Lambert v. Sea Oats Condo. Ass'n, Inc.

798 S.E.2d 177, 293 Va. 245, 2017 WL 1378202, 2017 Va. LEXIS 45, 2017 Va. Cir. LEXIS 64
CourtSupreme Court of Virginia
DecidedApril 13, 2017
DocketRecord 160269
StatusPublished
Cited by43 cases

This text of 798 S.E.2d 177 (Lambert v. Sea Oats Condo. Ass'n, Inc.) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lambert v. Sea Oats Condo. Ass'n, Inc., 798 S.E.2d 177, 293 Va. 245, 2017 WL 1378202, 2017 Va. LEXIS 45, 2017 Va. Cir. LEXIS 64 (Va. 2017).

Opinion

OPINION BY JUSTICE WILLIAM C. MIMS

In this appeal, we consider whether the circuit court abused its discretion by limiting the amount of an award of attorney's fees based on the amount of damages recovered by the prevailing plaintiff. We also consider the stage of a proceeding at which a prevailing party who seeks an award of attorney's fees must meet its burden of proving that the amount sought is reasonable.

I. BACKGROUND AND MATERIAL PROCEEDINGS BELOW

Martha A. Lambert owns a unit in the Sea Oats Condominium. In January 2014, she filed a warrant in debt in the general district court asserting that the Sea Oats Condominium Association, Inc. ("the Association") failed to pay $500 to repair an exterior door to her condominium. She alleged that the door was a common element and that the Association bore the burden of repairing it under the Association's declaration, its bylaws, and Code §§ 55-79.41 and 55-79.79(A). She sought, among other things, $500 in damages *180 and an award of attorney's fees. The general district court thereafter entered judgment for the Association.

Lambert appealed to the circuit court. In her bill of particulars there she again sought $500 in damages and an award of attorney's fees. At trial, Lambert testified and called an additional witness. She then rested. The Association then called two witnesses and rested. Lambert declined to present rebuttal evidence.

At the conclusion of her closing argument, Lambert reminded the court that she was seeking an award of attorney's fees and supplied an affidavit stating that $8232.00 had been incurred. She noted that the Association had not had an opportunity to review the affidavit and requested a later hearing under Rule 3:25 to determine the reasonableness of the amount she sought. The Association then made its closing argument. It did not object to Lambert's request for an award of attorney's fees. It did not object to the affidavit when Lambert supplied it or when the court said it would mark the affidavit as filed.

The court awarded judgment to Lambert for $500. It asked the Association how much time it needed to review Lambert's attorney's fees affidavit and expressed its preference that the parties respond in writing rather than holding a hearing. The Association asked for three weeks to respond and Lambert asked for one week thereafter to reply. The court adopted these dates as deadlines.

In the Association's written response, it argued that under Chawla v. BurgerBusters, Inc. , 255 Va. 616 , 623, 499 S.E.2d 829 , 833 (1998), Lambert was required to prove the reasonableness of her attorney's fees request during her prima facie case. Unlike the customary process in jury trials, it argued, Lambert did not seek to bifurcate the case by segregating the issue of attorney's fees from the merits of the underlying action. She adduced no evidence of her attorney's fees until she supplied the affidavit in her closing argument, after she had rested her case. This was after her prima facie case, the Association reasoned, so the circuit court could not award any attorney's fees.

The Association also argued that the amount of attorney's fees Lambert sought was not reasonable for two reasons. First, it contended that the amount of attorney's fees in the affidavit was 16 times the amount of the judgment. It noted that in West Square, L.L.C. v. Communication Technologies , 274 Va. 425 , 432-35, 649 S.E.2d 698 , 701-03 (2007), this Court affirmed a circuit court's ruling that reduced an award of attorney's fees from the $80,000 sought to $10,000 when the prevailing party obtained an award of damages of $35,000. The court's ruling thus reduced an award of attorney's fees from more than twice the amount of damages awarded to less than a third. Second, it asserted that the amount of attorney's fees in the affidavit was not reasonable because it included (1) work that should have been performed by staff, rather than an attorney; (2) work duplicated when Lambert chose to change counsel during the course of the proceeding; and (3) work likely completed when counsel represented Lambert in an earlier lawsuit.

The court thereafter issued an opinion letter, without waiting for Lambert's reply to the Association's response, awarding Lambert only $375 in attorney's fees and asking her to prepare and circulate a final order. Lambert nevertheless filed a reply to the Association asserting that (1) attorney's fees are often decided after a ruling on the merits, (2) nothing requires the presentation of evidence of attorney's fees before the merits have been decided, and (3) in any event, the Association had agreed to the procedure for deciding attorney's fees that the court had proposed at trial.

Citing Couch v. Manassas Autocars, Inc. , 77 Va. Cir. 30 , 2008 WL 8201041 (Prince William Cnty. Cir. Ct. 2008) and Maximus, Inc. v. Lockheed Information Management Systems Co. , 47 Va. Cir. 193 , 204-05, 1998 WL 34175526 (Richmond City Cir. Ct. 1998), Lambert also argued that circuit courts have ruled that there is no relationship between the amount of damages awarded and the reasonableness of the amount of attorney's fees incurred to obtain the award. Further, she noted that this Court ruled in *181 Wilkins v. Peninsula Motor Cars, Inc. , 266 Va. 558 , 563, 587 S.E.2d 581 , 584 (2003), that by authorizing an award of attorney's fees in a statute the General Assembly evidenced its intent to encourage private parties to enforce the statute through civil litigation. She asserted that Code § 55-79.53 is such a statute. Using the amount of damages awarded as a factor to determine the reasonableness of the amount of attorney's fees incurred, she continued, would undermine this legislative intent because private parties would not undertake private enforcement litigation where the money damages were small if they had to pay attorney's fees out of pocket.

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Bluebook (online)
798 S.E.2d 177, 293 Va. 245, 2017 WL 1378202, 2017 Va. LEXIS 45, 2017 Va. Cir. LEXIS 64, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lambert-v-sea-oats-condo-assn-inc-va-2017.