CITY OF TUCSON, аn Arizona municipal corporation, Plaintiff/Appellant v. CLEAR CHANNEL OUTDOOR, INC, a Delaware corporation, Defendant/Appellee.
No. CV-04-0033-PR
SUPREME COURT OF ARIZONA
Arizona Supreme Court No. CV-04-0033-PR; Court of Appeals Division Two No. 2 CA-CV 02-0183; Pima County Superior Court No. C-20003722; En Banc
Appeal from Pima County Superior Court
The Honorable Charles V. Harrington, Judge
The Honorable Carmine Cornelio, Judge
VACATED AND REMANDED
Opinion of the Court of Appeals, Division Two
206 Ariz. 335, 78 P.3d 1056 (App. 2003)
VACATED
PAUL G. ULRICH, P.C. Phoenix
By: Paul G. Ulrich
and
MICHAEL D. HOUSE, FORMER TUCSON CITY ATTORNEY Tucson
MICHAEL G. RANKIN, TUCSON CITY ATTORNEY
By: Frank William Kern, III
and Dennis P. McLaughlin
Attorneys for Plaintiff/Appellant City of Tucson
MUNGER CHADWICK, P.L.C. Tucson
By: John F. Munger
and Evelyn Patrick Rick
Attorneys for Defendant/Appellee Clear Channel Outdoor, Inc.
By: Joy E. Herr-Cardillo
Attorney for Amici Curiae
Neighborhood Coalition of Greater Tucson,
The Sierra Club, Grand Canyon Chapter,
Neighborhood Coalition of Greater Phoenix,
N.A.I.L.E.M., and Luz Social Services
HURWITZ, Justice
¶1 This case requires us to determine the effect of
I.
¶2 This case comes to us as a result of almost twenty years of legal skirmishing between the City and owners of advertising billboards. In 1985, the City adopted an ordinance regulating the size, location, and height of various signs, including billboards. In 1986, Clear Channel‘s predecessor, Whiteco Metrocom, Inc.,1 sued the City in federal court, alleging that the ordinance violated Arizona and federal law. The district court found against Whiteco. The Ninth Circuit consolidated Whiteco‘s appeal with a similar claim filed by
¶3 In 1994, the legislature enacted
¶4 Before
¶5 In 2000, the legislature enacted
A municipality must issue a citation and file an action involving an outdoor advertising use or structure zoning or sign code violation within two years after discovering the violation. Such an action shall initially be filed with a court having jurisdiction to impose all penalties sought by the action and that jurisdiction is necessary for effective filing. Only the superior court has jurisdiction to order removal, abatement, reconfiguration or relocation of an outdoor advertising use or structure. Notwithstanding any other law, a municipality shall not consider each day that an outdoor advertising use or structure is illegally erected, constructed, reconstructed, altered or maintained as a separate offense unless the violation constitutes an immediate threat to the health and safety of the general public.
¶6 On July 17, 2000, one day before the effective date of
¶7 The court of appeals affirmed. City of Tucson v. Clear Channel Outdoor, Inc., 206 Ariz. 335, 78 P.3d 1056 (App. 2003). Relying on
¶8 We granted the City‘s petition for review to address the retroactivity issues in light of
II.
¶9 The court of appeals found no constitutional infirmity in applying
¶10 But, while there is no dispute about the legislature‘s constitutional power to enact a statute barring enforcement actions filed before the statute‘s effective date, the parties disagree vehemently about whether
A.
¶11 “No statute is retroactive unless expressly declared therein.”
Aranda v. Indus. Comm‘n, 198 Ariz. 467, 470 ¶ 11, 11 P.3d 1006, 1009 (2000). Thus, “statutory changes in procedures or remedies may be applied to proceedings already pending except where the statute effects or impairs vested rights.” Wilco Aviation v. Garfield, 123 Ariz. 360, 362, 599 P.2d 813, 815 (App. 1979).4 Arizona courts have traditionally viewed statutes of limitations as procedural for retroactivity purposes. See, e.g., Harrelson v. Indus. Comm‘n, 144 Ariz. 369, 372, 697 P.2d 1119, 1123 (App. 1984).
¶12 Our inquiry today, however, is not guided solely by the judge-made exceptions to the general statutory rule about retroactivity. The legislature has expressly addressed the retroactivity of newly enacted statutes of limitations in
A. An action barred by pre-existing law is not revived by amendment of such law enlarging the time in which such action may be commenced.
B. If an action is not barred by pre-existing law, the time fixed in an amendment of such law shall govern the limitation of the action.
C. If an amendment of pre-existing law shortens the time of limitation fixed in the pre-existing law so that an action under pre-existing law would be barred when the amendment takes effect, such action may be brought within one year from the time the new law takes effect, and not afterward.
This case requires us to determine the interplay between
B.
¶13 The counts dismissed by the superior court fall into two categories - those filed before the effective date of
¶14 In Arizona, a statute of limitations is tolled when a suit is commenced. Murphey v. Valenzuela, 95 Ariz. 30, 33, 386 P.2d 78, 80 (1963). A suit is commenced by the filing of a complaint. Id.;
¶15 The question is thus whether a timely filed action is barred because the action would have been untimely under a statute of limitations that became effective after the filing. The Territorial Supreme Court addressed this very issue in Curtis v. Boquillas Land & Cattle Co., 9 Ariz. 62, 76 P. 612 (1904). At the time the suit in question was сommenced, no statute of limitations governed actions for the recovery of lands by one claiming title against another holding by peaceable and adverse possession. Id. at 67, 76 P. at 614. A subsequently enacted statute provided for a ten-year limitations period. Id. Curtis held that “an act which merely limited the time within which an action may be brought does not apply to a suit which, though commenced after the passage of the act, was pending at the time the same took effect.” The Court noted that “[t]he logic of this rule is apparent, particularly when applied to a case like the one at bar, where the action was begun before
¶16 Curtis states the settled rule: absent an express legislative statement to the contrary, an act that limits the time in which an action can be brought does not apply to a suit pending at the time the act becomes effective. See Vreeland v. Town of Bergen, 34 N.J.L. 438, 1871 WL 6747 (N.J. 1871); Mass. Bonding & Ins. Co. v. Bryant, 189 So. 2d 614 (Fla. 1966); People ex rel. Dep‘t of Rev. v. Nat‘l Liquors Empire, Inc., 510 N.E.2d 495 (Ill. App. 1987); City of Willmar v. Short-Elliott-Hendrickson, Inc., 475 N.W.2d 73 (Minn. 1991); cf. State v. Simmons, 290 N.W.2d 589, 594 (Iowa 1980) (declining to apply statute imposing statute of limitations on claims to riverbed ownership to actions pending when the statute was enacted).
¶17 Clear Channel argues that Curtis is distinguishable because it involved the “vested rights” of a private plaintiff to bring suit, and any contrary holding would have raised due process concerns.6 But while Curtis did involve a private
¶19 Miami Copper thus stands for the same proposition as Curtis - procedural changes in the law are not retroactive when the procedure at issue was completed in accordance with the law then in effect. The legislature can, of course, abrogate pending causes of action by municipalities and can therefore also make procedural changes that accomplish the same effect rеtroactively. But nothing in
¶20 The remaining question as to the fifty-five claims filed before the effective date of
C.
¶21 The thirty-four claims raised for the first time in the second amended complaint were filed after
1.
¶22 The City and Clear Channel agree that
¶23 We start with the apt observation of the Territorial Supreme Court in 1904:
Upon few, if аny, branches of the law, is there such contrariety of view expressed by the courts as upon the effect to be given new statutes of limitation upon causes of action existing at the time the statutes go into effect.
Curtis, 9 Ariz. at 65, 76 P. at 613. As Curtis noted, the “general rule” was that, absent a contrary legislative expression, new statutes were given only a prospective application and were not applied to causes of action accruing before the effective date of the statute. Id.
¶24 Since at least 1901, however, Arizona has had statutes expressly speaking to this issue. The first was paragraph 2974 of the Civil Code of 1901, which stated:
No one of the provisions of this title shall be so construed as to revive any claim which is barred by pre-existing laws; and all claims against which limitation under said laws had commenced to run shall be barred by the lapse of time which would have barred them had those laws continued in force.
Ariz. Civ. Code 1901 ¶ 2974. This provision neatly captured the general common law rule: causes of action accruing before the effective date of the nеw statute were governed by the statute of limitations in effect at the time of accrual; causes accruing after the effective date of the new statute were governed by that new statute. See Crowell v. Davenport, 11 Ariz. 323, 327-28, 94 P. 1114, 1115 (1908) (holding that suit on a contract cause of action that had accrued prior to effective date of new statute was governed by statute in effect at time of accrual).
A cause of action barred by pre-existing laws is not revived by the amendment of such law enlarging the time; if not so barred, the time fixed in the new law shall govern such action; if the new law shortens the time fixed in the pre-existing law, and thereby such cause would be barred when the new law takes effect, such cause of action may be brought within one year from the time the new law takes effect, and not afterward.
¶26 Subsection A of
2.
¶28
¶29 Subsection B provides that “[i]f an action is not barred by pre-existing law, the time fixed in an amendment of such law shall govern the limitation of the action.” The parties agree that this section applies on its face to this case, because the City‘s thirty-four claims were not barred by pre-existing law. But the parties offer sharply differing interpretations of subsection B.
[t]he rule for the construction of new, re-enacted, or amended statutes of limitation applied in some jurisdictions is that, unless a contrary intent be expressed, they are to be given a prospective effect so as to extend the period of time within which suits might be brought on existing causes of action to the full time prescribed by such statutes counting from the time they take effect.
11 Ariz. at 326, 94 P. at 1115. Crowell eventually held, however, that this rule did not apply in Arizona in light of paragraph 2974, and that causes of action accruing before the effective date of a new statute were governed by the old statute of limitations. Id. at 327-28, 94 P. at 1115.
¶31 The City‘s argument suffers from another flaw. If subsection B is construed as the City suggests, subsection C is completely superfluous - there would never be any case in which the cause of action is barred by the amended statute, because in each case the plaintiff would be given the full period of the new limitations statute, starting from the time that statute took effect, in order to bring suit. Whenever possible, we do not interpret statutes in such a manner as to render a clause superfluous. State v. Deddens, 112 Ariz. 425, 429, 542 P.2d 1124, 1128 (1975).
¶33 We part company with the court of appeals, however, on its construction of subsection C. That subsection provides that “[i]f an amendment of pre-existing law shortens the time of limitation fixed in the pre-existing law so that an action under pre-existing law would be barred when the amendment takes effect, such action may be brought within one year from the time the new law takes effect, and not afterward.” The court of appeals held that this statute did not apply when “an action is not barred by pre-existing law,” and that only subsection B applied in that circumstance. Clear Channel, 206 Ariz. at 338 ¶ 8 n.5, 78 P.3d at 1059.9
¶35 There is in this case a more sensible reading of the statute, and one that gives force to all of its provisions: arguments not presented below, Barrio v. San Manuel Div. Hosp. for Magma Copper Co., 143 Ariz. 101, 104, 692 P.2d 280, 283 (1984), this is a rule of prudence, not of jurisdiction. “When good reason exists, this court may and will entertain such questions.” Jimenez v. Sears, Roebuck & Co., 183 Ariz. 399, 406 n.9, 904 P.2d 861, 868 (1995). One such “good reason” is when the issue is of statewide importance. Hawkins v. Allstate Ins. Co., 152 Ariz. 490, 503, 733 P.2d 1073, 1086 (1987); Barrio, 143 Ariz. 101, 692 P.2d at 283.
Review of the subsection C issue is plainly proper here. First, this is an issue of first impression and of statewide significance. Second, the court of appeals expressly took up the issue. Third, in its order granting review, this Court gave notice of its interest in subsection C and requested supplemental briefing on the issue. Fourth, because both parties agree that this case turns on interpretation of
¶36 This reading, which is compatible with the plain language of
¶37 Clear Channel does not disagree with this general reading of subsection C. It argues, however, that subsection C does not apply in this particular case. Clear Channel‘s argument is grounded in the language of the first clause of subsection C, which makes that statute applicable only when “an amendment of pre-existing law shortens the time of limitations fixed in the pre-existing law” (emphasis added). Clear Channel
¶38 To the extent that Clear Channel‘s argument is that there was no “pre-existing law” governing the time in which the City‘s claims were required to be filed, it fails as a matter of statutory interpretаtion. Such an argument presumes that the “pre-existing law” must be a specific statute of limitations. But the legislature did not use the term “statute” or “statute of limitations” in
While the legislature can, of course, provide a contrary definition of “law,” nothing in the language of
¶39 Section
¶40 Clear Channel also argues that, because
¶41 In the end, Clear Channel‘s argument is really that
¶42
3.
¶43 The effective date of
III.
¶44 For the reasons above, we vacate the opinion of the court of appeals and the judgment of the superior court dismissing the City‘s claims and awarding attorneys’ fees and costs to Clear Channel. Becausе Clear Channel was not the prevailing party, we deny its request pursuant to
Andrew D. Hurwitz, Justice
CONCURRING:
Charles E. Jones, Chief Justice
Ruth V. McGregor, Vice Chief Justice
Michael D. Ryan, Justice
¶45 I agree with my colleagues regarding the continued validity of the fifty-five dismissed claims filed before the effective date of
¶46 This case turns initially on the interpretation of
¶47 Section B provides that “[if] an action is not barred by pre-existing law, the time fixed in an amendment of such law shall govern the limitation of the action.” By its terms, it appears to apply in this case because the City‘s right to file actions to enforce sign ordinances was “not barred by pre-
¶48 The majority, however, relies on § C, which applies if “an amendment of pre-existing law shortens the time of limitation fixed in the pre-existing law.”
¶49 As the majority opinion correctly notes, “law” may refer to other than statutory law. Op. ¶ 38. Yet when the meaning of a word is unclear, as a guide to its significance, we look at the statute as a whole and examine how the word is used in related provisions of the statute. See People‘s Choice TV Corp. v. City of Tempe, 202 Ariz. 401, 403, ¶ 7, 46 P.3d 412, 414 (2002) (interpreting a statute requires construing the statute as a whole); Golder v. Dep‘t of Revenue, 123 Ariz. 260, 265, 599 P.2d 216, 221 (1979) (noting that “words of a statute must be construed in conjunction with the full text of the statute“).
¶50 All three sections of
¶51 Section B contains similar language. It provides that “[i]f an action is not barred by pre-existing law, the time fixed in an amendment of such law shall govern the limitation of the action.”
¶52 Such an understanding is consistent with the use of the term in § C. It says that “[i]f an amendment of pre-existing law shortens the time of limitation fixed in the pre-
¶53 When practitioners need to know how long they have to file an action, they look to the statutes of limitations set forth in the state‘s revised statutes. Thus to find a “time of limitation fixed in the pre-existing law,” they would look to the statutes of limitations.
¶54 But in this case the statutes of limitations do not fix any time within which the City must bring its sign code violation actions. To the contrary,
¶55 Instead,
¶56 As the majority opinion correctly notes,
¶57 This is where this case becomes particularly problematic. The City urges that while the language of
¶58 The history that exists shows that the language of
¶59 Additional evidence indicates that at least some members of the Senate intended H.B. 2559 to apply prospectively only. In the Senate Finance Committee hearing on March 9, 2000, Representative Joe Hart, the bill‘s sole sponsor, stated that his bill would not “nullify any existing violations, court actions, or outstanding disputes. This bill does require filing of existing known violations within two years of the effective date of the bill.” Ariz. State Senate Fin. Comm. Hearing on H.B. 2559, 44th Leg., 2d Reg. Sess. (Ariz. 2000) (Statement of Rep. Hart).
¶60 At the same committee hearing, Wendy Briggs, the lobbyist/attorney for the Arizona Outdoor Advertising Association, testified in support of the bill. She stated, in reference to potential causes of action in Tucson, that the City “would have two years from the effective date of this bill to file those causes of action.” Id. (Statement of Ms. Briggs). With respect to
There is a statute in Title 12, 12-505(B), which basically says if an action is not barred by preexisting law and the law is going to be amended, the amendment governs the limitation of action if it‘s new, which means the effective date, from the effective date of this legislation they would have two years to file on those causes of action.
¶61 At that hearing, Tucson Senator George Cunningham sought to cement Outdoor Advertising‘s position that the City would not be prohibited from going forward with its claims against the billboard companies. Minutes of Senate Comm. on Fin., 44th Leg., 2d Reg. Sess., 10 (Mar. 9, 2000). He asked Ms. Briggs if her client would be willing to amend the bill to include a savings clause for any pre-existing violations; she responded that such a clause was unnecessary because of
¶62 When the senators on the committee voted on H.B. 2559, Senator Ken Bennett explained that his aye vote was premised on his understanding that the section would apply only prospectively. Id. Senator Bennett‘s concern that the statute apply only prospectively is also evidenced by a letter he received from the Senate rules attorneys confirming “that HB 2559 would apply prospectively and that a municipality would have two years from the effective date of this bill to cite violations pursuant to this section that were discovered by the municipality before the effective date of this bill.” Letter from Rules Attorney to Sen. Bennett of 03/15/00 (emphasis
¶63 The Senate Fact Sheet for H.B. 2559 also suggests that the members of the Senate may have believed that
¶64 The trial court and court of appeals concluded that they could not consider the legislative history because
¶65 The legislative history surrounding the passage of
¶66 The trial court relied on Hayes v. Continental Insurance Co., 178 Ariz. 264, 270, 872 P.2d 668, 674 (1994), to conclude that the statements of non-legislators were inadmissible to demonstrate legislative intent. Minute Entry, supra ¶ 64, at 3. The statements at issue in Hayes, however, were described by the court as either “cryptic” or non-responsive to the issue before the court. Hayes, 178 Ariz. at 269, 872 P.2d at 673. In that context, the court cautioned against reliance on non-legislators’ statements “unless the circumstances provide sufficient guarantees that the statements reflect legislators’ views.” Id. at 270, 872 P.2d at 674.
¶67 Unlike the cryptic, non-responsive statements in Hayes, the statements offered by the outdoor advertising industry‘s lobbyist and those by Mr. Eller in his letter to Senator Bennett directly addressed the senators’ expressed concerns about the precise matter at issue: the bill‘s potential retroactive application. Their statements were neithеr cryptic nor off-topic, but rather served to relieve the senators’ concerns by assuring that the bill would apply prospectively only.15 Furthermore, the questions by Senator
¶68 The trial court relied on Rio Rico Properties, Inc. v. Santa Cruz County, 172 Ariz. 80, 834 P.2d 166 (1992), to exclude the Senate Fact Sheet. Minute Entry, supra ¶ 64, at 3. The situation in Rio Rico, however, was far different. Rio Rico, 172 Ariz. at 90, 834 P.2d at 176. The court in Rio Rico was concerned about comparing the intent of one legislature with that of another “a number of years earlier.” Id. That is not the case here. The same legislature (the Forty-fourth) considered and rejected H.B. 2671, which contained a retroactivity clause in 1999, and passed virtually the same
¶69 In short, the record reflects an unusually clear understanding that the Senate Finance Committee, and perhaps the Senate as a whole, did not intend
¶70 Despite this relatively clear legislative history, the language of
¶71 We recently wrestled with this dilemma in North Valley Emergency Specialists v. Santana, 208 Ariz. at 303-04, ¶¶ 9-14, 93 P.3d at 503-04. In that case, we were confronted with a provision of the Arizona Arbitration Act that was clear on its face, yet appeared to conflict with the legislature‘s intent. Id. We held that we must interpret the statute according to its plain meaning, unless doing so would lead to “impossible or absurd results.” Id. at 303, ¶ 9, 93 P.3d at 503 (quoting Bilke, 206 Ariz. at 464, ¶ 11, 80 P.3d at 271).
¶72 Similarly, in the case now before us, the clear words of the legislature conflict with the legislative — or at least the senatorial — intent. The statute‘s terms require that actions to enforce sign code ordinances be filed within two years from the date of discovery.
¶73 Despite thе legislative history, I would enforce the statute according to its terms, for these reasons: First, as clear as the legislative intent seems to be, it emanates mostly from the Senate, and even then stems largely from the proceedings before one committee. We have no indication as to the intent of members of the House of Representatives, other than Representative Hart. Second, respecting the legislature‘s role as the state‘s chief policymaker, the court must rely on the truest indicator of the legislature‘s intent: the words it chooses to put in the statute. While the legislative history is less than clear because of its incompleteness, the words are as clear and precise as language can be. The statute requires that a “municipality must . . . file an action involving . . . [a] sign code violation within two years after discovering the violation,”
¶74 Thus, despite the legislative history suggesting that the legislature intended for these claims to go forward, I would affirm the result reached by the trial court and court of appeals — that is, I would enforce the clear terms of the legislation and require dismissal of those claims filed on July
¶75 The result is not unfair to the City. It was aware that H.B. 2559 was under consideration. It had months to file claims that it had known of for years. Obviously anticipating the statutory interpretation rendered by the trial court and court of appeals, it managed to file 122 claims the day before
¶76 I have two additional reasons for deciding this case under § B rather than § C. First, interpreting § C as the majority has done produces one result that is counterintuitive, although probably not impossible or absurd. See N. Valley, 208 Ariz. at 303, ¶ 9, 93 P.3d at 503 (cautioning against statutory interpretations that lead to “impossible or absurd results“). Applying § C in a case such as this, where there was no “time fixed in the pre-existing law,” yields the potential of reviving very old claims. That is, applying § C‘s one-year grace period gives a municipality one year tо salvage claims that were discovered ten or twenty years earlier — or even more — because those old claims would be “barred when the amendment [§ 9-462.02(C)] takes effect,” having been discovered more than two years before the effective date of
¶77 If § B is applied — because the statute has not run on such cases and no time period was “fixed in the pre-existing law” — the City would have only a short time to file previously discovered claims or it would lose them. For example, a claim discovered twenty-two months before the effective date of
¶78 Applying § B when there is no previous statute of limitations, as
¶79 The second and final reason for declining to resort initially to
¶80 In the еnd, I concur in the result regarding the bulk of the claims, those filed on July 17, 2000, but dissent
Rebecca White Berch, Justice
