Opinion ID: 2380882
Heading Depth: 4
Heading Rank: 1

Heading: Wolf Mountain Substantially Participated in Litigation

Text: ¶ 30 This prong of the Chandler test requires the court to consider the actions of the party seeking arbitration, and whether those actions evidence an intent to submit to the jurisdiction of the court and pursue redress through litigation. Cent. Fla. Invs., Inc. v. Parkwest Assocs., 2002 UT 3, ¶ 26, 40 P.3d 599. Wolf Mountain clearly had the intent to pursue matters through litigation rather than to seek arbitration. Indeed, in its brief, Wolf Mountain conceded that Wolf Mountain's `intent' need not be inferred, since it expressly stated its intent on the record. According to its brief, Wolf Mountain intended to pursue litigation because it believed that it did not have the right to pursue arbitration under the SPA Agreement. Wolf Mountain further acknowledges that it developed an intent to pursue arbitration only as a result of the district court's ruling on April 29, 2009, which was three years after the litigation had commenced. Thus, Wolf Mountain's own admissions show that it had a clear intent to pursue litigation rather than arbitration. ¶ 31 In addition to its explicitly stated intent to pursue litigation, Wolf Mountain's actions also clearly manifest an intent to pursue litigation rather than arbitration. A variety of conduct can show a party's intent to pursue litigation. In Central Florida Investments, the court explained: Participation in discovery and other aspects of litigation that do not necessarily involve the court are factors we consider in trying to ascertain a party's intent or attitude toward its participation in litigation. Requests made of the court by the parties, however, have even greater weight. We consider especially important whether the parties' requests of the court demonstrate an intent to pursue litigation or whether they demonstrate an intent to avoid litigation and a desire to be sent to arbitrate. Accordingly, parties seeking to enforce arbitration should ensure that the court, not just the opposing party, is informed that arbitration is desired. In doing so, judicial resources will be appropriately conserved. Id. ¶ 32 For instance, in Chandler, the court found that Blue Cross clearly manifest[ed] an intent to proceed to trial by filing an answer and a cross-claim, participating in discovery for five months, and reviewing discovery that had already taken place. 833 P.2d at 360. Similarly, in Smile Inc. Asia Pte. Ltd. v. BriteSmile Management, Inc., the court of appeals found that BriteSmile had participated in litigation to an extent inconsistent with a desire to arbitrate by filing various motions and memoranda, a counterclaim, scheduling orders, various motions involving discovery, serving various requests for discovery, responding to discovery requests, and communicating with the court and opposing counsel about issues related to litigation. 2005 UT App 381, ¶ 26, 122 P.3d 654. ¶ 33 On the other hand, the court will not find that a party has waived its right to arbitrate when it participates in litigation reluctantly, demonstrating a sufficient intent to arbitrate along the way. Cent. Fla. Invs., 2002 UT 3, ¶ 34, 40 P.3d 599. In Central Florida Investments, three days after the plaintiff filed its complaint, the defendant sent plaintiff a letter explaining that the dispute was subject to arbitration. Id. ¶ 3. The defendant filed an answer to comply with the Utah Rules of Civil Procedure, but at the same time, it filed a counterclaim and a motion to dismiss both raising the issue of arbitration. Id. ¶¶ 5-6. When the district court denied, in part, the defendant's motion to dismiss, the defendant filed a motion to compel arbitration four days later, which was also denied. Id. ¶¶ 8-9. On appeal, we ruled that the defendant had not waived its right to arbitrate because it did not participate in litigation to a point inconsistent with the intent to arbitrate. Id. ¶ 36. Instead, from the beginning and throughout the proceedings, the defendant expressed a desire to arbitrate and indicated that it was unwilling to participate in litigation. Id. ¶ 34. ¶ 34 Unlike the defendant in Central Florida Investments, Wolf Mountain did not express a desire to arbitrate at the commencement or during the proceedings in this case. Instead, it actively participated in litigation for nearly three years before requesting arbitration for the first time in May 2009. Like the parties in Chandler and Smile Inc. Asia, Wolf Mountain's actions manifested an intent to proceed to trial. Wolf Mountain filed a motion to dismiss, an answer and a counterclaim, and participated in discovery and filed many motions over the course of three years. Wolf Mountain even filed a separate lawsuit that was later consolidated with this litigation. In light of these actions, Wolf Mountain's extensive participation in litigation clearly shows that it intended to disregard its right to arbitrate. Id. ¶ 24.