James Killingsworth v. Ted Russell Ford, Inc.

CourtCourt of Appeals of Tennessee
DecidedJanuary 5, 2006
DocketE2004-02597-COA-R3-CV
StatusPublished

This text of James Killingsworth v. Ted Russell Ford, Inc. (James Killingsworth v. Ted Russell Ford, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
James Killingsworth v. Ted Russell Ford, Inc., (Tenn. Ct. App. 2006).

Opinion

IN THE COURT OF APPEALS OF TENNESSEE AT KNOXVILLE November 14, 2005 Session

JAMES KILLINGSWORTH, ET AL. v. TED RUSSELL FORD, INC.

Appeal from the Circuit Court for Knox County No. 1-149-00 Dale C. Workman, Judge

No. E2004-02597-COA-R3-CV - FILED JANUARY 5, 2006

This appeal centers around the Trial Court’s award of attorney fees to Plaintiffs in this Tennessee Consumer Protection Act case. Following remand after the first appeal, the Trial Court awarded attorney fees of $2,000 for work performed in preparation for and the jury trial of this case, and an additional $4,500 in attorney fees incurred on the first appeal. Plaintiffs appeal claiming the Trial Court’s award of $2,000 in fees incurred at the trial court level was unreasonably low. Defendant appeals claiming the Trial Court erred in awarding any fees incurred on the appeal. We reverse the award of fees incurred on the appeal, and modify the Trial Court’s judgment to award $6,500 in fees for work performed at the Trial Court level.

Tenn. R. App. P. 3 Appeal as of Right; Judgment of the Circuit Court Reversed in Part and Affirmed in Part as Modified; Case Remanded

D. MICHAEL SWINEY , J., delivered the opinion of the court, in which HERSCHEL P. FRANKS , P.J., joined. CHARLES D. SUSANO , JR., J., a separate concurring and dissenting Opinion.

J. Myers Morton and George W. Morton, Knoxville, Tennessee, for the Appellants James and Kathy Killingsworth.

J. Douglas Overbey and Dan R. Pilkington, Knoxville, Tennessee, for the Appellee Ted Russell Ford, Inc. OPINION

Background

This is the second appeal in this Tennessee Consumer Protection Act case. James and Kathy Killingsworth (“Plaintiffs”) purchased an SUV from Ted Russell Ford, Inc. (“Defendant”). Thereafter, Plaintiffs brought this lawsuit alleging Defendant failed to advise them about damage to the previously-unowned SUV. Following a trial, a jury returned a verdict in favor of Plaintiffs for $2,500. See Killingsworth v. Ted Russell Ford, Inc., 104 S.W.3d 530, 531 (Tenn. Ct. App. 2002). Plaintiffs then filed a post-trial motion seeking attorney fees in the amount of $9,718, and discretionary costs in the amount of $1,864. Id. at 532. Defendant opposed this motion because Plaintiffs did not specifically request attorney fees or costs in their complaint. The Trial Court awarded Plaintiffs a total of $500 for both attorney fees and costs. Plaintiffs appealed claiming the award of only $500 for attorney fees and costs was unreasonably low. Id. at 534.

As relevant to the current appeal, we held in the first appeal that Plaintiffs’ complaint was sufficient to put Defendant on notice that Plaintiffs were seeking all relief authorized under the Tennessee Consumer Protection Act (“TCPA”), including attorney fees and costs. Id. at 533-34. With regard to the amount of attorney fees and costs awarded, we explained that such determinations are a matter of discretion with the trial court and will not be disturbed on appeal unless the evidence preponderates against the trial court’s factual findings in making the award. Id. at 534. We then stated:

In this state, the establishment of a reasonable attorney's fee is determined in accordance with Tennessee Code of Professional Responsibility DR 2-106 (2002), which is a part of Tenn. Sup. Ct. R. 8. DR 2-106 provides, in pertinent part, as follows:

(B) ... Factors to be considered as guides in determining the reasonableness of a fee include the following:

(1) The time and labor required, the novelty and difficulty of the questions involved, and the skill requisite to perform the legal service properly.

(2) The likelihood, if apparent to the client, that the acceptance of the particular employment will preclude other employment by the lawyer.

(3) The fee customarily charged in the locality for similar legal services.

(4) The amount involved and the results obtained.

-2- (5) The time limitations imposed by the client or by the circumstances.

(6) The nature and length of the professional relationship with the client.

(7) The experience, reputation, and ability of the lawyer or lawyers performing the services.

(8) Whether the fee is fixed or contingent.

With respect to the final factor, our Supreme Court has opined that "[a]n attorney's fee should be greater where it is contingent than where it is fixed." United Med. [Corp. of Tenn. v. Hohenwald Bank & Trust Co.], 703 S.W.2d at 136 [(Tenn. 1986)].

Killingsworth, 104 S.W.3d at 534.

Because there was nothing in the record indicating that the Trial Court had utilized the above factors when arriving at its decision regarding the award of attorney fees and costs, we remanded the case to the Trial Court.1

On remand, Plaintiffs’ counsel filed an affidavit detailing the time spent in preparing the case for trial, at trial, and on the appeal. Plaintiffs’ counsel further stated that all of the fees and expenses incurred were reasonable and necessary. The attorney fees now sought by Plaintiffs totaled $17,197.50, which included time spent on the first appeal. The discretionary costs sought by Plaintiffs had risen to $2,448.35. Plaintiffs filed affidavits from local attorneys to the effect that the attorney fees incurred in prosecution of this case at trial and on appeal were reasonable and necessary.

Defendant responded to Plaintiffs’ affidavits, claiming the amount of attorney fees sought by Plaintiffs were unreasonable and excessive when considering the factors set forth in DR 2-106. Defendant likewise filed affidavits from local attorneys who opined that the requested fees were excessive and unreasonable, although these affidavits do not state what amount of fees the affiants believe would have been reasonable. Defendant also claimed that, as a matter of law, attorney fees incurred on an appeal were not recoverable under the TCPA. Alternatively, Defendant argued that even if attorney fees for time spent on an appeal normally could be recovered under the

1 Prior to remanding the case, we noted that the Trial Court had determined the jury’s award of $2,500 was the equivalent in value to a pre-trial settlement offer of repairs and an extended warranty made by Defendant, an offer which was rejected by Plaintiffs. After reaching this conclusion, the Trial Court indicated that Plaintiffs could have saved themselves over $11,000 in attorney fees had they simply accepted the offer. W e rejected this conclusion, holding that the facts preponderated against the Trial Court’s conclusion that the jury’s monetary award was the functional equivalent to Defendant’s pre-trial settlement offer. Killingsworth, 104 S.W .3d at 536.

-3- TCPA, Plaintiffs were not entitled to such an award because they did not ask this Court to award those fees at any time during the first appeal.

Following a hearing, the Trial Court rejected Defendant’s arguments and awarded Plaintiffs a total of $2,000 in attorney fees for the time spent preparing the case for trial and for the trial, an additional $4,500 for the time spent on the first appeal, and a total of $2,448.35 in discretionary costs. Plaintiffs filed this second appeal, claiming the Trial Court erred in awarding only $2,000 in attorney fees for work performed at the trial court level. Defendant appeals the award of $4,500 in attorney fees incurred during the first appeal. Defendant claims that pursuant to the TCPA, attorney fees are not recoverable for work performed on appeal. Alternatively, Defendant claims that even if attorney fees incurred on appeal are recoverable under the TCPA, Plaintiffs are not entitled to their attorney fees because they never asked this Court to award those fees during the first appeal.

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James Killingsworth v. Ted Russell Ford, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/james-killingsworth-v-ted-russell-ford-inc-tennctapp-2006.