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Lane v. City of Tempe

Citations: 199 Ariz. 370; 18 P.3d 164; 341 Ariz. Adv. Rep. 21; 2001 Ariz. App. LEXIS 23Docket: No. 1 CA-CV 99-0445

Court: Court of Appeals of Arizona; February 13, 2001; Arizona; State Appellate Court

Narrative Opinion Summary

In a case involving a personal injury suit following an accident with a City of Tempe truck driver, the superior court ruled against the defendant, Daniel G. Serrano, due to his failure to appear at a compulsory arbitration hearing. The plaintiff alleged negligence, seeking damages, while the defense claimed the plaintiff was at fault. Despite participating in pre-hearing activities, Serrano's absence at the arbitration hearing led to a waiver of his right to appeal the arbitrator's award of $16,858.14 to the plaintiff. The court determined that although Serrano's attorney was present, his nonappearance constituted a lack of material participation, as his testimony was crucial for the issues of liability and damages. The court also addressed the City of Tempe's appeal, stating that as Serrano's employer sharing a common defense, they could not appeal separately without ensuring his presence. The case references Arizona Rules of Civil Procedure, emphasizing the necessity for actual participation in arbitration to preserve appeal rights. Consequently, the court upheld the decision that Serrano had forfeited his right to appeal due to his failure to participate, while the City's appeal was allowed to proceed separately.

Legal Issues Addressed

Compulsory Arbitration Participation Requirement

Application: The court held that a party must appear and participate in arbitration proceedings to preserve the right to appeal, as specified under Ariz. R. Civ. P. 76(a).

Reasoning: Compulsory arbitration under A.R.S. 12-133(H) is non-binding and allows for an appeal and trial de novo in superior court, but this right is restricted to parties who appear and participate in the arbitration proceedings, as specified in Ariz. R. Civ. P. 76(a).

Discovery and Hearing Attendance

Application: The court determined that attending a deposition does not excuse a party from appearing at the arbitration hearing for cross-examination.

Reasoning: It is determined that merely attending a deposition does not relieve a party of the obligation to appear and participate in a hearing. Typically, depositions serve as a discovery tool, with cross-examination reserved for the courtroom where demeanor and credibility can be assessed.

Employer and Employee Shared Defense

Application: The court found that the City, as Serrano's employer, could not appeal separately without ensuring Serrano's participation, as they shared a common defense.

Reasoning: The court dismisses this argument, stating that the City, as Serrano's employer, shared counsel and a common defense. Both Serrano and the City should have recognized the necessity of Serrano’s participation.

Material Participation in Arbitration

Application: Serrano's nonappearance at a hearing addressing both liability and damages was deemed a failure to participate materially, thereby waiving his right to appeal.

Reasoning: The present case differs because it involves a hearing that addressed both liability and damages. As a participant in the collision, Serrano's testimony is deemed material to the liability issue, underscoring the necessity of his participation in the arbitration process.

Waiver of Right to Appeal Due to Non-Participation

Application: The trial court's decision was upheld, affirming that failing to appear and participate in arbitration results in waiving the right to appeal the arbitrator's award.

Reasoning: The trial court's decision to affirm that Serrano failed to appear and participate in arbitration, thus forfeiting his right to appeal the arbitrator's award, was not an abuse of discretion.