Southwest Gas Corp. v. Irwin

• Citation: 229 Ariz. 198,629 Ariz. Adv. Rep. 16,273 P.3d 650
• Decision Date: 29 February 2012
• Docket Number: No. 2 CA–SA 2011–0107.,2 CA–SA 2011–0107.
• Parties: SOUTHWEST GAS CORPORATION, a California corporation; and Bret Taylor, Petitioners, v. Hon. Charles A. IRWIN, Judge of the Superior Court of the State of Arizona, in and for the COUNTY OF COCHISE, Respondent,andBriza Grubb, individually and as surviving spouse of Michael Grubb; Briza Grubb, for and on behalf of her minor children, Alexandro Grubb and Emily Grubb; Briza Grubb as Personal Representative of the Estate of Michael Grubb, Real Parties in Interest.
• Court: Court of Appeals of Arizona

229 Ariz. 198

273 P.3d 650

629 Ariz. Adv. Rep. 16

SOUTHWEST GAS CORPORATION, a California corporation; and Bret Taylor, Petitioners,

v.Hon. Charles A. IRWIN, Judge of the Superior Court of the State of Arizona, in and for the COUNTY OF COCHISE, Respondent,andBriza Grubb, individually and as surviving spouse of Michael Grubb; Briza Grubb, for and on behalf of her minor children, Alexandro Grubb and Emily Grubb; Briza Grubb as Personal Representative of the Estate of Michael Grubb, Real Parties in Interest.

No. 2 CA–SA 2011–0107.

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

Feb. 29, 2012.

Jennings, Strouss & Salmon, P.L.C. By Michael J. O'Connor and John J. Egbert, Phoenix, Attorneys for Petitioners.

Penilla Metzger, PLLC By Nathan T. Metzger and Perry E. Casazza, Phoenix, Attorneys for Real Parties in Interest.

ESPINOSA, Judge.

¶ 1 Southwest Gas Corp. and its employee Bret Taylor (referred to jointly as Southwest Gas), are two of multiple defendants in the underlying wrongful death action filed by real party in interest Briza Grubb (Grubb). In this special action, Southwest Gas challenges the respondent judge's orders in which he concluded that, because Grubb had appealed the judgment entered in favor of another defendant, he lacked jurisdiction to conduct further proceedings involving defendants who are not parties to that judgment and was required to stay all further proceedings. We accept jurisdiction and grant relief for the reasons stated below.

Factual Background and Procedural History

¶ 2 The relevant facts and procedural history of this special action are as follows. Grubb's late husband Michael Grubb was severely injured when a DESA Glo–Warm gas space heater he had purchased at B & D Lumber in Douglas, Arizona exploded as he attempted to ignite the pilot light. Michael died about three months later as a result of his injuries. On behalf of herself individually as Michael's surviving spouse and their two children, and as personal representative of Michael's estate, Grubb filed a complaint against numerous defendants, including Southwest Gas; D.D.E.K. Corp. d/b/a B & D Lumber & Hardware; Do It Best Corporation (DIB), a wholesaler of the heater; DESA, the manufacturer of the heater; and various other defendants. The respondent judge granted DIB's motion for summary judgment and signed and filed a judgment on July 18, 2011. Pursuant to Rule 54(b), Ariz. R. Civ. P., the judgment stated there was “no just reason for delay,” directed “entry of judgment in favor of” DIB and against Grubb, and dismissed with prejudice all of Grubb's claims against DIB. Grubb filed a notice of appeal from that judgment on August 17; that appeal is now pending before this court. See No. 2 CA–CV 2011–0140.

¶ 3 In mid-September 2011, the respondent judge directed the parties to address his concern that he had “lost jurisdiction to hear the Summary [J]udgment Motions [before him] due to the pending Appeal.” In Grubb's responsive memorandum, she stated, “[T]he filing of the Notice of Appeal divested the Superior Court of jurisdiction over all claims pending the Court of Appeals' anticipated ruling on Plaintiffs' appeal of the judgment entered in favor of Defendant Do It Best Corporation,” and that the respondent should stay all further proceedings in the trial court. Southwest Gas disagreed, stating in its memorandum that the certification of the judgment in favor of DIB as final pursuant to Rule 54(b) had been proper, the judgment was final and appealable, and the action against different defendants could proceed. Grubb filed a subsequent memorandum restating her request that the respondent stay the proceedings and suggesting the respondent should issue the stay in the exercise of his discretion for reasons of efficiency. She argued that claims such as strict liability based on products-liability law applied to all defendants and it would be more efficient for the respondent to stay further proceedings against the remaining defendants pending this court's determination of that issue on appeal in order to avoid this court having to decide the same issue more than once.

¶ 4 The respondent judge issued an order staying all further proceedings. Southwest Gas and other defendants then filed a Joint Motion to Lift Stay. The respondent denied the motion, stating that the appeal had “divested [him] of jurisdiction.” For that reason, he “decline[d]” to rule on the motion to lift the stay, stating he had “no authority to make such ruling and the appropriate forum to make such request is the Court of Appeals.” This special action followed.

Special Action Jurisdiction

¶ 5 In her response to Southwest Gas's petition, Grubb focuses primarily on why we should not accept jurisdiction. But we find there are a number of significant reasons justifying our discretionary acceptance of special action jurisdiction here. See Potter v. Vanderpool, 225 Ariz. 495, ¶ 6, 240 P.3d 1257, 1260 (App.2010) (“Whether to accept special action jurisdiction is for this court to decide in the exercise of our discretion.”). First, Southwest Gas cannot challenge the respondent judge's orders by direct appeal because they are interlocutory orders. See id. ¶ 7 (acceptance of special action jurisdiction appropriate when challenged ruling is interlocutory); see also Ariz. R.P. Spec. Actions 1(a) (special action available to litigant without equally plain, speedy, or adequate remedy by appeal).

¶ 6 Second, we are inclined to accept special action jurisdiction when a party cannot obtain justice by other means. See State ex rel. Romley v. Hutt, 195 Ariz. 256, ¶ 5, 987 P.2d 218, 221 (App.1999). Southwest Gas asserts it has no avenue for obtaining relief from the ongoing harm other than by special action because the respondent judge has issued a stay pending “the conclusion of the ... appeal” and has “thereby prejudic[ed] all the remaining parties and thwart[ed] the efficient administration of justice.” It adds that once the appeal is resolved, the issue raised here will be moot, another factor that is relevant to our decision whether to accept jurisdiction. See Costa v. Mackey, 227 Ariz. 565, ¶ 6, 261 P.3d 449, 453 (App.2011).

¶ 7 Additionally, when, as here, the special action presents a pure question of law, it is particularly appropriate for us to accept jurisdiction. State ex rel. Thomas v. Gordon, 213 Ariz. 499, ¶ 8 & n. 2, 144 P.3d 513, 515 & n. 2 (App.2006). The question whether the respondent judge was divested of jurisdiction to proceed with the litigation against other defendants once Grubb filed a notice of appeal from the DIB judgment is solely a question of law. See Fry v. Garcia, 213 Ariz. 70, ¶ 6, 138 P.3d 1197, 1199 (App.2006). So, too, is the interpretation and application of a procedural rule like Rule 54(b). See King v. Titsworth, 221 Ariz. 597, ¶ 8, 212 P.3d 935, 936 (App.2009) (interpretation of Rule 54(g), Ariz. R. Civ. P., question of law appellate court reviews de novo); Adrian E. v. Ariz. Dep't of Econ. Sec., 215 Ariz. 96, ¶ 9, 158 P.3d 225, 228 (App.2007) (application of procedural rule is question of law reviewed de novo). Although trial courts are vested with the discretion to decide whether a judgment should be certified as final pursuant to Rule 54(b), a decision we will not disturb absent an abuse of that discretion, Cont'l Cas. v. Superior Court, 130 Ariz. 189, 191–92, 635 P.2d 174, 176–77 (1981); Kim v. Mansoori, 214 Ariz. 457, ¶ 6, 153 P.3d 1086, 1088 (App.2007), “whether the judgment in fact is' ” final is another question of law that we review de novo, Mansoori, 214 Ariz. 457, ¶ 6, 153 P.3d at 1088, quoting Davis v. Cessna Aircraft Corp., 168 Ariz. 301, 304, 812 P.2d 1119, 1122 (App.1991).

Discussion

¶ 8 Section 12–2101(A)(1), A.R.S., gives this court jurisdiction of appeals “[f]rom a final judgment.” See also § 12–2101(B) (order or judgment of the kind identified in subsection (A) of statute “is appealable”); Mansoori, 214 Ariz. 457, ¶ 6, 153 P.3d at 1088 (“Generally, appellate court jurisdiction is limited to final judgments which dispose of all claims and all parties.' ”), quoting Musa v. Adrian, 130 Ariz. 311, 312, 636 P.2d 89, 90 (1981). When a party files a notice of appeal from a final judgment, it “generally divests the trial court of jurisdiction to proceed except in furtherance of the appeal.” Castillo v. Indus. Comm'n, 21 Ariz.App. 465, 467, 520 P.2d 1142, 1144 (1974). But, the court added in Castillo, “this general principle is subject to many equally well established exceptions,” among which is that a trial court retains jurisdiction to address matters pending before it that do not relate to an intermediate or interlocutory order from which an appeal has been taken. Id. at 467 & 467–68, 520 P.2d at 1144 & 1144–45.

¶ 9 Rule 54(b) contemplates the latter exception. It provides that in a multiparty or multi-claim action, a trial court “may direct the entry of final judgment as to one or more but fewer than all of the claims or parties ... upon an express determination that there is no just reason for delay.” “In interpreting rules, we apply the same principles we use in interpreting statutes.' ” Osterkamp v. Browning, 226 Ariz. 485, ¶ 14, 250 P.3d 551, 555 (App.2011), quoting State v. Petty, 225 Ariz. 369, ¶ 7, 238 P.3d 637, 640 (App.2010). We therefore must determine and give effect to the intent of the supreme court in promulgating the rule, “keeping in mind that the best reflection of that intent is the plain language of the rule.” Id., quoting Potter, 225 Ariz. 495, ¶ 8, 240 P.3d at 1260. If a rule is clear and unambiguous, “we will not employ other principles of construction to determine its meaning and the supreme court's intent in promulgating it.” Id.

¶ 10 The language of Rule 54(b) is clear and unambiguous. It plainly permits trial courts to enter judgments as to fewer than all claims or all parties in a multi-count, multi-party proceeding. Ariz. R. Civ. P. 54(b). As our supreme court has...