272 P.3d 289
Wash. Ct. App.2012Background
- River House engaged Integrus Architecture to provide architectural services under an AIA ADR-enabled contract requiring mediation then arbitration for disputes.
- Project completion occurred in 2008; River House later alleged construction-related damages against Integrus after resolving its dispute with the general contractor via mediation.
- In Feb 2010 River House sent a six-page demand letter outlining claims and tolling concerns, signaling intent to pursue mediation/arbitration.
- River House filed, but did not immediately file, a complaint in Spokane County Superior Court to toll limitations and seek stay for ADR under the contract.
- Parties engaged in informal discovery planning; River House later served formal discovery requests; Integrus served discovery requests too.
- River House ultimately filed a complaint in June 2010 and a mediation/arbitration request in March 2011, while continuing to participate in litigation activity; the court later ruled River House waived the right to mediate/arbitrate due to litigation conduct.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether waiver of arbitration is decided by the court or arbitrator | River House argues arbitrator should decide waiver defenses. | Integrus argues waiver is a court issue. | Court decides waiver of arbitration. |
| Whether River House waived mediation/arbitration by litigation conduct | River House contends steps were not inconsistent with arbitration. | Integrus contends conduct showed intent to litigate, not arbitrate. | River House waived via litigation conduct. |
| Whether equitable estoppel precludes waiver argument | River House asserts estoppel prevents waiver defense. | Integrus asserts no estoppel since no reliance showing. | Estoppel does not foreclose waiver; waiver stands. |
Key Cases Cited
- Otis Housing Ass'n, Inc. v. Ha, 165 Wash.2d 582 (Wash. 2009) (waiver analysis under UAA; burden on party opposing arbitration)
- Broom v. Morgan Stanley DW Inc., 169 Wash.2d 231 (Wash. 2010) (statutory framework for arbitrability under UAA; tolling and arbitral proceedings)
- Verbeek Props., LLC v. GreenCo Envtl., Inc., 159 Wash.App. 82 (Wash. Ct. App. 2010) (two procedural issues for arbitrator; waiver analysis by court)
- Ives v. Ramsden, 142 Wash.App. 369 (Wash. Ct. App. 2008) (waiver/arbitration addressed by court; reliance on ADR rights)
- Heights at Issaquah Ridge, Owners Ass'n v. Burton Landscape Group, Inc., 148 Wash. App. 400 (Wash. Ct. App. 2009) (waiver by delay; arbitrator vs court allocation of waiver issue)