Knudson v. LeMarr

787 F. Supp. 835, 1992 U.S. Dist. LEXIS 3636, 1992 WL 59075
CourtDistrict Court, N.D. Illinois
DecidedMarch 20, 1992
DocketNo. 87 C 7520
StatusPublished
Cited by1 cases

This text of 787 F. Supp. 835 (Knudson v. LeMarr) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Knudson v. LeMarr, 787 F. Supp. 835, 1992 U.S. Dist. LEXIS 3636, 1992 WL 59075 (N.D. Ill. 1992).

Opinion

ORDER

NORGLE, District Judge.

Before the court is Billy LeMarr’s (“Le-Marr”) petition for costs pursuant to Federal Rule of Civil Procedure 54(b). For reasons set forth below, the court denies the motion.

FACTS

The amended complaint and counterclaim reveal that LeMarr advertised his 1972 Turbo Super Viking Bilanca single engine plane for sale in the February, 1987 edition of a national magazine. Kenneth C. Knud-son (“Knudson”), an Illinois resident, called LeMarr at LeMarr’s Arizona home and inquired about the airplane. Knudson expressed interest in purchasing the plane but insisted that it be. inspected by a mechanic before he would buy.

On March 17, 1987, Knudson and Charlene Farrell (“Farrell”) traveled to Tucson, Arizona to see the plane and watch the inspection of the plane. Melvin Bolas performed the inspection and stated it was in good mechanical condition. The next day, Knudson took an uneventful test flight of the plane with LeMarr and others in the cabin. That day, he agreed to buy the plane for $19,500. Knudson transferred $18,000 from his account in Chicago to LeMarr’s Arizona account and gave a personal check for the $1,500 balance.

On March 20, Knudson flew the plane again, this time with a flight instructor and Farrell. The plane stalled, forcing an emergency landing at Tucson International Airport. The plane was inspected on the ground after the incident and found not to be flight-worthy. Knudson stopped payment on the check he wrote to LeMarr.

Knudson filed suit on August 27, 1987. His amended complaint alleged a myriad of theories including violations of the Illinois Consumer Fraud and Deceptive Business Practices Act (Ill.Rev.Stat. ch. 121V2, 11261 et seq.) and the Arizona Consumer Fraud Act (Ariz.Rev.Stat.Ann. § 44-1521 et seq.). On March 3, 1988, LeMarr filed a counterclaim against Knudson. The counterclaim sought $1,500 based on breach of contract, stating “[t]hat counter-defendant, KNUD-SON, has willfully failed and refused to fully perform on the contract although requested to do so.”

The final pretrial order was filed March 24, 1990, and the matter was set for trial on April 22, 1991. On that day, Knudson and Farrell moved to voluntarily dismiss their case. The court granted the motion and the matter proceeded to trial on Le-Marr’s claim. After hearing the evidence, the jury returned a verdict in the amount of $1,500 in LeMarr’s favor and the court entered judgment on the verdict.

LeMarr then petitioned for attorney’s fees and costs. The court denied the motion to the extent it sought fees based on Federal Rule of Civil Procedure 11. Alternatively however, LeMarr sought fees as a “prevailing party” under the Illinois Deceptive Trade Practices Act. Both Knudson’s current and past counsel have filed objections to the petitions.

DISCUSSION

“Fee litigation has become a heavy burden of the federal courts.” Ustrak v. Fairman, 851 F.2d 983, 987 (7th Cir.1988). As this case poignantly demonstrates, fee litigation can prolong a case well beyond its fruition on the merits. “But for now we must continue to slog our way through these fee cases as best we can.” Id. This court analyzes this fee petition in a two step process.

I.

The Consumer Fraud and Illinois Deceptive Business Practices Act (the “Act”) provides that a “prevailing party” [837]*837may be awarded attorney’s fees and costs. Ill.Rev.Stat. ch. I2D/2, U 270a(c) (1991). No doubt a plaintiff who wins his case pursued under the Act can receive an award of fees and costs in appropriate circumstances. See Bandura v. Orkin Exterminating Co., 865 F.2d 816 (7th Cir.1988). See also Cange v. Stotler & Co., 913 F.2d 1204 (7th Cir.1990) (fees for appeal). However, this case is not such a case. Here Knudson, when faced with the prospect of going to trial, dismissed all his claims before any action was taken. That left no claim under the Act of any kind as LeMarr’s counterclaim was based solely on a deficiency in the agreed price and not on the Act. With no claim asserted under the Act it would be anomalous to claim that anyone is a prevailing party under the Act.

The case of Haskell v. Blumthal, 204 Ill.App.3d 596, 149 Ill.Dec. 619, 561 N.E.2d 1315 (4th Dist.1990), does not compel a contrary result. There, plaintiff voluntarily dismissed a claim against the only remaining defendant after a full day of trial. The court stated, “a defendant should be eligible to receive attorney fees ‘after a not guilty verdict on the merits or a dismissal of a case found to be groundless or clearly frivolous harassment.’ ” Id. at 599, 149 Ill.Dec. at 621, 561 N.E.2d at 1317 (quoting Friedman, Private Right of Action Under the Illinois Consumer Fraud and Deceptive Business Practices Act, 76 Ill.B.J. 748, 751 (1987)). But here, the court has already determined that the pleadings were not frivolous within the meaning of Federal Rule of Civil Procedure 11. This court sees no reason to draw a distinction between frivolity under Rule 11 and under the Act. Therefore, as Knudson’s case was not frivolous under Rule 11, LeMarr is not entitled to fees under the Act.

II.

But because LeMarr is not entitled to fees under the Act does not necessarily mean he is foreclosed from fees altogether. Based on the fact that the litigation itself even occurred, a party may be able to receive fees.

The American rule is that the party who wins, or at least doesn’t lose, is not usually entitled to fees. O’Brien v. The Sage Gp., 141 F.R.D. 273, 275 (N.D.Ill.1992). There are three exceptions to this rule. First, the “common fund exception” allows a court to award fees to a party whose litigation directly benefits others. Chambers v. NASCO, Inc., — U.S. -, 111 S.Ct. 2123, 2133, 115 L.Ed.2d 27 (citing Alyeska Pipeline Serv. Co. v. Wilderness Soc., 421 U.S. 240, 257-58, 95 S.Ct. 1612, 1621-22, 44 L.Ed.2d 141 (1975)), reh’g denied, — U.S. -, 112 S.Ct. 12, 115 L.Ed.2d 1097 (1991). Second, imposition of fees as a sanction is proper for “willful disobedience of a court order.” Fleischmann Distilling Corp. v. Maier Brewing Co., 386 U.S. 714, 718, 87 S.Ct. 1404, 1407, 18 L.Ed.2d 475 (1967) (quoted in Chambers, 111 S.Ct. at 2133). Third, fees may be assessed when the party “ ‘acted in bad faith, vexatiously, wantonly, or for oppressive reasons.’ ” Chambers, 111 S.Ct. at 2133 (quoting Toledo Scale Co. v. Computing Scale Co., 261 U.S. 399

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Bluebook (online)
787 F. Supp. 835, 1992 U.S. Dist. LEXIS 3636, 1992 WL 59075, Counsel Stack Legal Research, https://law.counselstack.com/opinion/knudson-v-lemarr-ilnd-1992.