Murphy v. Lovin

284 P.3d 918, 128 Haw. 145, 2011 WL 5127797, 2011 Haw. App. LEXIS 1190
CourtHawaii Intermediate Court of Appeals
DecidedOctober 28, 2011
DocketNo. 29452
StatusPublished
Cited by3 cases

This text of 284 P.3d 918 (Murphy v. Lovin) is published on Counsel Stack Legal Research, covering Hawaii Intermediate Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Murphy v. Lovin, 284 P.3d 918, 128 Haw. 145, 2011 WL 5127797, 2011 Haw. App. LEXIS 1190 (hawapp 2011).

Opinion

Opinion of the Court by

GINOZA, J.

Plaintiff-Appellant Jeffrey Scott Murphy (Murphy) appeals from the Amended Final Judgment filed on October 21, 2008 in the Circuit Court of the Third Circuit (circuit court).1 In this tort action, Plaintiff Murphy brought claims against Defendant Mike Juarez (Juarez) and Defendant-Appellee Robert E. Lovin, dba Lovin Construction (Lovin). On Plaintiff Murphy’s claims against Juarez, judgment was entered in favor of Murphy and against Juarez in the total amount of $74,000. However, as to Plaintiff Murphy’s claims against Lovin, judgment was entered against Murphy and in favor of Defendant Lovin. Pursuant to Rules 25 and 26 of the Hawai'i Arbitration Rules (HAR), the circuit court awarded Defendant Lovin attorneys’ fees in the amount of $15,000 and costs in the amount of $4,100.75, for a total of $19,100.75, against Plaintiff Murphy.

On appeal, Murphy challenges the circuit court’s award of attorneys’ fees and costs to Lovin. Murphy also contends that the circuit court erred in giving two jury instructions at trial.

We conclude that in multi-party lawsuits, under HAR Rules 25 and 26 governing the Court Annexed Arbitration Program (CAAP), a party whose appeal from an arbitration award results in a trial de novo can be a “prevailing party” with regard to one party while being a “non-prevailing party” as to another party for purposes of awarding attorneys’ fees and costs. The circuit court was therefore authorized to award attorneys’ fees and costs to Lovin and against Murphy even though Murphy was a prevailing party as to Juarez.

We also conclude that the circuit court did not err in its instructions to the jury.

The Amended Judgment entered by the circuit court is therefore affirmed.

I. CASE BACKGROUND

A. Proceedings in the Circuit Court

Plaintiff Murphy claims in this case that, on or about August 5, 2005, while he was [148]*148working for Lovin at a construction site, he was assaulted and battered by Juarez without provocation or warning, and that Juarez was also employed by Lovin at that time. On October 19, 2006, Murphy filed this tort action against, inter alia,2 Juarez and Lovin, claiming that Juarez acted wantonly or oppressively in assaulting him and that Lovin was negligent and/or reckless in hiring, training, and supervising Juarez.

On December 11, 2007, after publication of summons against Juarez, the circuit court entered an order granting entry of default against Juarez.

The ease was assigned to the CAAP and Murphy’s claims were submitted to arbitration. On May 7, 2008, the arbitrator entered an award finding “defendant is not liable” and awarding no damages against “defendant.”3 On May 27, 2008, Murphy filed a “Notice of Appeal and Request for Trial De Novo” pursuant to HAR Rule 22.

On July 22, 2008, a jury trial commenced in the circuit court on the issues of whether Lovin was negligent; if Lovin was negligent, the percentage of responsibility between Juarez and Lovin; and damages. The record reflects that both Murphy and Lovin submitted proposed jury instructions. Murphy contends on appeal that he objected to Lovin’s proposed Special Jury Instruction No. 1 (which became Pinal Jury Instruction 24) and to Lovin’s Proposed Jury Instruction No. 6.5 (which became Final Jury Instruction 26), but there is nothing in the record on appeal documenting Murphy’s objections.4

The jury returned a special verdict on July 31, 2008 finding that Lovin was not negligent. The jury also determined damages, finding that Murphy had sustained $34,000 in special damages and $20,000 in general damages, and awarding $20,000 in punitive damages against Juarez.

On August 28, 2008, Lovin filed a motion requesting an award of attorneys’ fees and costs under HAR Rules 25 and 26. The circuit court granted Lovin’s motion and issued an order on October 21, 2008, awarding attorneys’ fees in the amount of $15,000 and costs in the amount of $4,100.75, for a total of $19,100.75 against Murphy.

The Amended Final Judgment was entered on October 21, 2008, which: awarded $74,000 in favor of Murphy and against Juarez; entered judgment against Murphy and in favor of Lovin; and awarded attorneys’ fees and costs in the total amount of $19,100.75 for Lovin against Murphy.

B. Points on Appeal

Murphy raises three points of error in this appeal. First, Murphy contends that the circuit court erred in granting Lovin’s motion for attorneys’ fees and costs against Murphy under HAR Rules 25 and 26. Murphy asserts that the circuit court did not have authority to assess attorneys’ fees and costs against him under HAR Rules 25 and 26 because he improved upon the arbitration award by thirty percent or more vis-a-vis Juarez and he was therefore the “prevailing party” under the rules. Murphy also con[149]*149tends it was inequitable for the circuit court to award such fees and costs.

Second, Murphy contends that the circuit court committed plain error by giving Final Jury Instruction 24, regarding Murphy’s claim of negligent hiring, because it was an erroneous statement of the law in Hawai'i.

Third, and similarly, Murphy contends that the circuit court committed plain error by giving Final Jury Instruction 26, also regarding Murphy’s claim of negligent hiring, because it was an erroneous statement of the law in Hawai'i.

II. STANDARDS OF REVIEW

A. Award of Fees and Costs Under HAR Rules 25 and 26

The circuit court’s authority to award Lovin costs and attorneys’ fees under HAR Rules 25 and 26 is a question of law which we review de novo. As stated by the Hawai'i Supreme Court:

[A] determination of who is the prevailing party involves interpretation of the HAR ... which are rules promulgated by the court. When interpreting rules promulgated by the court, principles of statutory construction apply. Interpretation of a statute is a question of law which we review de novo. Consequently, we interpret the HAR ... de novo.

Molinar v. Schweizer, 95 Hawai'i 331, 334-35, 22 P.3d 978, 981-82 (2001) (citations and internal quotation marks omitted). See also Richardson v. Sport Shinko (Waikiki Corp.), 76 Hawai'i 494, 510, 880 P.2d 169, 185 (1994) (“circuit court’s interpretation of HAR 26 constituted a conclusion of law” which should be reviewed under the “right/wrong standard.”); Kealoha v. County of Hawai'i 74 Haw. 308, 324, 844 P.2d 670, 678 (1993).

We review the question of whether an award of costs and attorneys’ fees under HAR Rules 25 and 26 was “inequitable” under an abuse of discretion standard. See Richardson, 76 Hawai'i at 511, 880 P.2d at 186. An abuse of discretion occurs if the trial court has “clearly exceeded the bounds of reason or disregarded rules or principles of law or practice to the substantial detriment of a party litigant.” Amfac, Inc. v. Waikiki Beachcomber Inv. Co.,

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284 P.3d 918, 128 Haw. 145, 2011 WL 5127797, 2011 Haw. App. LEXIS 1190, Counsel Stack Legal Research, https://law.counselstack.com/opinion/murphy-v-lovin-hawapp-2011.