246 P.3d 785
Wash.2011Background
- Optimer leased Bellevue Galleria retail space from RP Bellevue with a provision that disputes be resolved by single-arbitrator arbitration, whose decision is final and non-appealable.
- Arbitration occurred in 2008 under the Washington Arbitration Act (WAA), which provided limited judicial review of awards in superior court.
- Optimer claimed RP Bellevue violated the lease; the arbitrator awarded Optimer nominal damages plus attorney fees and costs.
- RP Bellevue moved to vacate/review in superior court, which dismissed the case, relying on Harvey v. University of Washington to find a waiver of appellate rights.
- Court of Appeals later held RUAA applies to the contract and prohibits waivers of judicial review, but the Supreme Court resolved the issue under the pre-RUAA framework.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the lease validly waives judicial review | Optimer argues waiver is allowed under contract law. | RP Bellevue contends waiver respects parties’ autonomy. | Lease does not validly waive judicial review. |
| Whether attorney fees/costs should be awarded | Fees sought under RCW 7.04A.250(3) or lease terms. | Prevailing party analysis pending superior court ruling on vacatur. | Fees and costs denied as premature. |
Key Cases Cited
- Godfrey v. Hartford Casualty Ins. Co., 142 Wash.2d 885 (2001) (statutory limits on review cannot be contracted away)
- Barnett v. Hicks, 119 Wash.2d 151 (1992) (cannot contract to expand/contract statutory review)
- Harvey v. University of Wash., 118 Wash.App. 315 (2003) (waiver of appeal from arbitration invalid)
- Keith Adams & Associates v. Edwards, 3 Wash.App. 623 (1970) (earlier approval of waivers of review disapproved by Godfrey)