Hudson v. HapnerHudson v. Hapner
- Reporters:
- ,
- Before:
- Madsen (en banc)
¶ 1 This case began with an automobile accident. The case was referred to mandatory arbitration, and the plaintiff, Lea Hudson, won a monetary award. Respondents (Hapner) requested a trial de novo under the Superior Court Mandatory Arbitration Rules (MAR). Hudson improved her position at trial, receiving a substantially greater award. Hapner successfully appealed, obtaining reversal and instructions for a new trial. Despite appellate success, Hapner moved in the trial court to withdraw his request for trial
FACTS
¶ 2 On April 6, 1998, Hapner rear-ended Hudson in an automobile accident. Hudson filed a lawsuit and requested arbitration under the mandatory arbitration rules. On November 17, 2000, arbitration resulted in an award of $14,537.97 for Hudson.1 Hapner requested a trial de novo. At the conclusion of trial the jury awarded Hudson a significantly higher amount than the arbitration award: $292,298.2 Pursuant to
¶ 3 Hapner appealed, alleging various evidentiary errors related to admissibility of expert witness testimony, portions of Hudson‘s testimony, and use of a model spine at trial.
¶ 4 In a separate section of her appellate brief, Hudson requested attorney fees under
¶ 5 The Court of Appeals ruled that evidence had been improperly excluded and reversed, remanding the matter for a new trial. Hudson v. Hapner, noted at 126 Wash.App. 1057, 2005 WL 834433, at *3 (Hudson I). The court also denied Hudson‘s attorney fees on appeal, holding that “her claim of reasonable attorney fees at trial must abide the outcome” of the second trial. Id. at *4.
¶ 6 After the Court of Appeals issued its decision, Hapner filed a cost bill requesting $200 in statutory attorney fees and $3,473.25 in costs incurred on appeal. Appellants’ Cost Bill on Appeal at 1-2 (Apr. 21, 2005) (citing
¶ 7 Hudson objected to the cost bill, arguing (i) “both parties must bear their own costs,” because Hapner had only prevailed in part, (ii) awarding costs to Hapner violated the purposes of the mandatory arbitration rules, which contain its own attorney fees provisions, and (iii) in the alternative, an award of attorney fees and costs to Hapner under
¶ 8 The Court of Appeals awarded costs and attorney fees to Hapner as the substantially prevailing party.
¶ 9 Hudson‘s subsequent motion for reconsideration (reiterating her request for attorney fees) and her petition for review in this court were both denied.
¶ 10 Following remand, Hapner filed a motion to compel supplemental discovery. Hudson complied, providing additional information about her medical records and billing. Thereafter, Hapner moved to withdraw his request for trial de novo and submitted a draft judgment in which he offered to pay the original arbitration award plus interest, as well as Hudson‘s attorney fees and costs incurred in proceedings before the superior court.4 Hudson objected and moved to
¶ 11 In the second appeal, Hudson requested attorney fees and costs in a separate section of her brief.5 Specifically, she requested attorney fees and costs “[u]pon prevailing in this appeal and pursuant to
¶ 12 The Court of Appeals reversed the trial court, holding that the mandatory arbitration rules provide a unilateral right to withdraw at any time. The court also denied Hudson‘s request for attorney fees and costs incurred during this second appeal, since Hudson was not the prevailing party on appeal. Hudson v. Hapner, 146 Wash.App. 280, 187 P.3d 311 (2008) (Hudson II).6 Hudson then filed a motion for reconsideration, urging the court to reconsider both of its decisions (Hudson I and II) pursuant to
¶ 13 Hudson petitioned this court for review.
ANALYSIS
¶ 14 On December 7, 2000, Hapner requested a trial de novo. After completing one trial, one appeal, and almost six years of litigation, Hapner sought to unilaterally withdraw his request for a trial de novo. Hudson argues there is no unilateral right to withdraw or, if it exists, it cannot be asserted at this late stage in proceedings. We conclude that Hapner had a unilateral right to withdraw his request. However, we agree with Hudson that his decision came too late.
¶ 15
The court shall assess costs and reasonable attorney fees against a party who appeals the award and fails to improve the party‘s position on the trial de novo. The court may assess cost and reasonable attorney fees against a party who voluntarily withdraws a request for a trial de novo.
¶ 16
¶ 17 We interpret the mandatory arbitration rules as if they were drafted by the legislature. Wiley v. Rehak, 143 Wash.2d 339, 343, 20 P.3d 404 (2001). Because we avoid interpreting statutes in ways that render provisions meaningless, Svendsen v. Stock, 143 Wash.2d 546, 555, 23 P.3d 455 (2001), the same principle applies here. The language of
¶ 18 The Court of Appeals reached the same conclusion in Thomas-Kerr v. Brown, 114 Wash.App. 554, 559 n. 16, 59 P.3d 120 (2002). In that case the defendant withdrew his request for a trial de novo. The plaintiff argued the case should have proceeded
¶ 19 Hudson argues that the Court of Appeals was wrong in Thomas-Kerr because once a case is no longer in arbitration, the civil rules apply, not the mandatory arbitration rules. As authority, Hudson cites
¶ 20 The parties agree that the primary goal of mandatory arbitration is to reduce congestion in the courts and delays in hearing cases. Nevers v. Fireside, Inc., 133 Wash.2d 804, 815, 947 P.2d 721 (1997); Haywood v. Aranda, 143 Wash.2d 231, 238, 19 P.3d 406 (2001). We believe that interpreting
¶ 21 Accordingly, we hold the mandatory arbitration rules create an implied right to unilateral withdrawal.
¶ 22 Anticipating this holding, Hudson argues that even if the mandatory arbitration rules and
¶ 23 While we hold there is an implied right to unilaterally withdraw a request for trial de novo based on the language in the attorney fees provisions, neither the mandatory arbitration rules nor the statute implies a time limit for exercising the right. Therefore, we look to the language and purpose of the rules and
¶ 24 First, the language of
¶ 25 Next, Hudson argues that it is inconsistent with the goal of mandatory arbitration for a party to be able to withdraw a request for trial de novo after the case has been tried before a jury. She argues that this only encourages a party who is unsuccessful in arbitration to seek a trial de novo. We agree.
¶ 26 Without placing some limit on when a party can withdraw a request for trial de novo, one party is free to drag the case on by conducting discovery to see if his or her position improves or not. If it does not, the party can withdraw the request for a trial de novo, knowing there is only a risk of having to pay additional attorney fees and costs (which are discretionary, not mandatory) and no risk of paying any further damages. Allowing unilateral withdrawal during trial would artificially alter the balance of power between the parties.
¶ 27 This result would also be contrary to the specific purpose of the discretionary attorney fee and costs provision in
Attorney Fees and Costs
¶ 28 Hudson claims attorney fees and costs for all proceedings from the date of Hapner‘s request for trial de novo through the proceedings pending before this court, pursuant to
¶ 29 Hapner first argues Hudson cannot claim fees and costs incurred in proceedings before the Court of Appeals on the first and second appeal, because she did not comply with the pleading requirements of
(a) Generally. If applicable law grants to a party the right to recover reasonable attorney fees or expenses on review before either the Court of Appeals or Supreme Court, the party must request the fees or expenses as provided in this rule, unless a statute specifies that the request is to be directed to the trial court.
(b) Argument in Brief. The party must devote a section of its opening brief to the request for the fees or expenses. Requests made at the Court of Appeals will be considered as continuing requests at the Supreme Court. The request should not be made in the cost bill. In a motion on the merits pursuant to rule 18.14, the request and supporting argument must be included in the motion or response if the requesting party has not yet filed a brief.
(Boldface omitted.)
¶ 30 This court has held
¶ 31 Hudson requested attorney fees in a separate section of her brief in both appeals. In each case, she cited
¶ 33 Although we conclude that Hudson preserved her right to claim attorney fees and costs under the mandatory arbitration rules, whether she is entitled to those costs and fees must abide the outcome of retrial. As noted,
The court shall assess costs and reasonable attorney fees against a party who appeals the award and fails to improve the party‘s position on the trial de novo. The court may assess costs and reasonable attorney fees against a party who voluntarily withdraws a request for a trial de novo.
¶ 34 Until the case is concluded there is no way to know whether Hapner will fail to improve his position.9
¶ 35 In addition to requesting attorney fees and costs for all proceedings after Hapner‘s trial de novo request, Hudson asks this court to reevaluate the Court of Appeals’ decision in Hudson I. Hudson contends the “`prevailing party‘” is one who prevails “`at the conclusion of the entire case.‘” Resp‘t‘s Corrected Pet. for Review at 23 (quoting Tribble v. Allstate Prop. & Cas. Ins. Co., 134 Wash.App. 163, 174-75, 139 P.3d 373 (2006)). Hudson reasons that Hapner has not yet improved his position at trial de novo, and thus has not “prevailed” so far. She argues Hapner should not have been awarded fees and costs during the first appeal and that this result, as well as the denial of her fees and costs in both Hudson I and II conflicts with Tribble.
¶ 36 As far as Hudson‘s arguments related to costs and fees under
A commissioner or clerk of the appellate court will award costs to the party that substantially prevails on review, unless the appellate court directs otherwise in its decision terminating review. If there is no substantially prevailing party on review, the commissioner or clerk will not award costs to any party. An award of costs will specify the party who must pay the award.
¶ 37 Attorney fees under
¶ 38 In Hudson I, Hapner substantially prevailed because he succeeded in achieving the relief he requested: reversal of the trial de novo result and remand for retrial. This result does not depend on whether Hapner improves his position in the trial de novo. Thus, the Court of Appeals correctly awarded him costs based on
CONCLUSION
¶ 39 We hold that
WE CONCUR: CHARLES W. JOHNSON, GERRY L. ALEXANDER, TOM CHAMBERS, SUSAN OWENS, and DEBRA L. STEPHENS, Justices.
SANDERS, J. (dissenting).
¶ 40
¶ 41 Instead, the majority creates a limitation on when a party can withdraw its trial request, precluding a party from doing so once the trial has begun. But nothing in
¶ 42 It is difficult to address the majority‘s reasoning because, much like Frankenstein‘s monster, the majority opinion is a sewn-together collection of partial arguments, each pilfered from a different cadaver and none lending any real support to its conclusion.
¶ 43 The majority reasons that the purpose of mandatory arbitration is to reduce court congestion and delays in hearing cases. Majority at 583 (citing Nevers v. Fireside, Inc., 133 Wash.2d 804, 815, 947 P.2d 721 (1997); Haywood v. Aranda, 143 Wash.2d 231, 238, 19 P.3d 406 (2001)). The majority further instructs:
Without placing some limit on when a party can withdraw a request for trial de novo, one party is free to drag the case on by conducting discovery to see if his or her position improves or not. If it does not, the party can withdraw the request for a trial de novo knowing there is only a risk of having to pay additional attorney fees and costs (which are discretionary, not mandatory), but there is no risk of paying any further damages. Allowing unilateral withdrawal during trial would artificially alter the balance of power between the parties.
Majority at 583.
¶ 44 So, according to the majority, permitting a party to request a trial de novo, conducting some discovery, getting cold feet, and rescinding that request “is contrary to the purpose of avoiding congestion and delay....” Id. at 584. The conclusion that logically follows from that statement is that a party cannot conduct discovery and then rescind his or her request for a trial de novo. Thus, the majority‘s argument should lead it to hold Hapner cannot rescind his request after he begins to take discovery. Instead the majority concludes a party is permitted to request a trial de novo, fully conduct discovery, and then withdraw the trial request on the eve of trial. Id. at 583-84. How does that address the majority‘s concern that courts will be congested and trials delayed if “one party is free to drag the case on by conducting discovery to see if his or her position improves or not“? See id. at 583. The majority‘s justification does not support its holding.
¶ 45 Preventing a party from withdrawing a trial request at the commencement of discovery or trial increases court congestion. Once a party requests a trial de novo, court congestion and delays are reduced when the party rescinds its request at any time, whether it does so at the onset of discovery, during discovery, the eve of trial, or during the trial. Even if a party rescinded its request on the morning of the last day of trial, the court would be less congested for not
¶ 46 The majority insists that, although precluding withdrawal adds to court congestion in this case, precluding it in future cases “will serve as a disincentive to requests for a trial de novo for the purpose of delay.” Id. at 584. Again, the stated justification for the majority‘s holding does not actually support it. First, the legislative purpose here was never to discourage a party from exercising its trial right if it so desired.
¶ 47 Oddly, the majority cites the Judicial Council Comment to
¶ 48 The majority then continues: ”Regardless of whether delay is specifically intended, delay is certainly the effect when, as here, the arbitration award remains unpaid and the party against whom the award was entered is permitted to pursue a trial de novo until he decides for strategic or tactical reasons that withdrawal from the trial de novo is the more advantageous course.” Id. at 583-84 (emphasis added). This statement has no connection with the Judicial Council Comment to
¶ 49 Second, without explanation or justification, the majority labels as a “misuse of the mandatory arbitration rules” a party requesting a trial and then rescinding that request upon determining its case is weaker than it believed. See majority at 584. But it is not only common in, but also a characteristic of, our trial system that a party can and will attempt to settle a case after learning through discovery that the facts are not as favorable as once believed. A party may similarly rescind its request for a trial after learning through discovery that the facts are not as favorable as believed. The majority speaks of maintaining “the balance of power between the parties,” id. at 583, and this is a perfect example. Without mandatory arbitration, a party can conduct discovery and then settle; with mandatory arbitration, the party should still be permitted to conduct discovery before deciding to forgo its right to a trial—doing so is not a “misuse” of the mandatory arbitration rules, see majority at 584. Permitting a party to conduct discovery to flesh out its case retains the balance of power that existed prior to mandatory arbitration.
¶ 50 Instead, the majority condemns a party if it seeks discovery and realizes that its case is weaker than previously believed. See majority at 583-84. A fundamental purpose of discovery is to require both sides to exchange relevant information, which necessarily will affect each party‘s view of the strength of its case. Seeking discovery to determine the strength of one‘s case is no more a “misuse” of the mandatory arbitration rules than it is a “misuse” of the system as a whole—that is to say, it is no misuse at all.
¶ 51 Third, the majority‘s claim that preventing withdrawal of a trial request will
¶ 52 And the majority‘s holding, in practice, will not discourage a party from initially requesting a trial. Nothing about precluding a party from withdrawing the trial request after the trial has begun will discourage the party from requesting a trial de novo to conduct discovery.2 See majority at 583. Under the majority‘s holding, parties are not discouraged from requesting a trial to conduct discovery and, according to the majority, “misuse” the process by “assessing the strength of the other party‘s case.” See id. at 584. Under the majority, parties can take full discovery and, on the eve of trial, rescind the trial request. The majority‘s “solution” is all show and no go.
¶ 53 Adrift in a sea of half-developed and mostly irrelevant policy considerations, the majority makes one attempt to anchor its holding to the text of an applicable rule. The majority cites
¶ 54 The majority‘s attempt to anchor its deadline to
¶ 55 But frankly,
¶ 56 Regardless, the majority abandons its
¶ 57 One might presume the majority views the beginning of the first trial, the verdict of which was subsequently reversed, as the cutoff for Hapner‘s withdrawal regardless of the later reversal. However, that conclusion is inconsistent with the majority‘s claim that its cutoff is justified by the language of
¶ 58 The majority cites concerns over “the balance of power between the parties” to justify creating a deadline. Majority at 583.
¶ 59 And permitting a party to withdraw that request reduces court congestion. Here, Hapner‘s withdrawing his request saves the trial court from conducting an entire trial on remand.
¶ 60 The legislature was also mindful of the balance between the parties. “The court may assess costs and reasonable attorneys’ fees against a party who voluntarily withdraws a request for a trial de novo....”
¶ 61 Ultimately, the majority attempts to “fix” something that isn‘t broken. Reasonable people may argue there is a better way for
¶ 62 I would apply
¶ 63 I dissent.
WE CONCUR: JAMES M. JOHNSON and MARY E. FAIRHURST, Justices.