Arizona Court of Appeals Division One holds that a compulsory arbitrator does not have authority to enter a second attorneys’ fees award after a first decision becomes final.

This case concerns a dispute between a condominium association and a condominium owner.  The association sued the owner for unpaid assessments, and the case proceeded to compulsory arbitration.  In a notice of decision, the arbitrator awarded the association unpaid assessment fees and a small amount of attorneys’ fees.  After the notice of decision was filed, the association submitted a second request for additional attorneys’ fees.  The owner objected, and the association responded to those objections.  The arbitrator did not act on the association’s additional application for fees until after the award had become final, and awarded it additional attorneys’ fees.

The court of appeals held that the second award, which was entered after the first award became final, was invalid, and vacated and remanded the case back to superior court.  The court explained that the relevant rule of Civil Procedure, 76(b)(1) specifically stated that “[i]f an award or stipulation for entry of another form of relief is not filed with the court within 50 days after the notice of decision is filed, the notice of decision will constitute the arbitrator’s award.”  The court further explained that because the second award was entered after 50 days, it had no legal effect.

Judge Campbell authored the opinion, in which judges Cattani and Foster joined. 

Posted by: John Bullock