Nelson v. MacHut

405 N.W.2d 776, 138 Wis. 2d 301, 1987 Wisc. App. LEXIS 3527
CourtCourt of Appeals of Wisconsin
DecidedMarch 26, 1987
Docket84-1136
StatusPublished
Cited by7 cases

This text of 405 N.W.2d 776 (Nelson v. MacHut) is published on Counsel Stack Legal Research, covering Court of Appeals of Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nelson v. MacHut, 405 N.W.2d 776, 138 Wis. 2d 301, 1987 Wisc. App. LEXIS 3527 (Wis. Ct. App. 1987).

Opinion

EICH, J.

Douglas Nelson appeals from a judgment assessing attorney fees against him pursuant to *303 the "frivolous action” statute, sec. 814.025, Stats. The issues are: (1) whether the testimony of an attorney expert witness as to the reasonableness of the fees charged must be disregarded because his office is not in the county in which the action arose; (2) whether the trial court erred in determining that Machut’s total fees for defending the action were reasonable; (3) whether the fact that Machut prevailed on only one of two alternative grounds stated in his motion to dismiss requires the court to apportion the award of fees; (4) whether Nelson’s appeal is itself frivolous, in whole or in part; and (5) whether Nelson should be assessed double costs for failing to comply with the Rules of Appellate Procedure.

We conclude that the expert witness was competent to testify despite his out-of-county residence, and that the trial court did not abuse its discretion in ruling on the reasonableness of the fees. We also conclude that the court was not required to apportion the fees as a result of its decision on Machut’s motions, and that Nelson’s appeal is frivolous. Finally, we assess double costs against Nelson for violating the Rules of Appellate Procedure.

The facts are not in dispute. Nelson sued Machut for defamation, and the case lay dormant for several years. Machut then filed three motions: a motion for judgment on the pleadings based on the privileged nature of the alleged defamatory communication; a motion for attorney fees under sec. 814.025, Stats., and a motion to dismiss for failure to prosecute. After receiving briefs, the trial court granted the first two motions and denied the third. The court then proceeded to assess fees against Nelson without further hearing, and Nelson appealed. We affirmed the trial court’s rulings on the motion for judgment on the *304 pleadings and on the frivolousness of the action, but we remanded with directions to determine the reasonableness of the fees. The trial court held further hearings and made the award which is the subject of this appeal. Other facts will be discussed below.

I. EXPERT WITNESS

Machut’s expert witness on the reasonableness of his attorney fees was a lawyer from another county. Nelson argues, without citing any authority, that "[i]t is the law in Wisconsin and elsewhere that [such a witness must] be an attorney practicing in the county where he is asked so to testify.” Because it is undisputed that the witness had practiced in Dane County, the only basis for Nelson’s challenge must be that the witness has no office in the county. The argument is without merit.

The witness was competent to give his opinion. A trial lawyer experienced in defamation actions, he was president-elect of the State Bar of Wisconsin and had a statewide practice. He had practiced in Dane County, and was "very familiar” with both the standards of practice and attorneys’ billing practices in the county. The witness’s competency to give expert testimony was established beyond question.

II. REASONABLENESS OF THE FEE

Section 814.025(1), Stats., provides that if an action is found to be frivolous, as that term is defined in the statute, the court "shall award to the successful party costs ... and reasonable attorney fees.” In Standard Theatres v. Transportation Dept., 118 Wis. 2d 730, 747, 349 N.W.2d 661, 671 (1984), the supreme *305 court stated that a trial court’s valuation of attorney fees "will be sustained unless there is an abuse of discretion.” Once the facts are found, however, reasonableness is usually a question of law. Wassenaar v. Panos, 111 Wis. 2d 518, 525, 331 N.W.2d 357, 361 (1983). But where the question is the reasonableness of attorney fees, we have recognized an alternative approach. We view the question as one of law, but give weight to the trial court’s determination. State Bank of Hartland v. Arndt, 129 Wis. 2d 411, 423 n. 3, 385 N.W.2d 219, 225 (Ct. App. 1986). This approach is consistent with the court’s discussion of trial court deference in Standard Theatres:

We believe that the trial court is in an advantageous position to make a determination as to the reasonableness of a firm’s rates. This is because the trial court may be aware of the costs incurred by a firm in managing its legal practice, or is capable of asking to be made aware of them. As this court noted in Tesch v. Tesch, 63 Wis. 2d 320, 335, 217 N.W.2d 647 [, 654] (1974).
"[The trial judge] has observed the quality of the services rendered and has access to the file in the case to see all of the work which has gone into the action from its inception. He has the expertise to evaluate the reasonableness of the fees with regard to the services rendered.” Id., 118 Wis. 2d at 747, 349 N.W.2d at 671.

Nelson argues that there was no evidence from which the trial court could conclude that the fees were reasonable. We disagree. The case was tried by Attorney Linda Clifford, then an associate in a Madison law firm. Clifford’s work was closely supervised on a near- *306 daily basis by Attorney Brady Williamson, a firm partner with extensive experience in the trial of defamation cases. Williamson reviewed all of Clifford’s time slips and every pleading, motion paper and brief, and he reviewed and adjusted all client billings. He discussed the factors that went into determining the amount of Machut’s bills, and stated that in his opinion the charges were reasonable. All of the time slips, bills and written narrative summaries of the work done for Machut were received in evidence without objection, and Nelson’s cross-examination revealed little more than that Williamson did not actually watch Clifford work on the case to see whether she was keeping accurate time records.

Attorney Gregory Conway was Machut’s expert witness, and his qualifications have already been discussed. Conway testified that the charges to Ma-chut were reasonable, if somewhat on the low side. He based his opinion on his knowledge and experience, and his review of the files in the case. Nelson’s cross-examination was essentially limited to establishing that Conway had no actual knowledge that Clifford’s and Williamson’s billed hours were accurately or honestly reported, and that he could not say whether a charge of $1.96 for a single telephone call was actually charged by the telephone company, and, if so, whether the company’s rates were themselves reasonable.

Nelson himself was his only witness, and he testified briefly. He is an attorney who had served for a time as a small claims judge, and had practiced in Madison for some fifty years. In Nelson’s view, Clifford’s and Williamson’s charges were unreasonable.

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Bluebook (online)
405 N.W.2d 776, 138 Wis. 2d 301, 1987 Wisc. App. LEXIS 3527, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nelson-v-machut-wisctapp-1987.