349 P.3d 772
Utah Ct. App.2015Background
- Hardman struck a pipe protruding above a roadway maintained by S.J. Louis; his insurer American Family paid about $4,500 and Hardman had a $500 deductible.
- American Family and Hardman sued S.J. Louis in district court for negligence and subrogation recovery; S.J. Louis did not answer and a default judgment was entered for plaintiffs.
- Plaintiffs had earlier attempted arbitration with Zurich (S.J. Louis’s insurer) and withdrew from arbitration after obtaining the default judgment.
- S.J. Louis later moved to set aside the default judgment under Utah R. Civ. P. 60(b)(6) and to compel arbitration through Arbitration Forums, asserting an arbitration agreement existed via mutual membership.
- The district court set aside the default judgment and ordered arbitration; plaintiffs appealed that order.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the district court's order compelling arbitration is final and appealable | The order is final and therefore immediately appealable | The order is nonfinal; appeal should be dismissed for lack of jurisdiction | Order is not final; appeal dismissed |
Key Cases Cited
- Powell v. Cannon, 179 P.3d 799 (Utah 2008) (order compelling arbitration and staying litigation is nonfinal when claims remain live in district court)
- Zions Mgmt. Servs. v. Record, 305 P.3d 1062 (Utah 2013) (order compelling arbitration can be final when the district court has no other claims to adjudicate)
- McGibbon v. Farmers Ins. Exch., 345 P.3d 550 (Utah 2015) (order compelling arbitration plus dismissal of the complaint is final)