SUPREME COURT OF ARIZONA
En Banc
CITY OF PHOENIX, a municipal ) Arizona Supreme Court
corporation; CITY of PHOENIX ) No. CV-08-0159-PR
EMPLOYEES' RETIREMENT SYSTEM )
BOARD, ) Court of Appeals
) Division One
Petitioners, ) No. 1 CA-SA 07-0152
)
v. ) Maricopa County
) Superior Court
THE HONORABLE KENNETH L. FIELDS, ) No. CV2002-020383
JUDGE OF THE SUPERIOR COURT OF )
THE STATE OF ARIZONA, in and for )
the County of Maricopa, ) A M E N D E D
) O P I N I O N
Respondent Judge, )
)
MARY ANN PEREZ, LOU KRAFTS, )
SHERRY GILL, NAN NELSON, DOROTHY )
HANSEN, EVA HERNANDEZ, NORMA )
VEACH, LILLIE DYE, NEFRETARI )
SALAHDEEN, TERESA ANDERSON, )
ELAINE STOCKTON, GERALDINE )
MARTINEZ, MARIA MONTOYA, PAULINE )
HODGES, VIOLET TODD, MARTHA )
MARTINEZ, )
)
Real Parties in Interest. )
)
__________________________________)
Special Action from the Superior Court in Maricopa County
The Honorable Kenneth L. Fields, Judge
REMANDED
________________________________________________________________
Opinion of the Court of Appeals, Division One
219 Ariz. 88, 193 P.3d 782 (App. 2008)
VACATED
________________________________________________________________
LITTLER MENDELSON, P.C. Phoenix
By J. Mark Ogden
R. Shawn Oller
J. Greg Coulter
Attorneys for City of Phoenix
KUTAK ROCK LLP Scottsdale
By Marc R. Lieberman
Paige A. Martin
Jennifer L. Kraham
Attorneys for City of Phoenix Employees'
Retirement System Board
JENNINGS, STROUSS & SALMON, P.L.C. Phoenix
By Peter W. Sorensen
Paul G. Johnson
Attorneys for Mary Ann Perez, Lou Krafts, Sherry Gill,
Nan Nelson, Dorothy Hansen, Eva Hernandez, Norma Veach,
Lillie Dye, Nefretari Salahdeen, Teresa Anderson,
Elaine Stockton, Geraldine Martinez, Maria Montoya,
Pauline Hodges, Violet Todd, and Martha Martinez
CHARLES M. BREWER, LTD. Phoenix
By David L. Abney
And
HARALSON, MILLER, PITT, FELDMAN & MCANALLY, P.L.C. Tucson
By Stanley G. Feldman
Attorneys for Amicus Curiae Arizona
Trial Lawyers Association
ARIZONA CENTER FOR LAW IN THE PUBLIC INTEREST Phoenix
By Timothy M. Hogan
Joy E. Herr-Cardillo Tucson
Attorneys for Amici Curiae Arizona Center
for Law in the Public Interest and the
Goldwater Institute
________________________________________________________________
H U R W I T Z, Justice
¶1 Before suing a public entity, a plaintiff must file a
notice of claim that includes “a specific amount for which the
2
claim can be settled.” A.R.S. § 12-821.01(A) (2003). This case
applies that statutory requirement to a class claim.
I.
¶2 On April 11, 2002, eight former and current Head Start
workers filed a notice of claim with the City of Phoenix (the
“City”) and the City of Phoenix Employees’ Retirement System
Board (the “Board”) on behalf of themselves and others similarly
situated (the “Class”). The notice alleged that Head Start
workers were improperly denied various benefits generally
available to City employees. An amended notice of claim was
filed on May 16, 2002, naming eight additional representatives.
Neither the City nor the Board responded to the claim within
sixty days; the claim was thus denied. See A.R.S. § 12-
821.01(E).
¶3 On October 21, 2002, the putative class
representatives filed a complaint against the City and Board in
Maricopa County Superior Court, alleging constructive fraud,
breach of contract, and failure to pay wages. The complaint
sought certification of a plaintiff class. On March 5, 2007,
after certification of the class, the defendants moved for
summary judgment on the ground that the 2002 notices did not set
forth an amount for which the claims of the Class could be
settled.
3
¶4 The Class argued that the defendants had waived this
defense through undue delay in asserting it. The superior court
found no waiver, but nonetheless denied the motion for summary
judgment, holding that the settlement demand requirement of
§ 12-821.01(A) does not apply to class actions. The City and
Board sought special action relief in the court of appeals.
¶5 The court of appeals accepted jurisdiction and vacated
the superior court’s order. City of Phoenix v. Fields (Perez),
219 Ariz. 88, 193 P.3d 782 (App. 2008). The court held that
§ 12-821.01(A) applies to class actions, id. at 94 ¶ 16, 193
P.3d at 788, and that the notices filed by the Class were
deficient for failure to specify an amount for which the class
claim could be settled, id. at 95-96 ¶ 22, 193 P.3d at 789-90.
¶6 The Class petitioned for review. We granted review
because the issue presented is of first impression and statewide
importance. See ARCAP 23(c). We have jurisdiction under
Article 6, Section 5(3) of the Arizona Constitution and A.R.S.
§ 12-120.24.
II.
A.
¶7 The common law doctrine of sovereign immunity
generally bars damages suits against public entities. See State
v. Sharp, 21 Ariz. 424, 426, 189 P. 631, 631 (1920) (adopting
common law rule). We abandoned that broad common law doctrine
4
in Stone v. Arizona Highway Commission, 93 Ariz. 384, 387, 381
P.2d 107, 109 (1963). But although Stone and subsequent cases
have developed a new common law of government liability, the
legislature retains the power to modify the common law and
develop this area of the law. See Ariz. Const. art. 4, pt. 2,
§ 18 (“The Legislature shall direct by law in what manner and in
what courts suits may be brought against the State.”); Ryan v.
State, 134 Ariz. 308, 310, 656 P.2d 597, 599 (1982) (“We do not
recoil from the thought that the legislature may in its wisdom
wish to intervene in some aspects of this development.”).
¶8 In 1984, the legislature enacted a comprehensive
statutory scheme governing actions against public entities and
employees. 1984 Ariz. Sess. Laws, ch. 285 (the “1984 Act”) (now
codified at A.R.S. §§ 12-820 to -823). The 1984 Act “declared
. . . the public policy of this state that public entities are
liable for acts and omissions of employees in accordance with
the statutes and common law of this state,” id. § 1(A), and set
forth limited circumstances in which public entities would enjoy
complete or qualified immunity from liability, id. § 3 (now
codified at A.R.S. §§ 12-820 to -820.05). The 1984 Act also
required that, before suing a public entity, a plaintiff file a
notice of claim with the entity. Id. § 5 (previously codified
at § 12-821 (1984)).
5
¶9 The notice of claim requirement underwent significant
legislative revision in 1994. 1994 Ariz. Sess. Laws, ch. 192
(the “1994 Act”). Most relevant to today’s inquiry, the 1994
Act added § 12-821.01(A), which provides:
Persons who have claims against a public entity or a
public employee shall file claims with the person or
persons authorized to accept service for the public
entity or public employee as set forth in the Arizona
rules of civil procedure within one hundred eighty
days after the cause of action accrues. The claim
shall contain facts sufficient to permit the public
entity or public employee to understand the basis upon
which liability is claimed. The claim shall also
contain a specific amount for which the claim can be
settled and the facts supporting that amount. Any
claim which is not filed within one hundred eighty
days after the cause of action accrues is barred and
no action may be maintained thereon.[1]
B.
¶10 The 1984 Act did not expressly address class claims.
In Andrew S. Arena, Inc. v. Superior Court (Pima County), we
held that “A.R.S. § 12-821 does not bar class actions against
public entities,” and that “a claim against a public entity may
be presented as a class claim.” 163 Ariz. 423, 426, 788 P.2d
1174, 1177 (1990). “If the claim is denied, the court may
thereafter entertain a class action on the claim provided that
1
For a general history of the notice of claim statutes, see
Andrew Becke, Comment, Two Steps Forward, One Step Back:
Arizona’s Notice of Claim Requirements and Statute of
Limitations Since the Abrogation of State Sovereign Immunity, 39
Ariz. St. L.J. 247 (2007).
6
the case is appropriate as a class action under the applicable
principles of law.” Id.
¶11 Arena did not address the required form of a class
claim. Nor, because it was decided under the 1984 Act, did
Arena involve the requirement in § 12-821.01(A), added in the
1994 Act, that a notice include a “specific amount” for which
the claim can be settled.
¶12 In Deer Valley Unified School District No. 97 v.
Houser (McDonald), we held that in light of the “clear and
unequivocal” language of § 12-821.01(A), a notice of claim must
“include a particular and certain amount of money that, if
agreed to by the government entity, will settle the claim.” 214
Ariz. 293, 296 ¶ 9, 152 P.3d 490, 493 (2007). Deer Valley,
however, did not involve a class claim. Nor has any reported
Arizona decision other than the one below applied the 1994 Act
to class claims.
1.
¶13 Applying § 12-821.01(A) to class claims is complicated
by the nature of class actions. Persons filing a claim with a
public entity do not yet represent a class; subsequent court
certification of the class is required before the claimants
attain representative capacity. See Ariz. R. Civ. P. 23(c)(1)
(requiring the superior court to “determine by order” whether an
action may be maintained as a class action); Arena, 163 Ariz. at
7
426, 788 P.2d at 1177. Before certification, the putative
representatives have authority to settle only their individual
claims. See 5 Jerold S. Solovy et al., Moore’s Federal Practice
§ 23.161(2)(a) (3d ed. 2007) (“Moore’s”). Even after
certification, non-representative class members generally must
be given an opportunity to exclude themselves from the class.
Ariz. R. Civ. P. 23(c)(2). No settlement binds remaining class
members until approved by the trial court after appropriate
notice and hearing. Moore’s, supra, § 23.60(8).
¶14 Thus, it is simply not possible for those filing a
purported class claim under the notice of claim statute to set
forth a “specific amount” for which the claim of the entire
class “can be settled,” as required by § 12-821.01(A). Not only
do those filing the claim lack any such authority, they also
have no assurance that a class will ever be certified, how many
members of the class will opt out, or whether the superior court
will eventually approve a proposed settlement.
¶15 The City and Board nonetheless argue that we should
interpret § 12-821.01(A) as requiring that putative class
representatives make a sum-certain settlement demand on behalf
of a yet-uncertified class and then file suit, seeking
simultaneous class certification and settlement approval. See
Amchem Prods., Inc. v. Windsor, 521 U.S. 591, 618 (1997) (“[T]he
‘settlement only’ class has become a stock device.”). The
8
initial difficulty with this argument is that such a demand
would not comply with the language of the statute, which
requires that the notice include “a specific amount for which
the claim can be settled.” A.R.S. § 12-821.01(A) (emphasis
added). At best, the approach suggested by the City and Board
would result in a notice including a sum for which the class
claims might be settled if a class is eventually certified.
¶16 Moreover, the defendants’ suggested approach conflicts
with the obvious purpose of the settlement demand requirement of
§ 12-821.01(A) – to facilitate “the possibility of settlement
prior to litigation.” Deer Valley, 214 Ariz. at 295 ¶ 6, 152
P.3d at 492 (quoting Falcon ex rel. Sandoval v. Maricopa County,
213 Ariz. 525, 527 ¶ 9, 144 P.3d 1254, 1256 (2006)). A demand
on behalf of a class can be settled only after litigation, which
can be extensive in nature and uncertain in outcome, both about
the appropriateness of the class action and the reasonableness
of the settlement. See Hanlon v. Chrysler Corp., 150 F.3d 1011,
1019 (9th Cir. 1998) (noting that courts “must pay ‘undiluted,
even heightened, attention’ to class certification requirements
in a settlement context”) (quoting Amchem, 521 U.S. at 620); In
re Gen. Motors Corp. Pick-Up Truck Fuel Tank Prods. Liab.
Litig., 55 F.3d 768, 805 (3d Cir. 1995) (“We affirm the need for
courts to be even more scrupulous than usual in approving
settlements where no class has yet been formally certified.”);
9
Weinberger v. Kendrick, 698 F.2d 61, 73 (2d Cir. 1982) (stating
that courts permitting the use of settlement classes “are bound
to scrutinize the fairness of the settlement agreement with even
more than the usual care”); cf. 7B Charles Alan Wright, Arthur
R. Miller & Mary Kay Kane, Federal Practice and Procedure
§ 1797.2 n.1 (3d ed. 2005) (“Wright & Miller”) (“[T]he fact that
a settlement is agreed upon prior to class certification is a
factor weighing against approval of the settlement.”). We
therefore reject the argument that § 12-821.01(A) requires
putative class representatives to submit a settlement demand on
behalf of the class.
¶17 In contrast, the Class contends that the
representatives should be excused from including any specific
settlement demand in their notice of claim. But neither can we
accept this reading of § 12-821.01(A). The statute applies to
“all causes of action”; there is no exemption for putative class
claims. A.R.S. § 12-821.01(F) (emphasis added). The
legislature has the ultimate authority to regulate claims
against public entities, and we are not free to ignore the
language of the statute it has enacted. Some form of settlement
demand for a sum certain is required by § 12-821.01(A).
2.
¶18 The correct interpretation of § 12-821.01(A) is
suggested by the problems with the differing arguments of the
10
parties. Although the putative class representatives cannot
make a claim on behalf of the class, nothing prevents them from
including in their notice the specific amounts for which they
would settle their individual claims. Because, at the time of
filing the notice, each representative is authorized to act only
on his own behalf, § 12-821.01(A) is properly read in the
context of a class claim as requiring only that each
representative make an individual settlement demand.
¶19 We therefore hold that A.R.S. § 12-821.01(A) requires
a putative class representative to include in his notice of
claim a “specific amount” for which his individual claim can be
settled. The notice should also include a statement that, if
litigation ensues, the representative intends to seek
certification of a plaintiff class. If a class is later
certified, the notice of claim will serve as a representative
notice for other class members. See Arena, 163 Ariz. at 426,
788 P.2d at 1177.
¶20 This construction of § 12-821.01(A) corresponds with
our treatment of a class tax-refund claim in Arizona Department
of Revenue v. Dougherty (Ladewig), 200 Ariz. 515, 29 P.3d 862
(2001). The issue in Ladewig was whether, as a prerequisite to
a class action asserting claims to tax refunds, each class
member was required to file a separate administrative claim for
refund with the Department of Revenue pursuant to A.R.S. § 42-
11
1118(E) (1999). 200 Ariz. at 516-17 ¶¶ 1, 6, 29 P.3d at 863-64.
We noted that A.R.S. § 42-1118(E) and the notice of claim
statute “share enough functional similarities that the reasoning
applied in Arena may extend not only to class actions in tax
court but also to the administrative claim process.” Id. at 520
¶ 16, 29 P.3d at 867. We therefore held that the putative class
representative’s refund claim, which identified the amount of
refund she sought individually and noted her intent to pursue
claims on behalf of a class if her claim was denied, sufficed to
preserve the class claims. Id. at 522 ¶ 24, 29 P.3d at 869.
¶21 Because of the similarities between § 42-1118(E) and
§ 12-821.01(A), we adopt the same approach here. A class claim
meets the settlement demand requirement of § 12-821.01(A) if it
identifies the amount for which an individual putative class
representative would settle his own claim and puts the
governmental entity on notice of the claimant’s intention to
pursue a class action if his claim does not settle.
III.
¶22 The notices filed by the class representatives in this
case did not include amounts for which their individual claims
could be settled and therefore failed to satisfy A.R.S. § 12-
821.01(A). The Class and amicus Arizona Trial Lawyers
Association contend, however, that if the notices are deficient,
12
the trial court erred in finding that the notice of claim
statute defense was not waived.
¶23 The City and Board respond that we should not consider
this argument because it was not raised in the court of appeals.
Generally, we do not address arguments raised in the trial court
but not in the court of appeals. Dombey v. Phoenix Newspapers,
Inc., 150 Ariz. 476, 482, 724 P.2d 562, 568 (1986). This rule,
however, “is procedural, not substantive, and may be suspended
in our discretion.” Id. Under the peculiar procedural
circumstances of this case, we find it appropriate to exercise
that discretion.
¶24 The waiver issue was raised by the Class in response
to the defendants’ motion for summary judgment. The City and
Board responded to the waiver argument in their reply memoranda.
The trial court’s order denying summary judgment rejected the
waiver argument, but concluded that the settlement demand
requirement of § 12-821.01(A) did not apply to class actions.
¶25 The City’s special action petition to the court of
appeals sought only to vacate the superior court’s ruling on the
latter issue. Because the petition did not seek review of a
judgment, but rather only a portion of an interlocutory order,
the Class was not required in the special action to pursue its
waiver argument. The court of appeals held only that the
superior court erred in denying summary judgment on the basis of
13
its interpretation of § 12-821.01(A); it did not order that
judgment be granted in favor of the defendants, but rather
remanded the case to the superior court for further proceedings.
Fields, 219 Ariz. at 96 ¶ 22, 193 P.3d at 790. Thus, were the
superior court to enter judgment in favor of the defendants on
remand, an appeal would undoubtedly ensue in which the waiver
issue would be raised.
¶26 In that instance, because the superior court has
already found no waiver, the appellate court would be required
to address that issue on the same record now before us. The
parties have fully briefed the issue in this court. Moreover,
whether a government entity has waived a § 12-821.01(A) defense
is a recurring issue of statewide importance. See, e.g., Yollin
v. City of Glendale, 219 Ariz. 24, 27 n.2 ¶ 4, 191 P.3d 1040,
1043 n.2 (App. 2008) (noting but not deciding waiver issue);
Jones v. Cochise County, 218 Ariz. 372, 381 ¶ 29, 187 P.3d 97,
106 (App. 2008) (finding waiver). We therefore exercise our
discretion to address this issue today.
IV.
¶27 An assertion that the plaintiff has not complied with
the notice of claim statute is an affirmative defense to a
complaint. See Pritchard v. State, 163 Ariz. 427, 432, 788 P.2d
1178, 1183 (1990). An answer to a complaint must set forth “any
. . . matter constituting an avoidance or affirmative defense.”
14
Ariz. R. Civ. P. 8(c). Defenses omitted from an answer or Rule
12 motion are therefore waived. See Wright & Miller, supra,
§ 1278 (“It is a frequently stated proposition of virtually
universal acceptance . . . that a failure to plead an
affirmative defense as required by Federal Rule 8(c) results in
the waiver of that defense.”).
¶28 The joint answer to plaintiffs’ complaint filed by the
City and Board asserted that the plaintiffs had “failed to
exhaust their administrative, statutory, and/or contractual
remedies.”2 The City and Board contend that this allegation was
sufficient to raise the notice of claim statute defense. We
today assume, without deciding, that this broad language
preserved the defense.3
¶29 Even when a party preserves an affirmative defense in
an answer or a Rule 12(b) motion, however, it may waive that
2
The joint answer was filed on December 6, 2002. The Board
filed an amended answer to the original complaint on January 7,
2004, and a second amended answer on August 11, 2004. Each
contained language similar to the original joint answer with
respect to exhaustion of “administrative” and “statutory”
remedies.
3
On March 31, 2005, the Class filed an amended complaint.
In its answer to the amended complaint, filed on April 18, 2005,
the City alleged that plaintiffs failed to comply with “the
mandatory provisions of A.R.S. § 12-821.01.” The Board’s answer
to the amended complaint, filed the next day, similarly alleged
“fail[ure] to comply with the Notice of Claim statute, A.R.S.
§ 12-821.01.” Such specific pleading is far better suited to
apprise a plaintiff of a notice of claim statute defense than a
general assertion of failure to exhaust administrative or
statutory remedies.
15
defense by its subsequent conduct in the litigation. See, e.g.,
Cont’l Bank v. Meyer, 10 F.3d 1293, 1296-97 (7th Cir. 1993)
(finding waiver of personal jurisdiction defense timely raised
in answer after party fully participated in merits of litigation
for more than two-and-one-half years without actively contesting
personal jurisdiction). This rule applies to the notice of
claim statute defense. See Jones, 218 Ariz. at 379-80 ¶¶ 22-23,
27, 187 P.3d at 104-05 (finding waiver when the government
entity substantially participates in litigation).
¶30 Any defense a public entity may have as to the
sufficiency of a notice of claim is apparent on the face of the
notice. This is a matter that courts can quickly and easily
adjudicate early in the litigation. See Pritchard, 163 Ariz. at
432-33, 788 P.2d at 1183-84 (noting that issue can be raised
through motion for summary judgment to which notice is
appended). Given that a government entity may entirely avoid
litigating the merits of a claim with a successful notice of
claim statute defense, waiver of that defense should be found
when the defendant “has taken substantial action to litigate the
merits of the claim that would not have been necessary had the
entity promptly raised the defense.” Jones, 218 Ariz. at 380
¶ 26, 187 P.3d at 105.4
4
Cases involving arbitrable disputes provide a useful
analogy. It is widely recognized that even when a dispute is
16
¶31 By any measure, the City and Board substantially
participated in this litigation before raising their notice of
claim statute defenses. After filing their original answer, the
defendants engaged in extensive briefing as to the propriety of
class certification without once suggesting that they believed
all claims of the Class were barred under § 12-821.01(A). After
class certification, the City and Board filed various motions,
including several motions for partial summary judgment unrelated
to the sufficiency of the notices of claim. The City and Board
also engaged in discovery after class certification, including
submission of Rule 26.1 disclosures that did not disclose a
§ 12-821.01(A) defense.5 The motion for summary judgment finally
_______________________________
subject to arbitration, that right may be waived by a party who
participates substantially in litigation without promptly
seeking an order from the court compelling arbitration. See,
e.g., Navieros Inter-Americanos, S.A. v. M/V Vasilia Express,
120 F.3d 304, 316 (1st Cir. 1997) (“[T]he very rationale for
arbitration may be undercut if a party is permitted to pursue a
claim through the courts and then later claim a right to
arbitration.”); Hoxworth v. Blinder, Robinson & Co., 980 F.2d
912, 925 (3d Cir. 1992) (“[D]efendants have waived whatever
right they may have had to arbitration by actively litigating
this case for almost a year prior to filing their motion to
compel arbitration.”); Van Ness Townhouses v. Mar Indus. Corp.,
862 F.2d 754, 759 (9th Cir. 1988) (implying waiver by
defendant’s active litigation of case for more than two years
before moving to compel arbitration).
5
At oral argument, counsel for the City initially stated
that the parties did not exchange disclosure statements under
Arizona Rule of Civil Procedure 26.1. After counsel for the
Class indicated that the parties had exchanged Rule 26.1
disclosures, counsel for the City stated that the statements had
17
raising the absence of a settlement demand was filed more than
four years after the date of the original complaint and more
than three years after class certification.
¶32 Typically, waiver is “a question of fact.” Chaney
Bldg. Co. v. Sunnyside Sch. Dist. No. 12, 147 Ariz. 270, 273,
709 P.2d 904, 907 (App. 1985). But in this case, waiver by
conduct is apparent from the extensive litigation record below.
¶33 If the City and Board had promptly sought judicial
resolution of their § 12-821.01(A) defense, the plaintiffs would
have been spared considerable expense and the judicial system a
significant expenditure of its resources. Perhaps most
importantly, the non-representative members of the class would
have been alerted before class certification to the need to file
their own separate notices of claim. See Fields, 219 Ariz. at
96 n.9 ¶ 22, 193 P.3d at 790 n.9. We therefore hold that, even
assuming that the City and Board preserved the § 12-821.01(A)
_______________________________
identified only “witnesses and documents” and not “legal
theories and liability.”
The superior court’s Case Management Orders No. 1 and 3
state that the parties did exchange initial disclosure
statements, which included “a statement of claims for relief and
defenses thereto along with a general statement of factual and
legal theories supporting such claims and defenses.” The record
includes the Class’s initial disclosure statement and two
amended disclosure statements from the Class. Although the
record does not contain the defendants’ disclosure statements,
Case Management Order No. 3 indicates that the defendants did
provide such statements.
18
defense in their original joint answer, they waived this defense
against the claims in the original complaint by their subsequent
conduct.6
V.
¶34 For the reasons above, we vacate the opinion of the
court of appeals and remand to the superior court for further
proceedings consistent with this opinion. The City’s
application for attorneys’ fees is denied.
_________________________________
Andrew D. Hurwitz, Justice
CONCURRING:
_______________________________________
Ruth V. McGregor, Chief Justice
_______________________________________
Rebecca White Berch, Vice Chief Justice
_______________________________________
Michael D. Ryan, Justice
_______________________________________
W. Scott Bales, Justice
6
On March 31, 2005, the Class filed an amended complaint
adding an aiding and abetting claim against the Board. The
Board’s answer to the amended complaint, filed on April 19,
2005, expressly raised a notice of claim statute defense. The
Board filed a motion for summary judgment asserting the absence
of a sum certain for which the aiding and abetting claim could
be settled on October 18, 2005. The superior court denied this
motion. The parties therefore have not briefed the issue of
whether the Board waived the § 12-821.01(A) settlement demand
defense to the aiding and abetting claim, and we express no
opinion on that issue.
19