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Britt v. City of Wenatchee5/19/2005
Res judicata bars the relitigation of claims that were or could have been litigated in an earlier suit. Former Wenatchee police officer Kenneth D. Britt was injured in the line of duty and filed multiple lawsuits against the City. Here, he asserts bad faith and Consumer Protection Act violations in a tort action for unwarranted litigation. The trial court dismissed the claims because they were or could have been asserted in an earlier breach of contract action based on the same dispute. We agree with that decision and affirm.
FACTS
Sergeant Kenneth D. Britt was a police officer for the City of Wenatchee. He was injured in an automobile accident while on duty. The other driver's insurance company paid Sergeant Britt the policy limit of $100,000. Sergeant Britt also received workers' compensation benefits from the Department of Labor and Industries (L&I) in the amount of $142,582.63. As part of its collective bargaining agreement with the Wenatchee Police Guild, the City of Wenatchee provided Guild members with underinsured motorist (UIM) coverage up to $300,000.
9.10 Insured and Underinsured Motorists Coverage. The City will, either through self-insurance or purchase policies, provide the benefit of uninsured and underinsured motorist coverage for all bargaining unit members up to the limits of $300,000.
Clerk's Papers (CP) at 166.
Sergeant Britt filed a request with the City for underinsured motorist coverage in the amount of $300,000. The City responded that L&I had posted a lien against any sums payable to Sergeant Britt. The City also thought it should be able to offset L&I benefits received by Sergeant Britt against the UIM benefit, based on its status as an L&I premium-paying employer. Sergeant Britt's lawyer insisted, to no avail, that the L&I lien and payments did not affect the City's liability.
The dispute went to arbitration pursuant to the collective bargaining agreement. The arbitrator fixed Sergeant Britt's comparative fault at 30 percent. He offset the recovery from the other driver's insurance company, ordered the City to pay Sergeant Britt $204,408, and included the L&I benefits. The arbitrator concluded that the parties intended the UIM benefits to parallel those available through an outside insurer--that is, as prescribed by Washington law. And insurers cannot offset L&I payments from UIM benefits. The arbitrator's decision is final and binds both parties.
The City paid Sergeant Britt $59,000. This was the amount of his award in excess of the L&I lien. The City put the remainder into the superior court registry and successfully petitioned for review of the arbitration order. The Guild did not answer or counterclaim. Instead five months later it filed a separate action on behalf of Sergeant Britt. The Guild sought (1) to compel immediate payment of the arbitration award and (2) to challenge the amount of the award. The Guild also alleged that, by placing the disputed funds in the registry of the court, the City unlawfully withheld payment from Sergeant Britt and 'breached its good faith obligations as an insurer.' CP at 348.
The court agreed with the arbitrator, refused to offset the L&I payments, and affirmed the arbitration award. The City then promptly released the funds from the court registry and paid the judgment of $204,408. Sergeant Britt now sues the City on his own behalf. He claims that the City's appeal of the arbitration order was unwarranted litigation. And, by placing the funds in the registry of the court pending judicial review instead of paying him immediately, the City deprived him of the use of the funds. He contends this constit
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