Federated Services v. Estate of Norberg

4 P.3d 844
CourtCourt of Appeals of Washington
DecidedJune 12, 2000
Docket43177-3-I
StatusPublished
Cited by41 cases

This text of 4 P.3d 844 (Federated Services v. Estate of Norberg) 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
Federated Services v. Estate of Norberg, 4 P.3d 844 (Wash. Ct. App. 2000).

Opinion

4 P.3d 844 (2000)
101 Wash.App. 119

FEDERATED SERVICES INSURANCE COMPANY, Respondent,
v.
The PERSONAL REPRESENTATIVE OF the ESTATE OF David Jason NORBERG, Appellant.

No. 43177-3-I.

Court of Appeals of Washington, Division 1.

June 12, 2000.
Reconsideration Denied July 14, 2000.

*846 Jay A. Demers, Attorney At Law, Seattle, for Appellant.

Jerret E. Sale, Bullivant Houser Bailey, Seattle, Lisa C. Neal, Bainbridge Island, for Respondent.

*845 BECKER, A.C.J.

In a survival action, a panel of arbitrators awarded damages to a young man's estate for the inheritance he would have received from his parents if he had outlived them. We hold the award was erroneous on its face and the trial court properly vacated it.

David Norberg, while driving his employer's truck, died in a head-on collision with another vehicle. David was not at fault. At age 29, David left no spouse or dependents, and no will. David's estate, whose beneficiaries were his mother and father, received the other driver's liability insurance policy limits of $50,000. The estate then made an underinsured motorist (UIM) claim against Federated Services Insurance Company, David's employer's insurance company. The policy limits were $500,000. The parties submitted the UIM claim to arbitration, as allowed by the contract of insurance.

The estate's claim was based on the Survival of Actions statute, RCW 4.20.046. A panel of three arbitrators issued their decision on March 9, 1998. The arbitrators awarded the estate $273,000 for David's lost earnings. With one arbitrator dissenting, the panel awarded to the estate additional damages of $400,000 for David's loss of prospective inheritance from his parents.

The superior court granted Federation's motion to vacate the award of $400,000 for lost inheritance. The estate appeals from that order.

TIMELINESS

The estate first argues that Federated's motion to vacate the arbitration award for lost inheritance should have been dismissed as untimely. On March 20, 1998, the estate filed a motion to confirm judgment on the award and noted it to be heard on April 6. On March 31, Federated filed a response opposing confirmation and a motion to vacate the award of damages. Federated requested that the court either consider its motion to vacate in conjunction with the estate's motion to confirm, or stay the confirmation proceeding until a superior court ruled on Federated's motion to vacate. The court issued an order scheduling both the motion to confirm and the motion to vacate to be heard on April 6.

The estate objected to having Federated's motion to vacate heard on April 6 because the estate did not receive timely notice of the motion. The court set a hearing for April 2 to consider the estate's objections to the scheduling order.

By April 2, the parties had worked out an agreed scheduling order. Federated would pay the award for lost earnings immediately, and could then continue to pursue its motion to vacate the award for lost inheritance. The parties agreed to entry of judgment on the award. The estate agreed to forbear execution on the judgment until the superior court ruled on Federated's motion to vacate. Later, the court granted Federated's motion to vacate the lost inheritance award.

On appeal, the estate contends that a motion to vacate must be heard at the same time as a motion to confirm judgment on an arbitration award. The estate did not raise this issue below. Indeed, the estate stipulated to a scheduling order that explicitly anticipated the court's consideration of the two motions at different times. However, the estate claims that once the trial court confirmed the lost earnings portion of the award, it lost jurisdiction to entertain a motion to vacate the remainder of the award. A party can raise lack of trial court jurisdiction for the first time on appeal, RAP 2.5(a). And if the trial court lacked jurisdiction to hear the motion to vacate, the stipulation would be of no account because parties cannot stipulate to jurisdiction. See Barnett v. Hicks, 119 Wash.2d 151, 829 P.2d 1087 (1992).

"Subject matter jurisdiction is the authority to hear and determine the class of action to which a case belongs, not the authority to grant the relief requested, or the correctness of the decision." Bour v. Johnson, 80 Wash.App. 643, 647, 910 P.2d *847 548 (1996). The Legislature has invested the superior courts with subject matter jurisdiction to confirm, vacate, modify or correct arbitration awards. See RCW 7.04. Even after a judgment has been entered confirming an award, a motion to vacate can still be heard as long as it is made within the statutory three-month period. RCW 7.04.180; Martin v. Hydraulic Fishing Supply Inc., 66 Wash.App. 370, 374, 832 P.2d 118 (1992).

It is ordinarily preferable to have a motion to vacate heard at the same time as a motion to confirm. Clearwater v. Skyline Construction Co. Inc., 67 Wash.App. 305, 315, 835 P.2d 257 (1992), review denied, 121 Wash.2d 1005, 848 P.2d 1263 (1993); see Martin, 66 Wash.App. at 377-78, 832 P.2d 118 (Forrest, J., concurring) (once a court has entered judgment confirming an award, hearing a later motion to vacate the same award under RCW 7.04.160 is inconsistent with the policy of the finality and integrity of judgments). But under the holding of Martin, a court does not lose jurisdiction to hear a motion to vacate an arbitration award merely by entering a judgment that confirms it. The estate's argument that the motion to vacate was untimely is not one that can be raised for the first time on appeal.

ERROR ON THE FACE OF THE AWARD

One of the statutory grounds for vacating an award exists when the arbitrators have `exceeded their powers', as demonstrated by an error of law on the face of the award. RCW 7.04.160(4); Lindon Commodities, Inc. v. Bambino Bean Co. Inc., 57 Wash.App. 813, 816, 790 P.2d 228 (1990). The estate argues there was no error of law upon the face of the award because no Washington statute or judicial decision explicitly prohibits an award of a lost inheritance as a component of damages in a survival action.

Limiting judicial review to the face of the award is a shorthand description for the policy that courts should accord substantial finality to arbitrator decisions. Davidson v. Hensen, 135 Wash.2d 112, 118, 954 P.2d 1327 (1998).

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4 P.3d 844, Counsel Stack Legal Research, https://law.counselstack.com/opinion/federated-services-v-estate-of-norberg-washctapp-2000.