Hamilton v. Nationwide Mutual Fire Insurance Company

CourtSuperior Court of Delaware
DecidedNovember 16, 2018
DocketK16C-03-012 WLW
StatusPublished

This text of Hamilton v. Nationwide Mutual Fire Insurance Company (Hamilton v. Nationwide Mutual Fire Insurance Company) is published on Counsel Stack Legal Research, covering Superior Court of Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hamilton v. Nationwide Mutual Fire Insurance Company, (Del. Ct. App. 2018).

Opinion

IN THE SUPERIOR COURT OF THE STATE OF DELAWARE

PAUL HAMILTON, . C.A. No. K16C-03-012 WLW Plaintiff, : Kent County v. NATIONWIDE MUTUAL FIRE

INSURANCE COMPANY, a foreign corporation,

Defendant. Submitted: September 28, 2018 Decided: November 16, 2018

ORDER

Plaintiff’s Motion for Allowance of Attorney’s Fees and Costs Granted.

William D. Fletcher, Jr., Esquire of Schrnittinger and Rodriguez, P.A., Dover, Delaware, attorney for the Plaintiff.

Louis J. Rizzo Jr., Esquire of Reger, Rizzo, and Darnall LLP, Wilmington, Delaware, attorney for the Defendant.

VVITHAM, R.J.

Paul Hamilton v. Nationwide Mutual Fire Ins. Co. C.A. No. Kl6C-03-012 WLW November 16, 2018

Upon consideration of the Motion for the Allowance of Attorneys’ Fees and Costs filed by the Plaintiff, Paul Hamilton, pursuant to 18 Del. C. § 4102 and Del. Super. R. 54(d) (Rule 54(d)), the opposition of the Defendant, Nationwide Mutual Fire Insurance Co., and the record of the case, it appears that:

1 . On January 23, 201 5 , the Defendant issued a Homeowner’ s Insurance policyl to the Plaintiff for coverage of his dwelling. The insurance policy’ s maximum payout Was 8252,600 under Section I, Coverage A of the policy.

2. On or about March 17, 2015, a fire damaged the Plaintiff’ s dwelling. The Defendant conducted a examination of the damage and estimated the total damages amounted $ 127,437.03 .2 Initially, the Plaintiff did not further object to or question the repair figures computed by the Defendant.

3. The Defendant issued a check to the Plaintiff for $127,437.03, less deductibles and reserves. However, the Plaintiff then rejected the Defendant’s estimate, and demanded the policy’ s maximum payout, prompting the present action3 before the Court.

4. After a lengthy procedural history, including a Pre-Trial stipulation that

included the Plaintiff’ s request for costs and attorneys’ fees,4 the Defendant extended

1 Nationwide Insurance Policy Number 52 07 MP 121911. 2 Pre-Trial Stipulation and Order at 1. 3 The Plaintiff agreed with his attorneys to a contingent fee arrangement

4 Pre-Trial Stipulation and Order at 2.

Paul Hamilton v. Nationwide Mutual Fire Ins. Co. C.A. No. K16C-03-012 WLW November 16, 2018

a $30,000 offer of judgment to the Plaintiff" pursuant to Delaware Superior Court Rule 68 (Rule 68). However, the Rule 68 offer Was silent regarding any reference to attomeys’ fees and other costs being included as part of the $30,000. Nevertheless, the Plaintiff immediately accepted and filed with the Court on the same day.

5. Two weeks later, on June 14, 2018, the Plaintiff filed the present motion for allowance of attorneys’ fees and costs pursuant to section 4102 and Rule 54(d). In response to the Defendant’s reply, the Plaintiff later supplemented their motion with a certification concerning their attorneys' fees totaling $41,725.00.6 The requested amount for costs amounted to $l,389.75.

6. “In an action at law, attorneys' fees Will not be awarded unless clearly

provided for by statute or contract. Here, the applicable Delaware statute

authorizing attorney’s fees as costs in insurance cases is a fee shifting statute, 18 Del. C. § 4102. Section 4102 provides:

[t]he Court upon rendering judgment against any insurer upon a policy of property insurance as ‘property’ insurance is defined in [18 Del. C.] § 9048 [ ], shall allow the plaintiff a reasonable sum as attorney's fees to be taxed as

5 The Defendant’s offer was procedurally made in accordance with Rule 68.

6 Plaintiff s Ceitification of Attorneys’ Fees at 2. This figure Was based on the hourly rates of $375.00 for Mr. William D. Fletcher, Jr., Esq. encompassing 54.4 hours and $250.00 for Ms. Dianna E. Louder, Esq. for 83.5 hours.

7 Honaker v. Farmer's Mutual Ins. Co., 313 A.2d 900, 904 (Del. Super. Nov. 5, 1973) (citing Great American Ina'emnity Co. v. State,`88 A,2d 426 (Del. 1952)).

8 The Plaintiff’ s home qualifies as “property” in accordance with 18 Del. C. § 904. 3

Paul Hamilton v. Nationwide Mutual Fire Ins. Co. C.A. No. Kl6C-O3-012 WLW November 16, 2018

part of the costs.”9

7. Pursuant to Rule 54(d), the recovery of costs by the prevailing party shall be

allowed upon application to the Court within ten days of the final judgment’s entry.

Here, the Plaintiff’ s application was timely and thus the Court has discretion to award

those costs that often include filing and other service fees.10

8. Rule 68 authorizes a defendant to make an offer of judgment and is modeled

after the Federal Rules of Civil Procedure Rule 68.ll Rule 68 encourages settlements

between opposing parties to avoid litigation by prompting parties to balance the risks

and costs of litigation against the likelihood of success at tria

l.12 The rule provides:

[a]t any time more than [ten] days before the trial begins a party defending against a claim may serve upon the adverse party an offer to allow judgment to be taken against the defending party for the money or property or to the effect specified in the offer, with costs then accrued. If within [ten] days after the service of the offer the adverse party serves written notice that the offer is accepted, either party may then file the offer and notice of acceptance together With proof of service thereof and thereupon the Clerk shall enter judgment13

9. The crux of the Plaintiff s argument is straight forward. The Defendant did

(1985).

9 18 Del. C. § 4102 (emphasis added). 10 Arroyo v. Allstate Insurance Group, 2017 WL 2930925, at *l (Del. Super. July 6, 2017). 11 Baker v. Hamm, 2004 WL 43230, at *1 (Del. Super. Jan. 6, 2004).

12 Cahall v. Thomas, 906 A.2d 24, 26 (Del. 2006) (citing Marek v. Chesny, 473 U.S. l, 5

13 Super. Ct. Civ. R. 68.

Paul Hamilton v. Nationwide Mutual Fire Ins. Co. C.A. No. Kl6C-03-012 WLW November 16, 2018

not specifically include attorneys’ fees and costs in its Rule 68 offer, therefore the Plaintiff is entitled to both pursuant to section 4102 and Rule 54(d).

10. As a preliminary matter however, the Court must address the Defendant’s counter-argument that attorneys’ fees and costs were always a part of the parties’ negotiations throughout the process and were included in the Rule 68 offer of judgment. ln the alternative, the Defendant urges the Court to void the Rule 68 agreement due to the lack of a “meeting of the minds.” ln support, the Defendant cites Ceccola v. State Farm Mut. Auto. Ins. Co.,14 a case Where the Delaware Supreme Court reversed the lower court and voided a Rule 68 offer of judgment.15

1 1. However, the Defendant’s reliance on Ceccola appears to be misplaced ln fact, our Supreme Court’s reversal was based on facets of that case not found in the present case. First, while both cases involve a Rule 68 offer and acceptance, in Ceccola, the plaintiff realized a mistake in the agreement and revoked acceptance, both verbally and via email.16 ln our case, there Was no revocation of acceptance by the Plaintiff. Second, the defendant in Ceccola manipulated the Court by deceiving the Prothonotary and filing the earlier acceptance; turning a previously extinguished

contract into a final judgment.17 ln this case, no such “manipulation of court

14 58 A.3d 982 (rabie), 2012 WL 3029546 (Dei. 2012). 15 Ceccola, 2012 WL 3029546, at *3. 16 1a

17 Id.

Paul Hamilton v. Nationwide Mutual Fire Ins. C0. C.A. No.

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Hamilton v. Nationwide Mutual Fire Insurance Company, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hamilton-v-nationwide-mutual-fire-insurance-company-delsuperct-2018.