DocketNumber: NO. 96200-6
Citation Numbers: 445 P.3d 543, 193 Wash. 2d 724
Judges: McCloud
Filed Date: 7/25/2019
Status: Precedential
Modified Date: 10/19/2024
*727¶1 Washington's superior courts are courts of general jurisdiction-most claims, on most subjects, valued at most any amount, can be decided there. Washington's district courts are courts of limited jurisdiction-only a subset of claims, on a subset of subjects, with $100,000 or less in controversy for civil cases, can be decided there.
¶2 Teresa Banowsky filed her claim for medical malpractice in district court on the last day of the statute of limitations. She sought over $100,000. District courts can exercise jurisdiction over medical malpractice claims, but they cannot exercise jurisdiction over claims seeking over $100,000. CRLJ 14A(b), however, directs district courts to "remove[ ]," or transfer, a case to superior court when "any party" "asserts a claim in an amount in excess of the jurisdiction of the district court or seeks a remedy beyond the jurisdiction of the district court." This case is about the meaning and validity of that rule.
¶3 We hold that CRLJ 14A(b) validly and unambiguously required the district court to transfer Banowsky's case to superior court. We therefore reverse the decision of the Court of Appeals.
I. FACTUAL AND PROCEDURAL BACKGROUND
A. Proceedings in District Court
¶4 On the final day of the statute of limitations, Banowsky, acting pro se, filed a medical malpractice claim against her chiropractor, Guy Backstrom, in King County *728District Court. Clerk's Papers (CP) at 105-07. Banowsky sought "actual compensatory damages in an amount exceeding $100,000.00, together with attorney's fees, court costs, and whatever other damages deemed appropriate by the Court." Id. at 107.
¶5 A month and a half later, an attorney appeared on Banowsky's behalf and moved to transfer the case to superior court. Id. at 101, 95-96. Through counsel, Banowsky alleged that she had been unaware of the $100,000 "limitation of damages in District Court." Id. at 95. She argued that "[b]ecause the error was made in good faith, [the] case *546should be transferred to Superior Court pursuant to Rule CRLJ 14A(b)." Id. at 96.
¶6 CRLJ 14A(b) states, "When any party in good faith asserts a claim in an amount in excess of the jurisdiction of the district court or seeks a remedy beyond the jurisdiction of the district court, the district court shall order the entire case removed to superior court."
¶7 Backstrom opposed transfer. Id. at 45-52. He did not dispute Banowsky's good faith. Instead, he argued that "the District Court has no authority to grant Plaintiff's motion and enter an Order of Transfer because it lacks subject matter jurisdiction over this claim." Id. at 47.
¶8 To explain CRLJ 14A(b) 's function, Backstrom pointed to the drafters' comment to the proposal that amended the rule into its current form. The comment states in part:
Plaintiffs can file in the district court knowing that if a basis for claiming damages in excess of the jurisdictional limit of the district court should arise after they have filed their complaint, then they will have the opportunity to transfer their case to the superior court.
Proposed amendment to CRLJ 14A(b), 150 Wn.2d Proposed-13 (Official Advance Sheet No. 7, Jan. 6, 2004). On the basis of that comment, Backstrom concluded that "if ... Plaintiff believed her damages were $50,000 at the time of *729filing, but later learned they were much more, CRLJ 14A would allow her to remove the claim to Superior Court to seek damages in excess of the jurisdictional limit." CP at 51. But because Banowsky's claim exceeded the jurisdictional limit from the start, Backstrom urged the court to dismiss. Id. at 52.
¶9 Banowsky countered that CRLJ 14A(b) 's history was immaterial to its interpretation given the lack of any ambiguity in its text, and the text required "remov[al]" or transfer. Id. at 31-32. She continued that CRLJ 14A(b) 's history really supported her position, not Backstrom's. She pointed out that the comment on which Backstrom relied actually referenced a prior version of the drafters' proposed amendment to the rule. Id .; see Bd. for Judicial Admin., Meeting Minutes (Jan. 24, 2003) at 3 [https://perma.cc/7VMW-FV3C]. The drafters did not update the comment when they formally submitted a different version of the proposed amendment-the one that ultimately became CRLJ 14A(b) as it exists today-to this court.
¶10 Following briefing on those matters, the district court heard argument, denied Banowsky's motion, and dismissed the case.
B. Proceedings in Superior Court
¶11 Banowsky appealed, renewing the same arguments. Id. at 111-20. Likewise, Backstrom reiterated his previous arguments. Id. at 146-67. But Backstrom cited an additional source of authority in support of those arguments: CRLJ 12(h)(3). That rule states, "Whenever it appears ... that the court lacks jurisdiction of the subject matter, the court shall dismiss the action."
¶12 The superior court heard argument and affirmed the district court's dismissal. Verbatim Report of Proceedings (VRP) at 1-19; CP at 170-71.
*730C. Proceedings in the Court of Appeals
¶13 Banowsky moved the Court of Appeals for discretionary review. That court granted limited review "to address the issues raised by CRLJ 14A(b) and its relationship with other rules and statutes, including CRLJ 12(h)(3) and CRLJ 82." Notation Ruling, No. 76360-1-1, at 3 (Wash. Ct. App. May 31, 2017).
¶14 The Court of Appeals then affirmed. Banowsky v. Backstrom , 4 Wash. App. 2d 338,
¶15 But the Court of Appeals nonetheless reconciled CRLJ 14A(b) and CRLJ 12(h)(3) to sometimes give effect to CRLJ 14A(b) and sometimes permit transfer. "Where a plaintiff properly invokes the subject matter jurisdiction of the district court by demanding relief that is within the amount-in-controversy limit of the court, CRLJ 14A(b) can afterward be applied to direct a transfer of the case to superior court. For example, a plaintiff may later seek to remove the case to superior court on the good faith belief that although her damages initially were below the limit, they now appear to exceed the subject matter jurisdiction of the district court." Id. at 349,
*731¶16 We granted review. Banowsky v. Backstrom,
II. DISCUSSION
A. Standard of Review
¶17 This case involves issues of subject matter jurisdiction, rule interpretation, and constitutional interpretation. We review each of these legal issues de novo.
B. We Assume That the District Court Lacked Subject Matter Jurisdiction over Banowsky's Claim
¶18 " 'Subject matter jurisdiction' refers to a court's ability to entertain a type of case ...." In re Marriage of Buecking,
¶19 Backstrom argues that the district court lacked subject matter jurisdiction over Banowsky's claim. He relies on article IV, section 10 of the Washington Constitution, which provides that "[t]he legislature ... shall prescribe by law the powers, duties and jurisdiction [of the district *732courts]."
¶20 The parties therefore acknowledge that the district court lacked jurisdiction over her case. Because our analysis does not turn on the existence of subject matter jurisdiction, we assume without deciding that they are correct.
C. CRLJ 14A(b) Required the District Court To Transfer the Case to Superior Court Even If the District Court Lacked Subject Matter Jurisdiction
¶21 Even assuming that the district court lacked subject matter jurisdiction, the district court still had the power-and the obligation-under CRLJ 14A(b) to transfer the case to superior court. That is because CRLJ 14A(b), not CRLJ 12(h)(3), applies, and CRLJ 14A(b) is a constitutionally valid procedural rule that abrogates' the common-law rule of dismissal in this situation.
*7331. The Common Law Requires Dismissal of a Claim over Which a Court Lacks Subject Matter Jurisdiction, but This Court Has Recognized an Exception to the Common-Law Rule
¶22 Washington courts generally follow the common-law rule "that a court lacking jurisdiction of any matter may do nothing other than enter an order of dismissal." Deschenes v. King County,
¶23 But we recognized an exception to this common-law rule in In re Personal Restraint of Johnson,
¶24 We reaffirmed that holding in In re Personal Restraint of Perkins,
Clearly [petitioner] could have filed his [personal restraint petition] directly in the Supreme Court at his election. Had he done so we could not have transferred the petition to the Court of Appeals pursuant to RAP 16.5 because we have jurisdiction in this matter whereas the Court of Appeals does not. Thus, [petitioner's] problem arises because he initially filed his [petition] in the Court of Appeals rather than in the Supreme Court. Is this fatal?
*549We think not because RCW 2.06.030 explicitly requires the case ... shall be transferred to the proper court.
¶25 Johnson and Perkins guide the outcome of this case. Although the district court may have lacked the power to hear and determine Banowsky's claim under RCW 3.66.020, it did not necessarily lack the power to transfer the case.
2. The Exception to the Common-Law Rule Applies and Requires Transfer
¶26 Such an enactment exists. As explained below, CRLJ 14A(b) provided the district court with the power to transfer a case and, according to its plain terms, required the district court to transfer this case.
a. CRLJ 14A(b) Applies and Requires Transfer
¶27 "Court rules are interpreted in the same manner as statutes and are construed in accord with their purpose." Bus. Servs. of Am. II, Inc. v. WaferTech, LLC,
i. CRLJ 14A(b) Appears To Apply-and Would Require Transfer
¶28 CRLJ 14A(b) states, "When any party in good faith asserts a claim in an amount in excess of the jurisdiction of the district court or seeks a remedy beyond the jurisdiction of the district court, the district court shall order the entire case removed to superior court."
¶29 The rule plainly applies to this case. Banowsky, the plaintiff, is "any party." By seeking "damages in an amount exceeding $100,000.00," she asserted a claim in excess of *736the district court's jurisdiction. CP at 107; RCW 3.66.020. Backstrom has not contested Banowsky's good faith.
¶30 Banowsky has therefore satisfied all of the rule's conditions, thereby triggering its result: "the district court shall order the entire case removed to superior court." CRLJ 14A(b) (emphasis added). That language is mandatory. Snohomish County v. Thorp Meats,
*550ii. CRLJ 12(h)(3) Appears To Apply-and Would Require Dismissal
¶31 But CRLJ 12(h)(3) also bears on Banowsky's claim. It states, "Whenever it appears by suggestion of the parties or otherwise that the court lacks jurisdiction of the subject matter, the court shall dismiss the action."
¶32 Assuming that the district court completely lacked subject matter jurisdiction, this rule also applies. As a result, "the court shall dismiss the action." CRLJ 12(h)(3) (emphasis added). As with CRLJ 14A(b), that language is mandatory. CRLJ 12(h)(3) therefore seems to require dismissal while CRLJ 14A(b) seems to require transfer.
¶33 But the district court cannot both dismiss and transfer the same case. We must resolve the apparent conflict.
iii. Only CRLJ 14A(b) Applies in This Case
¶34 We conclude that CRLJ 14A(b), not CRLJ 12(h)(3), applies in this case for two reasons.
*737¶35 First, CRLJ 14A(b) is the more recently amended rule, and its substantive amendment bears directly on the issue presently before the court. See Bailey v. Allstate Ins. Co.,
¶36 Second, application of CRLJ 14A(b) is more consistent with the principles underlying the rules. CRLJ 1 tells us to interpret the rules "to secure the just, speedy, and inexpensive determination of every action." See also RCW 2.04.190 (expressing the legislature's desire for rules that "promote the speedy determination of litigation on the merits"); cf. Curtis Lumber Co. v. Sortor,
b. Backstrom's Argument that the Court Rules Do Not Apply When the Court Lacks Subject Matter Jurisdiction Fails
¶37 Backstrom contends that CRLJ 14A(b) cannot provide power to transfer because court rules do not apply when a court lacks subject matter jurisdiction. Resp't's Answer to Pet. for Review at 11-12. He relies on Diehl v. Western Washington Growth Management Hearings Board for the proposition that "[s]uperior court civil rules are procedural rules, applicable only after the commencement of an action, and thus do not purport to extend subject *738matter jurisdiction of the court."
¶38 Backstrom is correct that CRLJ 14A(b) does not extend the subject matter jurisdiction of the district court. WASH. CONST. art. IV, § 10 ; CRLJ 82 ; accord City of Seattle v. Hesler,
¶39 This is clear from the well-accepted rule that a court generally has jurisdiction to determine its own jurisdiction. Johnson,
¶40 Backstrom's position is also at odds with Stikes Woods,
¶41 Diehl does not stand for a contrary rule.
¶42 But Diehl 's conclusion was based on the fact that the APA had specific requirements for appeals of agency decisions, that such appeals fall outside the original jurisdiction of superior courts, and hence those APA-specific rules must control over more stringent civil rules to the contrary.
¶43 We therefore hold that court rules apply to cases even when it is not yet certain that the court has subject matter jurisdiction due to the amount in controversy.
3. Applying CRLJ 14A(b) Is Constitutional
¶44 Backstrom next asserts that applying CRLJ 14A(b) to this case would violate the state constitution. First, Backstrom argues that applying CRLJ 14A(b) would violate article IV, section 10 of the Washington Constitution. As noted, that provision of the constitution gives the legislature, not this court, the sole authority to prescribe the powers, duties, and jurisdiction of district courts. Hastings ,
¶45 Both arguments fail.
a. Applying CRLJ 14A(b) Does Not Usurp the Legislature's Authority To Prescribe the Powers, Duties, and Jurisdiction of the District Courts
¶46 Backstrom, like the Court of Appeals, asserts that applying CRLJ 14A(b)
*552to this case would constitute an impermissible judicial encroachment on the legislature's authority. Resp't's Suppl. Br. at 6-11; Banowsky, 4 Wash. App. 2d at 346-47,
¶47 "The inherent power of article IV includes the power to govern court procedures." City of Fircrest v. Jensen ,
*741¶48 Our rules have the force of law. "If a statute appears to conflict with a court rule, this court will first attempt to harmonize them and give effect to both, but if they cannot be harmonized, the court rule will prevail in procedural matters and the statute will prevail in substantive matters." Putman v. Wenatchee Valley Med. Ctr., PS,
¶49 CRLJ 14A(b) is unquestionably a procedural rule. By providing for transfer of a case from one court to another, the rule "pertain[s] to the essentially mechanical operations of the courts by which substantive law, rights, and remedies are effectuated." State v. Smith,
¶50 Although Backstrom agrees that CRLJ 14A(b) is procedural, he contends that applying it in this case would violate the state constitution. Resp't's Answer to Pet. for Review at 11-12. He reasons that article IV, section 10 allocates jurisdiction-setting responsibility to the legislature so only the legislature can authorize transfer when the district court lacks subject matter jurisdiction. Thus, in his view, a statute could authorize transfer, but a court rule cannot. On that basis, he distinguishes Johnson and Perkins.
¶51 We disagree. Our power to establish procedural rules governing the judicial branch of government is well *742established in our precedent and well grounded in our constitutional authority. Moreover, by removing a case from district court when that court lacks jurisdiction, CRLJ 14A(b) respects the jurisdictional lines that the legislature has drawn in RCW 3.66.020 and in no way " 'invades the prerogatives' " of the legislature. Jensen,
¶52 But even if we were to agree with Backstrom's premise that the legislature must authorize transfer, we would not agree with his conclusion. The legislature has endorsed this court's promulgation of rules regulating the practice and procedure of state courts, including district courts. RCW 2.04.190, .200.
¶53 RCW 2.04.190 states that this court "shall have the power ... generally to regulate and prescribe by rule ... the kind and character of the entire pleading, practice and procedure to be used in all suits, actions, appeals and proceedings of whatever nature by the supreme court, superior courts, and district courts of the state." Additionally, the legislature expressed the view that we exercise power to give "regard to the simplification of the system of pleading, practice and procedure in said courts to promote the speedy determination of litigation on the merits."
¶54 Another statute, RCW 2.04.200, reinforces the legislature's intent to defer to this court's control of practice and procedure in state courts. RCW 2.04.200 provides that "all *553laws in conflict [with the rules that this court promulgates] shall be and become of no further force or effect."
¶55 In enacting those statutes, "[t]he legislature recognized that rules of court to promote justice[ ] should be in the hands of that department of government which, in addition to being always in session and unhindered by the delays and influences besetting legislative enactments, is likewise qualified, through actual experience, to formulate salutary rules ...." State ex rel. Foster-Wyman Lumber Co. v. Superior Court,
b. Applying CRLJ 14A(b) Does Not Undermine Article IV's Division of Authority between Superior Courts and District Courts
¶56 Backstrom adopts the Court of Appeals' view that applying CRLJ 14A(b) would upset article IV's allocation of judicial authority. The Court of Appeals stated:
The clear policy of our state constitution is that the superior court is the court of almost "universal" subject matter jurisdiction. The other Washington trial courts necessarily have limited jurisdiction. It would greatly undercut that intentional divide to allow a plaintiff to ignore the district court amount-in-controversy limitation and force a transfer even though she demanded an amount over the district court limit.
4 Wash. App. 2d at 347,
¶57 To be sure, the constitution creates different roles for district courts and superior courts. And article IV, section 10 provides that the jurisdiction of the district courts "shall not trench upon the jurisdiction of superior ... courts."
¶58 But CRLJ 14A(b) supports, not undermines, that constitutional scheme. When the district court applies CRLJ 14A(b), it in no way "hear[s] and determine[s]" the case. Lane,
¶59 We took this commonsense approach before, at the time of statehood. Washington's new constitution mandated that the dying territorial courts transfer all their cases to the newborn state courts:
All actions at law and suits in equity which may be pending in any of the courts of the Territory of Washington, at the time of the change from a territorial to a state government, shall be continued, and transferred to the court of the state having jurisdiction of the subject matter thereof.
WASH. CONST. art. XXVII, § 5.
¶60 In one case, however, the territorial justice of the peace made a decision on November 18, 1889, the day on which the court died and its cases were all "continued" to the new justice of the peace courts. Moore v. Perrot,
*554III. CONCLUSION
¶61 Backstrom acknowledges that Banowsky filed her claim within the statute of limitations and that service was *745proper. CP at 154; VRP at 11. The only question is whether the district court had power to transfer that claim-regarding a subject within the district court's jurisdiction but seeking an amount outside its jurisdiction-to the superior court. Under CRLJ 14A(b), the district court did have such power and was obligated to exercise it.
¶62 We reverse the decision of the Court of Appeals.
WE CONCUR:
Johnson, J.
Owens, J.
Stephens, J.
Wiggins, J.
González, J. (concurring in result)
¶63 I concur with the majority opinion that our court rules required the district court to transfer Teresa Banowsky's medical malpractice claim to superior court. "When any party in good faith asserts a claim in an amount in excess of the jurisdiction of the district court or seeks a remedy beyond the jurisdiction of the district court, the district court shall order the entire case removed to superior court." CRLJ 14A(b). I write separately because I am unwilling to join the majority's "assum[ption]" that the district court lacked jurisdiction over this case. Majority at 548. Depending on the type of jurisdiction at issue, the district court may have been powerless to do anything but dismiss. See dissent at 556 & n. 1.
¶64 Banowsky filed her medical malpractice claim in district court, seeking over $100,000 in damages. When "the value of the claim ... does not exceed one hundred thousand dollars, exclusive of interest, costs, and attorneys' fees, the district court shall have jurisdiction [over] ... [a]ctions for damages for injuries to the person." RCW 3.66.020(2). I would hold the $100,000 amount-in-controversy ceiling does not limit the district court's subject matter jurisdiction because it merely concerns the amount of damages available. See State v. Posey,
¶65 " 'Jurisdiction means the power to hear and determine.' " State v. Werner,
Madsen, J.
The district court dismissed without prejudice. CP at 26. But because the statute of limitations had since run, Banowsky could not refile her claim in superior court. Hence, she appealed the district court's order of dismissal.
In re Marriage of Buecking,
The Washington Constitution refers to justices of the peace, not district courts. But district courts are justice of the peace courts, simply renamed. RCW 3.30.015.
A similar principle exists in federal law. A federal court hearing a case that has been removed from state court must transfer the case back to state court if the federal court determines that it lacks subject matter jurisdiction. 28 U.S.C § 1447(c).
Because CRLJ 14A(b) 's text is unambiguous, we do not examine the comments or history behind the rule. Dep't of Ecology v . Campbell & Gwinn, LLC,
Although courts have historically considered compliance with statutes of limitations to be "jurisdictional," Buecking gives reason to question that label.
Ch. 34.05 RCW.
The legislature appears to agree that case transfer is a procedural matter. See RCW 34.05.510 (referring to transfer as an "[a]ncillary procedural matter[ ]" when parties invoke a superior court's statutory appellate subject matter jurisdiction of agency decisions under the APA). The Ninth Circuit has also characterized CRLJ 14A as a procedural rule. Noel v. Hall,
We recognize that our court ruled that "the [state] justice transferred the cause to the [state] superior court, and we hold that the transfer thus made was sufficient, although accomplished under the form of an appeal." Moore,
It is irrelevant that civil rules may govern a court's determination of whether it has subject matter jurisdiction. See majority at 550-51. Courts do have "inherent jurisdiction to construe jurisdictional statutes," as well as "jurisdiction to determine the procedures which govern its own jurisdiction." Stikes Woods Neigh. Ass'n v. City of Lacey,