Submitted: October 28, 2003
Filed: November 21, 2003
Kathleen Abate
Darrell V. McGraw, Jr.
Cohen, Abate & Cohen
Attorney General
Morgantown, West Virginia Christie S. Utt
Attorney for Appellant
Assistant Attorney General
Charleston, West Virginia
Attorneys for Appellee
The Opinion of the Court was delivered PER CURIAM.
1. In mandamus proceedings where a public officer willfully fails to obey
the law, attorney fees will be awarded. Syllabus point 4, Nelson v. West Virginia Public
Employees Insurance Board, 171 W. Va. 445, 300 S.E.2d 86 (1982).
2. Where
a public official has deliberately and knowingly refused to exercise a clear
legal duty, a presumption exists in favor of an award of attorney's fees;
unless extraordinary circumstances indicate an award would be inappropriate,
attorney's fees will be allowed. Syllabus
point 3, State
ex rel. West Virginia Highlands Conservancy, Inc. v. West Virginia Division
of Environmental Protection,
193 W. Va. 650, 458 S.E.2d 88 (1995).
Per Curiam:
Mr. Trozzi challenged the Board of Review's decision by filing a petition for
a writ of mandamus and prohibition with the circuit court.
(See footnote 2)
By order entered January 29,
2002, the circuit court granted the writ. In doing so, the circuit court found that under the
applicable laws and rules, the Board of Review could only remand a claim when a party
shows good cause. The circuit court determined that the employer failed to show good cause
for remanding the claim to the administrative law judge.
The order granting the writ also denied Mr. Trozzi's request for attorney fees
and costs. Mr. Trozzi subsequently filed a Rule 59(e) motion asking the circuit court to
reconsider its denial of attorney fees and costs. The motion, which was later amended,
sought $282.28 for costs and $7,524.00 for attorney fees through February 12, 2002, and
additional attorney fees thereafter at $180.00 per hour for time spent on the motion.
(See footnote 3)
The
circuit court denied the motion. This appeal followed.
This Court noted in Gatson that our unemployment compensation law does
not expressly allow recovery of attorney fees against the public body. Gatson, 210 W. Va.
at 756, 559 S.E.2d at 902. Although there was no statutory authority to award attorney fees
against the Board of Review, this Court recognized that '[t]here is authority in equity to
award to the prevailing litigant his or her reasonable attorney's fees as 'costs,' without
express statutory authorization, when the losing party has acted in bad faith, vexatiously,
wantonly, or for oppressive reasons.' Gatson, 210 W. Va. at 755, 559 S.E.2d at 901)
(quoting Syl. pt. 3, Sally-Mike Properties v. Yokum, 179 W. Va. 48, 365 S.E.2d 246 (1986)).
We adopted the principle of law articulated in Yokum and held in Syllabus point 3 of Gatson
that [a] claimant who prevails in an unemployment compensation action may not be
awarded attorney fees unless the evidence shows the Division of Unemployment
Compensation acted in bad faith or with vexatious, wanton, or oppressive conduct.
In the instant case, the circuit court found that under Gatson, Mr. Trozzi has
not shown that the [Board of Review] acted in bad faith, or with vexatio[us], wanton, or
oppressive conduct. Consequently, the circuit court denied attorney fees and costs. Mr.
Trozzi contends, and we agree, that the Gatson standard is inapplicable to the procedure
involved in this case.
Gatson involved an appeal to the circuit court by the claimant from an adverse
ruling by the Board of Review. In contrast, Mr. Trozzi filed a petition for a writ of
mandamus and prohibition to challenge the Board of Review's decision.
(See footnote 4)
Consequently, the
standard for awarding attorney fees and costs is not found in Gatson. The applicable
standard is that which is used for a petition for a writ of mandamus and prohibition. See
Daily Gazette Co., Inc. v. West Virginia Dev. Office, 206 W. Va. 51, 67, 521 S.E.2d 543, 559
(1999) ([T]he rules established for the award of attorney's fees in mandamus proceedings
do not apply to FOIA actions because . . . the two types of cases employ different standards
for the granting of such awards.).
Under W. Va. Code § 53-1-8 (2000) costs may be recovered in a mandamus
or prohibition proceeding.
(See footnote 5)
See Syl. pt. 3, Nelson v. West Virginia Pub. Employees Ins. Bd.,
171 W. Va. 445, 300 S.E.2d 86 (1982) (It is settled that in mandamus proceedings where
a public officer willfully fails to obey the law, costs will be awarded.). The statute is silent
on the issue of attorney fees. However, in Nelson v. West Virginia Public Employees Ins.
Bd., this Court, while considering the applicability of attorney fees under W. Va. Code §
53-1-8 in an action for a writ of mandamus, observed our previous holding that 'attorney fees
are not costs, . . . and thus attorney fees would not ordinarily be recoverable as such.'
Martin v. West Virginia Div. of Labor Contractor Licensing Bd., 199 W. Va. 613, 619, 486
S.E.2d 782, 788 (1997) (quoting Nelson, 171 W. Va. at 451, 300 S.E.2d at 92. The decision
in Nelson carved out a general standard by which attorney fees may be awarded in a
mandamus proceeding. In syllabus point 4 of Nelson we held that [i]n mandamus
proceedings where a public officer willfully fails to obey the law, attorney fees will be
awarded.
The general standard for awarding attorney fees in a mandamus proceeding,
as set out in Nelson, was refined by Justice Cleckley in State ex rel. West Virginia Highlands
Conservancy, Inc. v. West Virginia Division of Environmental Protection, 193 W. Va. 650,
458 S.E.2d 88 (1995). In Highlands two standards for awarding attorney fees in a mandamus
proceeding were established. In syllabus point 3 of Highlands the following was stated:
[w]here a public official has deliberately and knowingly refused to exercise a clear legal
duty, a presumption exists in favor of an award of attorney's fees; unless extraordinary
circumstances indicate an award would be inappropriate, attorney's fees will be allowed.
Where a public official has failed to exercise a clear legal duty,
although the failure was not the result of a decision to knowingly disregard a
legal command, there is no presumption in favor of an award of attorney's
fees. Rather, the court will weigh the following factors to determine whether
it would be fairer to leave the costs of litigation with the private litigant or
impose them on the taxpayers: (a) the relative clarity by which the legal duty
was established; (b) whether the ruling promoted the general public interest
or merely protected the private interest of the petitioner or a small group of
individuals; and (c) whether the petitioner has adequate financial resources
such that petitioner can afford to protect his or her own interests in court and
as between the government and petitioner.
We do not find evidence to warrant a presumption of an award of attorney fees
and costs under syllabus point 3 of Highlands. Therefore, we will analyze the factors set out
in syllabus point 4 of Highlands.
The Board of Review remanded the case for the taking of additional evidence.
However, 84 C.S.R. 1, § 5.8 imposes specific requirements upon a party seeking to have
additional evidence presented. This regulation requires that a party file a motion and show
good cause for seeking to have additional evidence presented.
(See footnote 7)
The circuit court found that
[t]here was no Motion for Additional Evidence or other motion for a remand of this claim,
to present additional evidence, made on behalf of the employer, by any attorney representing
the employer. Morever, the circuit court found that [t]he employer did not show good
cause for a remand, as required by the Procedural Rules of the Board of Review.
Pursuant to W. Va. Code § 21A-7-10 (2002) [t]he board may, on its own
motion, after notice to the claimant, last employer, and the commissioner, eight days in
advance of the date set for hearing, affirm, modify, or reverse and set aside a decision of an
appeal tribunal. The circuit court found that the Board of Review violated this statute.
Specifically, the circuit court found that the Board of Review did not give notice to the
claimant, last employer, and the commissioner, eight days in advance of the date set for
hearing, before taking action to set aside the decision of the Administrative Law Judge on
its own motion.
This Court has little problem in finding that 84 C.S.R. 1, § 5.8 and W. Va.
Code § 21A-7-10 imposed a clear and unequivocal procedural duty upon the Board of
Review before it could remand a case for a de novo hearing. Although the [Board of
Review] has not shown an intention to disregard the law, the statute and the applicable
regulation[] provide[d] clear guidance. Highlands, 193 W. Va. at 654, 458 S.E.2d at 92.
The Board of Review failed to follow that guidance and violated that procedural duty in this
case.
(b) The interest promoted in granting the writ. The next issue we must
consider concerns whether the circuit court ruling granting the writ to Mr. Trozzi by the
circuit court, promoted the general public interest or merely Mr. Trozzi's own private
interest. [A]lthough this case involves a primarily private dispute, we cannot disregard the
broader implications of the case as it relates to the . . . proper methods for [the Board of
Review to remand a case]. Bennett v. Adkins, 194 W. Va. 372, 380, 460 S.E.2d 507, 515
(1995).
Mr. Trozzi correctly argues that [i]f the Board is permitted to . . . remand on
its own motion without the required notice, any claimant who relies upon the procedural rules
. . . does so to his or her detriment, is placed at a procedural disadvantage, may be denied due
process, and may be forced to hire legal counsel to defend their unemployment compensation
benefits. In considering these factors, we believe they are relevant to all claimants seeking
contested unemployment compensation benefits. Consequently, the writ issued in this case
had an impact far beyond the narrow interest of Mr. Trozzi.
(c) Financial resources of Mr. Trozzi. The final issue for consideration
involves the adequacy of Mr. Trozzi's financial resources to protect his interests against
improper conduct by the Board of Review. This issue need not detain us. Mr. Trozzi has
correctly argued that as between the government agency and . . . unemployed workers, the
government is better suited to bear the costs of the agency's failure to comply with a statutory
duty. See Syl. pt. 1, Highlands (Costs and attorney's fees may be awarded in mandamus
proceedings involving public officials because citizens should not have to resort to lawsuits
to force government officials to perform their legally prescribed nondiscretionary duties.).
Reversed and Remanded.
3. Where a public official has failed to exercise a clear legal duty,
although the failure was not the result of a decision to knowingly disregard a legal command,
there is no presumption in favor of an award of attorney's fees. Rather, the court will weigh
the following factors to determine whether it would be fairer to leave the costs of litigation
with the private litigant or impose them on the taxpayers: (a) the relative clarity by which
the legal duty was established; (b) whether the ruling promoted the general public interest
or merely protected the private interest of the petitioner or a small group of individuals; and
(c) whether the petitioner has adequate financial resources such that petitioner can afford to
protect his or her own interests in court and as between the government and petitioner.
Syllabus point 4, State ex rel. West Virginia Highlands Conservancy, Inc. v. West Virginia
Division of Environmental Protection
, 193 W. Va. 650, 458 S.E.2d 88 (1995).
This appeal was filed by Robert J. Trozzi, appellant/petitioner below
(hereinafter referred to as Mr. Trozzi), from an order of the Circuit Court of Kanawha
County denying his request for attorney fees and costs. Mr. Trozzi sought attorney fees and
costs after obtaining a favorable ruling on a petition for a writ of mandamus and prohibition,
brought against the Board of Review of the West Virginia Bureau of Employment Programs
(hereinafter referred to as the Board of Review), appellee/respondent below.
(See footnote 1)
After a
careful review of the briefs and record, as well as listening to the oral arguments of the
parties, the circuit court's order denying attorney fees and costs is reversed.
This appeal grew out of Mr. Trozzi's efforts to obtain unemployment
compensation benefits. Mr. Trozzi left his employment with Snowshoe Resorts in 2001. Mr.
Trozzi subsequently filed a claim for unemployment benefits. The claim was initially denied.
However, after a hearing before an administrative law judge, Mr. Trozzi obtained a favorable
ruling permitting him to receive unemployment compensation benefits. The decision
awarding such benefits was appealed to the Board of Review by the employer. The Board
of Review vacated the administrative law judge's decision and remanded the claim for a new
hearing.
This Court has held that [t]he standard of review applicable to an appeal from
a motion to alter or amend a judgment, made pursuant to W. Va. R. Civ. P. 59(e), is the same
standard that would apply to the underlying judgment upon which the motion is based and
from which the appeal to this Court is filed. Syl. pt. 1, Wickland v. American Travellers
Life Ins. Co., 204 W. Va. 430, 513 S.E.2d 657 (1998). Here, the underlying judgment was
a denial of a request for attorney fees. We review the denial of a request for attorneys' fees
in a mandamus [or prohibition] action under a clearly erroneous standard. Cathe A. v.
Doddridge County Bd. of Educ., 200 W.Va. 521, 532, 490 S.E.2d 340, 351 (1997). See also
Syl. pt. 3, Martin v. West Virginia Div. of Labor Contractor Licensing Bd., 199 W. Va. 613,
486 S.E.2d 782 (1997) ( An award of attorney fees in an action seeking a writ of prohibition
is reviewable under an abuse of discretion standard.). However, [w]here the issue on an
appeal from the circuit court is clearly a question of law . . ., we apply a de novo standard of
review. Syl. pt. 1, Chrystal R.M. v. Charlie A.L., 194 W. Va. 138, 459 S.E.2d 415 (1995).
The circuit court's decision to deny attorney fees and costs was based upon this
Court's decision in Board of Review of Bureau of Employment Programs v. Gatson, 210
W. Va. 753, 559 S.E.2d 899 (2001). In Gatson, the claimant was denied unemployment
compensation benefits at the administrative level. The claimant appealed to the circuit court.
The circuit court reversed the administrative ruling and sua sponte awarded attorney fees
and costs. Gatson, 210 W. Va. at 755, 559 S.E.2d at 901. On appeal to this Court, the
dispositive issue was whether attorney fees could be awarded against the Board of Review.
In syllabus point 4 of Highlands the following stated:
See e.g., Phillip Leon M. v. Greenbrier County Bd. of Educ., 199 W. Va. 400, 484 S.E.2d 909
(1996) (affirming the award of attorney fees and costs under Highlands standards); Bennett
v. Adkins, 194 W. Va. 372, 460 S.E.2d 507 (1995) (applying Highlands standards to reverse
trial court's denial of attorney fees and costs); West Virginia Educ. Ass'n v. Consolidated
Pub. Ret. Bd., 194 W. Va. 501, 460 S.E.2d 747 (1995) (remanding case for circuit court to
apply Highlands standards to determine whether attorney fees and costs should be awarded).
Thus, the standards of Highlands, and not Gatson, governed the issue of attorney fees and
costs in this case.
(See footnote 6)
(a) Clear legal duty. The first issue we must address is whether a clear legal
duty existed in the manner in which the Board of Review may remand a case to an
administrative law judge for a de novo hearing. During the proceeding for Mr. Trozzi's
petition for a writ of mandamus and prohibition, he argued that the Board of Review failed
to follow the applicable rule and statute when it remanded his case for a de novo hearing.
In view of the foregoing, the circuit court's order denying Mr. Trozzi attorney
fees and costs is reversed. The case is remanded for the circuit court to enter an order
awarding Mr. Trozzi $282.28 for costs and $7,524.00 for attorney fees through February 12,
2002, and additional attorney fees thereafter at $180.00 per hour for time spent on the Rule
59(e) motion. Further, on remand Mr. Trozzi is to be awarded reasonable attorney fees and
costs for prosecuting this appeal.
Footnote: 1
The writ peremptory shall
be awarded or denied according to the law and facts of the case, and with
or without costs, as the court or judge may determine.
Footnote: 6