Circle C Resources v. Charlene Hassler

2023 WY 54, 530 P.3d 288
CourtWyoming Supreme Court
DecidedJune 1, 2023
DocketS-22-0238
StatusPublished
Cited by12 cases

This text of 2023 WY 54 (Circle C Resources v. Charlene Hassler) 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
Circle C Resources v. Charlene Hassler, 2023 WY 54, 530 P.3d 288 (Wyo. 2023).

Opinion

IN THE SUPREME COURT, STATE OF WYOMING

2023 WY 54

APRIL TERM, A.D. 2023

June 1, 2023

CIRCLE C RESOURCES,

Appellant (Plaintiff),

v. S-22-0238

CHARLENE HASSLER,

Appellee (Defendant).

Appeal from the District Court of Natrona County The Honorable Kerri M. Johnson, Judge

Representing Appellant: Timothy M. Stubson, Holly Tysse, Crowley Fleck PLLP, Casper, Wyoming

Representing Appellee: Jeremy James Hugus, Benjamin Scherner, Platte River Law Firm, LLC, Casper, Wyoming.

Before FOX, C.J., and KAUTZ, BOOMGAARDEN, GRAY, and FENN JJ.

NOTICE: This opinion is subject to formal revision before publication in Pacific Reporter Third. Readers are requested to notify the Clerk of the Supreme Court, Supreme Court Building, Cheyenne, Wyoming 82002, of any typographical or other formal errors so that correction may be made before final publication in the permanent volume. BOOMGAARDEN, Justice.

[¶1] The parties’ initial dispute over a noncompete provision in an employment contract was remanded to the trial court in Hassler v. Circle C Resources (Hassler I), 2022 WY 28, 505 P.3d 169 (Wyo. 2022). In response to that remand, the trial court entered a judgment in favor of Ms. Hassler. The trial court also awarded attorneys’ fees and costs in the amount of $70,410.36 to Ms. Hassler. Circle C Resources (Circle C) challenges both the recoverability and the amount of fees awarded. We affirm in part, reverse in part, and remand.

ISSUES

[¶2] We restate the two issues as:

1. Did Hassler I invalidate the Attorneys’ Fees provision in the parties’ Confidentiality and Noncompete Agreement?

2. Did the district court abuse its discretion when it awarded fees and costs to Ms. Hassler after remand?

FACTS

[¶3] The underlying facts of this case are set forth in detail in Hassler I, 2022 WY 28, 505 P.3d 169. We therefore only summarize the facts pertaining to the attorneys’ fees issues on appeal.

[¶4] Circle C provides day and residential habilitation services for clients with developmental disabilities. Circle C has a facility in Casper where it provides such services. It also offers these services in employee homes. Circle C hired Ms. Hassler in 2015 to provide services in her home.

[¶5] When Circle C hired Ms. Hassler, the parties executed a “Confidentiality and Noncompetition Agreement.” That contract has three separately identified one-page sections and one page of recitals. Section One is captioned “Confidentiality.” Section Two is captioned “Noncompetition.” Section Three is captioned “Breach of Agreement.” Ms. Hassler left her employment with Circle C in 2017. However, she continued to provide services to one former Circle C client in her home. Circle C filed suit, asserting Ms. Hassler breached the noncompete provisions of the parties’ contract.

[¶6] In Hassler I, we concluded the noncompete agreement was unreasonable on its face and therefore void in violation of public policy. Hassler I, ¶¶ 4, 31, 505 P.3d at 171–72, 179. We remanded to the district court. Id. at ¶ 32, 505 P.3d at 179. On remand, the trial court entered a judgment in favor of Ms. Hassler. She then requested attorneys’ fees

1 pursuant to an attorneys’ fees provision in Section Three of the contract. Her counsel provided affidavits and billing statements in support of the fee request. Circle C timely objected to her request, asserting that Hassler I invalidated the entire contract, including the Attorneys’ Fees provision. Circle C also asserted the fees were unreasonable, alleging several specific defects in the fee request and billing records, and contested certain costs. Ms. Hassler filed a reply addressing all issues.

[¶7] Soon after her reply brief was filed, the trial court entered a short order awarding all requested fees and costs, totaling $70,410.36. The order did not address Circle C’s objections or include any analysis under the lodestar test and Wyo. Stat. § 1-14-126(b). This appeal timely followed.

DISCUSSION

I. Hassler I did not invalidate the attorneys’ fees provision of the parties’ Confidentiality and Noncompete Agreement.

[¶8] Wyoming generally applies the American rule which makes each party responsible for their own attorneys’ fees. E.g., Levy v. Aspen S, LLC, 2021 WY 46, ¶ 9, 483 P.3d 852, 856 (Wyo. 2021); Prancing Antelope I, LLC v. Saratoga Inn Overlook Homeowners Ass’n, Inc., 2021 WY 3, ¶ 65, 478 P.3d 1171, 1187 (Wyo. 2021). A prevailing party may, however, be reimbursed for attorneys’ fees when provided for by contract or statute or, in some cases, as a form of punitive damages. E.g., Prancing Antelope I, ¶ 65, 478 P.3d at 1187; Positive Progressions, LLC v. Landerman, 2015 WY 138, ¶ 29, 360 P.3d 1006, 1016 (Wyo. 2015); Alexander v. Meduna, 2002 WY 83, ¶ 49, 47 P.3d 206, 220–21 (Wyo. 2002).

[¶9] Whether a contract provides a legal basis to award attorneys’ fees is a question of contract interpretation. Contract interpretation is a matter of law which we consider de novo. Hassler I, ¶ 10, 505 P.3d at 173; Levy, ¶ 7, 483 P.3d at 855 (citations omitted); Pope v. Rosenberg, 2015 WY 142, ¶ 21, 361 P.3d 824, 830 (Wyo. 2015) (citations omitted).

[¶10] Ms. Hassler requests attorneys’ fees based on Section 3.E of the contract:

Attorneys’ Fees. If an attorney shall be retained to interpret or enforce the provisions of this agreement, the prevailing party shall be entitled to reasonable attorneys’ fees, including any such fees set by the trial or appellate court upon trial or appeal.

Circle C asserts the entire contract, including the Attorneys’ Fees provision, is void following our decision in Hassler I.

[¶11] In Hassler I, we stated “the entire agreement is void in violation of public policy.” Hassler I, ¶ 30, 505 P.3d at 179. Notably, however, we isolated our analysis to

2 the noncompete provisions in Section Two of the three-section contract. See id. at ¶¶ 9, 12–31, 505 P.3d at 172–80. We did not address any aspect of Section One—the confidentiality section—or Section Three—the breach of contract section that contains the Attorneys’ Fees provision. Our focus was directed on the contract’s noncompete provisions and our “blue pencil rule” jurisprudence. See id. Read in context, Hassler I held the “entire” noncompete agreement was void as a matter of public policy, not the confidentiality agreement or the enforceability agreements.

[¶12] We have previously held “[w]here only a single provision of a contract is contrary to public policy and the considerations from both sides are sufficient for performance absent such paragraph, we will enforce the contract with the exception of the invalid provision.” Fremont Homes, Inc. v. Elmer, 974 P.2d 952, 957 (Wyo. 1999); Tate v. Mountain States Tel. & Tel. Co., 647 P.2d 58, 61–2 (Wyo. 1982) (commenting on the general rule that when a contract is contrary to public policy only because of a provision in a single paragraph of a voluminous work, the remainder of the contract remains enforceable). The same reasoning permits Section Two to be severed from the remainder of the contract at issue here. Dixon v. Williams, 584 P.2d 1078, 1081 (Wyo. 1978) (“If an alleged illegal contract involving several considerations will remain a complete, enforceable entity after any illegal or improper provisions have been excised, a finding of total illegality is not required. The improper provisions may be judicially severed and the remaining contract enforced, a concept not startling or new.” (citations omitted)).

[¶13] This approach is also consistent with the Restatement (Second) of Contracts § 184, which we expressly adopted in Hopper v.

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Cite This Page — Counsel Stack

Bluebook (online)
2023 WY 54, 530 P.3d 288, Counsel Stack Legal Research, https://law.counselstack.com/opinion/circle-c-resources-v-charlene-hassler-wyo-2023.