Tran v. Yu

75 P.3d 970
CourtCourt of Appeals of Washington
DecidedAugust 20, 2003
Docket51218-8-I
StatusPublished
Cited by1 cases

This text of 75 P.3d 970 (Tran v. Yu) 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
Tran v. Yu, 75 P.3d 970 (Wash. Ct. App. 2003).

Opinion

75 P.3d 970 (2003)

Mei TRAN, Appellant,
v.
Yue Han YU, Respondent.

No. 51218-8-I.

Court of Appeals of Washington, Division 1.

July 14, 2003.
Publication Ordered August 20, 2003.

Derek P. Radtke, Attorney at Law, Seattle, Counsel for Appellants.

Andrew James Kinstler, Kristen Dorrity, Helsell Fetterman LLP, Seattle, Counsel for Respondents.

SCHINDLER, J.

An arbitrator awarded $14,675 in damages to the plaintiff, Tran. The defendant, Yu, requested a trial de novo. Following trial, the jury awarded $13,375 in damages to Tran. Tran moved for entry of judgment and also sought attorney fees under CR 37, statutory costs and attorney fees under MAR 7.3. The trial court entered judgment on the jury's verdict, granted Tran's motion for CR 37 sanctions and statutory costs, but denied Tran's request for attorney fees under MAR 7.3. On appeal, Tran contends that the trial court erred in denying her request for attorney fees because the total judgment following trial exceeded the arbitration award. However, because the compensatory damages awarded to Tran by the jury were less than those awarded by the arbitrator, Yu improved her position in the trial de novo and the trial court properly denied Tran's request for attorney fees under MAR 7.3. We affirm.

FACTS

On January 9, 2000 Mei Tran was in her car traveling southbound on Interstate-5 with her two children. She slowed in response to traffic and was rear-ended by Yue Han Yu. As a result of the accident, Tran suffered injuries to her head, neck and back.

Tran filed suit against Yu on behalf of herself and her children. Following mandatory arbitration, the arbitrator awarded damages to Tran of $3,675 for her medical bills, and $11,000 in general damages, for a total damage award of $14,675.[1]

Yu requested a trial de novo. Prior to trial, Tran submitted requests for admission, *971 asking Yu to admit that Tran had incurred $3,875 in medical bills as a result of injuries sustained in the accident and to admit that those medical expenses were reasonably necessary. Yu denied both requests for admission.

Tran moved for summary judgment on liability and damages. Yu admitted liability and the amount of damages but denied that the injuries were caused by the accident. The court granted Tran's motion on liability and on the issues that Tran incurred $3,875 in medical bills, and that those expenses were reasonable and necessary. The court denied summary judgment on the issue that Tran's injuries were caused by the accident and the nature and amount of damages.

After a two-day trial, a jury returned a verdict in favor of Tran, awarding her economic damages of $3,875, non-economic damages of $7,000 and future non-economic damages of $2,500, for a total jury verdict of $13,375.

Tran noted a motion for entry of judgment on the jury verdict. In her motion, Tran sought an award of $3,205 in attorney fees under CR 37(c) for the costs incurred in proving the issues Yu denied in the requests for admission (the amount of medical expenses incurred and the reasonableness and necessity of those expenses) and statutory costs of $955.80 as the prevailing party in litigation under RCW 4.84.010. Claiming that Yu failed to improve her position at the trial de novo because the total judgment of $17,535.80, including CR 37 attorney fees and statutory costs, exceeded the arbitration award of $14, 675, Tran also sought approximately $14,500 in attorney fees under Mandatory Arbitration Rule (MAR) 7.3.

Yu opposed the request for attorney fees under MAR 7.3.[2] Because the compensatory damages awarded by the jury were $1,300 less than the arbitrator's award, Yu asserted that she had improved her position at trial. She also argued that the arbitration award should be compared only to the jury verdict obtained at trial and statutory costs and CR 37 sanctions should not be considered in determining whether attorney fees should be awarded under MAR 7.3.

The trial court entered a total judgment of $17,535.80, which consisted of the principal judgment of $13,375, CR 37 attorney fees of $3,205, and costs of $955.80. The court agreed with Yu's position and denied Tran's motion for attorney fees under MAR 7.3. Tran filed a motion for reconsideration of the trial court's denial of MAR 7.3 attorney fees, and the court denied the motion. Tran appeals.

DISCUSSION

The issue is whether under MAR 7.3, Yu failed to improve her position at trial when the compensatory damages awarded at trial were less than those awarded at arbitration, but the total judgment following trial was higher because of the court's award of statutory costs and CR 37 sanctions.

Construction of a court rule is a question of law that this court reviews de novo. Stuckey v. Dep't of Labor & Indus., 129 Wash.2d 289, 295, 916 P.2d 399 (1996).

The Legislature's purpose in adopting mandatory arbitration legislation was to "`reduce congestion in the courts and delays in hearing civil cases.'" Nevers v. Fireside, Inc., 133 Wash.2d 804, 815, 947 P.2d 721 (1997). (quoting Perkins Coie v. Williams, 84 Wash.App. 733, 737, 929 P.2d 1215 (1997)). Following mandatory arbitration, a party may request a trial de novo in the superior court. RCW 7.06.050; MAR 7.1(a). But to discourage meritless appeals, the requesting party is liable for costs and attorney fees should it fail to improve its position in the trial de novo. MAR 7.3. See also RCW 7.06.060; Christie-Lambert Van & Storage Co. v. McLeod, 39 Wash.App. 298, 303, 693 P.2d 161 (1984).

MAR 7.3 states:

The court shall assess costs and reasonable attorney fees against a party who appeals the award and fails to improve the party's position on the trial de novo. The court may assess costs and reasonable attorney fees against a party who voluntarily withdraws *972 a request for a trial de novo. "Costs" means those costs provided for by statute or court rule. Only those costs and reasonable attorney fees incurred after a request for a trial de novo is filed may be assessed under this rule.

The interpretation of MAR 7.3 advanced by Tran, that the court should compare the entire judgment at trial, including costs and CR 37 sanctions, with the arbitration award in order to determine if the party who requested the trial de novo failed to improve its position, is inconsistent with the purpose of the rule. A trial is almost always more expensive than arbitration. If Tran's interpretation was accepted, a party would invariably improve its position because additional costs, attorney fees and interest would be incurred. See Haley v. Highland, 142 Wash.2d 135, 159, 12 P.3d 119 (2000) (Talmadge, J. concurring).

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