Alexander v. Groves

345 F. Supp. 848, 1972 U.S. Dist. LEXIS 12634
CourtDistrict Court, D. Maryland
DecidedJuly 24, 1972
DocketCiv. A. No. 70-424-N
StatusPublished
Cited by1 cases

This text of 345 F. Supp. 848 (Alexander v. Groves) is published on Counsel Stack Legal Research, covering District Court, D. Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Alexander v. Groves, 345 F. Supp. 848, 1972 U.S. Dist. LEXIS 12634 (D. Md. 1972).

Opinion

NORTHROP, Chief Judge.

This is, hopefully, the last round in what has been a marathon legal bout between Dr. Alexander and Mrs. Groves (formerly Mrs. Alexander). It is not necessary, nor is it useful, at this point to re-hash the history of the in-fighting of the parties, but suffice it to say that in an oral opinion rendered in this cause in September, 1970, this Court granted partial summary judgment upon plaintiff’s motion therefor, making certain conclusions of the trial courts of Maryland, as affirmed by the Maryland Court of Appeals, the law of the case in this Court. Thereafter, in July of 1971, this Court, after hearing, granted plaintiff’s motion for summary judgment in toto, adjudging plaintiff entitled to certain installment payments due him under a Separation Agreement existing between the parties. Furthermore, in view of the fact that the said agreement contained a provision calling for the payment of attorney’s fees in the event that litigation became necessary to enforce the agreement, this Court awarded plaintiff the cost of reasonable attorney’s fees, the amount of which was $55,000. Thereafter, the judgment of this Court was appealed to the Court of Appeals for the Fourth Circuit, which, after dispensing with oral argument on the part of the plaintiff-appellee, affirmed the judgment of this Court per curiam, both on the substantive issues and on the exercise of this Court’s discretion in the allowance of attorney’s fees. Now, the matter is once more before this Court on the petition of the successful plaintiff-appellee for the allowance of reasonable attorney’s fees for services on appeal. The motion is opposed by the defendant primarily on jurisdictional grounds. The Court feels that, in order to resolve the question, three subordinate questions must be answered. First, does the contract make provision for the payment of attorney’s fees for appellate services? Second, does this Court have jurisdiction at this point in time to award such fees? And, third, if the answer to the two preceding questions is yes, what is the amount reasonable under the circumstances ?

I.

THE CONTRACT

The basis for this Court’s original award of attorney’s fees in this case was the contractual provision, paragraph 12 of the Agreement between the parties of October 5, 1967, which provides as follows:

In the event that either party or his or her respective estates shall institute legal proceedings to enforce any [850]*850of the terms and provisions of this agreement, or for the breach thereof, the unsuccessful party, or his or her estate, shall also reimburse the successful party, or his or her estate, for all reasonable expenses, plus counsel fees, necessarily incurred in connection therewith.

A surface reading of the contract would convince this Court that the defense of a favorable judgment obtained in the court below, when an appeal is entered as to such judgment, is certainly an “expense . . . necessarily incurred in connection” with the successful prosecution of an action under the agreement. For if the expenses of defending an appeal are not included within the contractual provision, then it must follow that the defense of a favorable judgment when the case is appealed is not a necessary expense of litigation. This conclusion is completely nonsensical, for if the party who prevailed below does not take the necessary step of defending his judgment on appeal, it is entirely possible that the losing party below might convince the appellate court to reverse erroneously the judgment rendered below, thus making all the proceedings concluded theretofore an exercise in futility. Consequently, it is the conclusion of this Court that the only reasonable construction of the contract provision in question is that it does authorize the recovery of expenses, including attorney’s fees, incurred in successfully defending a judgment on appeal.

The law of the more recent and better-reasoned cases supports such a construction of the contract. It is true that in construing a contractual provision for the payment of attorney’s fees, the law of the state governing the contract must be looked to by the federal courts. In re Pack-It, Inc., 158 F.Supp. 148 (D.N.J. 1958), citing Security Mortgage Co. v. Powers, 278 U.S. 149, 49 S.Ct. 84, 73 L. Ed. 236 (1928). The contract, by paragraph 18 thereof, is to be governed by the law of Pennsylvania. The Court has found no authority construing an analogous provision from the courts of Pennsylvania, but there is authority for the proposition that two contracting parties can agree in a contract for the payment of any special expenses incurred in futuro in necessary connection with the performance of the contract. Nick v. Craig, 301 Pa. 50, 56, 151 A. 573 (1930). Thus, the Court has made reference to the law of this forum, Maryland, for guidance on the question, and, likewise, has found none. There is, however, authority for the proposition that the parties to a contract are liable for the payment of attorney’s fees incurred in connection with the enforcement thereof if the party to be bound has expressly or impliedly agreed to the payment thereof in the contract, and such agreement may be shown by a promise so general as one to pay “any other expenses,” Lyon v. Hires, 91 Md. 411, 46 A. 985 (1900). Indeed, the opinion of the Court of Appeals in Lyon, delivered by Judge Page, is perfused with an easily detectable predisposition on the part of the Court to enforce a contractual provision for the payment of such expenses, and we think that the case supports this Court’s construction of the instant provision.

The law in other jurisdictions clearly supports this Court’s construction of the provision. See, e.g., Cirimele v. Shinazy, 134 Cal.App.2d 50, 285 P.2d 311 (1955), and cases collected in the annotation thereto at 52 A.L.R.2d 864 et seq.; 17 Am.Jur.2d Contracts § 292, at 708. Consequently, the Court holds that the provision in the Alexander-Groves separation agreement relating to the payment of counsel fees embraces the award of counsel fees for services rendered in defending a judgment on appeal.

II.

JURISDICTION

The defendant says that this Court is without jurisdiction to render an order awarding attorney’s fees, inasmuch as the Fourth Circuit’s affirmance of this Court’s judgment, together with the fact that payment in satisfaction of [851]*851the judgment, including the $55,000, has been tendered to and accepted by the plaintiff, has terminated the cause in this Court and renders the Court impotent to deal with the case further. It is to be noted that the plaintiff has not executed an order of satisfaction in consequence of the tender of funds in satisfaction of the judgment, and he has refrained from so doing in order that he not be estopped to argue his petition for appellate counsel fees. Whether or not an order has been entered this Court deems an inconsequential fact, insofar as we have determined that the instant petition is a pleading in the nature of a supplemental bill, the filing of which, in proper circumstances, is countenanced by Fed.R.Civ.P. 15 and hence, the Court has jurisdiction to grant the relief prayed in the supplemental bill.

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Bluebook (online)
345 F. Supp. 848, 1972 U.S. Dist. LEXIS 12634, Counsel Stack Legal Research, https://law.counselstack.com/opinion/alexander-v-groves-mdd-1972.