Opinion ID: 2380882
Heading Depth: 4
Heading Rank: 2

Heading: Wolf Mountain's Participation in Litigation Has Prejudiced ASCU.

Text: ¶ 35 If the party seeking arbitration has participated in litigation to a point inconsistent with arbitration, the determination of whether waiver has occurred rests solely on a finding of prejudice . . . . result[ing] from the delay in the assertion of the right to arbitrate. Chandler, 833 P.2d at 359. [A]ny real detriment is sufficient to support a finding of prejudice. Id. at 360. Prejudice includes the other party incurring the types of expenses that arbitration is designed to alleviate or expenses that the other party would not have incurred if the moving party had restricted its efforts to arbitration. Id. at 359. Prejudice can also arise if a party gains an advantage in arbitration through participation in pretrial procedures, such as obtaining discovery or other advantages that would not have been available in arbitration. Id. In addition, prejudice can occur when the party seeking arbitration is attempting to forum-shop after `the judicial waters [have] . . . been tested.' Id. (alterations in original) (quoting Wood v. Millers Nat'l. Ins. Co., 96 N.M. 525, 632 P.2d 1163, 1165 (1981)). ¶ 36 In this case, ASCU has been prejudiced by Wolf Mountain's participation in litigation. In responding to Wolf Mountain's numerous requests for discovery and other pretrial procedures, ASCU has undergone the types of expenses that arbitration is designed to alleviate. Id. Furthermore, Wolf Mountain's extensive discovery has allowed it to obtain information that would not have been available in arbitration. This would give Wolf Mountain an advantage in arbitration through [its] participation in pretrial procedures. Id. In addition, Wolf Mountain's attempt to compel arbitration at this late point in the proceedings is indicative of a desire to forum-shop after `the judicial waters [have] . . . been tested.' Id. (alterations in original) (quoting Wood, 632 P.2d at 1165). The prejudice that ASCU would suffer in arbitration as a result of Wolf Mountain's extensive participation in litigation is sufficient to support the conclusion that Wolf Mountain has waived any potential right to arbitration.