McConnell v. Mothers Work, Inc.

128 P.3d 128
Court of Appeals of Washington·Decided February 7, 2006·No. 23139-9-III·Published·Cited by 19 cases

Opinion

128 P.3d 128 (2006)

Christine McCONNELL, on behalf of herself and all others similarly situated, Respondent,
v.
MOTHERS WORK, INC., a Delaware Corporation, Appellant.

No. 23139-9-III.

Court of Appeals of Washington, Division 3.

February 7, 2006.

*129 Leigh Ann Collings Tift, Littler Mendelson, Seattle, WA, for Appellant.

Robert Allan Dunn, Kevin W. Roberts, Dunn & Black PS, Spokane, WA, for Respondent.

SWEENEY, A.C.J.

¶ 1 Employees of Mothers Work, Inc. prevailed in an action for back pay under Washington's Minimum Wage Act, chapter 49.46 RCW. Mothers Work assigns error to the trial court's award of attorney fees and costs. Mothers Work argues first that the employees should not have recovered any attorney fees because the jury awarded them less than the amount of Mothers Work's settlement offer. But we conclude that prejudgment interest is added to the amount of the jury verdict in determining the amount of recovery. This brings the total recovery above the offer. Next, Mothers Work asserts that recoverable litigation costs in a Minimum Wage Act claim are limited by RCW 4.84.010.[1] We agree with the trial court that the controlling statute is the Minimum Wage Act, and its only qualification is that costs be "allowed by the court." RCW 49.46.090. Finally, Mothers Work contends that the court did not make a sufficient record to support its findings or explain its discretionary decision on the amount of fees. We agree and remand for entry of findings of the facts necessary to support the fee award.

FACTS

¶ 2 Christine McConnell sued Mothers Work, Inc. in April 2001 for violations of the Washington Minimum Wage Act. She ultimately certified the suit as a class action in which she represented similarly situated sales associates and store managers. The sales associates were hourly employees; the store managers were salaried. McConnell alleged that Mothers Work withheld rest periods, meal breaks, and overtime pay and thereby violated the Minimum Wage Act. She sought statutorily authorized double compensation for willful violations of the act, plus attorney fees and costs.

¶ 3 Mothers Work fought the class certification. And it tried to remove the case to federal court twice, first on diversity and then based on the amount in controversy. Mothers Work moved to divide the class into subclasses of associates and managers. Ultimately, the court did split the class to accommodate Mothers Work's affirmative defense that the managers were exempt employees *130 and not entitled to overtime pay. A jury eventually found that the managers were not exempt from the protections of the Minimum Wage Act.

¶ 4 Before trial, Mothers Work made an offer pursuant to CR 68[2] to settle the sales associates' claims for meal breaks and rest periods for $50,000 plus "reasonable attorney fees as determined by the Court and costs now accrued." Clerk's Papers (CP) at 181. The associates accepted the offer.

¶ 5 The store managers rejected Mothers Work's similar pretrial offer of $125,000, plus fees and costs. After two weeks of trial, the jury awarded the store managers $105,000 and Christine McConnell $1,000 in unpaid overtime pay. The court awarded prejudgment interest of $33,053.68. Mothers Work objected to the managers' requests for attorney fees on a number of grounds, including that the judgment was less than its CR 68 offer of $125,000.

¶ 6 The court awarded attorney fees of $309,475.90 and $97,109.65 in costs. The court explained: "Basically I have reviewed the plaintiffs' request for attorney's fees. And frankly, I'm going to award those. I feel that they're reasonable, were necessary and appropriate. So, I am granting that." Report of Proceedings (RP) (May 21, 2004) at 179.

DISCUSSION

¶ 7 Mothers Work assigns error to the award of litigation costs and attorney fees.

¶ 8 A trial court may award fees and costs to the prevailing party when authorized to do so by contract, statute, or a recognized ground in equity. Labriola v. Pollard Group, Inc., 152 Wash.2d 828, 839, 100 P.3d 791 (2004). We review the legal basis for any award de novo. Schlener v. Allstate Ins. Co., 121 Wash.App. 384, 388, 88 P.3d 993 (2004). And whether a statute authorizes an award of attorney fees and costs is a question of law subject to de novo review. Tradewell Group, Inc. v. Mavis, 71 Wash.App. 120, 126-27, 857 P.2d 1053 (1993).

¶ 9 Here, the Minimum Wage Act provides for reasonable attorney fees and costs "in an amount to be determined by the court." RCW 49.48.030. Employees can recover fees, however, only if the amount of recovery is at least equal to the amount admitted by the employer. RCW 49.48.030.

RECOVERABLE LITIGATION COSTS

¶ 10 Mothers Work contends that the award of costs is limited to those authorized by RCW 4.84.010.[3]Hume v. Am. Disposal Co., 124 Wash.2d 656, 880 P.2d 988 (1994). So here, it argues, the court erroneously awarded McConnell costs for expert witnesses; depositions and transcripts not used at trial; travel expenses; mediation fees; ordinary office expenses such as postage, phone, fax, copying, and so forth; and parking—none of which are authorized by that statute. Mothers Work argues that only $13,211.16 of the $92,766.90 cost bill should have been allowed.

¶ 11 McConnell responds that the holding in Hume does not limit recoverable costs to those specified in RCW 4.84.010 if a specific statute allows expanded costs. And here the Minimum Wage Act authorizes expanded costs "as may be allowed by the court." RCW 49.46.090 (emphasis added). And, McConnell argues, the Minimum Wage Act is a remedial statute that must be liberally construed.

¶ 12 We review the trial court's interpretation of statutory costs provisions de novo. See, e.g., Brown v. City of Seattle, 117 Wash. App. 781, 795-96, 72 P.3d 764 (2003).

¶ 13 A specific statute will apply over a more general one. In re Estate of Black, 153 Wash.2d 152, 164, 102 P.3d 796 (2004). The specific statute applicable statute here is *131 chapter 49.46 RCW, the Minimum Wage Act. And this is remedial legislation, so we construe it liberally to achieve the legislature's broad pu

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McConnell v. Mothers Work, Inc., 128 P.3d 128 (Wash. Ct. App. 2006).

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