396 P.3d 627
Ariz. Ct. App.2017Background
- In 2007 Glazer was awarded a $7.8 million jury verdict against the State for negligent roadway design.
- The State appealed; while the appeal was pending, the Department of Administration processed payment after mandate issued.
- Payment requests were coded for the Risk Management Revolving Fund (RMRF) but a technician (without authorization) changed the account to the Construction Insurance Fund (CIF); checks were issued from CIF.
- Two months later the Department discovered the error and reimbursed CIF by transferring $7.8 million from the RMRF.
- A.R.S. § 41-622(F) provides that interest on judgments paid out of the RMRF accrues during appeal at the U.S. Treasury bill average yield (a reduced rate) rather than the normal statutory rate.
- The trial court held § 41-622(F) applied and ordered the reduced rate for the entire $7.8 million; Glazer appealed that ruling.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether § 41-622(F) applies when checks were issued from CIF due to an administrative error | Glazer: statute inapplicable because judgment was paid from CIF; State must prove ultimate payment came from RMRF | State: reduced rate applies because the RMRF ultimately reimbursed CIF and thus paid the judgment | Court: § 41-622(F) applies because the judgment was ultimately paid from the RMRF |
| Whether reduced rate applies to entire $7.8M or only to State-paid portion | Glazer: reduced rate should not apply or should apply to full judgment because statute does not carve out insured portions | State: reduced rate should apply to whole judgment | Court: reduced rate applies only to the $7M paid by the State from the RMRF; $800,000 covered by excess insurer does not qualify |
Key Cases Cited
- City of Tucson v. Clear Channel Outdoor, Inc., 218 Ariz. 172, 181 P.3d 219 (appellate review of statutory interpretation)
- JHass Grp. L.L.C. v. Ariz. Dep’t of Fin. Insts., 238 Ariz. 377, 360 P.3d 1029 (legislative intent and statutory construction principles)
- Azore, LLC v. Bassett, 236 Ariz. 424, 341 P.3d 466 (use of plain language to determine legislative intent)
- Minjares v. State, 223 Ariz. 54, 219 P.3d 264 (interpretation of A.R.S. § 41-622 and its application when RMRF pays)
- Indust. Comm’n of Ariz. v. Old Republic Ins. Co., 223 Ariz. 75, 219 P.3d 285 (when statutory language is unambiguous, courts must give it effect)