Johnson v. Hix Wrecker Serv., Inc.

112 N.E.3d 1132
CourtIndiana Court of Appeals
DecidedDecember 10, 2018
DocketCourt of Appeals Case No. 18A-PL-10
StatusPublished
Cited by2 cases

This text of 112 N.E.3d 1132 (Johnson v. Hix Wrecker Serv., Inc.) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Johnson v. Hix Wrecker Serv., Inc., 112 N.E.3d 1132 (Ind. Ct. App. 2018).

Opinion

Shepard, Senior Judge.

[1] Appellant Bobby J. Johnson, Jr.'s employer Hix Wrecker Service wrongly withheld portions of his wages, and the trial court awarded $700 in actual damages and another $3800 in liquidated damages, pre-judgment interest, and costs.

[2] The court also awarded some $35,000 in attorney fees. Johnson's counsel Ronald E. Weldy argues that this amount was an abuse of discretion that will be "jeopardizing the ability of all wage claimants to obtain counsel." Appellant's Br. p. 11.

Facts and Procedural History

[3] This case began in August 2009 when Johnson filed a complaint against Hix for unpaid wages and improper deductions. Seven years later in December 2016, the trial court granted Johnson's motion for partial summary judgment, awarding Johnson $700.92 in actual damages, $1,601.84 in liquidated damages, and $1,843.25 in statutory pre-judgment interest. On March 31, 2017, the court granted Johnson's motion for statutory attorney fees of $26,173 and $377.48 in costs. On May 30, 2017, the December 2016 partial summary judgment was entered as a final judgment.

[4] Johnson filed for proceedings supplemental and requested that Hix be ordered to answer interrogatories, respond to requests for production, and attend a hearing to answer as to assets. Hix repeatedly failed to respond to the discovery requests, and Hix and its counsel failed to attend hearings as ordered by the court. Johnson then moved for sanctions or contempt against counsel for Hix requesting $5,100 for these failures. The trial court granted this motion on July 19, 2017 but subsequently *1135granted Hix's motion for reconsideration on July 31, 2017 and vacated the July 19 order, holding Johnson's request in abeyance.

[5] In the meantime, on July 6th, the court granted Johnson's request for supplemental fees in the amount of $8,108 for work Johnson's counsel performed post-judgment. On September 2nd, Johnson filed his second motion for supplemental fees and costs asking for $6,862.51. A few weeks later, counsel supplemented that request, asking for an additional $7,275 in fees.

[6] Following an October 2017 hearing, the court ordered Hix to pay Johnson a total post-judgment attorney fee of $9,201 plus interest until paid, an amount the court specifically said includes $8,108 in fees it had awarded on July 6th. Johnson now appeals.

Issues

[7] Johnson presents five issues, which we restate as six:

I. Whether the trial court erred by vacating its prior order;
II. Whether the court erred by modifying its prior order;
III. Whether the court erred in its calculation of post-judgment interest;
IV. Whether the court erred by not awarding costs to Johnson;
V. Whether the court erred in calculating attorney fees; and
VI. Whether the trial court's action of reducing counsel's rate was against public policy.

Discussion and Decision

I. Vacation of Order

[8] On July 16, Johnson filed his motion for sanctions, which the court promptly granted on July 19. On July 28, Hix moved for reconsideration, which the court granted, vacating its order of July 19. On appeal, Johnson contends the court erred in vacating its July 19 order and requests its reinstatement.

[9] Decisions regarding the imposition of sanctions for discovery violations are within the trial court's sound discretion. Reed v. Cassady , 27 N.E.3d 1104 (Ind. Ct. App. 2015), trans. denied . "Trial judges stand much closer than an appellate court to the currents of litigation pending before them, and they have a correspondingly better sense of which sanctions will adequately protect the litigants in any given case, without going overboard, while still discouraging gamesmanship in future litigation." Id. at 1111. Accordingly, we presume the trial court will act in accord with what is fair and equitable in each case, and we reverse only if the court's decision is clearly against the logic and effect of the facts and circumstances before it, or if it has misinterpreted the law. Wright v. Miller , 989 N.E.2d 324 (Ind. 2013).

[10] Trial Rule 37(B)(2) provides that as to sanctions for failure to obey a discovery order, trial courts "may make such orders in regard to the failure as are just ." (Emphasis added). The rule requires trial courts to order an offending party to pay the reasonable expenses and fees caused by its failure unless the court finds the failure was "substantially justified or that other circumstances make an award of expenses unjust." Both parties here filed lengthy motions setting forth their arguments and explanations on this issue. Given the trial court's firsthand observation of this case, its familiarity with the litigants and their lawyers, as well as our presumption that the court acted fairly and equitably, we cannot say the court's decision is against the logic and effect of the circumstances presented.

*1136II. Modification of Order

[11] On July 6, 2017, the trial court granted Johnson's motion for supplemental post-judgment attorney fees in the amount of $8,108. In its final order awarding post-judgment attorney fees and interest, the trial court ordered Hix to pay post-judgment attorney fees in the amount of $9,201, specifically stating this amount includes fees awarded in the July 6 order. On appeal, Johnson argues the court improperly modified its July 6 order.

[12] In support of his contention, Johnson asserts the trial court indicated the July 6 order was not at issue at the October 2017 hearing. The discussion went:

MR. WELDY [Counsel for Johnson]: Here's a question: You already previously entered an order back on July the 6th of this year for supplemental attorney fees. They filed a Motion to Reconsider and you denied that. Is that money at issue today or not at issue today?
THE COURT: I thought it was at issue today.
MR. WELDY: Okay. I mean, considering you [sic] already filed a Motion to Reconsider that you already denied I didn't think it would be an issue today, to be honest, but I want to make sure.
THE COURT: Well, I suppose the issue is the amount.
MR. WELDY: Once, again, you've already entered that amount.

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Bluebook (online)
112 N.E.3d 1132, Counsel Stack Legal Research, https://law.counselstack.com/opinion/johnson-v-hix-wrecker-serv-inc-indctapp-2018.