§ Rule 72 Compulsory Arbitration; Arbitration by Reference; Alternative Dispute Resolution; Determination of Suitability for Arbitration
Rule 72. Compulsory Arbitration; Arbitration by Reference; Alternative Dispute Resolution; Determination of Suitability for Arbitration
(a) Decision to Provide for Compulsory Arbitration. Rules 72 through 77 of these rules shall apply when the Superior Court in a county, by a majority vote of the judges thereof, decides to provide for arbitration of claims and establishes jurisdictional limits by rule of court pursuant to A.R.S. § 12-133. Such decision to provide for arbitration shall be incorporated into a Superior Court order, which shall be filed with the Clerk of the Supreme Court, and a copy thereof shall be filed with the Clerk of the Superior Court of the applicable county. All other provisions of the Arizona Rules of Civil Procedure that are not inconsistent with Rules 72 through 77 shall be applicable to all cases in arbitration.
(b) Compulsory Arbitration. Civil cases which meet both of the following conditions, except appeals from municipal or justice courts, shall be submitted to arbitration in accordance with the provisions of A.R.S. § 12-133:
(1) No party seeks affirmative relief other than a money judgment; and
(2) No party seeks an award in excess of the jurisdictional limit for arbitration set by applicable local rule of the Superior Court.
For purposes of this provision, “award” and “affirmative relief” include punitive damages, but do not include interest, attorneys' fees or costs.
(c) Arbitration by Agreement of Reference. Any claim may at any time, whether or not suit has been filed, be referred to arbitration by Agreement of Reference signed by all parties or their counsel. If suit has not been filed, the Agreement of Reference shall define the issues involved for determination in the arbitration proceedings and may contain stipulations with respect to agreed facts, issues or defenses. In such cases, the Agreement of Reference shall take the place of the pleadings in the case and shall be filed and assigned a civil case number. Filing an Agreement of Reference shall not relieve any party from paying the required filing fee. Filing of an Agreement of Reference shall have the same effect on the running of the statute of limitations as the filing of a civil complaint.
(d) Alternative Dispute Resolution.
(1) Compulsory arbitration under A.R.S. § 12-133 and these rules is not binding. Any party may appeal and all appeals are de novo on the law and facts. Therefore, before a hearing in accordance with Rule 75 of these rules is held, counsel for the parties, or the parties if not represented by counsel, shall confer regarding the feasibility of resolving their dispute through another form of alternative dispute resolution, including but not limited to private mediation or binding arbitration with a mediator or arbitrator agreed to by the parties.
(2) The court shall waive the arbitration requirement if the parties file a written stipulation to participate in good faith in an alternative dispute resolution proceeding, and the court approves the method selected by the parties. The stipulation shall identify the specific alternative dispute resolution method selected. The court may waive the arbitration requirement for other good cause upon stipulation of all parties. If the alternative dispute resolution method selected under this Rule fails, the case shall be set for trial in accordance with Rule 38.1 of these Rules and shall not be subject to the rules governing compulsory arbitration.
(e) Procedure for Determining Suitability for Arbitration .
(1) At the time of filing the complaint, the plaintiff shall also file a separate certificate on compulsory arbitration with the Clerk of the Superior Court in the following form:
“The undersigned certifies that he or she knows the dollar limits and any other limitations set forth by the local rules of practice for the applicable superior court, and further certifies that this case (is) (is not) subject to compulsory arbitration, as provided by Rules 72 through 77 of the Arizona Rules of Civil Procedure.”
(i) The certificate on compulsory arbitration must be served upon the defendant at the time of service of the complaint. It, and any controverting certificate of a party represented by an attorney, shall be signed by at least one attorney of record in the attorney's individual name. A party who is not represented by an attorney shall sign the party's certificate on compulsory rbitration or controverting certificate.
(ii) The signature of an attorney or party constitutes a certification by the signer that the signer has considered the applicability of both the local rules of practice for the appropriate superior court and Rules 72 through 77; that the signer has read the certificate on compulsory arbitration or controverting certificate; that to the best of the signer's knowledge, information and belief, formed after reasonable inquiry, it is warranted; and that the allegation as to arbitrability is not set forth for any improper purpose. The provisions of Rule 11(a) of these rules apply to every certificate on compulsory arbitration and controverting certificate filed under this rule.
(iii) The certificate on compulsory arbitration shall not be admissible at any hearing on the merits.
(2) If the defendant disagrees with the plaintiff's assertion as to arbitrability, the defendant shall file a controverting certificate that specifies the particular reason for the defendant's disagreement with plaintiff's certificate. The defendant's certificate shall be filed with the answer and a copy or copies shall be served upon the plaintiff.
(3) If conflicting certificates are filed, the matter shall be referred to the judge to whom the case has been assigned for determination of the issues raised thereby. If the judge determines that the case is subject to compulsory arbitration, it shall proceed to arbitration as provided in these rules.
(4) A party or attorney is under a duty to seasonably amend a prior certificate on compulsory arbitration if the party or attorney obtains information upon the basis of which (a) the party or attorney knows the certificate was incorrect when filed or (b) the party or attorney knows that the certificate, though correct when filed, is no longer true.
(5) The court may, on its own motion, or upon the motion of either party at any time after the close of pleadings, determine that the case is subject to compulsory arbitration, and in that event, the court may order that the case proceed to arbitration as provided in these rules.
(6) At such time as the arbitrator renders a decision, should the arbitrator find that the appropriate award exceeds the limit for compulsory arbitration set by local rule or statute, the arbitrator shall enter an award for the full amount.
(7) If the court finds that an attorney or party has made an allegation as to arbitrability which was not made in good faith or failed to amend seasonably as required, the court, upon motion or upon its own initiative, shall make such orders with regard to such conduct as are just, including, among others, any action authorized under Rule 11(a) of these Rules.