Carruthers v. Carrier Access Corp.

251 P.3d 1199, 16 Wage & Hour Cas.2d (BNA) 1553, 2010 Colo. App. LEXIS 1586, 2010 WL 4241598
CourtColorado Court of Appeals
DecidedOctober 28, 2010
Docket09CA2138
StatusPublished
Cited by299 cases

This text of 251 P.3d 1199 (Carruthers v. Carrier Access Corp.) is published on Counsel Stack Legal Research, covering Colorado Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Carruthers v. Carrier Access Corp., 251 P.3d 1199, 16 Wage & Hour Cas.2d (BNA) 1553, 2010 Colo. App. LEXIS 1586, 2010 WL 4241598 (Colo. Ct. App. 2010).

Opinion

Opinion by

Judge J. JONES.

Does section 8-4-110(1), C.R.S.2010, of the Colorado Wage Claim Act, sections 8-4-101 to -128, C.R.S8.2010 (the Wage Act), allow a court to award attorney fees to an employer that prevailed on an employee's Wage Act claim only if the employee's claim was frivolous? We hold that it does not: the court may make such an award in its discretion even if the claim was not frivolous. Therefore, we affirm the district court's order directing plaintiff, Philip Carruthers, to pay attorney fees to prevailing defendants, Carrier Access Corporation and Turin Networks, Ine. (collectively, Carrier) 1 However, the district court did not adequately explain how it calculated its award of fees to Carrier, and therefore we remand the case to the district court for additional findings regarding the appropriate amount. Finally, we affirm the district court's awards of certain items of costs Mr. Carruthers challenges on appeal.

I. Background

Mr. Carruthers sued Carrier, claiming that Carrier violated section 8-4-109 of the Wage Act by failing to pay him commissions totaling approximately $210,000 owed under a written agreement when Carrier terminated his employment. He also asserted claims for breach of contract and unjust enrichment. At trial, the court directed a verdiet in Carrier's favor on Mr. Carruthers' claim under the Wage Act. The jury found in Carrier's favor on Mr. Carruthers' other claims.

Carrier moved for an award of attorney fees under section 8-4-110(1) and section 13-17-101, C.R.S.2010, requesting an award of all the fees it had incurred in the case, totaling $140,442.55. Carrier argued, in part, that all of Mr. Carruthers' claims were es *1202 sentially based on section 8-4-109, C.R.S. 2010. Carrier filed a separate bill of costs pursuant to section 18-16-1122, C.R.98.2010, seeking a total award of $6,595.72.

Following a hearing, the court found that an award of fees under section 8-4-110(1) was appropriate. Noting that Mr. Carruth-ers' Wage Act claim was "partially intertwined" with his other claims, the court concluded "in its discretion that an award of 67.5% of Defendants' total attorney fees is fair and will serve the interests of justice...." The court did not explain further its reasons for concluding that $94,798.72 (67.5% of $140,442.55) was a reasonable amount. It denied Carrier's requests for certain "witness travel and sustenance expenses" as costs, but otherwise allowed the costs Carrier requested.

Subsequently, the court reduced the attorney fee award under section 8-4-110(1) to $34,000. 2 The court's order provided in full as follows:

The court has carefully reviewed its Findings and Order of the September 2, 2009 hearing. Findings were made on the issues of costs and attorney's fees pursuant to the Colorado Wage Claim Act. [BJased on the findings made at that time the court has reconsidered the attorney's fee award.
Having reconsidered the earlier award and in the exercise of the court's discretion the award of fees i[s] reduced to $34,000. The award for costs remains the same.

Mr. Carruthers does not appeal the court's directed verdict against him on his Wage Act claim. Nor does he appeal the jury's verdicts against him on his other claims. He challenges only the court's award of attorney fees under section 8-4-110(1) and the court's awards of certain items as costs.

IIL. Interpretation of Section 8-4-110(1)

The Wage Act allows an employee who has been terminated from employment to sue his former employer for earned wages and other compensation the employer has refused to pay. § 8-4-109. An employee's right to recover under the Wage Act is conditioned on his compliance with certain procedural steps, but if the employee complies with those steps and the employer refuses to pay, the employee may recover penalties in addition to the unpaid compensation. Id.

Section 8-4-110(1) allows the court to award costs and attorney fees to the party that prevailed on a Wage Act claim. As amended in 2007, and applicable here, that section provides:

Disputes-fees. (1) If, in any action, the employee fails to recover a greater sum than the amount tendered by the employer, the court may award the employer reasonable costs and attorney fees incurred in such action when, in any pleading or other court filing, the employee claims wages or compensation that exceed the greater of seven thousand five hundred dollars in wages or compensation or the jurisdictional limit for the small claims court, whether or not the case was filed in small claims court or whether or not the total amount sought in the action was within small claims court jurisdictional limits. If, in any such action in which the employee seeks to recover any amount of wages or compensation, the employee recovers a sum greater than the amount tendered by the employer, the court may award the employee reasonable costs and attorney fees incurred in such action. If an employer fails or refuses to make a tender within fourteen days after the demand, then such failure or refusal shall be treated as a tender of no money for any purpose under this article.

(Emphasis added.)

In opposing Carrier's motion for attorney fees under section 8-4-110(1), Mr. Carruth-ers argued that the statute only allows an award of fees to a prevailing employer if the employee's claim was frivolous, and that his claim was not frivolous. The district court rejected that argument because it awarded fees to Carrier but declined to find that Mr. Carruthers claim was frivolous. (The court struck the language in the proposed order *1203 submitted by Carrier indicating that the award would deter "nuisance litigation ... by Plaintiff," but did not otherwise change the order before signing it.) Mr. Carruthers contends on appeal that the district court erred in rejecting his argument.

We observe at the outset that section 8-4-110(1) includes the same operative language with respect to awards of attorney fees to both employers and employees-"the court may award the [employer or employee] reasonable costs and attorney fees incurred in such action." Nonetheless, Mr. Carruthers argues that a prevailing employer is entitled to an award of attorney fees only if the court determines that the employee's claim was frivolous, but that a prevailing employee's request for attorney fees need not clear the same hurdle. That is, a prevailing employee is entitled to an award merely by virtue of having prevailed (so long as the employee recovers more than the employer tendered). He suggests no textual basis for this differing treatment. Rather, he argues that this result is consistent with the purposes of the statute and certain legislative history.

Mr. Carruthers argument presents a question of statutory interpretation. We review such questions de novo. Foiles v. Whittman, 233 P.3d 697, 699 (Colo.2010); see also Madison Capital Co., LLC v. Star Acquisition VIII, 214 P.3d 557, 560 (Colo.App.2009) ("We review de novo the legal analysis employed by the trial court in reaching its decision to award attorney fees.").

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Cite This Page — Counsel Stack

Bluebook (online)
251 P.3d 1199, 16 Wage & Hour Cas.2d (BNA) 1553, 2010 Colo. App. LEXIS 1586, 2010 WL 4241598, Counsel Stack Legal Research, https://law.counselstack.com/opinion/carruthers-v-carrier-access-corp-coloctapp-2010.