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Smith v. Stratton
835 P.2d 1162
Alaska
1992
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*1 M. SMITH Steven Toni Smith, Appellants,

R. STRATTON, Appellee.

Barbara B.

No. S-4153.

Supreme Court Alaska. 26, 1992.

June Dittman, Kelly,

John C. Cossman & As- sociates, Anchorage, appellants. Hanson, Longacre, Ramona Michael J. S. Anchorage, appellee. C.J., RABINOWITZ,

Before BURKE, MATTHEWS, COMPTON and MOORE, JJ.

OPINION RABINOWITZ, Justice. Chief INTRODUCTION dismissal the is- appeal This of a raises savings Alaska’s sue whether applies is refiled within an action which being dismissed for failure one after superior court prosecute. finding complaint, that it was statute of limitations time-barred statute, 09.- and that Alaska’s 10.240, apply. did not *2 H63 notice, rejected estoppel taking position also the Smiths’ the the that informal arguments against application of the stat- attempts at by parties settlement made the ute of limitations. prosecution constituted sufficient In response, superior case. the court en- AND PROCEEDINGS FACTS 3, 1988, tered an denying order on March 1984, 30, On November Barbara Stratton dismissal under stating Rule and that car, injuring rear-ended Toni Smith’s Smith the case would require- be dismissed if the Through in the lawyer, accident. their the 16.1(g) ments of Civil Rule were not satis- attempted negotiate Smiths to a settlement by 1,1988.2 fied June Neither Stratton nor Allstate Company, with Insurance Strat- copy Allstate received a of the order. No comply ton’s insurer. In order to with the further action was taken on the case and limitations, year two statute of the Smiths 24, 1988, on superior June court dis- an action supe- filed Stratton complaint missed the prej- Smiths’ without 28, rior court 1986. On October October udice. 1986, granted request the Smiths Allstate’s dismissal, for an After the negotia- indefinite extension of time in which settlement parties to file an answer since the tions continued. The were Smiths retained new attempting negotiate action, including a settlement. In counsel and refiled the 1987, by Smith’s car two other was rear-ended Yu Allstate insureds in their com- Son, plaint3, April and in Andrea on Again, Waldon collided 1989. Allstate passenger. requested with a car in which a Smith was and received an unlimited exten- by Son and Waldon All- sion of time in were both insured which to answer the new complaint. compli- Eventually, negotiations state. The two later accidents both broke negotiations cated and slowed settlement down and the Smiths asked that Allstate Allstate, particularly complaint. with on the issue answer the damages. Toni Smith’s Thereafter, summary Stratton moved for 15, 1988, January judgment, requesting On the clerk of the superior court issued a Civil Rule 41 Notice court dismiss the because why expired Show Cause Smiths’ action the statute of limitations had be- not prose- should be dismissed for want of fore opposi- was refiled. tion, attorney responded cution.1 The Smiths’ argued the Smiths that Alaska’s sav- 41(e) provides: complaint, Civil Rule the summons and the case shall be transferred to the inactive calendar Dismissal Want of Prosecution. Actions pending promptly which have been in a court for more clerk of the court. The clerk shall any proceedings having one than without notify writing counsel in of the transfer. All may been taken be dismissed as a matter of cases which remain on the inactive calendar course, prosecution, by for want of the court dismissed, days for more than 60 shall be party on its own motion or on motion of a (1) period: proper unless within that A mo- pending action. The the cases clerk shall review all filed; (2) set tion to trial certificate is or semi-annually and in all cases in which good the court on a motion cause orders proceedings no have been taken for more case continued a inactive calendar for year, than one the court shall hold a call of period specified additional of time. Notwith- the calendar or the clerk shall send notice to 41(b), standing Civil Rule the dismissal does parties writing why the action should to show cause in operate adjudication upon not as an the mer- good be not dismissed. If cause previous been en- its unless dismissal has contrary to the is not shown at a call of the rule, tered the court under this or days or calendar within 30 of distribution of 41(a)(1). parties or under Civil Rule notice, the court shall dismiss the action. under this rule is filed If case dismissed may The clerk paragraph dismiss actions under this may again, the court make such order for the party opposed aif has not dismis- payment previously dis- of costs of the case prosecution sal. A dismissal for want of may proper, may stay as it deem missed prejudice without unless the court states in proceedings party in the case until the prej- the order that the case is dismissed with complied with the order. udice. 16.1(g) 2. Civil Rule reads: against both Son and Waldon were 3.The cases Inactive Calendar and Dismissal. Where a subsequently prejudice July motion to set trial and certificate have not 3, 1990, January respectively. days been filed within 270 after the service of applicability statute de- refiling of the case ings allowed phrase pends interpretation on the and, alterna- year of dismissal within one “upon the trial estopped from tively, that Stratton Legis- limitations because assert that the Alaska asserting the statute of Oregon savings adopted lature result- requested extensions which Allstate *3 rely City v. Fairbanks Schaible formally prose- ed in the Smiths’ failure legislature proposition for the that the also dismis- consequent and the cute the action Oregon interpre- adopted the common law claim Stratton. sal of their 201, 207 tation of the statute. 375 P.2d summary superior granted The court (Alaska 1962).6 regard In this the Smiths ap- and this judgment Stratton’s behalf argue Oregon interpreta- that the courts’ peal followed.4 adopted with the statute and tions were that, therefore, interpretation of the v. Tel. Tel. Co. statute White & Pacific STAT- I. DOES THE ALASKA SAVINGS 371, 193, controls. 168 Or. 123 P.2d 195 UTE, 09.10.240,APPLY TO CASES (Or.1942), Safeway overruled Fuller v. FOR FAILURE TO DISMISSED 131, Stores, Inc., 258 Or. 481 P.2d 616 PROSECUTE? (Or.1971). states dictum that the White The contend that since the Oregon savings applies to an action year superior a was refiled within prosecution. dismissed for want of of their action for failure argue savings court's dismissal Smiths further that since the be prosecute, savings statute should statute is a remedial statute it should given a liberal construction. disagrees, that a apply. Stratton dismissed for failure case which been relies on v. Stratton State Andreanoff not fall the ambit prosecute does within proposition presumption that “the statute, requires that savings which may not conclusive and Alaska’s courts upon or the case “dismissed the trial be adopt interpretation if convinced variant statute, upon appeal.” plain language AS 09.10.240.5 com that the public policy require it.” mon sense and statute, savings The Alaska AS 09.10.- 473, (Alaska App.1987) n. 3 746 P.2d 476 240, pertinent part: provides 51, State, (citing Beckley v. 443 P.2d 55-56 If is commenced within the an action (Alaska 1968)). savings After Alaska’s upon prescribed time and is dismissed 1962, Oregon adopted in statute was upon appeal after the time the trial or Stores, Safeway decided Fuller v. court action, bringing a new limited for Fuller, Inc., (Or.1971). 481 P.2d 616 In may commence a new action ... savings that the statute did not court held upon prose the cause of action within one for lack of apply to a case dismissed appeal. cution and overruled after the dismissal or reversal White.7 opin- in- the decision as a retreat from the court's the issues before the court Since 4. law, is inaccu- questions review ion in Fuller. This characterization the standard of volved 1028, State, Hatley extended the reach Kollodge P.2d rate. While the court is de novo. v. 757 (Alaska 1988). any case in which the of the statute to cover 1032 judicial has been called on to exercise its court previously to reach This court has declined 5. function, by determining questions of fact or 182, Gilo, 111 P.2d 184 this issue. Evron v. law, both, only issue of it addressed the 401, K, Inc., 1989); (Alaska v. 657 Shiftman jurisdiction dismissed for lack of whether a case may 1983); Enters., (Alaska Atlas Inc. v. 402 n. 1 494 be refiled under the statute. Co., n. 1 Const. 572 P.2d 70 Consolidated Ferguson, 1. The Statutes P.2d at 429-30 n. 1977). (Alaska Statutes, (1978), Saving Limitations: of author notes “[ajrguably a to dis- motion was first enacted in 6. Alaska Statute 09.10.240 judicial prosecution involves a miss for want of 1.24, appears It § Ch. SLA 1962. 1962. parties so as examination of issues between Oregon savings likely was the that the trial,” however, continues he to constitute 09.10.240, given the identical text. source of AS observing possible that the court "will that it is relating to the definition to issues restrict the to the court’s subse- The Smiths call attention Exch., jurisdic- procedural such as or to issues quent Hatley Truck Ins. merits decision in v. purpose (Or.1972), characterizing Hatley court stated tion.” P.2d 426 Or. H65 have often stated that “statu We Stratton to assert the bar of statute of tory interpretation begins receiving examination limitations after an indefinite ex- tension of time in which to language light construed in of its answer complaint. Stratton characterizes Inc., purpose.” Eng’rs, Vail Coffman argument essentially eq- as an (Alaska 1989); P.2d 211 L J & Diversified estoppel argument. uitable Because the v. Municipality Anchorage, ter. En Smiths failed to misrepre- show fraud or 736 P.2d Here reliance, sentation and Stratton asserts upon resolution of the issue turns construc argument that this should fail. One com- language “upon tion the trial or explains mentator “equitable term es- “ap In our view “trial” and toppel” as follows: peal” interpreted should mean be “trial employ Courts often what has “appellate court level” and been level” re *4 loosely “equitable estoppel” termed spectively. Any other construction of statutory remove the in any bar situation these terms would be We unreasonable. plaintiffs in which failure reasonable impute are reluctant to an irrational intent appears to sue to result from reliance on legislature phraseol to the in its use of the conduct, any misleading sort of such as ogy “upon the trial or It is obligation assurances that the would be legislature not rational to assume that the suit, discharged request without or a intended to exclude from the stat plaintiff delay prosecution of the ute causes of action which are dismissed claim. (for before trial and not those which reasons)

same are dismissed after com Developments in the Law: Statutes of mencement of trial. Nor does it make Limitations, 63 Harv.L.Rev. distinguish (1950). sense to a dismissal which is appeal entered after a notice of has been Ness, Stratton relies on Groseth v. subsequent from

filed one which occurs (Alaska 1966), proposition P.2d 624 for the appeal of the submission its merits or misrepresen- that there must be reliance on Thus, argument. one which occurs at oral tation or false statements for es- applies we conclude that AS 09.10.240 to all toppel. Stratton asserts that Groseth dismissed, actions have been other which closely resembles the instant case. Gro- merits, than on their at both the trial court seth, however, distinguished can be be- appellate court levels.8 plaintiff cause the had not filed a suit when expired

the statute of limitations and the II. MAY any DEPENDANT WHO HAS failure to file suit was not a result of REQUESTED AN INDEFINITE EX- agreement parties. between the TENSION, RESULTING IN A DIS- Sweeney In Ins. Gudenau & Co. FOR FAILURE MISSAL TO PROSE- Co., plaintiff we held that a who fails to CUTE, RELY THE ON STATUTE OF limitations file suit within the statute of LIMITATIONS TO DISMISS THE RE- protected by equitable estoppel if may be FILED CLAIM? plaintiff postpone has been induced to rely equity argu- filing by in their the defendant’s words or con Smiths suit fundamentally ment that it is unfair for duct. 736 adjudication operate as an on the of the statute is "to avoid the bar of the statute “does not diligent plaintiff previous of limitations for a ly whose time- en- unless a dismissal has been merits objection has been over his dismissed by rule.” Rule 16.- tered the court under this without a determination on the merits.” 494 require 1(g) empowers the court to further that "[t]here P.2d at 430. The court also noted impose stay payment of costs and to policy denying reason for the bene- is a distinct paid proceedings are when the until the costs plaintiff fit of the statute to a who has dismissal under the rule. case is refiled after claim to be inaction allowed his 41(e) Additionally, provides Rule that a case prosecution.” n. 1. want of 494 P.2d at 429-30 prosecution is dismissed dismissed for want of 41(e) prejudice under Rule unless the without delays provided safeguards 8. The from abusive otherwise. court states support Civil Rules 16.1 and 41 our conclu- 16.1(g) provides that a dismissal sion. Rule Further, of limitations is reversed. of the statute estop an assertion order to defense, satis- particular must circumstances this plaintiff given limitations (1) pur- plaintiff’s record, equitably fy conditions: we hold that Stratton three give the remedy initial must from the statute of limi- estopped suit her; against notice of the claims defendant defense. tations (2) prejudiced must defendant not be REMANDED for fur- REVERSED and evidence; (3) the gather her ability to opin- with this proceedings ther consistent Id. good have faith. must acted ion. Here the Smiths were induced J., COMPTON, suit Strat-

postpone prosecution concurs. an extension request ton’s indefinite BURKE, J., part, concurs in dissents Thus, hold that file an answer. we time to part. eq application all conditions for three COMPTON, Justice, concurring. estoppel are satisfied: Stratton uitable claims her and bene aware of the that Alaska’s Sav- concludes not delay because she was fited from Statute, 09.10.240, applies all ings required attorney an to answer to retain dismissed, which have wheth- actions been good acted in appellate trial court or court level. er at the granting Allstate extensions faith *5 dispositive agree. I Since this issue is of time to answer.9 case, there is no reason address the case the instant estopped A similar situation to equitably Stratton is whether Co., King v. occurred in State asserting of the statute from the defense Reefer (Alaska 1976), the state where opinion P.2d I express limitations. no wheth- of stipulation Nelco entered into a and New analysis agree er I with the court’s and to an- extending the state’s time in which on this issue. conclusion complaint this court the until after swer decision, case. our pending After BURKE, Justice, part, decided in dissenting, answer, asserting that the filed its state concurring, part. in to sue and that capacity Nelco lacked New opinion join part in II the court’s I of of limitations had run. We therefore, concur, disagree, result. I if the had filed its that state concluded however, opinion. part with I of the required, time New Nelco at the answer First, to decide the issue there no need opportunity remedy had the would have Second, part I think I. discussed of capacity its before the statute lack wrong. holding part plainly Using I is Therefore, held had run. we limitations reasoning Oregon Supreme estoppel the assertion barred Stores, Inc., Safeway Fuller v. Court defense. of the statute limitations (1971), I 481 P.2d 258 Or. CONCLUSION inapplicable in the hold AS 09.10.240 would ac- applies 09.10.240 Alaska Statute at bar. case prosecute. for failure to tions dismissed Thus, court’s we conclude action on

dismissal of

grounds it the two that was barred magnitude inconsistency, taking "precludes party position, estoppel Quasi from has position he or she asserted position a previously inconsistent with one and whether first where render knowledge taken circumstances facts. Id. full position second unconsciona- assertion of the for Stratton to re- Here it is unconscionable Inc., Util. ble.” Jamison Consolidated quest receive extensions time to two estoppel Quasi does and then assert answer party require ignorance or reliance not claiming estoppel. benefited from of limitations. Allstate determining quasi Id. because Allstate did not the extension time issues, whether estoppel a court should consider attorney pay to file the to retain and for an have position party the inconsistent answer. produced a the first detriment benefited

Case Details

Case Name: Smith v. Stratton
Court Name: Alaska Supreme Court
Date Published: Jun 26, 1992
Citation: 835 P.2d 1162
Docket Number: S-4153
Court Abbreviation: Alaska
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