Marketing Unlimited, Inc. v. Jefferson Chemical Co.

583 P.2d 630, 90 Wash. 2d 410, 1978 Wash. LEXIS 1110
CourtWashington Supreme Court
DecidedAugust 24, 1978
Docket44922
StatusPublished
Cited by20 cases

This text of 583 P.2d 630 (Marketing Unlimited, Inc. v. Jefferson Chemical Co.) is published on Counsel Stack Legal Research, covering Washington Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Marketing Unlimited, Inc. v. Jefferson Chemical Co., 583 P.2d 630, 90 Wash. 2d 410, 1978 Wash. LEXIS 1110 (Wash. 1978).

Opinion

*411 Hamilton, J.

Appellant, Marketing Unlimited, Inc., sued respondent, Jefferson Chemical Company, for damages based upon negligent misrepresentation. Respondent was personally served in Texas under Washington's "long-arm" statute, RCW 4.28.185. At trial, which was held in Yakima County, Washington, respondent prevailed on the merits and accordingly requested an award of attorney fees pursuant to RCW 4.28.185(5). The trial court granted the request awarding $7,120 as reasonable attorney fees. This amount represented respondent's entire defense expenditure.

Appellant sought review of the trial court's order awarding attorney fees in the Court of Appeals, Division Three. After a settlement conference, the case was certified to this court and accepted for review.

We affirm the trial court's order.

The sole issue on appeal is the propriety of the award of attorney fees. Appellant contends the trial court erred in awarding actual attorney fees rather than partial fees. It argues recovery of attorney fees under RCW 4.28.185(5) should be limited to the increased amount of fees which results from having trial in this state rather than the state of defendant's residence.

Finding of fact No. 3 affords the basis from which appellant's contention springs. It reads:

That defendant's attorney fees in the amount of $7,120.00 are reasonable for the services rendered in defending this case and that ten to fifteen percent of said fees were required as a result of this action being tried in Washington rather than in Texas. That the balance of said fee would have been incurred had this matter been tried in Texas.

The long-arm statute provides, in pertinent part:

(5) In the event the defendant is personally served outside the state on causes of action enumerated in this section, and prevails in the action, there may be taxed and allowed to the defendant as part of the costs of *412 defending the action a reasonable amount to be fixed by the court as attorneys' fees.

(Italics ours.) RCW 4.28.185(5).

Reasonableness is the only statutory limitation on attorney fees awarded pursuant to RCW 4.28.185(5). This contrasts with specific monetary limitations which have been included in the statutes of other states. See 2 L. Orland, Wash. Prac. § 16(3) (1972).

In State v. O'Connell, 83 Wn.2d 797, 844, 523 P.2d 872, 77 A.L.R.3d 874 (1974) (O'Connell I), we expressly held that awards pursuant to RCW 4.28.185(5) are discretionary. We have also recognized that subsection (5) was placed in the long-arm statute by the legislature with the intention of bringing the statute within traditional notions of fair play and substantial justice as referred to in International Shoe Co. v. Washington, 326 U.S. 310, 90 L. Ed. 95, 66 S. Ct. 154, 161 A.L.R. 1057 (1945). State v. O'Connell, 84 Wn.2d 602, 605, 528 P.2d 988 (1974) (O'Connell II). Therefore, when addressing a request for attorney fees which is made by a prevailing defendant personally served outside the state, a trial court must apply the standard we set forth in O'Connell II, supra at 606. That standard requires the court, in exercising its discretion, to ask:

Is the action frivolous and brought only to harass the defendant? If that question is answered in the negative, the test should then be: Has the defendant, in being forced to defend the action in this state, been subjected to burdens and inconveniences which would have been avoided had the trial been conducted at the place of his domicile, which are not balanced by conveniences to the defendant resulting from the trial of the action in this state, and which are of sufficient severity to warrant the court in concluding that, without the award of attorney fees, traditional notions of fair play and substantial justice would be violated?

O'Connell II, supra at 606.

If a trial court applies the above standard and orders attorney fees, this court will not set aside its ruling in the absence of a clear showing of abuse of discretion, that is, *413 discretion manifestly unreasonable or exercised on untenable grounds or for untenable reasons. O'Connell I, supra at 844; See State ex rel. Carroll v. Junker, 79 Wn.2d 12, 26, 482 P.2d 775 (1971).

In this case the trial court's memorandum opinion, in pertinent part, states:

The undersigned, in applying the test set out in State v. O'Connell, 84 Wn.2d 602 at 606, finds that the above-entitled case was not brought frivolously or with any intent to harass the defendant. The question then becomes, has the defendant, in being forced to defend the action in this state, been subjected to burdens of inconvenience that would have been avoided had the trial been conducted in the place of defendant's domicile, which are not balanced by conveniences to the defendant resulting from the trial of the action in this state and which are of sufficient severity to warrant the court in concluding that, without the award of attorney fees, traditional notions of fair play and substantial justice would be violated?
This court believes that under the test in State v. O'Connell, supra, it must be said that there was a detriment to the defendant in having the case tried in the State of Washington rather than the State of Texas; that the expense was greater than it would have been had the case been tried in Texas. This court believes that under the authorities it should exercise its discretion and award the attorney fee as requested. It is understood that the amount was not being contested as it was not at the time of oral argument.

As we have noted, RCW 4.28.185(5) expressly permits the court in its discretion to award a reasonable attorney fee.

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Bluebook (online)
583 P.2d 630, 90 Wash. 2d 410, 1978 Wash. LEXIS 1110, Counsel Stack Legal Research, https://law.counselstack.com/opinion/marketing-unlimited-inc-v-jefferson-chemical-co-wash-1978.