Today's arguments, Jan. 28, 2010
The Supreme Court will hear arguments in three cases today (docket, briefs):
In the morning session:
Broom v. Morgan Stanley, No. 82311-1. Michael, Kevin, and Andrea Broom sued Morgan Stanley DW, Inc. for mismanaging an investment account. Their claims were rejected by an arbitration panel because they were barred by the statute of limitations. The Brooms appealed to King County Superior Court, and the court held that statute of limitations in Washington do not apply to claims in arbitration. The court vacated the arbitration panel’s decision as an error of law. The Court of Appeals (Div. 1) affirmed. Morgan Stanley argues both that statutes of limitations do apply to arbitration, and that courts cannot vacate arbitration decisions because of “errors of law.”
State v. Regan, No. 82476-2. Francis Regan was convicted of fourth degree assault. Most of his sentence was suspended and he received 24 months of probation. One of the conditions of probation was that he commit “no criminal violations of the law.” During the probationary period, Regan was accused of another assault. He was brought to court for trial and a probation hearing. A jury acquitted him, but the judge at the probation hearing believed that Regan had committed the assault and revoked Regan’s probation.
Probation violations normally have a lower burden of proof than criminal trials. But Regan argues that the term “no criminal violations of the law” requires criminal conduct, and that criminal conduct must be proven beyond a reasonable doubt. Since he was not found guilty beyond a reasonable doubt, he says his probation should not have been revoked. The Grays Harbor Superior Court reversed the probation ruling, but the Court of Appeals (Div. 1) reversed the superior court. Defendant now appeals to the Supreme Court.
Then in the afternoon session:
McGuire v. Bates, No. 82659-5. Whether a settlement for “all claims” includes attorney fees. Julianne McGuire hired Robert Bates to remodel her kitchen. After it was done, she claimed that he had done the work improperly and sued him. The case went to mandatory arbitration, but before the arbitration the parties settled “all claims” for $2180.
RCW 18.27.040 allows the prevailing party in a suit by a homeowner against a contractor to recover attorney fees. McGuire moved for attorney fees based on this statute. The arbitrator denied the motion because the parties had agreed to settle “all claims.” However, the courts held that attorney fees are a cost, not a claim, and were thus not included in the settlement agreement. Bates appealed, and also argues that McGuire is not a “prevailing party” because the case was settled.
