discretion in awarding Bearden certain challenged costs, we affirm the award of those costs.

*240 FACTS

¶4 Dolphus McGill injured James Bearden in a January 2011 automobile accident. After Bearden sued, the parties took part in mandatory arbitration. The arbitrator awarded Bearden $44,000 in compensatory damages and $1,187 in fees and costs, for an arbitration award of $45,187.

¶5 McGill requested a trial de novo. The jury awarded Bearden $42,500.00 in damages. The trial court then awarded Bearden $3,296.39 in costs. These included costs incurred after the arbitration. The total judgment against McGill was thus $45,796.39. 2

¶6 Bearden then asked for attorney fees under MAR 7.3, arguing that McGill failed to improve his position by appealing the arbitration award. Bearden pointed out that the $45,796.39 trial court judgment against McGill exceeded the $45,187.00 arbitration award. McGill responded that costs should not factor into the analysis: he improved his position from a $44,000.00 damages award after arbitration to a $42,500.00 damages award after trial. McGill also argued that Bearden’s claimed fees were excessive.

¶7 The trial court compared the total amounts after arbitration and trial, including costs, to see if McGill improved his position by going to trial. The court ruled McGill did not improve his position, so MAR 7.3 entitled Bearden to $71,800 in attorney fees. McGill appeals.

STANDARD OF REVIEW

¶8 This court reviews de novo whether a statute authorizes an award of attorney fees. 3 The application of a *241 court rule is also a question of law we review de novo. 4 This court upholds attorney fee and cost awards unless it finds the trial court manifestly abused its discretion. 5

ANALYSIS

MAR 7.3 Attorney Fees

¶9 Washington generally follows the “American rule,” where each party in a civil action pays its own attorney fees and costs. 6 But a party may recover attorney fees when authorized by statute, a recognized ground of equity, or party agreement. 7 Bearden asserts a right to recover fees under MAR 7.3 and RCW 7.06.060(1). McGill disagrees, claiming that Bearden does not meet the requirements of the rule and statute. He contends that the trial court should not have compared the total arbitration award with the total trial court judgment to decide if McGill improved his position for purposes of applying MAR 7.3. He argues that he improved his position using the proper comparison, the arbitrator’s damages award to the jury’s damages award.

¶10 To resolve this case, we follow several principles of statutory construction. A court accepts, without interpretation, the plain meaning of a clearly worded statute. 8 A court will deem a statute ambiguous if it has more than one reasonable interpretation. 9 A court will interpret an ambiguous statute in the way that best fulfills the legislature’s intent. 10

*242 ¶ 11 MAR 7.3 imposes on a party who appeals an arbitration award an obligation to pay costs and reasonable attorney fees incurred after the filing of a request for a trial de novo when that party “fails to improve the party’s position on the trial de novo.” 11 Like all Mandatory Arbitration Rules, we interpret this rule as if the legislature drafted it. 12 The legislature intended this provision to encourage settlement and discourage meritless appeals. 13

¶12 This court has consistently held that to decide if a party improved its position, the trial court may compare only the claims the party actually arbitrated with those it tried in superior court. We first applied this rule in Christie-Lambert Van & Storage Co. v. McLeod. 14 There, Christie-Lambert arbitrated its claims against McLeod and Nolan. McLeod did not arbitrate his cross claim against Nolan because he had not served her. The arbitrator made an award in favor of Christie-Lambert. McLeod requested a trial de novo. He did not improve his position on the issues arbitrated with Christie-Lambert but, having served Nolan, received a judgment against her. The trial court denied Christie-Lambert’s fee request because McLeod had improved his overall position due to his recovery from Nolan. 15 We reversed and awarded Christie-Lambert fees because McLeod had not improved his position on the arbitrated claim. 16

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Cite This Page — Counsel Stack

Bluebook (online)
372 P.3d 138, 193 Wash. App. 235, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dolphus-mcgill-v-james-beardon-washctapp-2016.