Hargis v. Hargis
Hargis v. Hargis
Opinion of the Court
As recited more fully in a companion case to this appeal, Hargis v. Hargis ,
I.
In March 2017, Col. Hargis timely moved for attorney's fees pursuant to Arkansas Rule of Civil Procedure 54(e)(2) and
Ms. Hargis timely opposed the motion. She argued, among other things, that the statute did not apply to a domestic-relations case and that Col. Hargis's "financial abilities" "far exceed[ed]" hers. She asked the court to either deny the motion outright or set a hearing so she could develop the parties' respective financial pictures and abilities to pay fees.
On April 27, the court ordered Ms. Hargis to pay Col. Hargis's attorney's fees (minus an offset) but disallowed the expert fee:
1. Allen Hargis is the prevailing party in an action based in contract to enforce a Property Settlement Agreement. He is also the prevailing party on Defendant's Counter-Motion to "interpret" a contract.
2.Ark. Code Ann. § 16-22-308 allows the trial court to award attorney fees to the prevailing party in contract actions. ARCP rule 54 provides that a demand for attorney fees be made by Motion.
....
4. [Col. Hargis] is awarded attorney fees incurred with Lance B. Garner in the amount of $18,325.00. This judgment is offset against the $5,210.55 awarded to [Lynn Hargis] previously for past COBRA payments. The balance due and owing to [Col. Hargis] is $13,114.45 with post-judgment interest[.]
After the order was entered, Ms. Hargis moved "for relief pursuant to Ark. R. Civ. P. 59," extended her time to appeal the fee order under Ark. R. App. P.-Civ. 4(a)-(b) (2017), and argued that she had a due-process right to appear and oppose Col. Hargis's motion for fees. The motion was deemed denied in the circuit court. Ms. Hargis timely appealed the proper orders.
In this court, Ms. Hargis presses that the circuit court was required to hold a hearing on Col. Hargis's motion so she could present evidence of the parties' relative "financial abilities." Being denied that opportunity, she says, was a procedural *570due-process violation under the Fourteenth Amendment to the United States Constitution.
II.
Several legal overtones resonate in this case, but for simplicity's sake we focus on the one best tuned to a civil case involving a routine request for attorney's fees: the rules of civil procedure. They amply embody and advance, for this case's purposes, the basic tenet that a party must be sufficiently heard in opposition to an adversary's attorney-fee request before an award issues. This court avoids climbing a constitutional mountain if it can traverse a procedural hill instead.
Turning to Rule 54, which Col. Hargis himself invoked to seek fees, subsection (e)(3) states that if a party asks, then a circuit court "shall afford an opportunity for adversary submissions with respect to the motion in accordance with Rule 43(c) or Rule 78" after a request for attorney's fees has been made. Ark. R. Civ. P. 54(e)(3) (2017). Shall almost universally means must in legal parlance. Prescott Sch. Dist. v. Steed ,
What does that phrase mean for Rule 54 purposes? Rule 43(c) tells us that when a motion is based on facts that are not of record, then the court may receive affidavits or direct that it will decide the matter on oral testimony or deposition. Ark. R. Civ. P. 43(c) (2017);
Paper or people. Those are the options. The circuit court may suggest that the parties pursue one option over another. The court, in our view, could order one option over another, assuming a party's evidentiary submission was not unduly limited or curtailed by the choice. For example, a circuit court might prefer "paper" evidence by way of affidavits or a deposition transcript instead of receiving live-witness testimony under Rule 43(c)'s "oral testimony" option. Which avenue is best calibrated to do the most good, in the most *571timely and efficient manner for all involved, is the circuit court's ultimate decision to make. An important threshold question is whether the motion is predicated on facts that need to be placed in the record for the first time or whether the record needs further development before the motion can be fairly decided. A motion for attorney's fees is one based in facts; and Ms. Hargis's timely plea that she be allowed to present evidence on the parties' relative financial positions and abilities to pay fees is likewise a fact-based point.
Our dissenting colleagues suggest that "we may presume that the trial court found the relative financial abilities of the parties to be far outweighed by the other Chrisco factors, rendering the taking of evidence on this factor unnecessary." But why make that crucial presumption? Nowhere did the circuit court's order recite that it considered any factors discussed in Chrisco v. Sun Industries, Inc. ,
Regarding the minimum of process owed to a party who opposes a fee request, we find some guidance from our supreme court in Stilley v. James ,
Ms. Hargis received less. She was, however, entitled to more given her timely request; but not an "exhaustive" amount more. See Collins v. Collins ,
When Ms. Hargis requested a hearing, she triggered one of the two primary options available to her under Rules 54(e), 43(c), and 78(c). Consequently, she should have been permitted to pursue her preferred "oral testimony" option, unless the circuit court ordered her to present evidence in an acceptable written form like affidavits. But Ms. Hargis was not directed away from an oral evidentiary submission and toward a written evidentiary submission, and a substantial attorney-fee award was entered against her in the meantime.
III.
We hold that, pursuant to the Arkansas Rules of Civil Procedure, Ms. Hargis should have received a more fulsome opportunity to be heard in opposition to Col. Hargis's motion for attorney's fees and costs. Consequently, the circuit court's order dated 27 April 2017 is reversed and the case remanded for proceedings consistent with this opinion.
Reversed and remanded.
Abramson, Virden, Murphy, JJ., agree.
Gladwin and Klappenbach, JJ., dissent.
Whether this case is best characterized as a contract case at law, or one in which the parties sought to enforce in equity an agreement intimately tethered to their divorce, has significant and varied implications at many levels. The record vacillates on the characterization point, and the legal authorities urged and arguments made have further complicated the issue. These are two reasons why we have focused on the rules of civil procedure at this time.
Black's Law Dictionary (10th ed. 2014) (bold original): shallvb. (bef. 12c) 1. Has a duty to; more broadly, is required to < the requester shall send notice> < notice shall be sent>. • This is the mandatory sense that drafters typically intend and that courts typically uphold. 2. Should (as often interpreted by courts) < all claimants shall request mediation>. 3. May < no person shall enter the building without first signing the roster>. • When a negative word such as not or no precedes shall (as in the example in angle brackets), the word shall often means may. What is being negated is permission, not a requirement. 4. Will (as a future-tense verb) < the corporation shall then have a period of 30 days to object>. 5. Is entitled to < the secretary shall be reimbursed for all expenses>. • Only sense 1 is acceptable under strict standards of drafting.
Verbatim, the rule states, "When a motion is based on facts not appearing of record, the court may hear the matter on affidavits presented by the respective parties, or the court may direct that the matter be heard wholly or partly on oral testimony or deposition." Ark. R. Civ. P. 43(c).
Dissenting Opinion
I dissent from the majority opinion because (1) the majority opinion has made extensive arguments for Lynn and has crafted remedies that she did not request on appeal; (2) the trial court is not required to hold a hearing on attorney-fee requests in domestic-relations proceedings; and (3) Lynn was not denied an opportunity to respond in resistance to the request for attorney's fees. I would affirm the trial court's award of attorney's fees to Allen for prevailing on his motion to enforce the property-settlement agreement.
Allen filed his motion for attorney fees on March 8, 2017. On March 21, 2017, Lynn filed a response objecting to an award of attorney's fees to Allen, claiming that Allen's financial abilities far exceeded hers, that the trial court should consider their relative financial abilities, and that she was entitled to a hearing on that factor. Lynn did not append an affidavit of financial means or other affidavit to explain her or Allen's financial situation. On April 6, 2017 (sixteen days later), the trial court issued a letter opinion in which it awarded Allen attorney's fees. A formal order followed. Lynn subsequently filed a "Motion for Relief" asking in the alternative that she be given a hearing on the motion for fees because she had been "denied her constitutional procedural due process right to appear and be heard in opposition" to Allen's motion, specifically with regard to their relative financial positions. Lynn's "Motion for Relief" was deemed denied. This appeal followed.
It is important to note that Lynn's argument in her appellate brief is limited to her general assertion that she was denied an opportunity to present evidence on the relative financial abilities of the parties in violation of procedural due process. Lynn did not cite to any Arkansas Rule of Civil Procedure in her appellate brief. Even so, the majority opinion recognizes that Ark. R. Civ. P. 43(c) provides that in considering motions, the trial court "may hear the matter on affidavits" or on oral testimony or deposition. "May" is a permissive word, not a mandatory word; a motion hearing is discretionary with the court.
*573Lowder v. Gregory ,
Equally concerning, the majority opinion "make[s] no attempt to prescribe any formulae for calculating an answer to the 'how much is enough process' query." The majority refuses to answer the only question Lynn presented, which was whether she was entitled to a hearing on Allen's attorney-fee request. The majority reverses and remands "for a more fulsome opportunity to be heard" by the trial court conducting a hearing or by the judge ordering Lynn to provide evidence in the form of affidavits. Notably, Lynn does not seek an opportunity to present affidavits; she wants a hearing. Thus, the majority is crafting a potential remedy that she does not request on appeal.
The basic law on attorney-fee requests in domestic-relations cases is pertinent to consider. The circuit court has inherent power to award attorney's fees in domestic-relations proceedings, and whether the trial court should award fees and the amount thereof are matters within the discretion of the trial court. Vice v. Vice ,
In sum, the circuit court is not required to hold a hearing on motions for attorney's fees in domestic-relations cases under existing precedent, and the relative financial position of the parties is a consideration but is not determinative. The majority has developed Lynn's argument for her on appeal in order to reverse, which we are not to do. See Cummings v. Boyles ,
I am authorized to state that Judge Gladwin joins in this dissent.
Reference
- Full Case Name
- Lynn B. HARGIS v. Allen HARGIS
- Cited By
- 2 cases
- Status
- Published