Summary
The Supreme Court of Rhode Island reviewed the denial of Leslie Rivera’s motions to vacate a judgment entered on a court-annexed arbitration award and to file a rejection of that award out of time. The court held that Rivera’s failure to timely reject the award constituted excusable neglect because she did not receive required notices, her attorney’s withdrawal order, or the award, in part due to circumstances involving withheld mail. The court vacated the Superior Court’s order and remanded with instructions to vacate the judgment and permit an untimely rejection.
Topics
Practice areas
Questions Presented
- Whether the Superior Court abused its discretion by finding that Rivera's failure to timely reject the arbitration award was not the result of excusable neglect.
- Whether Rivera was entitled under the applicable civil-procedure and arbitration rules to vacate the judgment on the arbitration award and file a rejection out of time.
Holdings
- Rivera established excusable neglect because her failure to reject the arbitration award resulted from circumstances outside her reasonable control, including the absence of evidence that required notices were sent by certified mail and the withholding of her mail by her landlord.
- The Superior Court had discretionary authority under Rule 60(b) of the Superior Court Rules of Civil Procedure and Rule 6(b) of the Superior Court Rules Governing Arbitration of Civil Actions to vacate the judgment and permit Rivera to file a rejection out of time upon a showing of excusable neglect.
Key quotations
“The excusable-neglect inquiry "is at bottom an equitable one, taking account of all relevant circumstances surrounding the party's omission."” (14 A.3d at 944-945)
“Upon consideration of all the relevant circumstances surrounding plaintiff's failure to timely reject the arbitration award, we are satisfied that plaintiff acted as would a "reasonably prudent person * * * under similar circumstances."” (14 A.3d at 947)
Factual background
Rivera suffered serious injuries, including the loss of her right leg, after being struck by two vehicles while crossing a road. The parties agreed to court-annexed arbitration, and the hearing was continued several times. During the arbitration, Rivera's attorney withdrew, and the Superior Court ordered that subsequent pleadings, motions, and notices be sent directly to Rivera at her last known address by certified and regular mail. Rivera did not attend the final arbitration hearing, did not timely reject the resulting award, and later asserted that she never received required notices because her mail had been withheld by her landlord.
Procedural history
Rivera's negligence action proceeded to court-annexed arbitration. After she failed to appear at a continued arbitration hearing, the arbitrator issued an award for the defendants, and the Superior Court entered judgment after Rivera did not file a rejection within twenty days. Rivera later obtained new counsel and moved to vacate the judgment and file a late rejection, asserting that she had not received notice of her attorney's withdrawal, the hearing, or the award. The Superior Court denied the motions for lack of good cause or excusable neglect, and the Rhode Island Supreme Court vacated that order and remanded with instructions.
Remand instructions
Vacate the judgment on the arbitration award, allow Rivera to file a rejection of the arbitration award out of time, and conduct further proceedings consistent with the opinion.