Maguire v. Merrimack Mutual Insurance

573 A.2d 451, 133 N.H. 51, 1990 N.H. LEXIS 33
CourtSupreme Court of New Hampshire
DecidedApril 13, 1990
DocketNo. 89-262
StatusPublished
Cited by26 cases

This text of 573 A.2d 451 (Maguire v. Merrimack Mutual Insurance) is published on Counsel Stack Legal Research, covering Supreme Court of New Hampshire primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Maguire v. Merrimack Mutual Insurance, 573 A.2d 451, 133 N.H. 51, 1990 N.H. LEXIS 33 (N.H. 1990).

Opinion

JOHNSON, J.

This is an appeal from an order of the Superior Court (Groff, J.) denying the defendant’s motion for'attorney’s fees. The issue presented is whether the trial court erred in denying the defendant’s motion where the jury determined by a preponderance of the evidence, using a special verdict form, that the plaintiffs set fire to their own home in order to obtain insurance proceeds. We affirm.

In 1982 the plaintiffs commenced an action against the defendant for fire insurance benefits under a homeowner’s insurance policy. The defendant refused to pay on the ground that the plaintiffs, or someone acting in their behalf and with their knowledge, committed arson, and that the plaintiffs were attempting to collect insurance proceeds fraudulently. A jury trial held in January, 1988, resulted in a general verdict for the defendant. In addition to the general verdict, the jury rendered the following special verdict:

“1. Do you find by a preponderance of the evidence that the fire which occurred at the plaintiffs’ home in January of 1981 was the result of the willful and intentional burning of the building by the plaintiffs or someone acting on their behalf with their knowledge?
YES X NO_
2. Do you find by a preponderance of the evidence that the plaintiffs willfully concealed or misrepresented any material fact or circumstance concerning the subject of the insurance?
YES X NO_
3. Do you find that the plaintiffs swore falsely relating to the subject of the insurance for the purpose of obtaining the policy proceeds?
YES X NO_
If the answer to any of the preceding three questions was yes, deliberate no further and mark the attached general verdict form in the appropriate place ‘Verdict for the Defendant.’”

Following the trial, the defendant filed a motion for attorney’s fees based on the theory that the jury’s special verdict was, in effect, a ruling that the plaintiffs instituted frivolous litigation in bad faith. See Indian Head National Bank v. Corey, 129 N.H. 83, 86, 523 A.2d 70, 72 (1986). The motion was denied by an order dated May 5, 1988, and the defendant appealed the decision to this court. We vacated the [53]*53trial court’s order and remanded the matter to the superior court for reconsideration in light of Keenan v. Fearon, 130 N.H. 494, 543 A.2d 1379 (1988), a case concerning attorney’s fees which was so recent that it was not discussed in the parties’ briefs in this court’s proceedings. The trial court then held another hearing and again issued an order denying the defendant’s motion for attorney’s fees. The defendant now appeals from this second order.

In his second order, the trial judge noted the language in Keenan which explains that “[t]he recognized scope of authority to award fees” includes both “compensation for those who are forced to litigate in order to enjoy what a court has already decreed, [and] compensation for those who are forced to litigate against an opponent whose position is patently unreasonable.” Keenan, 130 N.H. at 501-02, 543 A.2d at 1383. He then stated that this court “has recognized the ‘power to award counsel fees in any action commenced, prolonged, required or defended without any reasonable basis in the facts provable by evidence, or any reasonable claim in the law as it is, or as it might arguably be held to be.’ [Id. at 502, 543 A.2d at 1383].” Following this statement of the law as set out in Keenan, the trial judge explained that

“[t]he burden of proof in this case was by a preponderance of the evidence. The evidence was circumstantial, and the material facts were largely established by expert testimony. There was significant conflicting testimony. Credibility of witnesses, as always, played a substantial role in the verdict. This Court cannot determine that plaintiff was unreasonable in litigating this matter.
It may, at first blush, seem unjust not to award attorney’s fees in an action where one who seeks to collect under his fire insurance policy, is determined to have burned his own home. However, an analysis of the Court’s decision in Keenan, and the purposes behind the general rule against awarding of attorney’s fees, indicate that it is not, in fact, unjust. In this case, the issue of the cause of the fire deserved to be litigated from an evidentiary standpoint.”

We read the trial court’s explanation as indicating the court’s belief that the jury could have resolved the disputed issue either way, since the evidence was so close.

On appeal, the defendant argues that a denial of attorney’s fees is in error where there are specific findings of bad faith or fraudulent [54]*54conduct. The defendant contends that once the jury found that the plaintiffs set the fire and then lied about it, the trial judge had either to set aside the jury’s verdict or award attorney’s fees. Since the trial judge opted instead to deny the defendant’s motion for attorney’s fees while allowing the verdict to stand, the defendant insists that the judge erred as a matter of law.

The plaintiffs point out that in New Hampshire we adhere to the rule that attorney’s fees do not automatically flow in favor of a prevailing civil litigant. They then argue that an award of attorney’s fees, in a case like the present one, is only proper when the trial judge, in his or her discretion, determines that the position of the losing party in prosecuting or defending the action was “patently unreasonable.” See Keenan, 130 N.H. at 502, 543 A.2d at 1383.

The plaintiffs’ argument is founded on the theory that a jury verdict based on a preponderance of the evidence is in fact a verdict resulting from the application of the lowest standard of proof known to the law. The preponderance standard only requires that the evidentiary balance tip ever so slightly in favor of one party in order to enter a verdict for that litigant. According to the plaintiffs, such a verdict, by itself, is insufficient to require a judge to award attorney’s fees to the prevailing party.

Resolution of the issue in this case requires a determination of the correct standard of review of the trial judge’s denial of the defendant’s motion for attorney’s fees. In this case, the defendant contends that the trial judge erred as a matter of law. The plaintiffs, on the other hand, insist that it was within the judge’s discretion to deny the defendant’s request for attorney’s fees, and that the decision may only be reversed by this court upon a finding of abuse of discretion. We agree with the plaintiffs. “Judicial discretion has been defined as ‘that power of decision, exercised to the necessary end of awarding justice, and based upon reason and the law, but for which decision there is no special governing statute or rule.’” State v. Comparone, 110 N.H. 398, 399, 269 A.2d 131, 132 (1970) (citation omitted).

With this definition in mind when reviewing decisions concerning attorney’s fees, it is clear that this court ordinarily applies the abuse of discretion standard. Several cases explicitly state that the award of attorney’s fees is discretionary, either generally,

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Cite This Page — Counsel Stack

Bluebook (online)
573 A.2d 451, 133 N.H. 51, 1990 N.H. LEXIS 33, Counsel Stack Legal Research, https://law.counselstack.com/opinion/maguire-v-merrimack-mutual-insurance-nh-1990.