Ware v. Ware
Ware v. Ware
Opinion of the Court
OPINION
I. INTRODUCTION
In this intra-family dispute, two siblings vie for control of the family homestead. Susan Ware, a pro se litigant, sued her brother Brandie Ware on the theory that he unlawfully exerted his influence and will over their eighty-seven year old mother, Margaret, and convinced Margaret to give him the family homestead. Brandie moved for summary judgment, contending that Susan had not produced any evidence beyond her personal conviction that Margaret would not have given the land to Brandie unless she had been unduly influenced. The superior court granted Brandie’s motion for summary judgment and awarded Brandie attorney’s fees in excess of the statutory minimum. Because Susan has not provided any evidentiary support for her claim of undue influence, we affirm the superior court’s grant of summary judgment. We also affirm the superior court’s award of enhanced attorney’s fees because the award was within the court’s discretion.
A. Facts
In 1998 John Wesley Ware and his wife Margaret placed their homestead in a revocable living trust known as the Ware Family Trust. The homestead encompasses several acres of land, five houses, and multiple unimproved lots on the Eenai Peninsula. John passed away in April 1999. Upon John’s death, Margaret became owner of the family homestead. In March 2000, when Margaret was eighty-three years old, she transferred the homestead and other real and personal property into another revocable living trust entitled the Margaret Ware Revocable Living Trust (Trust).
The terms of the trust divided the property fairly evenly. Brandie, Roger, and Lance all own homes on the property, and under the terms of the trust they would individually acquire the land on which their homes sit. Susan would acquire the grantor’s interest in the family home, as well as a Civil War powder horn. Roger would receive the family jewelry and Brandie would get another powder horn.
In February 2003, however, Margaret, in her capacity as trustee of the Trust, conveyed the entire homestead property to Brandie for ten dollars. Margaret signed the statutory warranty deed and recorded it. Upon receiving title to the property, Brandie quit-claimed his mother a life estate in the property.
Margaret sent a notarized letter to her son Lance in which she explained her decision to sell the property to Brandie:
Lance,
You must contact Brandie to converse about any property. My entire homestead property was sold to Brandie Ware. I am tired of being bothered by you scaring me into saying things like the land is mine. I told you on the telephone you should contact Brandie. I want you to know I sold all the land to Brandie. No more stress from you.
Margaret Ware
B. Proceedings
After Margaret deeded the property to Brandie, Susan sued Brandie on the grounds that he had exerted undue influence over their mother, and that he had been unjustly enriched as a result. Brandie denied the allegations and counter-claimed in order to quiet title.
Susan moved for an injunction in April 2004, requesting that the court prevent Brandie from “taking any more actions, including property transfers, of the Ware Homestead, during the pendency of this matter, without notifying the Court, Ms. Ware, and any interested parties.” The court denied Susan’s motion for injunction because “it is not clear to the court what activities Plaintiff wishes to prohibit or require of Defendant, and because Plaintiff does not clearly indicate what sort of irreparable harm she believes she will suffer without entry of a preliminary injunction.” However, the court invited Susan to file a new motion specifically addressing these issues.
In July 2004 Brandie moved for summary judgment, arguing that Susan had alleged no facts to support her claim of undue influence. Rather, he argued, “[s]he has simply opined that she doesn’t believe that her mother would deed the property to Brandie unless he unduly influenced her.” Brandie cited Margaret’s deposition, in which Margaret testified that she had not been pressured into transferring the deed and that it was her idea to transfer title to Brandie. Susan replied, “The fact that the parties’ mother turned over everything to one child in the absence of a satisfactory explanation sufficiently stands out as to present a prima facie case of undue influence.” The court granted
In addition, the court ordered Susan to pay Brandie’s attorney’s fees pursuant to Alaska Civil Rule 82, including enhanced fees under Rule 82(b)(3).
Susan appeals both the summary judgment decision and the award of augmented attorney’s fees.
III. STANDARD OF REVIEW
We review a grant of summary judgment de novo, applying our independent judgment
We review an award of attorney’s fees under an abuse of discretion standard.
IV. DISCUSSION
A. The Superior Court Did Not Err in Granting Summary Judgment to Brandie on Susan’s Undue Influence Claim.
1. Inter vivos transfers of property from parents to children are presumptively gifts.
While we have not previously addressed inter vivos transfers of property from parents to children, “a considerable body of precedent ... holds that an unexplained transfer of property from a parent to a child raises a rebuttable presumption, or inference, that a gift was intended.”
2. An inter vivos gift may be void if the grantor was unduly influenced or lacked capacity to make the gift.
A gift from parent to child may be void if obtained by improper means or undue influence.
In the present case, Margaret gave Brandie the land in exchange for ten dollars. The first issue we must resolve, then, is whether Margaret intended to gift the land to Brandie, or to sell it. To determine whether an individual has gratuitous intent we ask whether the parties had a close relationship; whether the plaintiff failed to request compensation; and whether the services performed were the sort one would expect to receive as a mere gratuity.
The only contrary indication is that Brandie paid Margaret ten dollars for the property and Margaret referred to having sold the property to Brandie. While the purpose of this payment is not clear, the amount is so nominal that it should not invalidate the gratuitous nature of Margaret’s act.
Based on this analysis, the transfer from Margaret to Brandie is presumptively a gift. In order to challenge the gift, Susan bears the burden of proving that Brandie unduly influenced Margaret to deed him the property. She has attempted to meet this burden by arguing (1) that Brandie unduly influenced Margaret by coercing her into giving him the property; (2) that Brandie breached a fiduciary duty to Margaret; and (3) that Margaret lacked the mental capacity to make the gift. We analyze each argument in turn.
a. Susan failed to meet her burden of producing evidence that Brandie coerced Margaret into giving him the property.
The party challenging a gift has the burden of showing that the grantor “was
Margaret robustly denied that she was unduly influenced by Brandie. Indeed, she testified that the transfer to Brandie had been her idea. Susan concedes that her mother decided to give the property to Brandie rather than Susan “because she felt Susan couldn’t take care of the place.” While Susan may disagree with her mother’s assessments that Susan is not hardy enough to “put up with the hardships of living [as Margaret did] with a wood stove for heat and hot water” or that she cannot afford to pay the taxes on the house, these facts do not show compulsion by Brandie.
Susan asserts that Brandie coerced their mother into giving him the property by convincing her that it was necessary in order to avoid being placed in a nursing home. Susan’s only proffered evidence, however, is that “Margaret was told by Roger that Lance wanted to put her in a nursing home.” This convoluted statement is hardly sufficient to implicate Brandie in a scheme to unduly influence Margaret.
Thus, even if the facts alleged by Susan are true, they do not show compulsion by Brandie.
b. Susan provided no evidence that Brandie owed fiduciary duties to their mother.
Susan asserts that Brandie and Margaret shared a confidential relationship, and that Brandie used his power over their elderly mother to unduly influence her. A confidential relationship exists “when one imposes a special confidence in another, so that the latter, in equity and good conscience, is bound to act in good faith and with due regard to the interests of the one imposing the confidence.”
However, there is no evidence of a confidential or fiduciary relationship between Brandie and Margaret. The mere fact of a parent-child relationship does not necessarily create fiduciary duties.
Similarly, Brandie’s filial relationship with Margaret does not create any inherent fiduciary duties. Susan failed to provide evidence that Margaret was controlled by Brandie or depended on Brandie in making business decisions. Indeed, Margaret asserted in her deposition that she made her own decisions regarding the property, without advice from any of the children. While the record shows evidence of Brandie helping Margaret by checking her oil, cutting wood, and purchasing a new washing machine for her, these activities, like those of the children in Salvner, do not change the relationship from parent-child to that of a fiduciary. There is no evidence of a confidential relationship in this case.
Susan relies on a Third Circuit decision, Francois v. Francois,
Susan has offered no evidence that Brandie held a superior, influential position with their mother. She simply states that Brandie “benefitted handsomely from his relationship with his mother to the detriment of her and his three siblings.” This assertion does not prove a confidential relationship. The superior court did not err in finding that no issue of material fact existed with regard to a confidential relationship between Brandie and Margaret.
c. Susan failed to provide evidence that Margaret lacked the mental capacity to make the gift.
Testamentary capacity is determined by analyzing whether the testator had sufficient mental capacity to understand (1) the nature and extent of her property; (2) the natural or proper objects of her bounty; and (3) the nature of her testamentary act.
We agree with the superior court that Susan did not adequately demonstrate that her mother was mentally incompetent. Margaret’s deposition testimony 'shows no indication of an inability to understand the nature and extent of her property or the donative nature of her act. Moreover, she testified that she was not influenced by Brandie, and that she acted of her own accord. Because Susan failed to provide evidence rebutting Margaret’s competence, she did not meet her burden in challenging the gift.
While it is unclear whether the superior court considered Margaret’s age in assessing her competence, we reject Susan’s assertion that age alone is an indicator of incompetence. Susan argues that the superior court abused its discretion when it failed to consider Margaret’s age in determining whether Brandie unduly influenced Margaret. She contends that Margaret’s age made her more susceptible to Brandie’s alleged influence. Susan attempts to prove undue influence by implying that her mother is particularly vulnerable to manipulation, emphasizing that Margaret is elderly, widowed, and afraid of being placed in a nursing home. Susan argues that, pursuant to the subjective standard for undue influence we enunciated in Crittell v. Bingo, we must consider Margaret’s age as one of her “personal strengths and weaknesses” in assessing whether she
We reject the assumption that an older person is presumptively incompetent. Susan has provided no evidence showing that her mother’s age had any impact on her ability to understand the nature and extent of her property or her desire to allocate it to Brandie. In fact, Susan does not actually contest Margaret’s competence. In Brandie’s request for admission, he asked Susan:
Please admit that your mother, Margaret Ware, was mentally competent and had testamentary capacity at the time that she deeded the homestead real property which is the subject of this action to Brandie Ware.
Susan answered, “Of course my mother was mentally competent, but she was unduly influenced by my brother.” Susan also did not challenge the introduction of a note from Margaret’s doctor declaring, “In terms of mental faculties/cognitive function, Ms. Margaret Ware ... is completely competent.”
While Margaret is elderly, Susan has not provided any evidence that Margaret’s age is linked to incapacity or special vulnerability. Accordingly, we hold that the superior court did not err in granting Brandie’s motion for summary judgment without making a specific finding regarding Margaret’s age and competence.
B. The Superior Court Did Not Err in Granting Summary Judgment to Brandie on Susan’s Other Claims.
1. There is no evidence that Margaret received legal advice from Brandie’s lawyer, and in the absence of a confidential relationship Brandie is not required to provide his mother with independent counsel.
Susan next argues that Brandie failed to show that Margaret had independent legal representation. She implies that Brandie’s lawyer counseled Margaret to give the property to Brandie, noting that the quit claim deed Margaret signed was authored by Brandie’s attorney. However, she provides no proof that Brandie’s attorney acted improperly. Counsel for Brandie vigorously denies that he gave legal advice to Margaret.
Susan also appears to argue that Margaret was required to have independent counsel prior to granting title to Brandie. Specifically, she states, “If Brandie’s intentions were altruistic he would have provided his mother with independent counsel to advise her.” Susan’s contentions are unsupported by Alaska law.
Susan cites Trujillo v. Padilla,
The present case addresses the duties of parents and children rather than husbands and wives. Susan contends that Brandie has a confidential relationship with their mother,
2.Susan’s unjust enrichment claim lacks merit.
Susan argues that Brandie was unjustly enriched when he paid Margaret only ten dollars for property valued at $300,000. (Susan’s argument ignores the life estate in the property that Margaret received.) “Unjust enrichment exists where the defendant received a benefit from the plaintiff and it would be inequitable for defendant to retain the benefit without compensating plaintiff for its value.”
Susan has not conferred a benefit upon Brandie. She was not involved in the transfer of property from Margaret to Brandie. Moreover, Susan’s equitable claim is meritless because she presented no evidence of inequitable conduct (fraud or undue influence) to support it. In addition, a claim of unjust enrichment is not appropriate where a benefit is given gratuitously, without expectation of payment.
3. Because the prior trusts and will are amendable and revocable, the superior court did not err in disregarding them.
Provided Margaret acted of her own volition, as her deposition testimony reveals, there was no legal reason she could not revoke her living trust or amend her will. The trust in this case was revocable. Part IV, section A of the Margaret Ware Revocable Living Trust specifically states, “The grantor may amend or revoke this trust at any time, without notifying any beneficiary. An amendment must be made in writing and signed by the grantor. Revocation may be in writing or any manner allowed by law.” Section B states, “The power to revoke or amend this trust is personal to the grantor. A conservator, guardian or other person shall not exercise it on behalf of the grantor, unless the grantor specifically grants a power to revoke or amend this trust in a Durable Power of Attorney.” Under the language of the trust, then, Margaret had the right to amend or revoke the trust without notifying any of her children.
Margaret also had the legal right to amend her will. A prospective heir “generally has no recognized right to a living relative’s property.”
The superior court did not err in finding an absence of genuine issues of material fact regarding Margaret’s prior trusts and will.
4. Susan failed to raise below the validity of the statutory warranty deed.
On appeal, Susan seeks to challenge the validity of the deed, arguing that Brandie incorrectly used a statutory warranty deed to transfer property that was encumbered by the homes of his brothers. But she failed to raise this contention in the superior court.
C. The Superior Court Did Not Abuse Its Discretion in Awarding Attorney’s Fees Pursuant to Civil Rule 82(b)(3).
Civil Rule 82 provides for the award of attorney’s fees to prevailing parties.
On appeal, Susan argues that the superior court erred in awarding attorney’s fees in excess of the standards provided in Civil Rule 82. However, the only substantive reason she advances on appeal is that the superior court failed in its obligation to satisfactorily explain why it deviated from the Rule 82 fee schedule. But in fact the superior court listed five reasons why it awarded fees in excess of the schedule set out in Rule 82(b)(2).
Because Susan is pro se, we choose to review the reasons given by the superior court to determine if they show that the superior court abused its discretion. For the reasons that follow, we conclude that the court did not abuse its discretion in awarding enhanced fees.
In defending Susan’s complaint, Brandie’s counsel billed him $9,931.50.
The superior court has broad discretion to enhance attorney’s fees above the amount prescribed by the Civil Rule 82(b)(2) schedule.
In the present case the superior court recited several reasons for awarding Brandie enhanced attorney’s fees. Specifically, the court stated:
a) although the issues involved were not inherently complex, plaintiffs conduct of the litigation added additional and unnecessary levels of complexity to the action;
b) defendant’s counsel’s hourly rates and number of hours expended were reasonable and defendant’s counsel made substantive efforts to minimize fees actually charged to defendant;
c) the defenses of defendant were reasonable, and in fact, prevailed, while the claims of plaintiff were unreasonable and bordering on bad faith;
d) the issues at stake were significant compared to the amount of work done, both in economic and personal terms;
e) a substantial fee award will not be unduly onerous to plaintiff nor will it improperly discourage similar claims of good-faith litigants.
The first reason implicates factors (A) and (F) of Civil Rule 82(b)(3). While we have occasionally expressed concern about the use of factor (A) — complexity of the litigation — to enhance fees where the fees are calculated on an hourly basis,
The second reason cited by Judge Brown implicates factors (C) and (E) of Civil Rule 82(b)(3). Judge Brown’s citation of factor (C) (the reasonableness of the fees and hours expended) and factor (E) (the attorney’s efforts to minimize fees) as supporting an enhanced award is not an abuse of discretion.
The third reason cited by Judge Brown— that Brandie’s defenses were reasonable while Susan’s claims bordered on bad faith— implicate factors (F) and (G). This reason alone can justify an award of enhanced fees.
The fourth reason cited by Judge Brown— that the issues at stake were significant compared to the amount of work done — is amply supported by the record of this case. The property was valued at $426,200.
In sum, the superior court’s decision to enhance the attorney’s fees awarded was not an abuse of discretion.
Y. CONCLUSION
Because Susan introduced no evidence of undue influence, we AFFIRM the superior court’s grant of summary judgment on the undue influence claim. Because Susan failed to show error with regard to her other claims for summary judgment, we AFFIRM the superior court’s rulings on those claims. Because the superior court did not abuse its discretion in the award of attorney’s fees, we AFFIRM the superior court’s award of attorney’s fees.
FABE, Justice, with whom BRYNER, Chief Justice, joins, dissenting in part.
. Brandie Ware has asserted that the transfer of property from the Ware Family Trust to the Margaret Ware Revocable Living Trust was invalid because it included an incorrect legal description of the property.
. Charles v. Interior Reg’l Hous. Auth., 55 P.3d 57, 59 (Alaska 2002).
. Guin v. Ha, 591 P.2d 1281, 1284 n. 6 (Alaska 1979).
. Dayhoff v. Temsco Helicopters, Inc., 848 P.2d 1367, 1369 (Alaska 1993).
. Id.
. Charles, 55 P.3d at 59.
. Guerrero v. Alaska Hous. Fin. Corp., 123 P.3d 966, 971 (Alaska 2005) (quoting Charles, 55 P.3d at 59).
. United Servs. Auto. Ass’n v. Pruitt ex rel. Pruitt, 38 P.3d 528, 531 (Alaska 2001).
. Id. (quoting Power Constructors, Inc. v. Taylor & Hintze, 960 P.2d 20, 44 (Alaska 1998)).
. Dixon v. Bradsher, 779 S.W.2d 727, 732 (Mo.App. 1989) (citing 94 A.L.R. 608, 612 (1978)). See also U.S. v. Jepsen, 268 F.3d 582, 585 (8th Cir. 2001) (explaining that Arkansas law presumes gift when donor registers legal title in family member’s name); Morgan v. Wright, 156 Colo. 411, 399 P.2d 788, 791 (1965); Zack v. Guzauskas, 171 Conn. 98, 368 A.2d 193, 195 (1976); Sullivan v. American Tel. & Tel. Co., 230 So.2d 18, 20 (Fla.Dist.App. 1969); Almeida v. Almeida, 4 Haw.App. 513, 669 P.2d 174, 178-79 (1983); In re Marriage of Kendra, 351 Ill.App.3d 826, 286 Ill.Dec. 812; 815 N.E.2d 22, 25 (2004); Matter of Estate of Kieras, 167 Ill.App.3d 275, 118 Ill.Dec. 195, 521 N.E.2d 263, 266 (1988); Barth v. Severson, 191 Iowa 770, 183 N.W. 617, 624 (1921); Rakhman v. Zusstone, 957 S.W.2d 241, 244 (Ky. 1997); Brandenburg v. Harshman, 193 Md. 104, 65 A.2d 906, 908-09 (1949); Smith v. Smith, 215 Mich. 556, 184 N.W. 501, 503 (1921); Stahn v. Stahn, 192 Minn. 278, 256 N.W. 137, 137 (1934); Sunflower Farms, Inc. v. McLean, 238 Miss. 168, 117 So.2d 808, 813 (1960); Jones v. Jones, 201 S.W. 557, 558 (Mo.App. 1918); Detra v. Bartoletti, 150 Mont. 210, 433 P.2d 485, 487-88 (1967); Fischer v. Wilhelm, 140 Neb. 448, 300 N.W. 350, 351 (1941); Peppler v. Roffe, 122 N.J. Eq. 510, 194 A. 548, 550 (1937); Durward v. Nelson, 481 N.W.2d 586, 588 (N.D. 1992); John Deere Indus. Equip. v. Gentile, 9 Ohio App.3d 251, 459 N.E.2d 611, 616 (1983); Ingersoll v. Ingersoll, 263 Or. 376, 502 P.2d 598, 600 (1972); Fenderson v. Fenderson, 454 Pa.Super. 412, 685 A.2d 600, 606 (1996); Romano v. Ro
. Kieras, 118 Ill.Dec. 195, 521 N.E.2d at 266; Kelly v. Allen, 558 S.W.2d 845, 848 (Tenn. 1977) (holding that, while the "normal relationship between a mentally competent parent and an adult child is not per se a confidential relationship and raises no presumption of the invalidity of a gift from one to the other," such a presumption of invalidity arises with a "showing that there were present the elements of dominion and control by the stronger over the weaker, or ... a showing of senility or physical and mental deterioration of the donor or that fraud or duress were involved ...”).
. Crittell v. Bingo, 36 P.3d 634, 639 (Alaska 2001).
. Id. (quoting Paskvan v. Mesich, 455 P.2d 229, 234 (Alaska 1969)).
. Id.
. Sparks v. Gustafson, 750 P.2d 338, 342-43 (Alaska 1988).
. Crittell, 36 P.3d at 639.
. Paskvan, 455 P.2d at 229.
. Munn v. Thornton, 956 P.2d 1213, 1220 (Alaska 1998) (referring to Paskvan, 455 P.2d at 232 (partners or co-owners); Cummings v. Sea Lion Corp., 924 P.2d 1011, 1021 (Alaska 1996) (lawyers and clients); Alaska State Employees Assoc. v. Alaska Pub. Employees Assoc., 825 P.2d 451, 459 (Alaska 1991) (trusts and guardianships)).
. See, e.g., Paskvan, 455 P.2d at 233 ("[W]hen the principal or sole beneficiary under a will. who had a confidential relationship with the testator, participated in the drafting of the will, then a presumption of undue influence arises.”).
. Salvner v. Salvner, 349 Mich. 375, 84 N.W.2d 871, 875-76 (1957); In re Estate of Kieras, 167 Ill.App.3d 275, 118 Ill.Dec. 195, 521 N.E.2d 263, 266 (1988).
. 349 Mich. 375, 84 N.W.2d 871 (1957).
. Id. at 875.
. Id.
. id.
. 599 F.2d 1286 (3d Cir. 1979).
. Id. at 1292.
. Id. (quoting Yoke v. Yoke, 466 Pa. 405, 353 A.2d 417, 421 (1976)).
. Crittell v. Bingo, 36 P.3d 634, 638 (Alaska 2001) (citing In re Estate of Kraft, 374 P.2d 413, 416 (Alaska 1962)).
. Id. at 639.
. 79 N.M. 245, 442 P.2d 203 (1968).
. Id. at 206.
.Id.
. Id.
. Id. at 207.
. Sparks v. Gustafson, 750 P.2d 338, 342 (Alaska 1988).
. Beluga Mining Co. v. State, Dep’t of Natural Res., 973 P.2d 570, 579 (Alaska 1999).
. Sparks, 750 P.2d at 342.
. Riddell v. Edwards, 76 P.3d 847, 853 (Alaska 2003).
. Id.
. Still v. Cunningham, 94 P.3d 1104, 1111 (Alaska 2004).
. Civil Rule 82(a) provides:
Allowance to Prevailing Party. Except as otherwise provided by law or agreed to by the parties, the prevailing party in a civil case shall be awarded attorney’s fees calculated under this rule.
. This subsection generally provides that the court shall award the prevailing party thirty percent of the prevailing party's reasonable actual attorney’s fees in a case which goes to trial and twenty percent where the case is resolved without trial.
. Civil Rule 82(b)(3) provides:
The court may vary an attorney’s fees award calculated under subparagraph (b)(1) or (b)(2) of this rule if, upon consideration Of the factors listed below, the court determines a variation is warranted:
(A) the complexity of the litigation;
(B) the length of trial;
(C) the reasonableness of the attorneys' hourly rates and the number of hours expended;
(D) the reasonableness of the number of attorneys used;
(E) the attorneys' efforts to minimize fees;
(F) the reasonableness of the claims and defenses pursued by each side;
(G) vexatious or bad faith conduct;
(H) the relationship between the amount of work performed and the significance of the matters at stake;
(I) the extent to which a given fee award may he so onerous to the non-prevailing party that it would deter similarly situated litigants from the voluntary use of the courts;
(J) the extent to which the fees incurred by the prevailing party suggest that they had been influenced by considerations apart from the case at bar, such as a desire to discourage claims by others against the prevailing party or its insurer; and
(K) other equitable factors deemed relevant.
If the court varies an award, the court shall explain the reasons for the variation.
. The superior court’s "Order for Attorney Fees” is set out below at page 1200.
. In the same affidavit in which he indicated that he charged Brandie this amount, counsel also indicated that "it would be fair” to attribute a portion of other fees to this case, bringing the total to $10,452.25.
. This percentage is calculated on the basis of a total billing of $9,931.50. See supra n. 45 and accompanying text. Were the total fees to be calculated at $10,452.25, the correct percentage would be seventy-seven percent.
. Tenala, Ltd. v. Fowler, 993 P.2d 447, 451 (Alaska 1999).
. Dahle v. Atl. Richfield Co., 725 P.2d 1069, 1075 (Alaska 1986).
. See, e.g., Crittell v. Bingo, 83 P.3d 532, 536-38 (Alaska 2004) (upholding award of one hundred percent of actual attorney’s fees, over $338,000, in case of bad-faith will claims); Garrison v. Dixon, 19 P.3d 1229, 1234-35 (Alaska 2001) (upholding award of one hundred percent of actual attorney's fees); Cole v. Bartels, 4 P.3d 956, 957 (Alaska 2000) (affirming award of seventy-five percent of actual attorney's fees); LeDoux v. Kodiak Island Borough, 827 P.2d 1121, 1125 (Alaska 1992) (holding that award of seventy-four percent was consistent with other cases and did not represent abuse of discretion); Keen v. Ruddy, 784 P.2d 653, 657 (Alaska 1989) (upholding award of one hundred percent of actual attorney's fees); Steenmeyer Corp. v. Mortenson-Neal, 731 P.2d 1221, 1227 (Alaska 1987) (holding that award of seventy-five percent was not manifestly unreasonable); Hausam v. Wodrich, 574 P.2d 805, 811 (Alaska 1978) (affirming award of eighty-six percent of actual attorney’s fees).
. Garrison, 19 P.3d at 1234 ("We will affirm an award of full, actual attorney's fees under Rule 82 where the superior court finds that the losing party has engaged in vexatious or bad faith litigation.”); Keen, 784 P.2d at 657 (holding that full attorney’s fees were properly awarded when losing party acted in bad faith).
. See Cole, 4 P.3d at 960 n. 20; Tenala, 993 P.2d at 451 n. 19 ("[C]omplexity works poorly as an independent enhancing factor ... where hourly fees, rather than the amount of a money judgment, serve as the measure of fees to be awarded. Hourly fees are usually already greater because of the complexity of a case. Thus using complexity as an enhancing factor over-counts the effect that complexity has on fees.”) Nonetheless, in both Cole and Tenala we upheld the use of the complexity factor, noting that our analysis "points to a weakness in the rule, not trial court error.” Cole, 4 P.3d at 960 n. 20.
. See, e.g., Cizek v. Concerned Citizens of Eagle River Valley, Inc., 71 P.3d 845, 851 (Alaska 2003) ("The Cizeks argue that the length and complexity of the case will be reflected in the fees themselves and therefore should not be used to increase the percentage of fees awarded. However, these factors are explicitly listed as permissible considerations under [the rule], and therefore are an appropriate basis for the trial court's decision.”); Cole, 4 P.3d at 960; Tenala, Ltd., 993 P.2d at 451.
. The dissent, citing Brandie’s repeated reference to Susan's pro se status, concludes that Susan was, "at least in appearance,” penalized for pursuing her case pro se. (Dissent-) But, as the dissent states, “the superior court did not expressly adopt this argument,” and we now explicitly reject it. Brandie was assessed enhanced fees because of her actions, not her status. Moreover, the superior court's finding that the award would not be "unduly onerous" to Susan and would not improperly discourage similar claims dispels the concern that the award may deny court access to future pro se litigants.
. Counsel for Brandie charged less than his standard billing rate, wrote off substantial time devoted to meetings with Brandie and a trust attorney (who was consulted with regard to forming a trust) even though much of that time was expended in defending this case, and charged no time against this case in instances where there was any question as to whether the work was generated by this case or a closely related case involving Lance Ware. In addition, the trust attorney incurred fees that were related to the defense of the instant action but that were not charged to Brandie. Counsel clearly attempted to minimize fees.
We do note, however, that to the extent that Brandie relied on his filing of a summary judgment motion to meet Factor (E) (the attorney’s efforts to minimize fees), we reject that argument. Cases resolved without trial are subject to a presumptive twenty percent fee award; cases resolved after trial to a thirty percent award. To allow the filing of a summary judgment motion to be considered an "effort to minimize fees” would run counter to the general framework of the rule.
. See supra note 49 (citing cases holding that bad faith will justify a one hundred percent fee award).
. See supra Part IV.A.2(a).
. See supra Part IV.A.2(b).
. See supra Part IV.A.2(c).
. See supra Part IV.B. 1.
. See supra Part IV.B.2.
. See supra Part IV.B.3-4.
. The land was assessed at $177,800 and the improvements were assessed at $248,400.
Dissenting Opinion
with whom BRYNER, Chief Justice, joins, dissenting in part.
I write separately today because I disagree with the court’s resolution of the attorney’s fees issue presented by this appeal. In my view, the award of eighty percent of actual attorney’s fees was unjustified and the matter should therefore be remanded to the superior court.
A. Susan Has Sufficiently Raised the Claim that the Enhanced Award Was Erroneous.
The court adopts a decidedly narrow reading of Susan’s briefing, asserting that she “has not argued on appeal that the reasons given by Judge Brown [for awarding enhanced attorney’s fees] were erroneous.”
In her briefing before this court, Susan points out that “an award of attorney’s fees after trial should be based upon the appropriate criteria set forth in Civil Rule 82.”
B. None of Brandie’s Arguments Justified an Enhanced Award.
A review of Brandie’s memorandum in support of his request for attorney’s fees in superior court reveals that none of his arguments — arguments that the superior court apparently relied upon — justified an enhanced award of attorney’s fees in this case.
1. Complexity
Brandie admitted in superior court that “[t]his action was not inherently complex,” but argued that an enhanced award was nonetheless justified because Susan’s “unfamiliarity with certain procedures caused additional complexity.”
The primary purpose of Rule 82’s complexity factor is not to punish the losing party for litigating a complex ease, but to ensure that the prevailing party is properly compensated.
Although the court is correct that we have repeatedly upheld the use of the complexity factor in cases where actual total hourly fees form the basis of an award of attorney’s fees,
In the case at hand, Brandie’s award of attorney’s fees was based upon the total hourly fees he paid to his attorney. A standard, non-enhanced award would therefore have automatically taken into account any attorney’s fees stemming from Susan’s litigation methods. An enhanced award was unnecessary and, in my opinion, contrary to the proper construction of Rule 82(b)(3)(A).
2. Length of trial
Brandie also argued that an enhanced award was justified under Rule 82(b)(3)(B) because “extensive trial preparation had necessarily been nearly completed prior to the grant of summary judgment.” But Rule 82(b)(3)(B) is exceedingly narrow in scope and only permits the court to vary an award based upon the actual “length of trial.” The rule is simply inapplicable to cases that are resolved without trial and Brandie was therefore not entitled to an enhanced award on this basis. Moreover, it was Brandie’s decision to wait to file his motion for summary
3. Reasonableness of rate, time, and number of attorneys
Brandie also argued that an enhanced award was justified because he employed a single attorney who worked a reasonable number of hours and charged a reasonable rate. Although Rules 82(b)(3)(C) and (D) do permit a superior court to vary an award of attorney’s fees based upon the reasonableness of the prevailing party’s litigation expenses,
4. Efforts to minimize fees
Brandie also argued that an enhanced award was justified under Rule 82(b)(3)(E) due to his and his attorney’s efforts to minimize attorney’s fees.
The court recognizes that we must reject Brandie’s argument “to the extent that [it] relied on his filing of a summary judgment motion” as evidence of his and his attorney’s efforts to minimize fees.
5.Reasonableness of claims and vexatious or bad faith conduct
Brandie also argued that an enhanced award was justified because Susan’s claims were “inherently unreasonable and borderline bad faith.”
6. Relationship between the amount of work performed and the significance of the matters at stake
Brandie also argued that “the relationship between the amount of work performed and the significance of the matters at stake justified an enhanced award.”
7. The enhanced award will deter pro se litigants from accessing the court.
In addition to the arguments detailed above, Brandie also consistently called attention to Susan’s pro se status in his motion for enhanced attorney’s fees. For example, Brandie stated that “although Susan was skilled, she is not an attorney and her unfamiliarity with certain procedures caused additional complexity”; that “as a pro se litigant, Susan often used procedures and raised arguments and issues which were inapposite or inappropriate”; that “her pro se status added an entire level of complexity to this action”; and that “[i]f Susan had been represented by counsel, ... the situation would have been resolved more quickly.” Taken together, these statements represented a not-so-subtle argument that Susan’s pro se status, in and of itself, justified an enhanced award. While the superior court did not expressly adopt this argument, it based its decision to enhance the award, at least in part, upon Rule 82’s complexity factor — a factor that Brandie repeatedly asserted was met by Susan’s pro se status.
We are left, then, with a legal proceeding in which a litigant was, at least in appearance, penalized for pursuing her case pro se. Because pro se litigants are often economically distressed, this apparent threat of a pecuniary penalty for pursuing a case pro se is particularly onerous and likely to dissuade potential pro se litigants from exercising their constitutional right to access the courts. This is unacceptable. The right to access the courts is an “important right”
C. The Issue of Attorney’s Fees Should Be Remanded.
For the reasons stated above, I believe that the issue of attorney’s fees should be remanded to the superior court for recalculation using the appropriate factors under Rule 82(b)(3)(A)-(K). I therefore respectfully dissent.
. Op. at 1198.
. Peterson v. Ek, 93 P.3d 458, 464 n. 9 (Alaska 2004).
. Farnsworth v. Steiner, 601 P.2d 266, 272 (Alaska 1979) (emphasis added).
. Op. at 1198 (asserting that Susan has not argued that the reasons given by the superior court were erroneous and concluding that, "[o]n this basis alone, we could affirm the superior court”).
. In his Memorandum in Support of Motion for Attorney Fees, Brandie further explained that, “as a pro se litigant, Susan often used procedures and raised arguments and issues which were inapposite or inappropriate and which required additional time by defendant to resolve.”
. Tenala, Ltd. v. Fowler, 993 P.2d 447, 451 n. 19 (Alaska 1999).
. Gilbert v. State, 526 P.2d 1131, 1136 (Alaska 1974) (explaining that ”[i]t is not the purpose of Rule 82 to penalize a party for litigating a good faith claim but rather partially to compensate the prevailing party where such compensation is justified”).
. For example, when a case ends in a default judgment, the amount of the final money judgment won by the plaintiff is most often relatively large compared to the number of hours put into the case by the plaintiff’s attorney. Consequently, an award of attorney's fees based upon a percentage of the final money judgment is likely to overcompensate a plaintiff who prevails by default. In order to combat this likelihood, Rule 82(b)(4) limits compensation to a percentage of the final money judgment or reasonable actual fees, "whichever is less.”
. Cole v. Bartels, 4 P.3d 956, 960 n. 20 (Alaska 2000).
. Id.
. Op. at 1199-1200.
. Cizek v. Concerned Citizens of Eagle River Valley, Inc., 71 P.3d 845, 851 (Alaska 2003) (acknowledging that “the length and complexity of the case will be reflected in the fees themselves”); Cole, 4 P.3d at 960 n. 20 (noting that "complexity serves poorly as an independent enhancing factor where hourly fees ... serve as the subject of the award”); Tenala, 993 P.2d at 451 n. 19 (concluding that "using complexity as an enhancing factor [in cases such as this] over-counts the effect that complexity has on fees").
. Cole, 4 P.3d at 960 n. 20; Tenala, 993 P.2d at 451 n. 19.
. Under our case law, we will overrule precedent when we are "clearly convinced that the rule was originally erroneous ... and that more good than harm would result from a departure from precedent.” State v. Semancik, 99 P.3d 538, 540 (Alaska 2004) (internal quotations omitted). These requirements are easily met here.
. Under Rule 82(b)(3)(C), an award may be varied based upon "the reasonableness of the attorneys' hourly rates and the numbers of hours expended”; under Rule 82(b)(3)(D), an award may be varied based upon "the reasonableness of the number of attorneys used.”
. Rule 82(b)(3)(E) maintains that an award may be varied based upon “the attorney's efforts to minimize fees.”
. Op. at 1200 n. 54.
. Id.
. Id.
. Rule 82(b)(3)(F) maintains that an award may be varied based upon "the reasonableness of the claims and defenses pursued by each side”; Rule 82(b)(3)(G) maintains that an award may be varied based upon "vexatious or bad faith conduct.”
. Op. at 1200.
. Op. at 1192.
. Rule 82(b)(3)(H).
. Patrick v. Lynden Transp., 765 P.2d 1375, 1379 (Alaska 1988).
. Bush v. Reid, 516 P.2d 1215, 1221 (Alaska 1973).
. Sands v. Green, 156 P.3d 1130 (Alaska 2007).
Reference
- Full Case Name
- Susan J. WARE, Appellant, v. Brandie W. WARE, Appellee
- Cited By
- 45 cases
- Status
- Published