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IN THE SUPREME COURT OF APPEALS OF WEST VIRGINIA
January 2004 Term
No. 31574
SCOTT SHAFER,
Appellant, Plaintiff below,
V.
KINGS TIRE SERVICE, INC., MATTHEW KING,
AND SAM KING,
Appellees, Defendants below,
Appeal from the Circuit Court of Mercer County
Honorable John R. Frazier, Judge
Civil Action No. 01-C-207-F
REVERSED AND REMANDED WITH DIRECTIONS
Submitted: April 27, 2004
Filed: May 6, 2004
Debra Kilgore, Esq.
Colleen C. McCulloch, Esq.
Burton & Kilgore
Brown & Levicoff, PLLC
Princeton, West Virginia
Beckley, West Virginia
Attorney for the Appellant
Attorney for the Appellee
JUSTICE DAVIS delivered the opinion of the Court.
JUSTICE STARCHER concurs and reserves the right to file a concurring opinion.
SYLLABUS BY THE COURT
1.
'Where the issue on an appeal from the circuit court is clearly a question
of law or involving an interpretation of a statute, we apply a
de novo standard of review.'
Syllabus point 1,
Chrystal R.M. v. Charlie A.L., 194 W. Va. 138, 459 S.E.2d 415 (1995).
Syllabus point 1,
State v. Paynter, 206 W. Va. 521, 526 S.E.2d 43 (1999).
2. An interpretation of the
West Virginia Rules of Civil Procedure presents
a question of law subject to a
de novo review. Syllabus point 4,
Keesecker v. Bird, 200
W. Va. 667, 490 S.E.2d 754 (1997).
3. ''[T]he trial [court] . . . is vested with a wide discretion in determining
the amount of . . . court costs and counsel fees, and the trial [court's] . . . determination of
such matters will not be disturbed upon appeal to this Court unless it clearly appears that
[it] has abused [its] discretion. Syllabus point 3, [in part,]
Bond v. Bond, 144 W. Va. 478,
109 S.E.2d 16 (1959).' Syl. Pt. 2, [in part,]
Cummings v. Cummings, 170 W. Va. 712, 296
S.E.2d 542 (1982) [(per curiam)]. Syllabus point 4, in part,
Ball v. Wills, 190 W. Va. 517,
438 S.E.2d 860 (1993).' Syl. pt. 3,
Daily Gazette Co., Inc. v. West Virginia Dev. Office, 206
W. Va. 51, 521 S.E.2d 543 (1999). Syllabus point 1,
Hollen v. Hathaway Electric, Inc., 213
W. Va. 667, 584 S.E.2d 523 (2003) (per curiam).
4. Costs included under West Virginia Rule of Civil Procedure 68(a) include
attorney's fees when any statute applicable to the case defines costs as including attorney's
fees. However, costs under Rule 68(a) do not include attorney's fees if the statute creating
the right to attorney's fees defines attorney's fees as being in addition to, or separate and
distinct from, costs.
5. Because the Human Rights Act defines costs as including attorneys fees,
the costs included in a Rule 68 offer of judgment includes attorney's fees.
6. When the relief sought in a human rights action is primarily equitable,
'reasonable attorneys' fees' should be determined by (1) multiplying the number of hours
reasonably expended on the litigation times a reasonable hourly rate--the lodestar
calculation--and (2) allowing, if appropriate, a contingency enhancement. The general
factors outlined in Syllabus Point 4
Aetna Cas. & Sur. Co. v. Pitrolo, 176 W. Va. 190, 342
S.E.2d 156 (1986) should be considered to determine: (1) the reasonableness of both time
expended and hourly rate charged; and, (2) the allowance and amount of a contingency
enhancement. Syllabus point 3,
Bishop Coal Co. v. Salyers, 181 W. Va. 71, 380 S.E.2d
238 (1989).
7. Where attorney's fees are sought against a third party, the test of what
should be considered a reasonable fee is determined not solely by the fee arrangement
between the attorney and his client. The reasonableness of attorney's fees is generally based
on broader factors such as: (1) the time and labor required; (2) the novelty and difficulty
of the questions; (3) the skill requisite to perform the legal service properly; (4) the
preclusion of other employment by the attorney due to acceptance of the case; (5) the
customary fee; (6) whether the fee is fixed or contingent; (7) time limitations imposed by
the client or the circumstances; (8) the amount involved and the results obtained; (9) the
experience, reputation, and ability of the attorneys; (10) the undesirability of the case; (11)
the nature and length of the professional relationship with the client; and (12) awards in
similar cases. Syllabus point 4,
Aetna Casualty & Surety Co. v. Pitrolo, 176 W. Va. 190,
342 S.E.2d 156 (1986).
Davis, Justice:
Scott Shafer (hereinafter Mr. Shafer)
(See footnote 1)
appeals from an award of attorney's
fees granted to him by the Circuit Court of Mercer County against Kings Tire Service,
Matthew King and Sam King (hereinafter the Kings). The circuit court's attorney's fees
award was granted after Mr. Shafer accepted the Kings' offer of judgment made pursuant
to West Virginia Rule of Civil Procedure 68(a). Mr. Shafer requested a total award of
$67,684.40 which included $17,227.30 in expenses and $50,457.50 for attorney's fees. He
was awarded $25,000. Having reviewed the parties' briefs, heard oral argument, and
reviewed the record, we reverse and remand with directions to the circuit court to make
findings of fact and conclusions of law on the issue of attorney's fees.
I.
FACTUAL AND PROCEDURAL HISTORY
On April 9, 2001, Mr. Shafer sued the Kings for disability discrimination in
violation of the Human Rights Act, W. Va. Code § 5-11-9(1) (1998) (Repl. Vol. 2002), and
for discrimination based upon the receipt of workers' compensation benefits in violation
of W. Va. Code § 23-5A-1 (1978) (Repl. Vol. 2002). Approximately eighteen months after
filing the suit, the Kings' counsel verbally proposed three alternative settlement proposals:
1) a binding arbitration with a low and high cap award; (2) a jury verdict cap with a
guaranteed payment to Mr. Shafer even if the jury returned a defense verdict; or (3) an
immediate payment of $125,000.00. After Mr. Shafer refused all three offers, the Kings
made an offer of judgment under Rule 68(a) of the West Virginia Rules of Civil Procedure
on October 18, 2002. This offer of judgment allowed a judgment to be taken against the
Kings for One Hundred Twenty-five Thousand ($125,000.00), which shall include costs
then accrued. Mr. Shafer accepted the offer of judgment on October 28, 2002.
On November 6, 2002, Mr. Shafer filed a motion for attorney's fees pursuant
to the Human Rights Act's cost-shifting section. W. Va. Code § 5-11-13(c). The motion
requested $17,227.30 in expenses and $50,457.50 in attorney's fees billed at $175.00 per
hour for 286.75 hours of work. This amount also included a total of $276.25 resulting from
4.25 hours of work at $65.00 an hour billed by an associate who worked at the law firm
representing Mr. Shafer. The motion was accompanied by time sheets documenting the
services rendered and the time these services consumed. The motion also included
affidavits from three lawyers practicing in the employment discrimination field in West
Virginia indicating the fees they charged for employment discrimination cases were at least
$175.00 an hour.
Below, the Kings objected to the payment of any fees. They contended that
the Human Rights Act authorizes attorney's fees only if a court finds that the defendant
engaged in discriminatory practices as prohibited by the Act. The Kings further argued that
the offer of settlement was not such a finding of discriminatory practices.
At a hearing on the attorney's fees motion held on January 24, 2003, the
circuit court found that the offer of settlement did not preclude the award of attorney's fees.
The court concluded that even though there was no finding of discrimination, an award of
attorney's fees was appropriate because Mr. Shafer had prevailed in the case. Noting that
the Human Rights Act was one of the few areas where attorneys fees can be awarded and
that there was no finding of discrimination, the circuit court found that awarding a portion
of the requested fees would be appropriate. The circuit court then awarded fees and costs
in the amount of $25,000.00. The circuit court failed to disclose any reasoning that
supported the fee amount. Mr. Shafer now appeals this ruling.
II.
STANDARD OF REVIEW
This case requires us to examine both a statute, the West Virginia Human
Rights Act's attorney's fees provision, and a rule of civil procedure, Rule 68(a) of the West
Virginia Rules of Civil Procedure. We have previously held that '[w]here the issue on an
appeal from the circuit court is clearly a question of law or involving an interpretation of
a statute, we apply a
de novo standard of review.' Syllabus point 1,
Chrystal R.M. v. Charlie
A.L., 194 W. Va. 138, 459 S.E.2d 415 (1995). Syl. pt. 1,
State v. Paynter, 206 W. Va. 521,
526 S.E.2d 43 (1999). We have likewise held that [a]n interpretation of the
West Virginia
Rules of Civil Procedure presents a question of law subject to a
de novo review. Syl. pt. 4,
Keesecker v. Bird, 200 W. Va. 667, 490 S.E.2d 754 (1997).
See also Franklin D. Cleckley,
Robin J. Davis & Louis J. Palmer, Jr.,
Litigation Handbook on West Virginia Rules of Civil
Procedure §68[2][c] at 1045 (2002) (Appellate review of Rule 68 issues is generally de
novo, except that factual determinations by the trial court are reviewed for clear error.
(footnote omitted)).
Additionally, this case also requires us to determine a question relating to the
awarding of attorney's fees. Our review of this issue is limited for as we have recently
reiterated:
''[T]he trial [court] . . . is vested with a wide discretion in
determining the amount of . . . court costs and counsel fees,
[sic] and the trial [court's] . . . determination of such matters
will not be disturbed upon appeal to this Court unless it clearly
appears that [it] has abused [its] discretion.' Syllabus point 3,
[in part,]
Bond v. Bond, 144 W. Va. 478, 109 S.E.2d 16
(1959). Syl. Pt. 2, [in part,]
Cummings v. Cummings, 170
W. Va. 712, 296 S.E.2d 542 (1982) [(per curiam)].' Syllabus
point 4, in part,
Ball v. Wills, 190 W. Va. 517, 438 S.E.2d 860
(1993). Syl. pt. 3,
Daily Gazette Co., Inc. v. West Virginia Dev.
Office, 206 W. Va. 51, 521 S.E.2d 543 (1999).
Syl. pt. 1,
Hollen v. Hathaway Elec., Inc., 213 W. Va. 667, 584 S.E.2d 523 (2003) (per
curiam). Keeping these standards in mind, we now turn to the contentions the parties raise.
III.
We think this case presents two issues for consideration: (1) did the circuit
court have authority to enter any award of costs in this case given the relationship between
Rule 68(a) and the cost-shifting provision of the West Virginia Human Right Act and (2)
did the circuit court abuse its discretion in awarding Mr. Shafer only partial costs? We
examine each of these questions in turn.
1. W. Va. R. Civ. Pro. 68(a) and W. Va. Code § 5-11-13(c)
West Virginia Rule of Civil Procedure 68(a) provides:
Offer of Judgment. At any time more than 10 days before the
trial begins, a party defending against a claim may serve upon
the adverse party an offer to allow judgment to be taken against
the defending party for the money or property or to the effect
specified in the defending party's offer, with costs then
accrued. If within 10 days after the service of the offer the
adverse party serves written notice that the offer is accepted,
either party may then file the offer and notice of acceptance
together with proof of service thereof and thereupon the court
shall direct entry of the judgment by the clerk.
By its terms, an offer of judgment must include not only an offer of judgment
on the claim raised by the plaintiff, but such an offer must also include costs then
accrued.
See Franklin D. Cleckley, Robin Jean Davis & Louis J. Palmer,
Litigation Handbook
on West Virginia Rules of Civil Procedure, § 68(a), p.1046 (2002) (An offer
under Rule 68(a) does not have to separately recite the amount the defendant is offering in
settlement of the substantive claim and the amount being offered to cover accrued costs.
The critical issue concerning the contents of the offer, is that the offer be one that allows
judgment to be taken against the defendant for both the damages caused by the challenged
conduct and the costs then accrued.). While the term costs usually does not include
attorney's fees,
Nelson v. West Virginia Public Employees Insurance Board, 171 W. Va.
445, 451, 300 S.E.2d 86, 92 (1982), if an applicable statute defines costs to include
attorney's fees, then attorney's fees may be recovered as costs.
See generally 20 Am. Jur.
2d
Costs § 57 (1995). The Human Rights Act's cost-shifting section defines costs as
including reasonable attorney fees[.] W. Va. Code § 5-11-13(c).
(See footnote 2)
In
Marek v. Chesney,
the seminal United States Supreme Court case interpreting Federal Rule of Civil Procedure
68, the Court held:
[T]he most reasonable inference is that the term costs in Rule
68 was intended to refer to all costs properly awardable under
the relevant substantive statute or other authority. In other
words, all costs properly awardable in an action are to be
considered within the scope of Rule 68 costs. Thus, absent
congressional expressions to the contrary, where the underlying
statute defines costs to include attorney's fees, we are
satisfied such fees are to be included as costs for purposes of
Rule 68.
473 U.S. 1, 9, 105 S. Ct. 3012, 3016, 87 L. Ed. 2d 1, 9 (1985). The Supreme Court went
on to hold that the accrued cost provision of Rule 68 extended to an award of attorney's
fees under 42 U.S.C. § 1988, the general federal fee shifting statute for civil rights
litigation, as [t]his 'plain meaning' interpretation of the interplay between Rule 68 and §
1988 is the only construction that gives meaning to each word in both Rule 68 and § 1988.
Marek, 473 U.S. at 9, 105 S. Ct. at 17, 87 L. Ed. 2d at 9-10. Although [a] federal case
interpreting a federal counterpart to a West Virginia rule of civil procedure may be
persuasive, . . . it is not binding or controlling[,] Syl. pt. 3,
Brooks v. Isinghood, 213 W. Va.
675, 584 S.E.2d 531 (2003), we afford
Marek substantial weight.
See Williams v. Precision
Coil, Inc., 194 W. Va. 52, 58 n.6, 459 S.E.2d 329, 335 n.6 (1995) (The West Virginia
Rules of Civil Procedure practically are identical to the Federal Rules. Therefore, we give
substantial weight to federal cases, especially those of the United States Supreme Court, in
determining the meaning and scope of our rules.).
See also Meadows v. Wal-Mart Stores,
Inc., 207 W. Va. 203, 220, 530 S.E.2d 676, 693 (1999) (W. Va. R. Civ. P. 68 . . . is based upon and almost identical to Rule 68 of the Federal Rules of Civil Procedure. (footnote
omitted)).
(See
footnote 3) Consequently, we hold that costs
included under West Virginia Rule of Civil Procedure Rule 68(a) include attorney's
fees when any statute applicable to the case defines costs as including attorney's
fees. However, costs under Rule 68(a) do not include attorney's fees if the
statute creating the right to attorney's fees defines attorney's fees as being
in addition to, or separate and distinct from costs.
See Cleckley, Davis & Palmer,
Litigation
Handbook, § 68(a), p.113 (Supp. 2004) ([I]f an action is brought
under a statute that permits recovery of attorney fees, then under Rule 68(a)
the term costs would include attorney fees accrued at the time of the offer.);
13
Moore's Federal Practice § 68.02[4], at 68-10 (3d ed. 2004)
([I]f the statute creating an entitlement to attorney's fees refers to
the fees in terms that make it seem they are in addition to, or different from,
other 'costs,' for example, by referring to 'attorney's fees
and costs'
as opposed to 'attorney's fees
as
part of
the costs,' then the fees are not costs under Rule 68. (footnote omitted)). Because
the Human Rights Act defines costs as including attorneys fees, the costs included in a Rule
68 offer of judgment includes attorney's fees.
The Kings argue that the circuit court did not abuse its discretion in awarding
only a portion of the attorney's fees requested by Shafer because, they assert, the circuit
court lacked the authority to award
any fees under the Act.
(See footnote 4)
The Kings read the first
sentence of W. Va. Code § 5-11-13(c)
(See footnote 5)
, which states that [i]n any action filed under this
section, if the court finds that the respondent has engaged in or is engaging in an unlawful
discriminatory practice charged in the complaint[,] as referring to the second sentence
which permits a circuit court in its discretion [to] award all or a portion of the costs of the
litigation . . . to the complainant. Thus, the Kings contend that because the circuit court
made no finding that they engaged in any discriminatory practice, the circuit court could
not award attorney's fees at all. Therefore, an award of only a portion of the requested fees
must, perforce, be within the circuit court's discretion.
Mr. Shafer responds that the first sentence of W. Va. Code § 5-11-13(c) is not
to be read as informing the interpretation of the second sentence. He asserts that while a
finding of unlawful discrimination is a necessary predicate for an award of legal or
equitable relief on the substance of the claim, the cost-shifting sentence does not contain
any language that a court must find unlawful discrimination before it can award costs.
However, rather than focusing on simply the Act as have the parties, we believe the proper
approach in this case is to focus on the relationship between the Act and Rule 68(a).
This case was resolved substantively through an offer of judgment under Rule
68(a). The language of Rule 68(a) is plain. An offer of judgment must include costs.
(See footnote 6)
Indeed, the commentators on our Rule 68(a) have correctly observed that:
If an offer recites that costs are included or specifies an
amount for costs, and the plaintiff accepts the offer, the
judgment will necessarily include costs; if the offer does not
state that costs are included and an amount for costs is not
specified, the trial court will be obliged by the terms of the rule
to include in its judgment an additional amount which, in its
discretion, it determines to be sufficient to cover the costs. In
either case, however, the offer has allowed judgment to be
entered against the defendant both for damages caused by the
challenged conduct and for costs.
Cleckley, Davis & Palmer, Litigation Handbook, § 68(a), p.1046, citing Marek v. Chesney,473 U.S. 1, 6, 105 S. Ct. 3012, 3015, 87 L. Ed. 2d 1 (1985) ([I]t is immaterial whether the
offer recites that costs are included, whether it specifies the amount the defendant is
allowing for costs, or, for that matter, whether it refers to costs at all. As long as the offer
does not implicitly or explicitly provide that the judgment not include costs, a timely offer
will be valid.). As we have explained above, the costs recoverable under the Rule include
attorneys fees when an applicable statute to the case defines costs as including attorney's
fees. See 12 Charles Alan Wright, et al., Federal Practice & Procedure §3002, at 92 (2d
ed. 1997) (observing that an offer of judgment must be unconditional and must include
'costs then accrued,' and those costs include attorneys fees then accrued where there is an
applicable statute that provides for recovery of attorneys' fees as a part of costs (footnotes
omitted)). Thus, the relationship between Rule 68 and W. Va. Code § 5-11-13(c) requires
us to ask if W. Va. Code § 5-11-13(c) defines costs as including attorney's fees. We have
already concluded above that W. Va. Code § 5-11-13(c) defines costs as including
attorney's fees.
Although not directly on point, we have previously decided a case that
supports Mr. Shafer. In Jordan v. National Grange Mutual Insurance Co., 183 W. Va. 9,
393 S.E.2d 647 (1990), we found that an insurer could be liable to an insured for reasonable
attorney's fees the insured had to necessarily expend in order to reach a settlement on an
action on a policy claim. In Jordan, the insured claimed only a jury verdict against it, rather
than its settling the case, could provide the predicate requiring payment of attorney's fees.
Id. at 11, 393 S.E.2d at 649. We rejected this position finding that a settlement was
sufficiently similar to a verdict as to justify an award of attorney's fees. Id. at 12-13, 393
S.E.2d at 650-51. More specifically, we also approvingly cited Wollards v. Lloyd's & Co.
of London, 439 So. 2d 217 (Fla. 1983), for the proposition that a statutory award of
attorney's fees when a judgment is rendered against an insurer encompasses a settlement
since 'the payment of the claim is, indeed, the functional equivalent of a confession of
judgment or a verdict in favor of the insured.' Jordan, 183 W. Va. at 13-14 n.4, 393
S.E.2d at 652-53 n.4 (quoting Wollards, 439 So. 2d at 218). Thus, even under the King's
interpretation of W. Va. Code § 5-11-13(c), entry of the Kings' offer of judgment acted in
the nature of a verdict in favor of Mr. Shafer on the basis of his complaint. Having
rejected the Kings' argument on this point,
(See footnote 7)
we now turn to their alternate argument.
(See footnote 8)
2. Circuit Court's Discretion to Award Attorney's Fees
The Kings alternatively argue that the clear and unambiguous language of
W. Va. Code § 5-11-13(c) grants a circuit court discretion to award all or a portion of the
costs of litigation[.] The Kings assert that since the circuit court awarded only a portion
of Mr. Shafer's costs, the circuit court could not have abused its discretion.
(See footnote 9)
Mr. Shafer
replies, however, that the Kings omit the other critical language in the Act which requires
that the attorney's fees awarded as all or a portion of the costs must be reasonable. Mr.
Shafer also asserts that the circuit court abused its discretion in failing to consider a
multitude of factors we have found necessary for a circuit court to examine in deciding
whether to award attorney's fees under the Human Rights Act. We agree with Mr. Shafer.
We acknowledge that abuse of discretion review is
limited for [u]nder abuse of discretion review, we do not substitute
our judgment for the circuit court's. State v.
Taylor, ___ W. Va. ___, ___, 593 S.E.2d 645, 654 (2004) (Davis, J., dissenting) (citing
Burdette v. Maust Coal & Coke Corp., 159 W. Va. 335, 342, 222 S.E.2d 293, 297 (1976)
(per curiam); Intercity Realty Co. v. Gibson, 154 W. Va. 369, 377, 175 S.E.2d 452, 457
(1970), overruled on other grounds by Cales v. Wills, 212 W. Va. 232, 569 S.E.2d 479
(2002)). Indeed, in Syllabus point 1 of Hollen v. Hathaway Electric, Inc., 213 W. Va. 667,
584 S.E.2d 523 (2003) (per curiam), we reiterated as much when we said, '[t]he trial
[court] . . . is vested with a wide discretion in determining the amount of . . . court costs and
counsel fees[.]' (Citation omitted). We have also cautioned, however, that we will not
simply rubber stamp the trial court's decision when reviewing for an abuse of discretion.
State v. Hedrick, 204 W. Va. 547, 553, 514 S.E.2d 397, 403 (1999). We have said that
'[i]n general, an abuse of discretion occurs when a material factor deserving significant
weight is ignored, when an improper factor is relied upon, or when all proper and no
improper factors are assessed but the circuit court makes a serious mistake in weighing
them.' Id. at 553, 514 S.E.2d at 403 (quoting Gentry v. Mangum, 195 W. Va. 512, 520 n.6,
466 S.E.2d 171, 179 n.6 (1995)). Because our abuse of discretion review is limited to
analyzing whether the circuit court engaged in a proper balancing of applicable factors, we
have found that a circuit court is required to make findings of fact and conclusions of law
on the issue of attorneys' fees. Landmark Baptist Church v. Brotherhood Mut. Ins. Co.,
199 W. Va. 312, 316, 484 S.E.2d 195, 199 (1997) (per curiam) (footnote omitted). See also
Chevy Chase Bank v. McCamant, 204 W. Va. 295, 304, 512 S.E.2d 217, 226 (1998) (per
curiam) ([W]hen a trial court awards attorney fees, it is required to make findings for this
Court's determination of the reasonableness of the award.). In the absence of adequate
findings of fact and conclusions of law, we are unable to intelligently discharge our limited
appellate role to determine that the circuit court did not abuse its discretion.
Of pertinence to this case, we have previously examined attorney's fees under
the Human Rights Act. We specifically recognized that:
The goal of the West Virginia human rights law is to
protect the most basic, cherished rights and liberties of the
citizens of West Virginia. Effective enforcement of the human
rights law depends upon the action of private citizens who,
from our observations of these matters, usually lack the
resources to retain the legal counsel necessary to vindicate their
rights. Full enforcement of the civil rights act requires adequate
fee awards.
Bishop Coal Co. v. Salyers, 181 W. Va. 71, 80, 380 S.E.2d 238, 247 (1989). In Bishop we
equated an adequate fee award with one that is reasonable. Id. at 81, 380 S.E.2d at 248.
In Syllabus point 3 of Bishop we also held that:
When the relief sought in a human rights action is
primarily equitable, reasonable attorneys' fees should be
determined by (1) multiplying the number of hours reasonably
expended on the litigation times a reasonable hourly rate_the
lodestar calculation_and (2) allowing, if appropriate, a
contingency enhancement. The general factors outlined in
Syllabus Point 4 Aetna Cas. & Sur. Co. v. Pitrolo, 176 W. Va.
190, 342 S.E.2d 156 (1986) should be considered to determine:
(1) the reasonableness of both time expended and hourly rate
charged; and, (2) the allowance and amount of a contingency
enhancement.
Syllabus point 4 of Aetna Casualty & Surety Co. v. Pitrolo, 176 W. Va. 190, 342 S.E.2d 156
(1986), is fairly detailed and provides:
Where attorney's fees are sought against a third party,
the test of what should be considered a reasonable fee is
determined not solely by the fee arrangement between the
attorney and his client. The reasonableness of attorney's fees
is generally based on broader factors such as: (1) the time and
labor required; (2) the novelty and difficulty of the questions;
(3) the skill requisite to perform the legal service properly; (4)
the preclusion of other employment by the attorney due to
acceptance of the case; (5) the customary fee; (6) whether the
fee is fixed or contingent; (7) time limitations imposed by the
client or the circumstances; (8) the amount involved and the
results obtained; (9) the experience, reputation, and ability of
the attorneys; (10) the undesirability of the case; (11) the nature
and length of the professional relationship with the client; and
(12) awards in similar cases.
Here, the circuit court simply made no findings under any of the
Bishop/Pitrolo factors. Instead, the order awarding attorney's fees made only the following
pertinent finding, [t]he award of attorney's fees is a matter of the Court's discretion and
the Court finds that in this case there was no finding of discrimination but that some award
of a portion of a attorney's fees [sic] would be appropriate. Accordingly, it is hereby
ADJUDGED, ORDERED, and DECREED that Plaintiff is awarded the sum of $25,000.00
in total for attorney's fees and costs incurred in this matter. Indeed, there is no rationale
for how the circuit court arrived at its reduced figure of $25,000.00.
(See footnote 10)
Consequently, we cannot credit the Kings' argument that simply because a
circuit court has the discretion to award a portion of the requested fees that any reduced
award of fees would be reasonable. Rather, an award of a portion of the requested fees is
allowable if such reduction is supported by application of the Bishop and Pitrolo factors.
IV.
CONCLUSION
The judgment of the Circuit Court of Mercer County is reversed and
remanded with directions to the circuit court to make the requisite findings of fact and
conclusions of law on the issue of attorney's fees.
John Corner was originally a co-plaintiff in this case. The circuit court
permitted counsel's motion to withdraw from representing Mr. Corner on November 9,
2001.
Footnote: 2
W.
Va. Code § 5-11-13(c) provides in full:
In any action filed under
this section, if the court finds that the respondent has engaged in or is
engaging in an unlawful discriminatory practice charged in the complaint,
the court shall enjoin the respondent from engaging in such unlawful discriminatory
practice and order affirmative action which may include, but is not limited
to, reinstatement or hiring of employees, granting of back pay or any other
legal or equitable relief as the court deems appropriate. In actions brought
under this section, the court in its discretion may award all or a portion
of the costs of litigation, including reasonable attorney fees and witness
fees, to the complainant.
Footnote: 3
We also find Marek particularly persuasive because its use of plain language
analysis and statutory harmonization are canons of statutory construction that are used by
this Court. See, e.g., Taylor v. Nationwide Mut. Ins. Co., 214 W. Va. 324, ___, 589 S.E.2d
55, 59 (2003) ([W]hen we interpret a statutory provision, this Court is bound to apply, and
not construe, the enactment's plain language.); Keatley v. Mercer County
Bd. of Educ., 200
W. Va. 487, 495 n.15, 490 S.E.2d 306, 314 n.15 (1997) ('[W]here it is possible to do so,
it is the duty of the courts, in the construction of statutes, to harmonize and reconcile laws,
and to adopt that construction of a statutory provision which harmonizes and reconciles it
with other statutory provisions . . . to give force and effect to each if possible.' (citation
omitted)). We also note that it is of no importance that we are reconciling a statute with a
procedural rule of court, for we have observed that procedural rules of court are governed
by the same interpretive standards as statutes. See State ex rel. Wyant v. Brotherton, 214
W. Va. 434, ___ n.13, 589 S.E.2d 812, 818 n.13 (2003) ('[W]hen considering rules
promulgated by courts, courts apply the principles of statutory construction.' 20 Am. Jur.2d
Courts § 51, at 370 (1995).).
Footnote: 4
However, the Kings do not contest, in this appeal, the award of the
$25,000.00 fee granted by the circuit court insofar as such an award would limit their
liability for the additional costs and fees claimed by Shafer.
Footnote: 5
For the full text of W. Va. Code § 5-11-13(c), see supra note 2.
Footnote: 6
We
observe that another aspect of Rule 68's plain language was violated below.
The Kings actually filed their offer of judgment with the circuit court at
the time they tendered the offer to Mr. Shafer. This was improper. Not
having Rule 68 offers filed unless accepted avoids possible undue influence.
The court's knowledge of what amount of recovery would avoid or trigger liability
for post-offer costs under Rule 68, especially in a non-jury trial, could affect
its judgment. 13 Moore's Federal Practice § 68.04, 68-23
(3d ed. 2004). In this regard,
Rule 68 is really unambiguous_its
first sentence provides only for the service of offers of judgment on
the adverse party, while its second sentence calls for filing of the
offer only if the adverse party accepts it within ten days after such service.
By strong negative inference, that latter reference to filing if and when the
offer is accepted confirms the plain meaning of Rule 68's first sentence that
no filing is permitted at the time of tender. And that is the uniform view
of the commentators as well as of the few cases that have been compelled to
look at the issue[.]
Kason v. Ampenol Corp., 132 F.R.D. 197, 197 (N.D. Ill. 1990). If the
offer of judgment is rejected, the offering party can prove it at the proper time to defeat
costs. 12 Charles Alan Wright, et al., Federal Practice & Procedure §3002,
at 92 (2d ed. 1997) (footnote omitted). If an offer of judgment is improperly
filed with the court when tendered, the remedy is to strike the offer
from the court's file. Id. at 91 (footnote omitted).
Footnote: 7
We hasten to add that because our opinion today does not deal with the
preclusive effect of entry of an offer of judgment as did our opinion in Meadows
v. Wal-
Mart Stores, Inc., 207 W. Va. 203, 218-22, 530 S.E.2d 676, 691-695 (1999), Meadows is
not implicated by and has no bearing on the issues we address herein.
Footnote: 8
The
Kings assert that the $125,000.00 offer of judgment was based upon the average
back pay of Mr. Shafer and the then-accrued attorney's fees. We wish to make
clear that nothing in this opinion precludes defendants from making lump sum
offers that
explicitly include costs and attorney's fees. Defendant[s] may also
provide explicitly that the amount offered [under Rule 68] includes attorneys
fees. 12 Federal Practice & Procedure, supra, § 3005.1,
at 112. Such lump sum offers of judgment, however, must be explicit in
stating that the offer is inclusive of attorney's fees if that is the defendant's
intent in making the offer of judgment. Although it is not an implausible reading
of Rule 68 to say that the explicit inclusion of costs includes attorney's fees
where costs themselves include fees, this is not the position the federal courts
have taken. Rather, as we identified
in Meadows, courts apply contract principles to offers of judgment, 207
W. Va. at 220, 530
S.E.2d at 693, and in so doing courts tend to interpret Rule 68 offers
against the defendants
who drafted them[.] 12 Federal Practice & Procedure, supra, § 3005.1
at 112 (footnote omitted). Consequently, unless the offer explicitly includes
attorney's fees, the courts construe the offer to be silent as to attorney's
fees if fees are not explicitly included, thereby necessitating an attorney's
fee award beyond the sum included in the offer.
We implied as much in Jordan,183 W. Va. at
13 n.3, 393 S.E.2d at 651 n.4, where we noted in the context of an offer of
judgment that [t]he recovery of reasonable attorney's fees must be explicitly
waived by the parties to bar the court from awarding such fees in those types
of cases where reasonable attorney's fees are otherwise recoverable. See
also Rohrer v. Slatile Roofing & Sheet Metal Co., 655 F. Supp. 736,
737 (S.D. Ind. 1987) (While a plaintiff can, in a settlement agreement,
waive his statutory right to seek an award of costs and attorney fees, waiver
ordinarily will be found only when it is expressly provided in the terms of
the settlement or in the offer of judgment. (citations omitted)). Based
on a similar reasoning, one leading federal treatise has explained, [a]s
a consequence, even defendants who honestly believe that they have capped their
total liability may find that they are required to pay plaintiff's attorneys
fees in addition to the sum in the Rule 68 offer because their offers did not explicitly provide
otherwise. 12 Federal Practice & Procedure, supra, § 3005,
at 112-13 (footnote omitted). Thus, we agree that [t]he better practice
for defendants therefore would be to address the question in . . . explicit
fashion in their offers of judgment. Id. at 112 (citing the language
from the offer of judgment in Marek which provided that the offer was 'for
a sum, including costs now accrued and attorney's fees, of $100,000.')).
Footnote: 9
The Kings assert that Mr. Shafer did not object to the award of only
$25,000.00. We find the circuit court specifically provided below that it will note the
exception of both parties[.] The error was thus preserved.
Footnote: 10
In Landmark, we affirmed a circuit court order granting the requested fees
in total that contained only minimal findings of fact and conclusions of law. 199 W. Va.
at 316, 484 S.E.2d at 199. Landmark is distinguishable because, in the instant case, the
circuit court did not grant the full amount of fees requested but granted fees in a
substantially reduced amount without explaining why the reduction was justified.