Nye v. Katsilometes
Nye v. Katsilometes
Opinion
I. NATURE OF THE CASE
In an appeal arising out of Bannock County, Tom Katsilometes challenges the Idaho Senate's order granting over $18,000 in attorney fees to Senator W. Marcus W. Nye, awarded after Nye prevailed against Katsilometes in a contest over the results of the 2016 general election. The Senate confirmed Nye's election and awarded him costs and attorney fees. Because Katsilometes refused to pay the attorney fees, Nye brought an action in district court seeking a declaratory judgment ordering Katsilometes to pay him the amount ordered by the Senate. The district court granted the declaratory judgment and further awarded Nye costs, attorney fees, and prejudgment interest. For the reasons stated below, we reverse the district court's judgment upholding the Senate's award of attorney fees, and vacate the award of costs, attorney fees, and prejudgment interest.
II. FACTUAL AND PROCEDURAL BACKGROUND
Nye and Katsilometes were opponents in the 2016 general election for the Idaho Senate seat in District 29. After Nye defeated Katsilometes in the election, Katsilometes challenged the election results by filing a Verified Complaint for Contest of Election with the Idaho Senate. The basis for the contest was Katsilometes' allegation that Nye had violated a provision of Idaho Code section 67-6603, one of the so-called "Sunshine Laws" that regulate election campaign contributions and expenditures. In response, the President Pro Tempore of the Senate issued an order entitled "Procedural Order for Contest of Election," outlining the course of proceedings and referring the matter to the Senate State Affairs Committee.
Following hearings before the State Affairs Committee on January 16 and January 23, 2017, the Committee presented its findings to the Senate as a whole on January 24, 2017. The Senate voted on January 25, 2017, to adopt the Committee's recommendations that the Senate uphold Nye's election and order Katsilometes to pay Nye's witness fees and costs of discovery. Additionally, the Senate Journal reflects that the Senate separately approved a motion adopting the recommendations and findings 1 of the Committee that (1) Katsilometes' petition contesting the election was "brought and pursued frivolously, unreasonably, and without factual or legal foundation" and (2) Katsilometes be ordered to pay attorney fees in the amount of $18,060.00. In so ordering, the Senate cited Article III, section 9 of the Idaho Constitution as its authority.
Katsilometes paid Nye the amount owed for the witness fees and discovery costs but did not pay the amount owed for the attorney fees. Subsequently, to assist him in collecting on the Senate's attorney fees order, Nye brought an action in district court seeking a declaratory judgment ordering Katsilometes to pay the attorney fees that had been awarded by the Senate. Following cross motions for summary judgment, the district court granted Nye's motion for summary judgment on the declaratory judgment action and entered judgment against Katsilometes for the $18,060.00 in attorney fees the Senate had awarded Nye. In so doing, the district court determined the Senate was acting within its authority pursuant to Article III, section 9 of the Idaho Constitution when it awarded Nye his attorney fees following Katsilometes' failed election contest. The district court concluded that it could not intrude on such an exercise of discretion from another branch of government.
Following the district court's entry of judgment, Nye moved for an amended judgment awarding him prejudgment interest, costs, and attorney fees incurred in his declaratory judgment action. The district court granted Nye's motion and awarded costs as a matter of right, denied awarding discretionary costs, and awarded attorney fees pursuant to Idaho Code section 12-120(1). The district court also awarded prejudgment interest from the date the Senate ordered attorney fees until the date the district court entered its judgment in the case. The district court entered an amended judgment and awarded Nye a total of $35,372.28. Katsilometes timely appealed.
III. STANDARD OF REVIEW
"Both constitutional questions and questions of statutory interpretation are questions of law over which this Court exercises free review."
Stuart v. State,
[T]he standard of review for this Court is the same standard used by the district court in ruling on the motion. The court must grant summary judgment if the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law. Summary judgment is appropriate if the pleadings, affidavits, and discovery documents on file with the court, read in a light most favorable to the nonmoving party, demonstrate no material issue of fact such that the moving party is entitled to a judgment as a matter of law. If the evidence reveals no genuine issue as to any material fact, then all that remains is a question of law over which this Court exercises free review.
Other than a conclusory statement noted in the Senate Journal, there were no actual written findings in the record on appeal outlining the State Affairs Committee's factual findings supporting their conclusion that the contest was pursued "frivolously, unreasonably, and without factual or legal foundation." In a judicial proceeding, an award of attorney fees under Idaho Code section 12-121 requires that such a finding "must be in writing and include the basis and reasons for the award."
Lee v. Willow Creek Ranch Estates No. 2 Subdivision Homeowners' Ass'n, Inc.,
"An award of attorney fees and costs is within the discretion of the trial court and subject to an abuse of discretion standard of review."
Ballard v. Kerr,
When this Court reviews whether a trial court has abused its discretion, the four-part inquiry is "[w]hether the trial court: (1) correctly perceived the issue as one of discretion; (2) acted within the outer boundaries of its discretion; (3) acted consistently with the legal standards applicable to the specific choices available to it; and (4) reached its decision by the exercise of reason."
Dickinson Frozen Foods, Inc. v. J.R. Simplot Co.,
IV. ANALYSIS
The election contest at the center of this controversy concerns a disputed Senate seat following a general election. It is only the second such contest in Idaho's history. In addition, in 129 years of legislative history since statehood, the Senate has never before awarded attorney fees against a private citizen contesting the results of an election on the grounds that the contest was frivolous. Thus, in addition to the important constitutional principles at stake here, this case presents an issue of first impression for the Court.
A. The Idaho Senate did not have authority to award attorney fees to Nye at the time of this election contest.
The primary issue before us is not whether the amount of attorney fees awarded to Nye was unreasonable, but whether the Senate had authority under the Idaho Constitution to award Nye any attorney fees at all. Katsilometes argues that the Senate did not have authority under Article III, section 9 of the Idaho Constitution to award attorney fees to Nye, regardless of the Senate's finding that the Contest of Election was "brought and pursued frivolously, unreasonably, and without factual or legal foundation." 2 Accordingly, he argues that the district court erred when it determined the Senate had such authority and entered a declaratory judgment against him. For the reasons discussed below, we agree that the Senate did not have the authority to award attorney fees to Nye in January 2017 and, therefore, the district court erred when it entered a declaratory judgment against Katsilometes.
As this Court examines the constitutional authority vested in a co-equal branch of the government-in this case, the legislative branch-we are respectfully mindful that this dispute involves the interplay of the bedrock principles of separation of powers and checks and balances enshrined in the Idaho Constitution. Article II, section 1 of the Idaho Constitution provides that:
The powers of the government of this state are divided into three distinct departments, the legislative, executive and judicial; and no person or collection of persons charged with the exercise of powers properly belonging to one of these departments shall exercise any powers properly belonging to either of the others, except as in this constitution expressly directed or permitted.
"The separation of powers doctrine embodies the concept that the three branches of government, legislative, executive and judicial, should remain separate and distinct so that each is able to operate independently."
Sweeney v. Otter,
As an initial matter, we acknowledge that the dissent does not believe that "the Senate's decision to award fees was so egregious as to convert a non-justiciable question into a justiciable one." The district court recognized that "[i]n order to reach a decision in a declaratory action, a court must determine whether a justiciable controversy exists ...." Thus, if the majority were to agree with the dissent that this case presents a non-justiciable controversy, the necessary outcome would be to vacate the district court's judgment granting declaratory relief, effectively nullifying the Senate's award of attorney fees to Nye. Yet, the dissent does not advocate for such an outcome. Instead, it describes the declaratory judgment in favor of Nye "as a perfunctory enforcement mechanism which perfected the Senate's award." The dissent cannot have it both ways-this case either presents a justiciable controversy that the courts can address, or it does not.
Neither side has argued that this case presents a nonjusticiable controversy. The Idaho Declaratory Judgment Act recognizes that "[c]ourts of record within their respective jurisdictions shall have power to declare rights, status, and other legal relations, whether or not further relief is or could be claimed. I.C. § 10-1201. As the district court correctly noted, in considering "whether to grant a declaratory judgment, the criteria is whether it will clarify and settle the legal relations at issue, and whether such declaration will afford a leave from uncertainty and controversy giving rise to the proceeding."
Sweeney v. Am. Nat'l Bk.,
Further, we note that by deciding this matter, the Court is not meddling in the affairs of the Senate-this case was brought to the district court by a member of the Senate invoking the judicial branch's power to impose an enforceable attorney fee award. As Nye aptly recognized, absent a judicial decree, the Senate's imposition of attorney fees against Katsilometes was essentially meaningless. Where, as here, a judgment of the judicial branch is required to create an enforceable obligation, we believe that a justiciable controversy exists.
The Senate cited Article III, section 9 of the Idaho Constitution as its authority for awarding Nye his attorney fees following Katsilometes' failed Contest of Election. The relevant portion of this constitutional provision provides: "Each house when assembled shall choose its own officers; judge of the election, qualifications and returns of its own members, determine its own rules of proceeding, and sit upon its own adjournments ...." Idaho Const. art. III, § 9 (emphasis added). The parties disagree on the interpretation of this language. Nye contends that this provision grants the Senate broad discretion as to the rules and procedure in a Contest of Election, including the imposition of attorney fees. Katsilometes acknowledges the Senate's broad authority granted to it by the Idaho Constitution, but contends that the provision does not allow the Senate to award attorney fees against him. Instead, he asserts that the Senate is bound by a statute it enacted concerning monetary awards in contested general elections- Idaho Code section 34-2120 -which, prior to its amendment in 2017, only provided for an award of costs and witness fees.
The version of Idaho Code section 34-2120 in place at the time Katsilometes filed his Contest of Election stated as follows:
Security for costs-Assessment of costs.
(a) The contestant shall file with the secretary of state a bond in the amount of five hundred dollars ($500) conditioned to pay the contestee's costs in case the election be confirmed by the legislature.
(b) The contestants are liable for witness fees and the costs of discovery made by them respectively. If the election is upheld by the legislature, the legislature may assess costs against the contestant. If the election is annulled by the legislature, the legislature may assess costs against the contestee.
....
Ch. 209, § 28,
Security for costs-Assessment of costs and fees-Assessment of attorney's fees
(1) The contestor must file with the secretary of state a bond in the amount of one thousand dollars ($1,000) conditioned to pay the contestee's costs if the election be confirmed by the legislature.
(2) The parties are liable for witness fees and the costs of discovery made by them respectively. If the election is upheld by the legislature, the legislature may assess costs and fees, other than attorney's fees , against the contestor. If the election is annulled by the legislature, the legislature may assess costs and fees, other than attorney's fees , against the contestee.
(3) Attorney's fees.
(a) Attorney's fees may be awarded against the contestor if the legislature determines the contest of election is frivolous and has no foundation in law or fact.
(b) Attorney's fees may be awarded against the contestee if the election is annulled by the legislature due to misconduct, fraud or corruption on the part of the contestee.
....
I.C. § 34-2118 (emphasis added). Thus, the revision that occurred in 2017 changed the statute to provide for attorney fees in cases where, as here, the Senate determines that the "contest of election is frivolous and has no foundation in law or fact." Thus, Katsilometes argues that this change evinces that the Senate implicitly recognized it was without authority to award attorney fees at the time of his election contest.
Katsilometes further contends that this Court's decision in
Noble v.
Ada County Elections Board
,
The general rule is that costs do not include attorney fees unless attorney fees are expressly included in the definition of the term costs. The legislature's awareness of this rule is demonstrated by its authorization of awards of costs and attorney fees. When the legislature has intended that the term costs cover attorney fees, it has so provided. Therefore, we hold that attorney fees are not appropriately awarded under I.C. § 34-2130.
As noted, the Senate has the constitutional authority to be the "judge of the election, qualifications and returns of its own members" and to "determine its own rules of proceeding ...." Idaho Const. art. III, § 9. Thus, the Senate had constitutional authority to preside over the Contest of Election and determine the rules of proceeding applicable thereto. Pursuant to this authority, the legislature enacted Idaho Code section 34-2120. As discussed, that statute explicitly provided for an award of costs but not attorney fees. That the legislature later clarified Chapter 21 of Title 34, only months after Katsilometes' challenge, to provide for an award of attorney fees strongly suggests that it recognized it had not provided itself with authority to do so under the version of Idaho Code section 34-2120 in place at the time of this election contest.
See
Saint Alphonsus Reg'l Med. Ctr. v. Gooding Cnty.,
Nothing we say here should be read to cast doubt on the Senate's constitutional authority to enact its own rules of proceeding in the event of an election contest. We are not intervening in the Senate's constitutionally-delegated powers or even in its power to define its own rules by statute. Rather, we merely recognize that where the Senate enacts a law or a rule which does not permit it to impose attorney fees in an election contest, it cannot do so on an ad hoc basis.
Although our conclusion regarding the effect of the previous version of Idaho Code section 34-2120 is dispositive of this case, we briefly address Katsilometes' additional argument that "[t]he statutory scheme in place at the time this election contest was initiated and decided defined the substantive rights of the parties which could be impacted by an adverse decision by one house of the legislature." This assertion implicates important due process concerns. As to such matters of constitutional importance, we have previously held:
A procedural due process inquiry is focused on determining whether the procedure employed is fair. The due process clause of the Fourteenth Amendment prohibits deprivation of life, liberty, or property without fundamental fairness through governmental conduct that offends the community's sense of justice, decency and fair play. Procedural due process is the aspect of due process relating to the minimal requirements of notice and a hearing if the deprivation of a significant life, liberty, or property interest may occur. A deprivation of property encompasses claims where there is a legitimate claim or entitlement to the asserted benefit under either state or federal law. The minimal requirements are that there must be some process to ensure that the individual is not arbitrarily deprived of his rights in violation of the state or federal constitutions. This requirement is met when the defendant is provided with notice and an opportunity to be heard. The opportunity to be heard must occur at a meaningful time and in a meaningful manner in order to satisfy the due process requirement.
Bradbury v. Idaho Judicial Council
,
The Procedural Order for Contest of Election issued by the Senate and sent to Katsilometes indicated that the Senate would be performing its constitutional duty pursuant to Article III, section 9 to "judge of the election, qualifications and returns of its own members" and that "[n]othing in this Procedural Order limits or restricts the Senate in the performance of its duties as the judge of the election, qualifications and returns of its own members." However, as noted, although the Idaho Constitution allows the Senate to determine the rules of its own proceedings, the Senate already did so when it enacted Idaho Code section 34-2120, a statute that did not provide the Senate with the power to impose attorney fees in a general election contest. The ordering of attorney fees against a private citizen on an ad hoc basis, without prior notice, raises significant due process concerns. 3 Conversely, the Senate had notice of our decision in Noble -which concerned a similar provision in Chapter 21, Title 34 of the Idaho Code-for more than ten years before it imposed attorney fees against Katsilometes under a statute that did not expressly provide for them. We also recognize that, as counsel for Katsilometes averred during oral argument, there is no case law over the last 250 years in the United States affirming that a legislative body, through its plenary powers, can impose attorney fees against an individual who is not a member of the legislative body without a statutory basis.
Again, as we have approached this dispute, we have strived to honor the doctrine of separation of powers and respect the constitutional role of the legislature-a co-equal branch of our government. Therefore, we have not attempted to define or limit the Senate's constitutional authority and discretion in determining its internal "rules of proceeding" and regulating the conduct of "members" of the Senate. Idaho Const. art. III, § 9. It is unnecessary for us to do so here because in adopting the earlier version of Idaho Code section 34-2120, the Senate defined and limited its own power to impose such fees. In essence, we are merely holding that the Senate, as part of a bicameral legislative body, cannot ignore laws duly passed by both chambers of the legislature and impose attorney fees against a private citizen on an ad hoc basis.
In conclusion, it is important to recognize that at its core, this case does not concern a rule of the Senate; rather, it concerns the Rule of Law. Contrary to the hyperbolic assertion of the dissent, this is hardly an attempt by the judiciary to "muscle" itself into the affairs of the Senate. Indeed, this action was initiated by a member of the Senate seeking judicial assistance in enforcing a decision of the Senate. This Court is merely responding to a case that has been brought before it-and fulfilling its constitutional role-by applying well-settled legal principles to an unsettled question of law. This is a judicial function almost as old as our republic. Indeed, as Justice John Marshall observed, in perhaps the most notable appellate ruling in the last 230 years: "It is emphatically the province and duty of the judicial department to say what the law is."
Marbury v. Madison,
B. Nye was not entitled to recover his litigation costs, attorney fees, and prejudgment interest in the district court action.
Following the district court's entry of the declaratory judgment, Nye sought an award of his litigation costs, attorney fees, and prejudgment interest for bringing his action in the district court. The district court awarded Nye, as the prevailing party, attorney fees under Idaho Code section 12-120(1) and costs as a matter of right pursuant to Idaho Rule of Civil Procedure 54(d)(1)(A) ; however, no discretionary fees were awarded. Additionally, the district court awarded Nye prejudgment interest on the Senate's attorney fee award.
In light of this opinion, Nye should not have been the prevailing party in the district court action. Therefore, the district court's award of costs, attorney fees, and prejudgment interest must be vacated.
C. Neither side is entitled to attorney fees on appeal.
Katsilometes requests attorney fees on appeal pursuant to Idaho Code section 12-120(1) and Idaho Appellate Rules 40 and 41. Katsilometes further seeks an opportunity on remand to recover his attorney fees incurred during the district court proceedings since he should have prevailed below. Nye requests attorney fees on appeal pursuant to Idaho Code sections 12-120(1) or 12-121.
Section 12-120(1) applies to claims for monetary relief in which the amount pleaded is under $35,000, and entitles the prevailing party to an award of reasonable attorney fees. Here, Nye's claim was for a declaratory judgment effectuating the Senate's award of fees. Although this is a claim for money, the gravamen of the action is a dispute concerning the legal authority of the Senate to impose attorney fees in January of 2017 under the then-existing statutory scheme. As such, this case does not arise under the circumstances contemplated by section 12-120(1). Rather, it is, at its core, a constitutional issue. As a result, Katsilometes is not entitled to attorney fees on appeal under 12-120(1), and may not seek his fees on remand. Nye did not prevail on appeal, so he is not entitled to fees on appeal, and his award of fees by the district court must be vacated.
Attorney fees under section 12-121 are only permissible "if the appeal was brought or defended frivolously, unreasonably, or without foundation." "Fees will generally not be awarded for arguments that are based on a good faith legal argument."
Easterling v. Kendall,
V. CONCLUSION
For the reasons stated above, we reverse the district court's order enforcing the award of attorney fees to Nye pursuant to the order of the Idaho Senate, and vacate all costs, attorney fees, and prejudgment interest awarded to Nye by the district court. Neither side is entitled to attorney fees on appeal; however, as the prevailing party, Katsilometes is entitled to his costs on appeal. 4
Justices BEVAN, STEGNER, and Justice Pro Tem KIDWELL concur.
The Senate appears to have applied the standard from Idaho Rule of Civil Procedure 54(e)(1), which provides that "the court" may award attorney fees when a case is "brought, pursued or defended frivolously, unreasonably or without foundation." This judicial rule of procedure is expressly applicable only to the courts. Although the legislature later included this language in the current version of Idaho Code section 12-121 (approved and effective March 1, 2017), it did not exist in that statute as worded on January 25, 2017. Additionally, as will be discussed later in this opinion, the revised statute for election contests now incorporates a similar standard for imposing attorney fees. See I.C. § 34-2118(3)(a) ("Attorney's fees may be awarded against the contestor if the legislature determines the contest of election is frivolous and has no foundation in law or fact.") (effective July 1, 2017).
We are mindful, as the dissent has properly noted, that Katsilometes asked for attorney fees when he filed his contest of the election in the Senate. However, the mere fact that a party seeks an impermissible form of relief from a tribunal does not imbue that body with the legal authority to grant such relief.
Although Katsilometes asked for a remand so that he could be awarded attorney fees below, he did not ask for a remand on the issue of costs.
By striking down the Senate's award of attorney's fees, I believe the majority muscles the Judiciary into becoming a second judge in a proceeding where the Constitution requires the Legislature to sit as the sole arbiter.
See
Burge v. Tibor,
1. The Senate's award of attorney's fees was within its broad constitutional power to judge election contests and is consistent with Idaho Code section 34-2120.
The separation-of-powers doctrine prohibits "judicial review of the discretionary acts
of other branches of government."
In re SRBA Case No. 39576,
In my view, Article III, Section 9 is a "textually demonstrable constitutional commitment" which assigns election contests to the Legislature and implicates its discretionary authority.
Tucker v. State,
I do not think the Senate's decision to award attorney's fees was so egregious as to convert a non-justiciable question into a justiciable one. First, I do not infer from section 34-2120 's repeal and replacement that the Senate lacked the power to award attorney's fees under the predecessor statute. That the new enactment clarified that attorney's fees may be awarded does not alter the Senate's underlying constitutional power to assess them in the first place. The award of attorney's fees serves the same purpose as the bond requirement and assessment of court costs under the same statute. These measures ensure the swift and proper resolution of an election by deterring unfounded attacks on election results which might undermine or unreasonably delay them.
In addition, because election contests are a constitutionally distinct species of adjudication, the Senate may choose to interpret the applicable statutes as it sees fit so long as the interpretation is reasonable. Here, the Senate did not craft the award out of whole cloth. At the hearing, both the Attorney General's Office and the Senate signaled their understanding that attorney's fees were awardable as "costs" under Idaho Code section 34-2120. That this Court has imposed a limiting construction on "costs" to exclude attorney's fees is persuasive to the Senate tribunal, but not binding.
See
Burge,
The majority's reasoning that the Senate "cannot ignore laws duly passed by both chambers of the legislature" subverts the plain words of the Idaho Constitution. Section 9 provides that "each house" acts with autonomy; the power is not subject to bicameral or Executive approval. The Legislature cannot diminish a constitutional power by statutory fiat just as one session of the Legislature cannot tie the hands of the Senate in a future session by rewriting the scope of its power.
See
Johnson
v.
Diefendorf,
2. The Senate's award of attorney's fees did not violate Katsilometes's due-process rights.
Because section 34-2120 only stated "costs," the majority characterizes the Senate's award of attorney's fees as an ad hoc assessment of fees against private citizens without prior notice. I cannot view this case through such a broad lens and believe that Katsilometes received procedural due process under the circumstances.
The Legislature must still comply with procedural due process even when it is acting within its constitutional power.
Cf.
In re SRBA Case No. 39576,
We should not lose sight of the fact that neither the Senate, nor Nye, instigated the election contest. Katsilometes filed the petition. Katsilometes voluntarily submitted himself to the Senate's jurisdiction and its Section 9 powers. Katsilometes was aware that this was a unique judicial proceeding subject to special rules. Katsilometes specifically asked for attorney's fees in his petition. And Katsilometes was provided "with notice and an opportunity to be heard" when the Senate gave him the procedural order and a hearing.
Bradbury,
Given these considerations, I cannot say that the Senate "arbitrarily deprived" Katsilometes of his rights by failing to meet the "minimal requirements" of procedural due process when it awarded attorney's fees against him.
Bradbury,
Reference
- Full Case Name
- W. Marcus W. NYE, an Individual, Plaintiff-Respondent, v. Tom KATSILOMETES, an Individual, Defendant-Appellant.
- Cited By
- 16 cases
- Status
- Published