Opinion ID: 2339619
Heading Depth: 2
Heading Rank: 3

Heading: attorney fees in mandatory arbitration under rcw 7.06.060

Text: ¶ 7 The mandatory arbitration scheme is another exception to the general rule that each party bears its own attorney fees; it also provides for reasonable attorney fees under certain circumstances. Mandatory arbitration was established by the legislature in 1979. [2] LAWS of 1979, ch. 103, § § 1-10. Mandatory arbitration is authorized by the legislature at the option of each county and applies to claims where the claimant limits the amount claimed to $50,000 or less. [3] After the arbitrator files a decision, either party may request a trial de novo. RCW 7.06.050(1). If a party requests a trial de novo, but fails at trial to improve upon its arbitration award, the court will assess costs, reasonable attorney fees, and expert witness expenses against that party. RCW 7.06.060(1), (2). Between arbitration and a trial de novo, the party not requesting a trial de novo can make an offer of compromise. RCW 7.06.050(1)(a). If the offer of compromise is refused, the offer replaces any arbitration award for the purposes of determining whether the party who requested a trial de novo improved its position. RCW 7.06.050(1)(b). Importantly, under this attorney fees scheme, only a party requesting a trial de novo is at risk of having reasonable attorney fees assessed against it. The purpose of the rule awarding attorney fees in this context is to discourage meritless appeals of arbitration awards. Wiley v. Rehak, 143 Wash.2d 339, 348, 20 P.3d 404 (2001) (quoting Perkins Coie v. Williams, 84 Wash. App. 733, 737-38, 929 P.2d 1215 (1997)).