Kuehn v. Peppertree Resort Villas, Inc.

686 N.W.2d 455, 276 Wis. 2d 309
CourtCourt of Appeals of Wisconsin
DecidedJuly 22, 2004
Docket03-1179
StatusPublished

This text of 686 N.W.2d 455 (Kuehn v. Peppertree Resort Villas, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kuehn v. Peppertree Resort Villas, Inc., 686 N.W.2d 455, 276 Wis. 2d 309 (Wis. Ct. App. 2004).

Opinion

Joseph Kuehn and Jane Kuehn, Plaintiffs-Appellants,
v.
Peppertree Resort Villas, Inc., and Peppertree Resorts Ltd. d/b/a Peppertree at Tamarack, Defendants-Respondents.

No. 03-1179.

Court of Appeals of Wisconsin.

Opinion Filed: July 22, 2004.

Before Deininger, P.J., Dykman and Lundsten, JJ.

¶1 DEININGER, P.J.

Joseph and Jane Kuehn appeal a judgment awarding them $13,730 in attorney's fees under WIS. STAT. §§ 707.57(1)(b) and 425.308 (2001-02).[1] The Kuehns contend that the trial court erroneously exercised its discretion when it reduced their requested attorney's fees by one-half. Specifically, they assert that the court improperly looked to hourly rates for public defender and guardian ad litem appointments instead of those for private bar attorneys engaged in work comparable to the services the Kuehns' attorney performed for them. Additionally, the Kuehns claim that the court failed to consider evidence supporting an award of a fully compensatory fee. Although we agree that the trial court erred in considering the hourly rates paid to publicly appointed attorneys, we conclude that the other factors properly considered by the trial court support its determination that reasonable attorney fees in this case were one-half of the fees requested by the Kuehns. Accordingly, we affirm the appealed judgment.

BACKGROUND

¶2 This litigation concerns the sale by Peppertree Resort Villas, Inc., or a related entity, of a time-share interest in Sauk County recreational property to the Kuehns. Similar transactions, numbering in the hundreds, have spawned other litigation against Peppertree, resulting in two previous opinions of this court,[2] as well as multiple proceedings in the circuit courts for Dane, Sauk, and Milwaukee Counties. The merits of the underlying litigation, however, are not before us in this appeal. The Kuehns challenge only the trial court's reduction of the attorney's fees they requested after prevailing on their claim against Peppertree.

¶3 After receiving numerous consumer complaints regarding Peppertree's time-share sales practices, the Department of Agriculture, Trade, and Consumer Protection (DATCP) initiated an investigation, in which the Kuehns and numerous other time-share purchasers participated. The DATCP procured a consent order requiring Peppertree to pay a civil forfeiture and set up a restitution fund to compensate persons who alleged they incurred economic harm as a result of their dealings with Peppertree. See State v. Peppertree Resort Villas, Inc., 2002 WI App 207, ¶¶2-3, 257 Wis. 2d 421, 651 N.W.2d 345. Prior to the entry of the DATCP consent order, however, the Kuehns opted out of the consent order and pursued their claim independently via private counsel.

¶4 The Kuehns' suit against Peppertree spanned roughly three years and included a contentious dispute over the scope of requested discovery. The Kuehns served discovery demands encompassing 187 interrogatories, 129 document requests and sixty-four requests to admit. When a dispute arose, the Kuehns filed a motion to compel and Peppertree countered with a motion for a protective order. The trial court granted Peppertree's request for an order that it need not respond to further discovery requests from the Kuehns. The trial court characterized as "outrageous" a particular Kuehn interrogatory that sought information regarding 411 different Peppertree employees, a request that was not justified, in the court's view, because of the relatively modest amount in dispute and the lack of complexity of the case. After the court decided the parties' motions for summary judgment, Peppertree filed an offer of judgment. See WIS. STAT. § 807.01(1). The Kuehns accepted the offered judgment approximately three weeks before the scheduled jury trial date.

¶5 The accepted offer provided for entry of judgment against Peppertree for $10,750 in damages, "plus costs and reasonable attorneys fees as decided by the Court." As additional relief, the judgment provided that the parties' transaction was "cancelled," that Peppertree would take steps to have any adverse credit report information arising from the transaction deleted, and it would place the Kuehns on a "do not call" list. The Kuehns requested costs in the amount of $1,419.59, which were not disputed, and $27,460 in attorney's fees under WIS. STAT. §§ 425.308 and 707.57(1),[3] based on 137.3 hours of legal work at a billing rate of $200 per hour. Peppertree objected to the attorney fee request, suggesting that "[a]n award of zero would be justified, but in no event should the award exceed $5,000."

¶6 The trial court, without a hearing, issued a written decision awarding the requested costs but reducing the attorney fees requested by one-half, awarding instead the sum of $13,730 in attorney's fees. Judgment was entered against Peppertree for $10,750 plus the allowed costs and attorney's fees. The Kuehns appeal, arguing only that the trial court erroneously exercised its discretion in reducing their requested attorney's fees by one-half.

ANALYSIS

¶7 The parties agree that, in its written decision, the trial court correctly identified the proper standards for determining reasonable attorney fees as set forth in WIS. STAT. § 425.308(2) (see footnote 3), Hensley v. Eckerhart, 461 U.S. 424 (1983),[4] and SCR 20:1.5(a).[5] They also agree that "the most useful starting point for determining the amount of a reasonable fee is the number of hours reasonably expended on the litigation multiplied by a reasonable hourly rate," sometimes referred to as the "lodestar" calculation. Crawford County v. Masel, 2000 WI App 172, ¶7, 238 Wis. 2d 380, 617 N.W.2d 188 (quoting Hensley, 461 U.S. at 433). Thus, the present dispute centers on whether the trial court properly applied these standards.

¶8 The trial court identified several factors influencing its decision. In the Kuehns' favor, the trial court acknowledged the "troubled history of the litigation involving Peppertree," including the fact that "[i]nitially, Peppertree was not forthcoming in terms of discovery and process." However, the court also found that the Kuehns "over litigated," and that "[t]he need for hundreds of written interrogatories ... is not apparent" because "[m]any of the basic facts, which proved violations of the code, were evident and present from the beginning."

¶9 The trial court also considered, but rejected, the Kuehns' claim that their counsel had fulfilled the role of a "private attorney general," which serves as part of the rationale for statutory fee-shifting provisions in the statutes at issue and other consumer protection statutes.[6] The court noted that the State of Wisconsin had already acted to protect the public interest by commencing legal actions against Peppertree:[7]

Large forfeitures were paid by [Peppertree] and funds were escrowed with Justice and a mechanism provided where consumers involved with [Peppertree] could file their claims for provable and related damages and be paid. The Attorney General did act to protect the public interest and the [Kuehns]' counsel action on this account is de minimus.

¶10 In addition, the trial court gave considerable weight to the amount involved and the results achieved in the Kuehns' three-year individual lawsuit.

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Bluebook (online)
686 N.W.2d 455, 276 Wis. 2d 309, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kuehn-v-peppertree-resort-villas-inc-wisctapp-2004.