Fraser v. Edmonds Community College

147 P.3d 631, 136 Wash. App. 51
CourtCourt of Appeals of Washington
DecidedNovember 27, 2006
DocketNo. 57473-6-I
StatusPublished

This text of 147 P.3d 631 (Fraser v. Edmonds Community College) is published on Counsel Stack Legal Research, covering Court of Appeals of Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fraser v. Edmonds Community College, 147 P.3d 631, 136 Wash. App. 51 (Wash. Ct. App. 2006).

Opinion

[53]*53¶1 Robert Fraser was awarded damages based on a promissory estoppel claim against his employer. Fraser argues that these damages constitute “wages or salary owed” and, thus, he should have been awarded attorney fees under RCW 49.48.030. His employer argues that because the damages awarded were not contractually-owed wages or salary, but only reliance damages, the attorney fee statute does not apply. Because the damages here are analogous to damages in wrongful termination cases—where the attorney fee statute has been held to apply—we conclude that Fraser should have been awarded attorney fees here. We reverse and remand for entry of an attorney fee award.

Coleman, J.

FACTS

¶2 Fraser worked at Edmonds Community College (College) in general maintenance from 1969 to 2001. During that period, he was a classified, civil service employee.1 Due to his age, Fraser was eligible for retirement benefits under the Public Employees Retirement System (PERS) I retirement plan, but he planned to work until he turned 65 in 2011. In 2001, at the request of Robert Botley, the College’s senior vice president and chief financial officer, Fraser moved into a temporary exempt position2 as a maintenance services manager.

¶3 In 2001, the legislature passed a statutory amendment allowing state employees to retire from state employment and be rehired under a different retirement plan, without losing retirement benefits from their original plan. [54]*54RCW 41.32.570. Shortly after Fraser began working in the temporary position, he learned that a former College employee who had previously retired from the College was rehired and continued receiving retirement benefits under the new legislation. Fraser asked Botley whether he would be eligible to retire and be rehired without losing his retirement benefits. Botley told Fraser to ask Kathy Beem, the College’s vice president of human resources.

¶4 Beem told Fraser he was eligible to retire and be rehired without losing his PERS I retirement benefits. Beem did not promise Fraser that he could retire and return to his job, but only that he was eligible to do so. Botley, however, did promise Fraser that if he retired, he would be rehired. Fraser and Botley agreed that Fraser would retire on April 30, 2002, and return to work on June 1, 2002. Relying on Botley’s promise, Fraser retired on April 30, 2002.

¶5 College President Jack Oharah was not aware of the agreement to rehire Fraser. After Fraser retired, Oharah reorganized the maintenance department and opened a newly reconfigured job position to a competitive process. Fraser applied for the position but was not hired.

¶6 Fraser sued the College, claiming, inter alia, promissory estoppel. After a bench trial, the trial court found that Botley had promised Fraser that he would be rehired into the exempt, at-will position he held before he retired, but that he had not promised Fraser any particular period of employment in that exempt position. The trial court also found that the exempt position Fraser was promised had been modified and no longer existed after his retirement; thus, the promise was unenforceable. The court therefore reasoned that Fraser had no expectation of future wages in that position, but that by retiring, Fraser had given up his right to revert to an available classified position if the temporary exempt maintenance services manager position ended.

¶7 The trial court concluded that the right to revert to classified employment was the only right to which Fraser [55]*55was entitled that he gave up in reliance on Botley’s promise. The court therefore calculated Fraser’s damages as the difference between his monthly pension payment and the monthly salary for a classified position that was open when Fraser retired, projected out until he reached 65 years old.

¶8 After trial, Fraser moved for an attorney fee award under RCW 49.48.030, claiming he was awarded “wages or salary owed.” The College argued that Fraser had no contractual or equitable basis for an award of fees and that RCW 49.48.030 did not apply to reliance damages where there is no employment or labor contract. The trial court denied Fraser’s motion for attorney fees.

f 9 Fraser moved to reconsider and reopen the denial of attorney fees, but the court denied the motion. Fraser now appeals the order denying attorney fees.

ANALYSIS

¶10 Fraser argues that because he received compensation due by reason of employment, he should have been awarded attorney fees under RCW 49.48.030. The College argues that this statute applies only to compensation owed by reason of an employment contract and, thus, the statute does not apply here in absence of a contract.

¶11 “Washington follows the American rule that a prevailing party normally does not recover its attorney fees.” Dempere v. Nelson, 76 Wn. App. 403, 406, 886 P.2d 219 (1994). Attorney fees are properly awarded only if specifically authorized by a contract, statute, or recognized equitable ground. Bowles v. Dep’t of Ret. Sys., 121 Wn.2d 52, 70, 847 P.2d 440 (1993). RCW 49.48.030 authorizes attorney fees in certain employment-related cases:

In any action in which any person is successful in recovering judgment for wages or salary owed to him, reasonable attorney’s fees, in an amount to be determined by the court, shall be assessed against said employer or former employer: PROVIDED, HOWEVER, That this section shall not apply if the [56]*56amount of recovery is less than or equal to the amount admitted by the employer to be owing for said wages or salary.

This is a remedial statute that should be construed liberally to effect its purpose. McIntyre v. Wash. State Patrol, 135 Wn. App. 594, 599, 141 P.3d 75 (2006); Naches Valley Sch. Dist. No. JT3 v. Cruzen, 54 Wn. App. 388, 399, 775 P.2d 960 (1989). It has been interpreted to apply to many forms of compensation due to an employee, including back pay, front pay, reimbursement for sick leave, and commissions. See, e.g., Gaglidari v. Denny’s Rests., Inc., 117 Wn.2d 426, 815 P.2d 1362 (1991) (back pay); Hayes v. Trulock, 51 Wn. App. 795, 755 P.2d 830 (1988) (front pay); Naches, 54 Wn. App. at 390 (reimbursement for sick leave); Dautel v. Heritage Home Ctr., Inc., 89 Wn. App.

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Related

Dautel v. Heritage Home Center, Inc.
948 P.2d 397 (Court of Appeals of Washington, 1997)
Hayes v. Trulock
755 P.2d 830 (Court of Appeals of Washington, 1988)
Hanson v. City of Tacoma
719 P.2d 104 (Washington Supreme Court, 1986)
NACHES VLY. SCH. DIST. v. Cruzen
775 P.2d 960 (Court of Appeals of Washington, 1989)
Gaglidari v. Denny's Restaurants, Inc.
815 P.2d 1362 (Washington Supreme Court, 1991)
Dempere v. Nelson
886 P.2d 219 (Court of Appeals of Washington, 1994)
Bowles v. Department of Retirement Systems
847 P.2d 440 (Washington Supreme Court, 1993)
McIntyre v. Washington State Patrol
141 P.3d 75 (Court of Appeals of Washington, 2006)
Naches Valley School District No. JT3 v. Cruzen
54 Wash. App. 388 (Court of Appeals of Washington, 1989)

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Bluebook (online)
147 P.3d 631, 136 Wash. App. 51, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fraser-v-edmonds-community-college-washctapp-2006.