Bi-Rite Package, Inc. v. District Court of the Ninth Judicial District of Fremont County

735 P.2d 709, 1987 Wyo. LEXIS 423
CourtWyoming Supreme Court
DecidedApril 15, 1987
Docket86-129, 86-135 and 86-163
StatusPublished
Cited by25 cases

This text of 735 P.2d 709 (Bi-Rite Package, Inc. v. District Court of the Ninth Judicial District of Fremont County) is published on Counsel Stack Legal Research, covering Wyoming Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bi-Rite Package, Inc. v. District Court of the Ninth Judicial District of Fremont County, 735 P.2d 709, 1987 Wyo. LEXIS 423 (Wyo. 1987).

Opinion

CARDINE, Justice.

This appeal is from an order requiring that plaintiffs, John and Katherine Phelps, and defendant, Bi-Rite Package, Inc., pay $5,000 (each side paying $2,500) to the Clerk of the District Court, Ninth Judicial District, Wyoming, as a sanction for late settlement of a personal injury civil action.

We reverse.

The issues presented by appellants for our review are whether the court had power to impose sanctions for failure to timely settle, whether the pretrial conference order informing the parties that costs might be assessed for late settlement was sufficiently definite to support sanctions, whether the imposition of sanctions violated Art. I § 8 of the Wyoming Constitution, and whether the court abused its discretion in imposing sanctions.

FACTS

In this case for trial to a jury, Phelps sought to recover damages against Bi-Rite and other defendants for personal injuries resulting from an automobile accident. At a pretrial conference, held November 15, 1985, the court ordered that a settlement conference be held March 10, 1986, and, after setting a trial date of April 14, 1986, stated in its written order:

“Two weeks are set aside for the trial of this case. This means in the event settlement occurs at a late date, costs just for the use of the courtroom would be $10,-000.”

On March 5, 1986, the court entered an order vacating the trial date of April 14 and continuing the case until further order of the court. On April 2, 1986, the court entered an order setting the case for trial on May 12, 1986, and on April 22, 1986, entered an additional order confirming the trial date of May 12, 1986, and setting aside four and one-half days for the trial of the case. On April 28,1986, Phelps settled with defendants, Town of Riverton and Fremont County, for the sum of $120,000. On May 6, 1986, Phelps settled with de *711 fendant Star Lite Lanes & Lounge for $13,-250. Phelps offered to settle with Bi-Rite for the sum of $90,000. On May 7, 1986, Bi-Rite countered with an offer to settle its part of the case for the sum of $18,250. On May 8, 1986, Phelps offered to settle with Bi-Rite for $50,000, but indicated that they would accept $30,000 in settlement. That same day, May 8, 1986, Phelps and Bi-Rite settled the case between them for a payment of $29,000. The settlement was concluded four days before trial, and counsel immediately informed the court of the settlement. The clerk of court called all of the jurors and advised them the case had been settled and that they need not appear for jury duty. As a result, juror fees were not incurred.

On the same date, May 8, 1986, the court set a hearing on sanctions to be imposed for late settlement by sending the following Mailgram to Phelps and Bi-Rite:

“Reference Fremont County # 23227. This case was set for jury trial for one week starting Monday May 12, 1986 at 1:30 pm. The court was advised at 3 pm Thursday May 8, 1986 that the case settled. Evidently counsel are of the opinion this court does not mean what it says when it sets a settlement date and affirmatively advises what will happen if the case is settled after that date. Therefore it is ordered that Richard Wilking and Rob Williams and any others they would like to have appear on their behalf shall personally appear in the courtroom of this court at Lander, Wyoming Monday May 12, 1986 at 1:30 pm to show cause if any they have why the court should not impose sanctions, attorney fees, etcetera as set forth in the record of this case.”

The hearing commenced with the court stating:

“As I’ve stated and as you know, I moved the trial to May 12th and I set aside five days rather than ten days. So the record is clear that the date to settle was March 10 [this was the date of the court-ordered settlement conference]. It doesn’t take any thought at all to understand that the Thursday before the trial, which is to start Monday, is a late settlement date.”

And the court then further stated:

“Now, I like to have some control over my docket, but it is abundantly apparent I have none. I have attorneys deciding when I’m going to try cases; I have babies deciding about my continuances. A great deal goes into just the scheduling with Judge Kail and Judge Denhardt to use these courtrooms.”

And, finally, the court informed the parties:

“So the courtroom lies vacant. I’m aggravated because — not mad, I’m not mad. Aggravated. And I want to tell you why I’m really aggravated. This might surprise you. Because now I’ve got some litigant who had the authority to settle this case who I don’t even know controlling my docket.”

Phelps and Bi-Rite then each informed the court concerning the course of settlement negotiations, reciting the offers, counteroffers, and discussions in some detail. The court was advised that Phelps had settled with the primary defendants on April 28 for the sum of $120,000, with Star Lite Lanes & Lounge on May 6 for $13,250, and that the last party-defendant, Bi-Rite, had settled with Phelps on May 8 for the sum of $29,000. At the conclusion of the hearing, the court stated:

“Well, I appreciate that and I appreciate your candor and I’m sure that you’re both full of veracity to the endth degree.
“It’s the judgment of this Court that you each be assessed $2,500. Pay it to the Clerk of the Court. Both sides, Bi-Rite and the plaintiffs.”

To say that much was wrong with the imposition of sanctions here is a gross understatement. There was no finding of bad faith, fault or abuse of the process by the parties or their attorneys; the amount assessed was described as costs in the pretrial conference order; the $5,000 assessed was not an item of cost established by either statute or rule; the $5,000 assessed had no evidentiary basis; the $5,000 assessed was payable to the clerk of court rather than a party; the parties were never *712 advised that the last date to settle was March 10, 1986, which was two months before trial; the court never advised the parties as to what constituted a “late settlement”; the order of the court, after hearing, described the penalty as a sanction rather than costs as stated in the pretrial order; the primary defendants settled April 28th and Star Lite Lanes & Lounge settled May 6th, which was long after the March 10th last date to settle, but were not sanctioned for late settlement.

ASSESSMENT OF COSTS

Initially in its pretrial conference order, the court informed the parties that two weeks had been set aside for trial and that in the event of a “late settlement,” costs would be assessed against them in the amount of $10,000 which was calculated at $1,000 a day for the use of the courtroom. It is abundantly clear that whatever the $5,000 assessment against the parties might be, it could not be costs.

Costs were unknown at common law and, therefore, not awarded to either party. Costs are recoverable and may be awarded only if authorized by statute and then may be awarded only to parties to the litigation in amounts supported by evidence as having been incurred and reasonable. Weaver v. Mitchell,

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Cite This Page — Counsel Stack

Bluebook (online)
735 P.2d 709, 1987 Wyo. LEXIS 423, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bi-rite-package-inc-v-district-court-of-the-ninth-judicial-district-of-wyo-1987.