Harold H. Dishman v. First Interstate Bank

2015 WY 154, 362 P.3d 360, 2015 Wyo. LEXIS 171, 2015 WL 8158372
CourtWyoming Supreme Court
DecidedDecember 8, 2015
DocketS-15-0039
StatusPublished
Cited by16 cases

This text of 2015 WY 154 (Harold H. Dishman v. First Interstate Bank) 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
Harold H. Dishman v. First Interstate Bank, 2015 WY 154, 362 P.3d 360, 2015 Wyo. LEXIS 171, 2015 WL 8158372 (Wyo. 2015).

Opinion

KAUTZ, Justice.

[T1] The district court granted a partial summary judgment in favor of First Interstate Bank (FIB) on its judicial foreclosure claim against Harold H. Dishman. The dis-triet court later held a bench trial on FIB's claim for attorney fees and granted most of FIB's requested fees and costs. Mr. Dish man appeals, claiming the district court violated the rules of civil procedure by allowing FIB's detailed billing statement into evidence when the bank did not produce it until just before trial. Mr. Dishman also claims FIB's request should have been denied, in whole or in part, because the fees were unreasonable.

[¶2] We conclude FIB was required to produce its detailed billing statement in support of the claim for attorney fees, but its failure to provide it earlier was harmless. Given FIB failed to produce the detailed fee statement and did not follow the rules of civil procedure in claiming the information was privileged, the fees associated with the efforts to withhold the information were not reasonable, and the district court abused its discretion by awarding them.. The district 'court also abused its discretion by awarding fees incurred in unnecessary and unproductive work. Furthermore, in the interests of equity, we redfice‘the fees incurred by FIB after the summary judgment to gecount for its. discovery violations. We, therefore, affirm" in part, reverse in part, and remand.

ISSUES

[¶8] The issues in th1s case are:

1, Whether. the dlstmct court correctly interpreted and applied Wyoming Rules of Civil Procedure 26 and 37 with regard to FIB's obligation to disclose its detailed attorney fee statement,

2, Whether the district court abused its discretion in awarding attorney fees to FIB.

FACTS

[¶4] The underlying facts of this case are essentially undisputed. In 2004, Mr, Dish-man. obtained a $20,000 line of credit from FIB, secured by a mortgage on his house in *363 Laramie, Wyoming. He renewed the loan in 2009. From March 2004 through January 2013, Mr. Dishman made all payments on the loan through automatic withdrawals from his account at FIB.

[¶5] Mr. Dlshman, who suffered from dementia, moved into a nursing home at the Laramie Care Center (LCC). In December 2012, LCC submitted an application to have his social security benefits redirected to pay some of the costs of his care. After the funds were diverted, the FIB account from which the automatic withdrawals for payment of the loan were taken was closed, resulting in Mr. Dlshmans default on the loan.

[T6] On October 4, 2013, FIB filed a complaint against Mr. Dishmax for judicial foreclosure, seeking the principal balance due on the loan of $14,881.50, together with accruing interest, costs and attorney fees. FIB attempted various methods to obtain service of process on Mr., Dishman, including personal service on him at the mortgaged property, which was vacant; personal service on him at the nursing home, which was not allowed by staff; personal service upon a staff member at the nursing home; and service by publication. >

[¶7] ' Mr. Dishman's granddaughter, Lori Dow, was designated as his attorney in fact under a Durable Power of Attornéy signed by Mr, Dishman in 2004. Ms. Dow initially did not respond to FIB's efforts to contact her but, after receiving a November 19, 2018, letter about the pending action, she contacted FIB and retained counsel to file an answer on behalf of Mr. Dishman. 'The parties exchanged disclosures pursuant to W.R.C.P. 26, and FIB served additional discovery requests upon Mr. Dishman, - Although they did not make any formal discovery requests, Mr. Dishman's attorneys repeatedly asked FIB to provide its detailed attorney fee statement so they could evaluate the attorney fees claim. FIB provided verified statements of the attorney fee totals but did not provide the actual billing statements.

[¶8] The case languished for some time while Mr. Dishman's attorney in fact attempted to sell the property and the parties looked into collateral matters, including the potential that a Medicaid lien would be filed on the house. With the dispositive motion deadline nearing, FIB filed a motion for summary judgment on all of ita. claims on July 29, 2014. In response to the summary judgment motion, Mr, Dishman conceded he owed the principal balance, accruing interest, late fees, annual fees, taxes, and insurance but contested some of FIB's specific claims, including the amount of acerued interest, a cost de-seribed as a “lender’s foreclosure policy," and attorney fees 'Mr. Dlshman objected to the attorney . fees reqqest 'because FIB had not provided its itemized bills, making it impossible to review the reasonableness of the fees.

[¶9] After considering the parties' filings, the district court granted FIB a partial summary judgment in the amount of $24,631.42, which included the principal due, acerned interest, and most of FIB's costs.- The district court concluded, however; there were genuine issues of material fact concerning the lender's foreclosure policy and FIB's attorney fees request.

[¶10] FIB filed a motion for in camera review of its nnredacted verified statement of costs and attorney fees. It asserted in general terms that the billing statement included confidential information protected by the attorney-client privilege. However, FLB never pointed to any specific item in the billing which would have been privileged. FIB also filed an affidavit from an outside attorney stating its fees were reasonable in light of the circumstances. On October 6, 2014, both parties filed trial summaries, which included their hsts of witnesses and exhibits. FIB's trial summary did not include its unredacted attorney fee statement. On October 7, 2014, the district court denied FIB's motion for in camera review of its unredacted attorney fee bills. On October 9, 2014, FIB supplemented its exhibit list with the unredacted statement of fees and costs

[¶11] The dlstmct court held a bench trial on the outstanding issues on October 14, 2014, Mr. Dishman objected to admission of the unredacted fee statement because FIB did not produce it as required by the rules of civil procedure. . The district court overruled Mr. Dishman's objection and allowed FIB's *364 unredacted fee statement into evidence. FIB later filed a supplemental statement to add the fees associated with the trial, bring ing the total amount of fees and costs requested by FIB to $20,615.49.

[¶12] The district court entered an order on November 18, 2014, granting FIB most of its requested fees. The order stated, in relevant part: _ '

19. [Mr. Dishman] raises the ... that FIB should not be permitted to present its attorney's fees and costs to this Court because it did not timely submit or disclose its itemized billings.... In fact, FIB asserted that this material was privileged and Dishman did nothing to challenge that assertion. Ultimately, this Court held that the subject material was not privileged and FIB promptly produced same. Mr. Dishman had avenues of relief available to him long prior to the trial herein, including seeking this Court's order to compel discovery, of which Mr. Dishman did not avail himself. He cannot now be hefard] to complain of FIB's assertion of privilege when he took no action to challenge and from which he how seeks to benefit. f ©
~ 22.

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Cite This Page — Counsel Stack

Bluebook (online)
2015 WY 154, 362 P.3d 360, 2015 Wyo. LEXIS 171, 2015 WL 8158372, Counsel Stack Legal Research, https://law.counselstack.com/opinion/harold-h-dishman-v-first-interstate-bank-wyo-2015.