John C. Shimman v. International Union of Operating Engineers, Local 18

744 F.2d 1226, 117 L.R.R.M. (BNA) 2579, 1984 U.S. App. LEXIS 18080
CourtCourt of Appeals for the Sixth Circuit
DecidedOctober 1, 1984
Docket82-3370
StatusPublished
Cited by179 cases

This text of 744 F.2d 1226 (John C. Shimman v. International Union of Operating Engineers, Local 18) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
John C. Shimman v. International Union of Operating Engineers, Local 18, 744 F.2d 1226, 117 L.R.R.M. (BNA) 2579, 1984 U.S. App. LEXIS 18080 (6th Cir. 1984).

Opinions

CORNELIA G. KENNEDY, Circuit Judge.

This appeal presents the question of whether Shimman could be awarded his attorney fees incurred during an earlier appeal in this case. We hold that there was no basis for the award and reverse.

I. Introduction

In 1973 John C. Shimman brought suit against the International Union of Operating Engineers, Local 18 (“Local 18”); the International Union of Operating Engineers, AFL-CIO; John Frank, an officer of Local 18; and Terry and James Grothaus, members of Local 18. The complaint alleged violations of § 101(a) of the Labor-Management Reporting Disclosure Act of 1959 (“LMRDA”), 29 U.S.C. § 411(a); 42 U.S.C. §§ 1985 and 1986; and Ohio common law of assault and battery.

A bench trial was held in the District Court, bifurcated between issues of liability and damages. The essential facts developed at trial were that Terry and James Grothaus, at Frank’s direction, assaulted Shimman at a district union meeting pursuant to a plan to intimidate and suppress the dissident movement in the union. Shim-man was a dissident union member opposed to the union leadership.1 The District Court found all defendants liable on the LMRDA and Ohio common law counts, and dismissed the counts under 42 U.S.C. §§ 1985 and 1986 as to all defendants. The District Court then awarded Shimman compensatory damages, attorney fees, and substantial punitive damages against all defendants. On appeal, a panel of this Court reversed the judgment against the International Union and reduced the amount of punitive damages assessed against the other defendants, but otherwise affirmed the District Court.2

Shimman then applied to the District Court for additional attorney fees for work done on the appeal. The defendants contested the District Court’s authority to award attorney fees for the appeal, but did not question the amount sought. The District Court awarded Shimman $56,178.00 in attorney fees for the appeal, holding that such an award was authorized because of defendants’ bad faith and malicious conduct. Defendant Local 18 appealed the award, which was affirmed by a divided panel of this Court. Shimman v. International Union of Operating Engineers, Local 18, 719 F.2d 879 (6th Cir.1983). On December 5, 1983 this Court vacated the panel’s opinion and granted rehearing en banc.

Shimman contends that the District Court’s award of attorney fees incurred during the earlier appeal may be justified under any of four bases: (1) the “bad faith” exception to the American Rule that attorney fees are generally not allowed; (2) the “common benefit” exception to the American Rule; (3) the Civil Rights Attorney’s Fees Awards Act of 1976, 42 U.S.C. § 1988; and (4) Ohio common law, which allows attorney fees in assault and battery cases. We examine each of these rationales in turn to see if they support the District Court’s award.

II. Bad Faith

The District Court held that it had authority to award attorney fees incurred at trial because it found that its “findings and conclusions upon the liability issue make abundantly clear that all of the defendants here acted in bad faith, vexatiously, maliciously, wantonly, wilfully, and entirely for oppressive reasons. They could not have innocently misunderstood that the LMRDA prohibited them from doing what [1229]*1229they did.” After the 1980 appeal, the District Court then held that the same findings of malice and bad faith supported an award of attorney fees for the appeal. The District Court thus did not reach the three other grounds proposed by Shimman. This Court must therefore decide whether an award of appellate attorney fees is allowable where the defendants’ acts giving rise to the underlying LMRDA cause of action were malicious and in bad faith.3

It has long been the general rule in the United States that a prevailing party may not ordinarily recover attorneys fees in the absence of a statute or enforceable contract providing for a fee award. This “American Rule” regarding attorney fees was adopted by the Supreme Court in Arcambel v. Wiseman, 3 U.S. (3 Dall.) 306, 1 L.Ed. 613 (1796). The American Rule applies to a claim for compensatory damages expressly created by a federal statute. F.D. Rich Co. v. United States ex rel. Industrial Lumber Co., 417 U.S. 116, 94 S.Ct. 2157, 40 L.Ed.2d 703 (1974). The American Rule’s failure to fully compensate an injured party is justified by the rationale that “since litigation is at best uncertain one should not be penalized for merely defending or prosecuting a lawsuit, and that the poor might be unjustly discouraged from instituting actions to vindicate their rights if the penalty for losing included the fees of their opponents’ counsel.” Fleischmann Distilling Corp. v. Maier Brewing Co., 386 U.S. 714, 718, 87 S.Ct. 1404, 1407, 18 L.Ed.2d 475 (1967). The general American Rule has been reaffirmed numerous times by the Supreme Court. See, e.g., Hensley v. Eckerhart, 461 U.S. 424, 103 S.Ct. 1933, 76 L.Ed.2d 40 (1983); Summit Valley Industries v. Local 112, United Brotherhood of Carpenters, 456 U.S. 717, 102 S.Ct. 2112, 72 L.Ed.2d 511 (1982); Alyeska Pipeline Service Co. v. Wilderness Society, 421 U.S. 240, 95 S.Ct. 1612, 44 L.Ed.2d 141 (1975).

The “bad faith” exception to the American Rule allows attorney fees in certain exceptional cases where the opposing party has acted in bad faith. The earliest Supreme Court case cited for this exception is Vaughan v. Atkinson, 369 U.S. 527, 82 S.Ct. 997, 8 L.Ed.2d 88 (1962). Vaughan was an admiralty suit by a seaman against shipowners for damages for failure to pay maintenance and cure while the seaman was recovering from an illness contracted aboard ship. Under admiralty law, the shipowners had a duty to provide the seaman with maintenance and cure while convalescing, and if they failed to provide maintenance and cure the shipowners were liable for consequential damages arising from their failure to pay. The Supreme Court allowed the seaman attorney fees incurred in his suit to recover maintenance as an item of damages for the shipowners’ failure to pay maintenance. The Court reasoned that the shipowners:

were callous in their attitude, making no investigation of [the seaman’s] claim and by their silence neither admitting nor denying it.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

In re: Royal Manor Mgmt. v.
Sixth Circuit, 2015
Remark, LLC v. Adell Broadcasting Corporation
702 F.3d 280 (Sixth Circuit, 2012)
Hillman Lumber Products, Inc. v. Webster Manufacturing, Inc.
727 F. Supp. 2d 503 (W.D. Louisiana, 2010)
Poly-Flex Construction, Inc. v. Neyer, Tiseo & Hindo, Ltd.
600 F. Supp. 2d 897 (W.D. Michigan, 2009)
Kleinmark v. St. Catherine's Care Center
585 F. Supp. 2d 961 (N.D. Ohio, 2008)
Barash v. Kates
585 F. Supp. 2d 1368 (S.D. Florida, 2008)
Fortis Corporate Insurance SA v. Inviken
579 F. Supp. 2d 974 (N.D. Ohio, 2008)
Centex Corporation v. United States
486 F.3d 1369 (Federal Circuit, 2007)
EIU Group, Inc. v. Citibank Delaware, Inc.
429 F. Supp. 2d 367 (D. Massachusetts, 2006)
Hrometz v. Local 550 International Ass'n of Bridge
135 F. App'x 787 (Sixth Circuit, 2005)
Weisel v. Laskovski, Unpublished Decision (3-7-2005)
2005 Ohio 1113 (Ohio Court of Appeals, 2005)
Hoch v. Chapman, Unpublished Decision (1-7-2005)
2005 Ohio 76 (Ohio Court of Appeals, 2005)
PTG LOGISTICS, LLC v. Bickel's Snack Foods, Inc.
196 F. Supp. 2d 593 (S.D. Ohio, 2002)
Mellon v. Cessna Aircraft Co.
64 F. Supp. 2d 1061 (D. Kansas, 1999)
Grimm v. Shroyer
35 F. Supp. 2d 966 (E.D. Kentucky, 1999)

Cite This Page — Counsel Stack

Bluebook (online)
744 F.2d 1226, 117 L.R.R.M. (BNA) 2579, 1984 U.S. App. LEXIS 18080, Counsel Stack Legal Research, https://law.counselstack.com/opinion/john-c-shimman-v-international-union-of-operating-engineers-local-18-ca6-1984.