This opinion makes our heads hurt. Arizona Rule of Civil Procedure 76(d) provides that if a claim goes to arbitration, the arbitrator makes an award, and no appeal is taken, then after 30 days any party may file a motion to enter judgment. If no one does anything, after 125 days the clerk can send notice, and then after another 30 days, the court “must dismiss the action without prejudice.” Plaintiffs Sanchez won at arbitration and was awarded approximately $37k.
But then no one did anything. The clerk sent out the notice, but the court never dismissed. Two years later, the plaintiff woke up and filed to confirm the arbitration award as a judgment. The judgment was entered when the defendant failed to object. The defendant then woke up. The defendant argued that because 76(d) required the court to dismiss the suit, the court lacked power to enter the judgment and that Sanchez failed to prosecute her case. The defendant successfully had the trial court set aside the judgment and dismiss the lawsuit without prejudice. The plaintiff then refiled the lawsuit, but that too was dismissed by the trial court for failure to prosecute. The court then awarded the defendant its $27k in fees in the second lawsuit for creating a “procedural quagmire.”
The court of appeals held that the trial court was correct the first time it entered judgment on the arbitration award. A case does not end on its own without court action. We learn from a United States Supreme Court decision, Dolan v. United States, that Rule 76(d) is best understood as a claims-processing rule, not a jurisdiction rule. Because no court action was taken, the plaintiff was within his rights to request judgment on the arbitration award. Bottom line: the plaintiffs keep their arbitration award and judgment, and everything the trial judge did at the defendant’s urging, including awarding the defendant fees, was vacated.
The court of appeals should have ended its opinion there. Instead, we get unnecessary explanations of the history behind Rule 76(d) and the ability to refile. We get explanations of Rule 41, Rule 58, federal case law, and “manifest injustice.” These excursions are unnecessary and lack the modesty we desire from appellate courts.
link to opinion