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Campbell v. Maestro3/24/2000
As amended April 21, 2000.
ROBERT CAMPBELL,
APPELLANT,
V.
JOANNA MAESTRO AND LINDA COSTANTINO,
RESPONDENTS.
John V. Riggs, Las Vegas, for Appellant. Mainor & Harris and Clark Seegmiller, Las Vegas, for Respondents.
Before Maupin, Shearing and Becker, JJ.
116 Nev. Adv. Op. No. 41
Appeal from an order of the district court striking a request for trial de novo in a civil action following proceedings conducted pursuant to the Nevada Arbitration Rules. Eighth Judicial District Court, Clark County; Gene T. Porter, Judge.
Reversed and remanded.
OPINION
By the Court, MAUPIN, J.:
This case arises from an October 23, 1995, automobile accident in a Las Vegas shopping center parking lot. Appellant Robert Campbell claims that his automobile engine stalled while pulling out of the lot onto a public thoroughfare. After restarting the car, he proceeded in reverse back into the lot to avoid oncoming traffic. In the process of completing this maneuver, Campbell's vehicle struck another automobile occupied by respondents Joanna Maestro and Linda Costantino.
It was ultimately determined that Maestro and Costantino were injured in the accident. Consequently, on June 17, 1996, they both commenced the action below against Campbell for their personal injuries. Pursuant to an automobile liability policy issued to Campbell, Nevada General Insurance ("NGI") retained counsel to represent him in the litigation. It is undisputed that NGI controlled the defense from that point forward as was its right under the policy. The answer to the complaint denied liability and alleged contributory negligence on Maestro's part. This was done, according to the record, without consulting Campbell.
The case was assigned to the Nevada Court Annexed Arbitration Program under Nevada Arbitration Rule (NAR) 3. Although the liability of Campbell seemed quite clear, that issue remained contested until shortly before the arbitration hearing held on May 9, 1997, after the depositions of all parties were concluded. NGI did not settle Maestro's $2,041.69 property damage claims until immediately prior to the arbitration hearing. According to the record, contacts for purposes of settlement prior to the hearing, initiated by plaintiffs' counsel with NGI counsel, were either rebuffed or failed to elicit a response.
The arbitrator's May 13, 1997, decision recites his concern that Campbell's defense attorney was not representing Campbell, but rather NGI, Campbell's insurer. The arbitrator awarded medical expenses and other damages to both Maestro and Costantino. Further, the arbitrator found that "Nevada General Insurance failed to arbitrate this matter in good faith" and, as a result, awarded attorney's fees to Maestro and Costantino.
Campbell filed a request for trial de novo and a demand for jury trial. See NAR 18 and 20. Maestro and Costantino moved to strike the request. The district court determined that Campbell, through his insurer, failed to arbitrate in good faith and granted the motion to strike. See NAR 22. In support of this ruling, the district court made the following findings:
"Defendant failed to participate in good faith in the arbitration proceeding. Specifically,
1. Defendant Robert Campbell admitted in his deposition that the accident was his fault.
2. Defendant's insurance company denied liability for a year and a half after the accident.
3. Defendant's insurance company did not pay for Plaintiff's property damage
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