Mabel Dale Ingvoldstad ex rel. Meyer v. Kings Wharf Island Enterprises, Inc.

20 V.I. 314
CourtDistrict Court, Virgin Islands
DecidedSeptember 30, 1983
DocketCivil No. 1983/36
StatusPublished
Cited by4 cases

This text of 20 V.I. 314 (Mabel Dale Ingvoldstad ex rel. Meyer v. Kings Wharf Island Enterprises, Inc.) is published on Counsel Stack Legal Research, covering District Court, Virgin Islands primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mabel Dale Ingvoldstad ex rel. Meyer v. Kings Wharf Island Enterprises, Inc., 20 V.I. 314 (vid 1983).

Opinion

O’BRIEN, Judge

MEMORANDUM OPINION AND ORDER

When this Court entered its judgment on August 2, 1983, and permitted the plaintiff to file an application for an award of attorney’s fees and other costs, the defendant filed a motion to alter or amend the judgment to delete any allowance for attorney’s fees and other costs. The plaintiff did submit an application for such fees and other costs, and both parties have submitted memoranda in support of their respective positions. For the reasons cited in this opinion, the Court does not have discretion to award any attorney’s fees to the prevailing party. The judgment will be amended accordingly.

I. FACTS

The plaintiff originally brought this action for forcible entry and detainer. The defendant moved to enforce the arbitration clause in the lease to which both parties are bound. The lease contains a provision for arbitration of disputes between the parties, and that the decision of the arbitrators “will be binding on the parties hereto.”

The Court ordered arbitration according to the lease and the matter was presented to the three arbitrators selected. Their findings were filed with the Court, and the Court then entered judgment on the findings, which included a provision that the plaintiff could make application for an award of attorney’s fees and other costs.

The Court did not, in its decision of August 2, 1983, permit termination of the lease as requested by the plaintiff, but relief of a less drastic nature was ordered. The defendant now claims that the plaintiff was not, in fact, the prevailing party and for that reason should not be awarded any attorney’s fees and other costs. Additionally, the defendant argues that even if the plaintiff is the prevailing party, the Court should exercise its discretion in the matter and refuse any such award.

[317]*317II. WHO IS THE PREVAILING PARTY?

Title 5 V.I.C. § 541 allows an award of attorney’s fees and other costs to “the prevailing party ... in maintaining the action or defenses thereto.” If this statute is applicable, such an award is still a matter for the discretion of the Court. The statute itself does not define precisely who a prevailing party is, and we are left to other authority to make that determination.

In short, we must determine whether the relief that was fashioned by the Court for the plaintiff was sufficient to make the plaintiff the prevailing party. Generally, the prevailing party is a party in whose favor the decision or verdict is rendered and judgment is entered. Black’s Law Dictionary 1069 (rev. 5th ed. 1979). For purposes of an award under the so-called “cost statutes” such as 5 V.I.C. § 541, the prevailing party is the party who has an affirmative judgment rendered in his favor at the conclusion of the entire case. Ennis v. Ring, 341 P.2d 885, 889 (Wash. 1959), Seiken v. Todd Dry Dock, 67 A.2d 131, 135 (N.J. 1949); Nash v. Raun, 67 F.Supp. 212, 218 (W.D. Pa. 1946).

The Supreme Court has recently stated:

[a] typical formulation is that plaintiffs may be considered prevailing parties for attorney’s fees purposes if they succeed on any significant issue in litigation which achieves some of the benefit parties sought in bringing suit. Hensley v. Eckerhart, 103 S.Ct. 1933, 1939 & n.8 (1983), quoting Nadeau v. Helgemoe, 581 F.2d 275, 278-79 (1st Cir. 1978).1

In this circuit it is settled law that as long as a plaintiff achieves some of the benefits sought in maintaining a lawsuit, even though that plaintiff does not ultimately succeed in securing the judgment sought, the plaintiff can be considered the prevailing party for purposes of a fee award. NAACP v. Wilmington Medical Center, Inc., 689 F.2d 1161, 1166 (3d Cir. 1982). See also Sullivan v. Pa. Dept. of Labor & Indus., 663 F.2d 443, 449 (3d Cir. 1981); Bagby v. Beal, 606 F.2d 411, 415 (3d Cir. 1979).

[318]*318Applied to the case herein, it is clear that the plaintiff did prevail. She obtained a decision that the defendant was in default of the lease, and relief was fashioned to cure the various conditions of default, together with a warning that continued default could remove the protection that a court of equity has thus far provided. Accordingly, in our view, the plaintiff is the prevailing party. But before we can consider any award of attorney’s fees and other costs, we must further determine whether 5 V.I.C. § 541 applies in this case.

III. APPLICABLE LAW

There are actually two proceedings involved in this matter. One proceeding is the quasi-judicial arbitration proceeding which was held pursuant to the written agreement of the parties. The second is the action herein in which the Court, having personal and subject matter jurisdiction, essentially confirmed the decision of the arbitrators while also making conclusions of law of an equitable nature based on such findings.

A. The Arbitration Proceeding

The arbitration proceeding consumed at least three days, and no doubt much of the time and expense of both parties was involved in the preparation for and presentation of their respective cases to the arbitrators. The only discussion of costs by the arbitrators in their findings is in Paragraph No. 33 where it is directed that “the parties shall bear equally the cost of the arbitrators and reporter in accordance with billings submitted to them and the Court.”

The plaintiff does not appear to seek reimbursement for those expenses, but she does seek an award for the other costs, and the attorney’s fees expended by her as plaintiff, which are related to the arbitration proceeding. The first question we must answer in that regard is whether 5 V.I.C. § 541 applies to an arbitration proceeding under conditions agreed to in writing by the parties. As previously noted, that section simply states that an award of such costs is available, in the discretion of the Court, to the prevailing party “. . . in maintaining the action or defenses thereto.” We view the arbitration proceeding provided for in the written lease as a separate, quasi-judicial action, in a forum created by the parties for the resolution of their dispute. The very purpose of such an agreement is to avoid the necessity of resorting to a court for a judicial determination of the dispute, with its attendant expenses. That being the case, the attorney’s fees and costs of the arbitration proceeding [319]*319itself, as distinct from an action in court to confirm the results of the proceeding, is not part of the cost of “maintaining the action or defenses thereto” as contemplated in section 541.

Case law supports the general view that attorney’s fees and other costs for an arbitration are not recoverable by either party as against the other, in the absence of the express agreement of the parties, or a statute providing therefor. We hold herein that 5 V.I.C. § 541 does not cover the costs of the arbitration, and there is no other statute which fills the void. See Hartford Accident & Idem. Co. v. Holton, 190 So.2d 801, 802 (Fla. 1966); Tassinari v. Loyer, 189 So.2d 651, 653 (Fla.

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