Justia Arizona Supreme Court Opinion Summaries

The Supreme Court affirmed the judgment of the trial court enjoining the application of Arizona statutes authorizing the recording of liens against third-party tortfeasors to allow hospitals to recover health care costs for Medicaid patients beyond the amounts provided by Medicaid, holding that the statues are preempted to the extent hospitals utilize them against third-party tortfeasors for "balance billing" to recover costs beyond Medicaid reimbursement.Plaintiffs were patients who were treated at defendant hospitals under the state's contract provider for the federal Medicaid program, which negotiates reimbursement rates with hospitals. Defendants recorded liens against the third-party tortfeasors who caused the patients' injuries in order to recover the remainder of their fees exceeding Medicaid reimbursement. Plaintiff brought this class action challenging the liens, arguing that Ariz. Rev. Stat. 33-931(A) and 36-2903.01(G)(4) (the lien statutes) were preempted by federal Medicaid law. The trial court enjoined application of the lien statutes. The Supreme Court affirmed, holding (1) Plaintiffs had a private right of action to challenge the lien statutes; and (2) the lien statutes are unconstitutional as applied. View "Ansley v. Banner Health Network" on Justia Law

The Supreme Court answered a certified question by holding that a sentence imposing "life without possibility of parole for twenty-five years" means the convicted defendant is eligible for parole after serving twenty-five years' imprisonment despite Ariz. Rev. Stat. 41-1604.09's prohibition of parole for persons convicted of offenses occurring on or after January 1, 1994 and that a court lacks jurisdiction to correct and illegally lenient sentence absent timely correction or appeal.Defendant was found guilty of first-degree murder committed in 1995. The trial court sentenced Defendant to "life without possibility of parole for 25 years." After serving twenty-four years of his sentence, Defendant sued the Arizona Department of Corrections under 42 U.S.C. 1983 asserting his entitlement to parole eligibility. The State sought a determination as to whether Defendant's sentence entitled him to parole eligibility. The district court issued a certification order. The Supreme Court held (1) regardless of section 41-1604.09, Defendant was eligible for parole after serving twenty-five years pursuant to his sentence because the sentencing hearing and order manifested the trial court's intent for Defendant to be parole eligible; and (2) Defendant's illegally lenient sentence was final under Arizona law. View "Chaparro v. Shinn" on Justia Law

The Supreme Court affirmed Defendant's convictions but vacated his sentences and remanded for resentencing, holding that convictions for possession of drugs for sale, whether completed or inchoate, are not disqualifying convictions for purposes of determining eligibility for mandatory probation and drug treatment under Ariz. Rev. Stat. 13-901.01 and that the statute applies equally to qualifying inchoate and completed drug offenses.In 2017, Defendant was convicted of two counts of possession of a narcotic drug and one count of possession of drug paraphernalia. Defendant argued that he should be sentenced to probation under section 13.901.01 because his 2006 conviction for solicitation to sell a narcotic drug did not qualify as a personal possession or use offense under section 13.901.01. Therefore, Defendant argued, his 2017 drug convictions did not count as a third personal possession or use conviction. The trial court ruled that Defendant's 2006 conviction was a strike, and therefore, Defendant was not eligible for mandatory probation. The court of appeals reversed. The Supreme Court vacated Defendant's sentences, holding that Defendant's conviction for solicitation to sell a narcotics drug was not a strike. View "State v. Green" on Justia Law

The Supreme Court affirmed the order of the superior court denying a tribal entity's motion to dismiss a tort action against it, holding that the tribal entity did not prove it was a subordinate economic organization entitled to share the Indian tribe's sovereign immunity.Sara Fox was seriously injured while rafting on the Colorado River through the Grand Canyon. Fox suffered her injuries on Arizona state land. The rafting boat was operated by Grand Canyon Resort Corporation (GCRC), a tribal corporation whose sole shareholder was a federal recognized Indian tribe, the Hualapai Indian Tribe. Fox and her husband filed suit against GCRC and the Tribe. Defendants moved to dismiss the complaint, arguing that the trial court lacked personal jurisdiction because Defendants possessed sovereign immunity from suit. The trial court dismissed the complaint against the Tribe but declined to dismiss the complaint against GCRC, finding it was not protected by sovereign immunity. The Supreme Court affirmed, holding that GCRC failed to carry its burden to show it was a subordinate economic organization of the Tribe so that a denial of immunity would "appreciably impair" the Tribe's "economic development, cultural autonomy, or self-governance." View "Hwal'Bay Ba: J Enterprises, Inc. v. Honorable Jantzen" on Justia Law

The Supreme Court vacated the opinion of the court of appeals dismissing Richard Allen Reed's appeal from a criminal restitution order, holding that the legislature lacked authority to require the court to dismiss a pending appeal upon a convicted defendant's death but possessed authority to prohibit abatement of the defendant's conviction and sentence.Reed was convicted of voyeurism and required to pay $17,949.50 as restitution to the victim. Reed appealed, challenging the restitution amount. Reed appealed, but pending a decision, Reed died. Reed's wife moved to intervene or substitute as a party in the appeal. The court of appeals denied the motion because the wife did not cite authority permitting intervention or substitution in a criminal case. The court then dismissed the appeal pursuant to Ariz. Rev. Stat. 13-106(A). The Supreme Court vacated the court of appeals' opinion and remanded the case to the court of appeals, holding (1) the legislature lacked authority to require the court to dismiss a pending appeal upon a convicted defendant's death under section 13-106(A); but (2) the legislature possessed authority to prohibit abatement of that defendant's conviction and sentence under section 13-106(B). View "State v. Reed" on Justia Law

The Supreme Court affirmed the order of the family court directing the donation of cryopreserved embryos to another couple following the parties' divorce, holding that the parties' agreement directing the disposition of the embryos did not grant the family court discretion in awarding the embryos but, rather, directed donation of the embryos.After Husband petitioned for divorce he asked that the couple's seven viable cryogenically preserved embryos be donated to another couple. The family court found that the "Embryo Cryopreservation & Embryo Disposition" agreement entered into by the parties did not resolve whether either party should get the embryos or whether they should be donated. The court balanced the parties' interests and concluded that Husband's right not to be compelled to be a parent outweighed Wife's right to procreate and directed that the embryos be donated to another couple. The Supreme Court affirmed but on different grounds, holding that the agreement required donation of the embryos and did not grant the family court discretion to make either a unilateral award or direct donation. View "Terrell v. Torres" on Justia Law

The Supreme Court held that the owners of Brush & Nib Studios, LC (together with Brush & Nib, "Plaintiffs") have the right to refuse to create custom wedding invitations celebrating same-sex wedding ceremonies in violation of their sincerely held religious beliefs under article 2, section 6 of the Arizona Constitution and Arizona's Free Exercise of Religion Act (FERA), Ariz. Rev. Stat. 41-1493.01.At issue was whether the City of Phoenix could apply its Human Relations Ordinance Plaintiffs to create custom artwork for same-sex weddings. The trial court granted summary judgment for the City, concluding that the Ordinance did not violate Plaintiffs' rights to free speech or free exercise of religion under FERA. The court of appeals affirmed. The Supreme Court vacated the court of appeals' opinion and reversed the trial court's rulings, holding that the Ordinance, as applied to Plaintiffs' custom wedding invitations, and the creation of those invitations, unconstitutionally compels speech in violation of the Arizona Constitution's free speech clause and substantially burdens Plaintiffs' free exercise of religion under FERA. View "Brush & Nib Studio, LC v. City of Phoenix" on Justia Law

In considering whether online travel companies (OTCs) are subject to municipal privilege taxes under Model City Tax Code (the Code) 444 and 447 the Supreme Court held that the OTCs in this case were subject to taxation under section 444 but not under section 447.In 2013, the City of Phoenix and other cities (the Cities) issued privilege tax assessments against the OTCs based on the Cities' belief that the OTCs owed unpaid privilege taxes under sections 444 and 447 for engaging in the business of operating hotels or, alternatively, for acting as brokers for hotels. The tax court concluded that the OTCs were liable for the taxes. The court of appeals concluded that the OTCS were subject to taxation under section 444 but not under section 447 and that the Cities could assess the taxes, penalties, and interest under section 444 retroactively. The Supreme Court vacated in part the court of appeals' decision, holding (1) the OTCs are subject to taxation under section 444 because they are brokers engaging in the business of operating a hotel; and (2) the OTCs are not subject to taxation under section 447 because they are not hotels. View "City of Phoenix v. Orbitz Worldwide Inc." on Justia Law

The Supreme Court affirmed Defendant's convictions and death sentence for the murder of Xiaohung Fu, holding that none of Defendant's claims of error warranted reversal of his convictions.Specifically, the Court held (1) Defendant's challenges to the Ariz. Rev. Stat. 13-751(F)(6) aggravator were unavailing; (2) the trial court did not abuse its discretion in denying Defendant's motion for mistrial; (3) Defendant was not prejudiced by the trial court's significant impairment instruction to the jury; (4) the trial court's error in allowing the State to introduce evidence of prison housing conditions was harmless; (5) there was no other error or abuse of discretion in the court's remaining challenged evidentiary rulings; (6) no abuse of discretion occurred during voir dire; (7) the trial court did not err in denying Defendant's motions to strike jurors for cause; (8) any error on the part of the prosecution was harmless; (9) the court did not abuse its discretion in denying Defendant's motions to change counsel; and (10) the jury did not abuse its discretion in sentencing Defendant to death. View "State v. Johnson" on Justia Law

The Supreme Court set aside an administrative law judge's (ALJ) denial of Gilbert Aguirre's workers' compensation claim for benefits, holding that a claimant does not waive appellate review of the legally sufficiency of findings before the Industrial Commission of Arizona (ICA).In Post v. Industrial Commission of Arizona, 160 Ariz. 4, 7-9 (1989), the Supreme Court held that when an ALJ fails to make findings on all material issues necessary to resolve the case the award is legally deficient and must be set aside. In this case, after an ALJ denied Aguirre's claim for benefits he filed a request for administrative review. In his request, Aguirre did not specifically challenge the ALJ's failure to make material findings as required by Post. The ALJ summarily affirmed the award. The court of appeals set aside the award based on the absence of legally-sufficient findings. At issue on appeal was whether, because Aguirre did not challenge the lack of material findings required by Post in his request for review, Appellant waived appellate review on that issue. The Supreme Court disagreed, holding that the ALJ's award was legally deficient and must be set aside regardless of whether Aguirre raised the issue. View "Aguirre v. Industrial Commission of Arizona" on Justia Law