Phillips v. Brackett

575 S.E.2d 805, 156 N.C. App. 76
CourtCourt of Appeals of North Carolina
DecidedFebruary 4, 2003
DocketCOA02-385
StatusPublished
Cited by2 cases

This text of 575 S.E.2d 805 (Phillips v. Brackett) is published on Counsel Stack Legal Research, covering Court of Appeals of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Phillips v. Brackett, 575 S.E.2d 805, 156 N.C. App. 76 (N.C. Ct. App. 2003).

Opinion

BRYANT, Judge.

Jesse Cornelieus Brackett (Defendant) appeals a judgment filed 24 August 2001 awarding Brenda Macon Phillips (Plaintiff) damages and attorney’s fees and a concurrent order denying Defendant’s motions for relief from order and for reconsideration. We affirm.

On 3 March 2000, Plaintiff filed a complaint seeking “an amount in excess of $10,000” in damages for Defendant’s negligent driving resulting in a collision with Plaintiff’s vehicle. In his answer filed 3 April 2000, Defendant admitted negligence but denied Plaintiff’s allegations of injuries, medical expenses, and lost income. Following trial, the jury entered a verdict for Plaintiff in the amount of $3,829.98 as compensation for her personal injuries. Plaintiff moved for a new trial. Before the trial court ruled on the motion, Plaintiff suggested the trial court first hear her motion for attorney’s fees as this might alleviate the need to move for a new trial. The trial court inquired whether Defendant had any objection to this, and Defendant answered he did not. In support of her motion for attorney’s fees, Plaintiff submitted affidavits from her counsel and other attorneys familiar with Defendant’s insurer. The affidavits outlined the work performed by Plaintiff’s counsel, the hours expended, and his customary rate. They also described: (1) the actions and posture of Defendant’s insurer and counsel in this case, (2) Defendant’s insurer’s general claims practices, (3) observations associated with Defendant’s insurer with respect to other claims, including its tendency to litigate small claims to the appellate stage, and (4) web sites dedicated to alleged abuses by Defendant’s insurer.

In a judgment filed 24 August 2001, the trial court found in pertinent part:

1. This is a personal injury action arising out of a vehicular collision in which ... Defendant admittedly failed to reduce the speed *78 of his vehicle to the extent necessary to avoid contact with the rear of the vehicle being operated by . . . Plaintiff while Plaintiff’s vehicle was stopped pursuant to a duly erected traffic control signal at an intersection on March 30, 1998.
2. [Plaintiff]... and her husband ... have been clients of the firm of Carruthers & Roth, P.A. for many years.
4. [Plaintiffs counsel] first met with [Plaintiff] on April 28, 1998 in connection with her claims arising out of the collision.
5. After meeting with [Plaintiff], Carruthers & Roth, P.A. obtained copies of medical records on [Plaintiff] from all treating medical providers ....
7. After obtaining medical records and bills, [Plaintiff’s counsel] prepared a demand letter summarizing the liability and damages information on [Plaintiff] and forwarded this letter on August 11, 1999 to [Defendant’s insurer].
8. The initial demand letter submitted on behalf of [Plaintiff] was $38,750.00.
9. On October 28, 1999, in response to requests from [Defendant’s insurer], [Plaintiff’s counsel] forwarded... copies of W-2 forms for [Plaintiff] for 1996, 1997 and 1998, and requested an offer from [Defendant’s insurer] in settlement of [Plaintiff’s] claim.
10. Plaintiff received no offer from [Defendant’s insurer] on [her] claim and filed suit in Guilford County Superior Court on March 3, 2000.
11. During the course of handling this case, Carruthers & Roth responded to various discovery requests from [Defendant’s insurer] and, on February 20, 2001, defended the depositions of [Plaintiff] and her husband . . . taken by counsel retained by [Defendant’s insurer] to represent. . . Defendant.
13. Mediation of this matter was held on April 5, 2001.
*79 14. During the period of approximately three years prior to the mediation on April 5, 2001, neither [Defendant’s insurer] nor counsel retained by [Defendant’s insurer] made any offers of settlement on [Plaintiff’s] claim, despite admitting that [Defendant] was negligent.
15. During mediation . . . [Defendant’s insurer’s] adjuster and counsel retained by [Defendant’s insurer] communicated, for the first time, an offer of $6,000.00 to settle [Plaintiff’s] claim. Counsel for [Plaintiff] understood that the offer was nonnegotiable.
16. On April 5, 2001, counsel retained by [Defendant’s insurer] to defend ... Defendant filed a pleading entitled “Offer of Judgment” which stated that. . . Defendant “offers to allow Judgment to be taken against him in the amount of $6,001.00, which amount includes all attorneys fees and costs of court accrued to the date of the making of this offer and interest as may be allowed pursuant to G.S. § 24-5.”
17. On May 2, 2001, counsel for . . . Plaintiff communicated to counsel for... Defendant an offer by... Plaintiff to accept a total of $9,000.00 in settlement of her claim.
18. Counsel retained by [Defendant’s insurer] to represent . . . Defendant made no counter]-]offers.

The trial court entered findings with respect to the hours expended by Plaintiff’s counsel and his staff, his hourly rate, and the customary fees for such work. The trial court also made note of the affidavit assertions regarding Defendant’s insurer’s claims practices and concluded Defendant’s insurer had engaged in the unjust exercise of superior bargaining power in this case. The trial court then entered judgment for compensatory damages in the amount of $3,829.98 and awarded Plaintiff $15,231.50 in attorney’s fees.

The issues are whether: (I) the trial court’s award of attorney’s fees contravened public policy and the purpose of N.C. Gen. Stat. § 6-21.1; (II) Defendant preserved for appeal the question whether the trial court’s ruling on Plaintiff’s motion for attorney’s fees was an improper advisory opinion; (III) Defendant waived any assignment of error with respect to the trial court’s reliance on affidavit assertions relating to Defendant’s insurer’s general or past claims practices; (IV) the award of attorney’s fees punished proper case investigation and *80 discovery; and (V) the trial court made sufficient findings as to the time and labor expended by Plaintiffs counsel in this case.

I

Defendant first contends the trial court’s award of attorney’s fees contravened public policy and the purpose of section 6-21.1. Section 6-21.1 provides:

In any personal injury or property damage suit, or suit against an insurance company under a policy issued by the defendant insurance company and in which the insured or beneficiary is the plaintiff, upon a finding by the court that there was an unwarranted refusal by the defendant insurance company to pay the claim which constitutes the basis of such suit, instituted in a court of record, where the judgment for recovery of damages is ten thousand dollars ($10,000) or less, the presiding judge may, in his discretion, allow a reasonable attorney fee to the duly licensed attorney representing the litigant obtaining a judgment for damages in said suit....

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Cite This Page — Counsel Stack

Bluebook (online)
575 S.E.2d 805, 156 N.C. App. 76, Counsel Stack Legal Research, https://law.counselstack.com/opinion/phillips-v-brackett-ncctapp-2003.