Fentem v. Knox

2013 OK CIV APP 50, 305 P.3d 1043, 2013 WL 3366667, 2013 Okla. Civ. App. LEXIS 43
CourtCourt of Civil Appeals of Oklahoma
DecidedApril 19, 2013
DocketNo. 109,465
StatusPublished
Cited by6 cases

This text of 2013 OK CIV APP 50 (Fentem v. Knox) is published on Counsel Stack Legal Research, covering Court of Civil Appeals of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fentem v. Knox, 2013 OK CIV APP 50, 305 P.3d 1043, 2013 WL 3366667, 2013 Okla. Civ. App. LEXIS 43 (Okla. Ct. App. 2013).

Opinion

BAY MITCHELL, Judge.

T1 Plaintiffs/Appellants Richard L. Fen-tem and Laura L. Roberts-Fentem ("Homeowners") seek review of the trial court's April 2011 order granting in part the Defendants/Appellees, Steve Knox, Renee Knox and the Steve Knox Revocable Trust's ("Sellers") Application for Attorney Fees and Costs.

12 This case arises from the Sellers' alleged intentional misrepresentations (concerning Sellers' awareness of the presence, treatment or repairs for mold) made in connection with the Sellers' December 2005 sale of residential property to Homeowners. Homeowners originally filed suit alleging fraud and deceit in June 2009,1 but that case was dismissed without prejudice by the trial court in January 2010 for lack of service on Sellers.

T3 Homeowners re-filed the action in December 2010. Five days later (and before summons was issued and service of process obtained on Sellers) Sellers filed a Motion for Summary Judgment on the basis that the case was barred pursuant to the statute of repose provision contained within the Residential Property Condition Disclosure Act, 60 O.S. §§ 881, et seq. Subsequently, Homeowners filed a dismissal of the case on January 14, 2011.

1 4 Sellers' Motion for Summary Judgment was never ruled upon, apparently upon the determination that it was rendered moot by the Homeowners' dismissal.2 Sellers thereafter filed an Application for Attorney Fees and Costs, seeking to recover $7,748 in attorney fees and $8.19 in costs. In their Application, Sellers argued their Motion for Summary Judgment requested affirmative relief and thus, they were entitled to attorney fees as the "prevailing party" pursuant to 60 0.8. §837(D),3 a provision in the Residential Property Condition Disclosure Act, 60 0.8. § 831 et seq. They additionally claimed their entitlement to attorney fees pursuant to the court's equitable power to remedy Homeowners' "oppressive behavior" in their pursuit of "frivolous claims."

T5 Homeowners argued their suit was premised upon allegations of fraud and was not brought under the Residential Property Act. Further, they asserted Sellers cannot be construed as prevailing parties, where the action was dismissed prior to Sellers seeur-ing the affirmative relief they sought-an order granting summary judgment. Further, they noted the lack of evidence of 'oppressive conduct to warrant equitable relief.

T 6 Without conducting a hearing, the trial court entered its order granting Sellers' application in part, reducing the amount sought ($7,748) to $4,500, the amount awarded. The order is silent on the reasoning underlying its determination. Homeowners appeal.

17 Generally, prevailing party attorney fees are not recoverable in the absence of a statute or enforceable contract. Spencer v. Oklahoma Gas & Elec. Co., 2007 OK 76, T 11, 171 P.3d 890, 895. The issue of whether a prevailing party is entitled to an award of attorney fees in the first place is a question of law which we review de novo. Finnell v. Seismic, 2003 OK 35, ¶ 7, 67 P.3d 339, 342. An attorney fee award, however, [1046]*1046will not be disturbed on appeal absent abuse of discretion. Morgan v. Galilean Health Enterprises, Inc., 1998 OK 130, ¶ 15, 977 P.2d 357, 364. "An abuse of discretion occurs when a decision is based on an erroneous conclusion of law or where there is no rational basis in evidence for the ruling." Spencer, 2007 OK 76, ¶ 13, 171 P.3d at 895. We likewise review sanction rulings for abuse of discretion. Garnett v. Government Employees Ins. Co., 2008 OK 43, ¶ 14, 186 P.3d 935, 941.4

18 The dismissal of Homeowners' case in the absence of a previously entered order granting Sellers' Motion for Summary Judgment divested the trial court's jurisdiction and therefore, a subsequent prevailing party attorney fee award constitutes an unauthorized application of judicial force. See, General Motors Acceptance Corp. v. Carpenter, 1978 OK 39, 576 P.2d 1166, 1167-68 (holding once an action is dismissed under 12 O.S. § 684, "no jurisdiction remains in district court" to award statutory prevailing party attorney fees); Firestone Tire & Rubber Co. v. Barnett, 1970 OK 93, 475 P.2d 167 (holding a voluntary dismissal terminates the jurisdiction of the trial court and a subsequent attempt to vacate the dismissal constitutes an unauthorized application of judicial force). Further, the law clearly demonstrates Sellers are not a "prevailing party" entitled to the recovery of statutory attorney fees.5 A plaintiff's filing of a dismissal does not render defendant a prevailing party, but rather, prevailing party means "the one for whom judgment is rendered." Swan-Sigler, Inc. v. Black, 1966 OK 90, 414 P.2d 300, 301-02 (holding in an action to foreclose a mechanic's lien, where defendant obtained no affirmative relief prior to plaintiff's voluntary dismissal, defendant is not a prevailing party entitled to attorney fees); but see, Professional Credit Collections, Inc. v. Smith, 1997 OK 19, 933 P.2d 307 (holding a party who successfully vacates a default judgment qualifies as a prevailing party entitled to an award of attorney fees in accordance with 12 O.S.2001 § 986 (collection on an open account)). The Professional Credit Collections, Inc. case demonstrates that it is the defendant's securing of affirmative relief (prior to voluntary dismissal), which is "the operative factor" to the determination of whether the defendant is a prevailing party for purposes of entitlement to a statutory counsel fee. Id. at 811.

T9 In this case, immediately after Sellers filed their Motion for Summary Judgment, Homeowners voluntarily dismissed the case. Sellers cannot be construed as having succeeded on their motion, where the trial court made no ruling whatsoever, much less entered a judgment in their favor thereon. In the absence of a judgment in favor of Sellers and/or against Homeowners at the time of the dismissal, Sellers cannot be considered a prevailing party entitled to recovery of statutory attorney fees. If the trial court's order granting attorney fees was premised upon a finding that Sellers were the prevailing party, the determination was rendered upon an erroneous conclusion of law. We hold upon the filing of the dismissal, the jurisdiction of the trial court terminated and the subsequent entry of its Order granting Sellers' Application for Attorney Fees and Costs in part awarding attorney fees was an unauthorized application of judicial force.

110 On appeal, Sellers make no attempt to defend their "prevailing party" argument. Instead, they solely assert the attorney fee award was pursuant to the proper application of the trial court's inherent au[1047]*1047thority to sanction Homeowners for alleged pre-dismissal abusive litigation practices or for abuse of judicial process.

We recognize a trial court's inherent authority to sanction a party or attorney for bad faith litigation misconduct. Garnett, ¶ 18, 186 P.3d at 943. "However, sanctions assessed under a trial court's inherent, equitable powers are not to be awarded lightly or without fair notice and a hearing." Id. (emphasis added). It is impossible for us to discern from the face of the order whether the trial court's attorney fee award was assessed as a sanction, but if it was a sanction award, it was erroneously entered in the absence of the requisite prior notice and a hearing on the matter.

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Cite This Page — Counsel Stack

Bluebook (online)
2013 OK CIV APP 50, 305 P.3d 1043, 2013 WL 3366667, 2013 Okla. Civ. App. LEXIS 43, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fentem-v-knox-oklacivapp-2013.