Haroutunian v. Valueoptions, Inc.

• Citation: 189 P.3d 1114,218 Ariz. 541
• Decision Date: 10 July 2008
• Docket Number: No. 2 CA-CV 2007-0090.,2 CA-CV 2007-0090.
• Parties: Charles HAROUTUNIAN, Plaintiff/Appellee/Cross-Appellant, v. VALUEOPTIONS, INC., Defendant/Appellant/Cross-Appellee.
• Court: Court of Appeals of Arizona

189 P.3d 1114

218 Ariz. 541

Charles HAROUTUNIAN, Plaintiff/Appellee/Cross-Appellant, v. VALUEOPTIONS, INC., Defendant/Appellant/Cross-Appellee.

No. 2 CA-CV 2007-0090.

Court of Appeals of Arizona, Division 2, Department A.

July 10, 2008.

Fein, Flynn & Associates, P.C. by James A. Fein and Joey A. Flynn, Tucson, and Law Office of Scott E. Boehm, P.C., by Scott E. Boehm, Phoenix, Attorneys for Plaintiff/Appellee/Cross-Appellant.

Norling, Kolsrud, Sifferman & Davis, P.L.C., by Russell A. Kolsrud, Mark S. Sifferman, and Lisa Mills, Scottsdale Attorneys for Defendant/Appellant/Cross-Appellee.

OPINION

PELANDER, Chief Judge.

¶ 1 Appellant/cross-appellee ValueOptions, Inc., appeals from the trial court's denial of its motion to extend the time to appeal, made pursuant to Rule 9(a), Ariz. R. Civ.App. P. (ARCAP), and its motion to enlarge time to file post-judgment motions, made pursuant to Rule 6(b), Ariz. R. Civ. P.¹ It also asserts that the court erred in admitting expert testimony and that the evidence did not support the jury verdict in favor of appellee/cross-appellant Charles Haroutunian. In his cross-appeal, Haroutunian challenges the trial court's denial of his request for attorney fees and costs. For the reasons stated below, we reverse the court's denial of ValueOptions' motions under ARCAP 9(a) and Rule 6(b) and remand the case for further proceedings.

Background

¶ 2 The facts pertinent to our resolution of this appeal are undisputed. After Haroutunian attempted suicide in 2002, his family successfully petitioned for court-ordered mental health treatment for him. In 2004, Haroutunian filed this action against ValueOptions, asserting that it had been "under Court order to provide for [his] mental health care and supervision" and had negligently failed to do so to his detriment. Haroutunian also alleged that ValueOptions' conduct was "elder abuse or neglect under Arizona State law." See A.R.S. § 46-455(B), (Q). After a four-day jury trial in November 2006, the jury found in Haroutunian's favor and awarded him $365,000 in damages. The jury found ValueOptions bore eighty-five percent of the fault and allocated the remainder to a designated nonparty at fault.

¶ 3 Following the jury verdict in his favor, Haroutunian filed a motion requesting attorney fees and costs. After hearing argument, the trial court denied the motion in a minute entry dated February 20, 2007, and filed February 22. In that minute entry, the court stated it would "sign the form of judgment submitted by [Haroutunian] after deleting the costs and attorney's fees" contained in the proposed judgment.² The court signed the judgment on February 20, and the record shows it was filed the following day. On February 22, a legal assistant to ValueOptions' attorney called the Clerk of the Pima County Superior Court and was told by someone in that office that no judgment had been entered and that there had been "no activity" in the case since February 14. On February 26, Haroutunian moved for reconsideration of the trial court's denial of his motion for attorney fees and costs. After ordering a response, the court ultimately denied the motion on May 3.

¶ 4 Although the signed judgment was filed on February 21, the court clerk failed to comply with her obligation to immediately distribute notice of the entry of judgment to the parties, as required by Rule 58(e). That notice, dated March 21, was filed and apparently finally mailed to the parties on March 27, well past both the fifteen-day deadline for filing post-trial motions for judgment as a matter of law or for a new trial, see Ariz. R. Civ. P. 50(b), 59(d), and the thirty-day limit for filing a notice of appeal. See ARCAP 9(a). On April 2, after having eventually received the clerk's belated notice of the entry of judgment, ValueOptions timely filed its motion under ARCAP 9(a), seeking to expand the time to appeal.³ That motion also included a request, pursuant to Rule 6(b), to enlarge the time for filing post-trial motions. The trial court denied both requests on May 3, the same day it also denied Haroutunian's motion for reconsideration of its prior denial of his request for attorney fees and costs.

¶ 5 On May 29, ValueOptions filed its notice of appeal from the trial court's February 21 judgment and its May 3 order denying ValueOptions' requests for enlargement of time under ARCAP 9(a) and Rule 6(b). Haroutunian filed his notice of cross-appeal on June 8. We have jurisdiction of ValueOptions' appeal from the trial court's May 3 order pursuant to A.R.S. § 12-2101(C).

Discussion

1. Denial of motion to extend appeal time under ARCAP 9(a)

¶ 6 ValueOptions first argues the trial court erred by denying its motion pursuant to ARCAP 9(a) to extend the deadline for filing its appeal. We review the denial of such a motion for an abuse of discretion. See United Metro Materials, Inc. v. Pena Blanca Props., L.L.C., 197 Ariz. 479, ¶¶ 18, 22, 4 P.3d 1022, 1025, 1026 (App.2000). But we review de novo questions involving the interpretation of court rules and "evaluate procedural rules using principles of statutory construction." Fragoso v. Fell, 210 Ariz. 427, ¶¶ 7, 13, 111 P.3d 1027, 1030, 1032 (App.2005); see also State v. Hansen, 215 Ariz. 287, ¶ 7, 160 P.3d 166, 168 (2007) (principles of statutory construction used to interpret court rules). In addition, we interpret court rules "in accordance with the intent of the drafters, and we look to the plain language of the ... rule as the best indicator of that intent." Fragoso, 210 Ariz. 427, ¶ 7, 111 P.3d at 1030. If the language of a rule is ambiguous, however, we may consider "a variety of elements, including the rule's context, the language used, the subject matter, the historical background, the effects and consequences, and its spirit and purpose," to determine the framers' intent. State ex rel. Romley v. Superior Court, 168 Ariz. 167, 169, 812 P.2d 985, 987 (1991); see also Vega v. Sullivan, 199 Ariz. 504, ¶ 8, 19 P.3d 645, 648 (App.2001).

¶ 7 Under Rule 58(a), "[t]he filing with the clerk of the judgment constitutes entry of such judgment, and the judgment [generally] is not effective before such entry." Therefore, the trial court's February 20 minute entry, in which the court stated it would "sign the form of judgment submitted by [Haroutunian] after deleting the costs and attorney's fees," neither constituted formal entry of the judgment nor specified when the judgment would be signed or, more importantly, filed. The date of filing, or entry, of judgment is critically important, however, because it typically commences the running of the time for filing post-trial motions, see Ariz. R. Civ. P. 50(b), 59(d), 59(l), or prosecuting an appeal, see ARCAP 9(a). Thus, the date a judgment actually is entered will determine whether a notice of appeal or motions for post-judgment relief are timely. See DNB Constr., Inc. v. Superior Court, 125 Ariz. 61, 62, 607 P.2d 380, 381 (1980); City of Tucson v. Wondergem, 4 Ariz.App. 291, 292, 419 P.2d 552, 553 (1966).

¶ 8 Rule 58(e), Ariz. R. Civ. P., requires the trial court clerk to distribute to all parties, "[i]mmediately upon the entry of a judgment," "a notice of the entry of judgment stating the date of entry." Pursuant to ARCAP 9(a),

If [a trial] court finds that (1) a party entitled to notice of entry of judgment did not receive such notice from the clerk or any party within 21 days of its entry and (2) no party would be prejudiced, the court may upon motion ... extend the time for appeal for a period not to exceed 14 days from the date of the order granting the motion.

Our supreme court added that provision in 1994 when it amended ARCAP 9(a) and other procedural rules, including Rule 6(b), in order "`to address a problem experienced by practitioners, whereby they were not receiving notice of entry of judgment in some cases and their clients' rights to appeal were jeopardized.'" J.C. Penney v. Lane, 197 Ariz. 113, ¶ 18, 3 P.3d 1033, 1037 (App.1999), quoting ARCAP 9(a) court cmt. to 1994 amend., 178 Ariz. LX (1994). Based on its comment to the 1994 amendment, the supreme court clearly intended to grant trial courts increased flexibility in this area and relax the standards for extending a party's time to appeal when the conditions set forth in ARCAP 9(a) are met. See J.C. Penney, 197 Ariz. 113, ¶ 20, 3 P.3d at 1037 ("Courts have now been given discretion to extend the time for appeal upon a party's showing of the bare failure to receive the clerk's notice without its having to show additionally the compelling circumstances or any other circumstances provided in Rule 60(c), [Ariz. R. Civ. P.,] but under the very limited time constraints and other circumstances provided in amended [ARCAP] Rule 9(a).").

¶ 9 The trial court found as an undisputed fact that ValueOptions "did not receive notice of entry of judgment from the clerk or any party within twenty-one (21) days of entry."⁴ The court also found that Haroutunian had not shown prejudice. It nonetheless denied ValueOptions' motion to extend the time for filing its appeal, "for the same reason [it] refused to extend the time for filing post-trial motions." That refusal, in turn, was based on ValueOptions' failure to show "excusable neglect" under Rule 6(b); the court concluded that "[a] reasonable attorney would have called the judge's chambers or placed another call to the clerk or taken other appropriate steps before the time limits expired to make sure that a judgment had not been entered." In denying any extension of the time to appeal under ARCAP 9(a), the court also stated that ValueOptions "has not shown good cause."

¶ 10 We preliminarily address and reject Haroutunian's alternative arguments seeking to uphold the trial court's ruling on different grounds. He contends the court's February 20 minute entry qualified as a "notice of entry of judgment" by "a minute entry," a form of notice authorized by Rule 58(e). But the February 20 minute entry...