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HomeMy WebLinkAbout11 1022 18LIC: C 10/2L1 STATE OF WASHINGTON County of Jefferson An Ordinance Adding Article III to Chapter 3.42 of the Jefferson County Code titled "Civil Arbitration Fees" which allows the County Clerk to Collect Fees Authorized by RCW 36.18.016(25) and RCW 36.18.016(26) ORDINANCE NO. 11-1022-18 WHEREAS, RCW 7.06.010, authorized mandatory arbitrations of civil actions pursuant to the Chapter 7.06 RCW; and, WHEREAS, RCW 7.06.030 required the Washington Supreme Court to adopt by rule procedures to implement mandatory arbitration of civil actions under Chapter 7.06 RCW and, as a result, the Washington Supreme Court issued the Superior Court Mandatory Arbitration Rules (MAR); and, WHEREAS, MAR 8_2 provides that the MAR may be supplemented by local superior court rules adopted and filed in accordance with CR 83; and, WHEREAS, the Jefferson County Superior Court (Superior Court) authorized mandatory civil arbitrations under Chapter 7.06 RCW; and, WHEREAS, the rules for mandatory civil arbitrations in Superior Court became effective September 1, 2018 and are contained in the Jefferson County Superior Court Arbitration Rules (LCAR); WHEREAS, the LCAR are consistent with the MAR, were adopted after notice and an opportunity to comment made to the Jefferson County Bar Association, and were filed in accordance with CR 83.; and, WHEREAS, the purpose of the LCAR is to provide to provide a simplified and economical procedure for obtaining the prompt and equitable resolution of disputes involving claims of $100,000 or less, exclusive of attorney fees, interest, and costs; and, WHEREAS, RCW 36.18.016(25) allows Jefferson County to charge a fee for filing a request for civil arbitration of up to two hundred and fifty dollars; and, WHEREAS, RCW 36.18.016(26) directs that Jefferson County must charge a fee of up to four hundred dollars for filing a request for trial de novo of an arbitration award; and, WHEREAS, Washington General Rule of Court (GR) 34 would allow for waiver of these fees on the basis of indigent status; September 22, 2018 NOW, THEREFORE, be it hereby ordained by the Board of County Commissioners of Jefferson County, State of Washington, that a new article III, "Civil Arbitration Fees" be added to Chapter 3.42 of the Jefferson County Code, (JCC) as follows: Section 1. Assessment of fees authorized. Article III, "Civil Arbitration Fees" shall be added to Chapter 3.42 JCC, as set forth in Appendix 1. In addition, the fees in article III of Chapter 3.42 JCC shall be added to the Appendix Fee Schedules of the JCC in article IX. Clerk's Fees as IX - 020 and IX -030. Section 2. Fee collection. The Jefferson County Clerk (Clerk) shall adopt appropriate procedures for the collection of the fees authorized by Section 1. Section 3. Annual adjustment of fees. The Clerk may annually adjust the fees authorized by Section 1, provided such adjustments are consistent with RCW 36.18.016, as it now exists or may be amended in the future. Section 4. Severability. Should any section, subsection, paragraph, sentence, clause or phrase of this ordinance or article III of Chapter 3.42 JCC adopted by it be declared unconstitutional or invalid for any reason, such decision shall not affect the validity of the remaining portions of this ordinance or article III of Chapter 3.42 JCC. Section 5. Effective date. This ordinance is effective immediately upon passage by the Jefferson County board of commissioners.11 APPROVED and ADOPTED this tib( day of (, -i)LV, , 2018. SEA ���-; � � �- �' +f JEFFERSON CO TY BOARD OF COMMISSIO S r .j` David Sull an, air Ek -4- 41' Carolyn allaway Deputy Clerk of the BoardJ Approved as to form only: Philip C. Hunsucker Date Chief Civil Deputy Prosecuting Attorney Kathleen Kler, Member Kate Dean, Member 2 September 22, 2018 APPENDIX 1 Article III. Mandatory Arbitration Fees 3.42.100 Definitions. 3.42.110 Assessment of fees authorized. 3.42.120 Fee collection. 3.42.130 Annual adjustment authorized. 3.42.100 Definitions. (1) "Clerk" means the Jefferson County clerk. (2) "RCW" means the Revised Code of Washington, as it now exists or as it may be amended in the future. (3) Other words used in this article shall have the same meaning as used in the Jefferson County Superior Court Local Civil Arbitration Rules as they now exist or as they may be amended in the future. 3.42.110 Assessment of fees authorized. The clerk is authorized to require payment of a fee for: (1) Filing a request for mandatory arbitration against the party filing a statement of arbitrability of up to the maximum amount authorized pursuant to RCW 36.18.016(25); and, (2) Filing a request for trial de novo of an arbitration award of up to the maximum amount authorized pursuant to RCW 36.18.016(26). 3.42.120 Fee collection. The clerk shall adopt appropriate procedures for the collection of the fees authorized by JCC 3.42.110. 3.42.130 Annual adjustment authorized. The clerk may annually adjust the fees authorized by Section 1, provided such adjustments are consistent with RCW 36.18.016, as it now exists or may be amended in the future. September 22, 2018 Regular Agenda AGENDA REQUEST TO: Board of Commissioners Philip Morley, County Administrator FROM: Ruth Gordon, County Clerk Philip C. Hunsucker, Chief Civil Deputy Prosecuting Attorney DATE: October 22 2018 RE: An ordinance that modifies chapter 3.42 of the Jefferson County Code to add an Article III, in Order to Allow the Clerk to Charge for Fees Under the Superior Court's Civil Arbitration Rules that Became Effective September 1, 2018 STATEMENT OF ISSUE: For the reasons discussed below, Jefferson County should conduct a hearing on and pass a draft ordinance, as proposed in Appendix 1, allowing the Jefferson County Clerk (Clerk) to charge the fees authorized by RCW 36.18.016. RCW 7.06. 010 authorized mandatory arbitrations of civil actions pursuant to the Chapter 7.06 RCW. RCW 7.06.030 required the Washington Supreme Court to adopt by rule procedures to implement mandatory arbitration of civil actions under Chapter 7.06 RCW. As a result, the Washington Supreme Court issued the Superior Court Mandatory Arbitration Rules (MAR). MAR 8.2 provides that the MAR may be supplemented by local superior court rules, which are adopted and filed in accordance with CR 83. The legislature passed a bill earlier this year that removes the term "mandatory" from RCW 7.06.010. Going forward, this process will be referred to as "civil" arbitration. Eventually, the MAR will be updated to become the Civil Arbitration Rules (CAR). Pursuant to RCW 7.06.010, the Jefferson County Superior Court (Superior Court) authorized mandatory arbitrations under Chapter 7.06 RCW. The local rules for mandatory (civil) arbitrations in Superior Court became effective September 1, 2018 and are contained in the Jefferson County Superior Court Arbitration Rules (LCAR). The LCAR are consistent with the MAR, were adopted after notice and an opportunity to comment made to the Jefferson County Bar Association, and were filed in accordance with CR 83. The purpose of the LCAR is to provide a simplified and economical procedure for obtaining the prompt and equitable resolution of disputes involving claims of $100,000 or less, exclusive of attorney fees, interest, and costs. Any party can assert that the case is subject to the LCAR. There is a procedure for a hearing on disputes about whether the LCAR apply to the case. 1 Regular Agenda The trigger for a determination of whether the LCAR apply is the filing of a Note Arbitration Setting & Initial Statement of Arbitrability under LCAR 2.1(a). LCAR 2.1(b) requires that the party filing a Note Arbitration Setting & Initial Statement of Arbitrability pay a filing fee at the time of filing. If the case is subject to the LCAR, it is sent to an arbitrator to handle and issue an arbitration award. Pursuant to LCAR 8.6(a), arbitrators are compensated in the same amount and manner as judges pro tempore of the superior court. But the compensation shall not exceed $600.00 for any case, unless the Superior Court Judge grants prior approval. Hearing time and reasonable preparation time are compensable. Arbitrators may be reimbursed a sum not to exceed $25.00 for costs incurred. Either party can appeal the arbitration award by requesting a trial de novo by the Superior Court. Pursuant to RCW 7.06.060 and MAR 7_3, the Superior Court shall assess costs and reasonable attorney fees against a party who appeals the award and fails to improve the party's position on the trial de novo. RCW 36.18.016, as modified by HB 1128, effective September 1, 2018 authorizes charging the following fees: (25) For filing a request for civil arbitration, a filing fee may be assessed against the party filing a statement of arbitrability not to exceed two hundred fifty dollars as established by authority of local ordinance. Two hundred twenty dollars of this charge shall be used to offset the cost of the civil arbitration program. Thirty dollars of each fee collected under this subsection must be used for indigent defense services. (26) For filing a request for trial de novo of a civil arbitration award, a fee not to exceed four hundred dollars as established by authority of local ordinance must be charged. Washington General Rule of Court (GR) 34 allows for a waiver of these fees based on indigent status. Among nearby counties that have adopted rules for mandatory arbitration and charge fees are Clallam County, Grays Harbor County, King County and Kitsap County. On October 1, 2018, Ruth Gordon, the County Clerk, and Philip Hunsucker, the Chief Civil Deputy Prosecuting Attorney, briefed the BoCC on the proposed ordinance. During public comments on October 1, 2018, local attorney Rafael Urquia, explained how civil arbitration works and why it is beneficial for Jefferson County. The County's AvCaptureALL system recorded the discussion about the civil arbitration and the draft ordinance, which can be viewed 2 Regular Agenda at: https://media.avcaptureall.com/session-live html?sessionid=23276le4-eb6b-4450-998f- 1 f87e7d9219d. The BoCC set a hearing for October 22, 2018 and established a public comment period. ANALYSIS: The proposed Ordinance would allow the Clerk to charge the fees authorized by RCW 36.18.016. The proposed Ordinance authorizes adding fees referencing RCW 36.18.016 instead of dollar amounts to the Appendix Fee Schedules of the JCC in article IX. Clerk's Fees as IX - 020 and IX -030, so that any increases authorized by the legislature would not require additional BoCC action. FISCAL IMPACT: Passing the ordinance will generate fees to administer the mandatory arbitration program. At this time, it is impossible to calculate the amount of fees that will be generated annually. Neighboring courts have reported that the filing fees permitted in RCW 36.18.016 fully fund their civil arbitration programs. RECOMMENDATION: Jefferson County should conduct a hearing on and pass a draft ordinance, as proposed in Appendix 1, allowing the Jefferson County Clerk (Clerk) to charge the fees authorized by RCW 36.18.016. DEPARTMENT CONTACTS: Ruth Gordon, Jefferson County Clerk, Extension 128. Philip C. Hunsucker, Chief Civil Deputy Prosecuting Attorney, Extension 219. REVIEWED BY: 41 1 lip Morley un y A ministrator Date APPENDIX A STATE OF WASHINGTON County of Jefferson An Ordinance Adding Article III to Chapter 3.42 of the Jefferson County Code titled "Civil Arbitration Fees" which allows the County Clerk to Collect Fees Authorized by RCW 36.18.016(25) and RCW 36.18.016(26) ORDINANCE NO. Regular Agenda WHEREAS, RCW 7.06.010, authorized mandatory arbitrations of civil actions pursuant to the Chapter 7.06 RCW; and, WHEREAS, RCW 7.06.030 required the Washington Supreme Court to adopt by rule procedures to implement mandatory arbitration of civil actions under Chapter 7.06 RCW and, as a result, the Washington Supreme Court issued the Superior Court Mandatory Arbitration Rules (MAR); and, WHEREAS, MAR 8_2 provides that the MAR may be supplemented by local superior court rules adopted and filed in accordance with CR 83; and, WHEREAS, the Jefferson County Superior Court (Superior Court) authorized mandatory civil arbitrations under Chapter 7.06 RCW; and, WHEREAS, the rules for mandatory civil arbitrations in Superior Court became effective September 1, 2018 and are contained in the Jefferson County Superior Court Arbitration Rules (LCAR); WHEREAS, the LCAR are consistent with the MAR, were adopted after notice and an opportunity to comment made to the Jefferson County Bar Association, and were filed in accordance with CR 83.; and, WHEREAS, the purpose of the LCAR is to provide a simplified and economical procedure for obtaining the prompt and equitable resolution of disputes involving claims of $100,000 or less, exclusive of attorney fees, interest, and costs; and, WHEREAS, RCW 36.18.016(25) allows Jefferson County to charge a fee for filing a request for civil arbitration of up to two hundred and fifty dollars; and, WHEREAS, RCW 36.18.016(26) directs that Jefferson County must charge a fee of up to four hundred dollars for filing a request for trial de novo of an arbitration award; and, :t Regular Agenda WHEREAS, Washington General Rule of Court (GR) 34 would allow for waiver of these fees on the basis of indigent status; NOW, THEREFORE, be it hereby ordained by the Board of County Commissioners of Jefferson County, State of Washington, that a new article III, "Civil Arbitration Fees" be added to Chapter 3.42 of the Jefferson County Code, (JCC) as follows: Section 1. Assessment of fees authorized. Article III, "Civil Arbitration Fees" shall be added to Chapter 3.42 JCC, as set forth in Appendix 1. In addition, the fees in article III of Chapter 3.42 JCC shall be added to the Appendix Fee Schedules of the JCC in article IX. Clerk's Fees as IX - 020 and IX -030. Section 2. Fee collection. The Jefferson County Clerk (Clerk) shall adopt appropriate procedures for the collection of the fees authorized by Section 1. Section 3. Annual adjustment of fees. The Clerk may annually adjust the fees authorized by Section 1, provided such adjustments are consistent with RCW 36.18.016, as it now exists or may be amended in the future. Section 4. Severability. Should any section, subsection, paragraph, sentence, clause or phrase of this ordinance or article III of Chapter 3.42 JCC adopted by it be declared unconstitutional or invalid for any reason, such decision shall not affect the validity of the remaining portions of this ordinance or article III of Chapter 3.42 JCC. Section 5. Effective date. This ordinance is effective immediately upon passage by the Jefferson County board of commissioners. Regular Agenda APPROVED and ADOPTED this day of , 2018. SEAL: JEFFERSON COUNTY BOARD OF COMMISSIONERS ATTEST: David Sullivan, Chair Kathleen Kler, Member Carolyn Gallaway Kate Dean, Member Deputy Clerk of the Board Approved as to form only: Philip C. Hunsucker Date Chief Civil Deputy Prosecuting Attorney 11 Regular Agenda APPENDIX 1 Article III. Mandatory Arbitration Fees 3.42.100 Definitions. 3.42.110 Assessment of fees authorized. 3.42.120 Fee collection. 3.42.130 Annual adjustment authorized. 3.42.100 Definitions. (1) "Clerk" means the Jefferson County clerk. (2) "RCW" means the Revised Code of Washington, as it now exists or as it may be amended in the future. (3) Other words used in this article shall have the same meaning as used in the Jefferson County Superior Court Local Civil Arbitration Rules as they now exist or as they may be amended in the future. 3.42.110 Assessment of fees authorized. The clerk is authorized to require payment of a fee for: (1) Filing a request for civil arbitration against the party filing a statement of arbitrability of up to the maximum amount authorized pursuant to RCW 36.18.016(25); and, (2) Filing a request for trial de novo of an arbitration award of up to the maximum amount authorized pursuant to RCW 36.18.016(26). 3.42.120 Fee collection. The clerk shall adopt appropriate procedures for the collection of the fees authorized by JCC 3.42.110. 3.42.130 Annual adjustment authorized. The clerk may annually adjust the fees authorized by Section 1, provided such adjustments are consistent with RCW 36.18.016, as it now exists or may be amended in the future.