Redd v. Hill

2013 UT 35, 304 P.3d 861, 737 Utah Adv. Rep. 35, 2013 WL 3008596, 2013 Utah LEXIS 88
Utah Supreme Court·Decided June 18, 2013·No. 20120552·Published·Cited by 22 cases

Opinion

Justice PARRISH,

opinion of the Court:

INTRODUCTION

11 At issue in this appeal is the question of whether a contingency fee agreement extends to an award of attorney fees. Appellant Virginia Hill entered into a contingency fee agreement (Agreement) with attorney and Appellee Don Redd. The Agreement stated, in part, that "Attorney is entitled to ONE THIRD (88 1/838%) of all monies paid to or in client[']s behalf for what ever [sic] cause related to this cause of action." Hill does not dispute that she willingly signed the Agreement or that Redd is entitled to one-third of Hill's primary award. Hill does dispute, however, that the Agreement entitles Redd to one-third of the court-awarded attorney fees.

2 We hold that the Agreement is unambiguous. Under its terms, Redd is entitled to one-third of both the primary judgment and the court-awarded fees.

BACKGROUND

3 In anticipation of filing competing motions for summary judgment below, the parties submitted Stipulated Facts for Joint Motions for Summary Judgment (Stipulated Facts). We rely on these Stipulated Facts in setting out the pertinent background.

T4 "In the early 1990s, Hill invested approximately $1.5 million with certain individuals, which monies were not properly used for the purposes intended." Hill hired Redd to help her recover her misappropriated investment. Redd drafted the Agreement, which both parties signed on August 29, 1997. The Agreement states, in relevant part, that "Attorney is entitled to ONE THIRD (88 1/8%) of all monies paid to or in client's behalf for what ever [sic] cause related to this cause of action." The Agreement further states that "Iln the event legal proceedings are necessary to enforce the terms of this agreement, the defaulting party *863 agrees to pay a reasonable attorney fee plus costs of Court."

15 Over the next thirteen years, Redd represented Hill in "various legal proceedings ... against the various defendants." The underlying action "resulted in a judgment in favor of Hill for the amount of $6,144,854.79." The judgment included both punitive damages and prejudgment interest.

T6 Following the entry of judgment, Hill retained the law firm of Wall & Wall to represent her in seeking to recover her attorney fees. Hill argued that attorney fees should be calculated based on her one-third obligation under the Agreement. But the district court determined that "[attorney] fees should be based upon an hourly rate charged to Hill [under the Lodestar formula] rather than any contingent fee amount for which she may be responsible to her attorney." The district court thereafter determined that reasonable attorney fees were $593,034.40 and awarded a supplemental judgment in this amount.

17 Hill has collected both the underlying judgment and the court-awarded attorney fees, and has paid Redd $2,046,236.60, representing one-third of the $6,144,854.79 primary judgment. She has not, however, paid Redd any portion of the supplemental attorney fees award.

[ 8 Redd filed a Demand for Payment as to his claim to one-third of the $598,084.40 attorney fees award. After he did not receive the requested payment, Redd filed an attorney's lien against his asserted one-third share. Redd's lien was subsequently denied by the district court. Redd then filed a declaratory action seeking a declaration that he was entitled to one-third of Hill's attorney fees award.

T9 After jointly submitting the Stipulated Facts, the parties filed cross motions for summary judgment urging their divergent interpretations of the Agreement. The district court ruled in favor of Redd. It reasoned that

the language in the fee agreement is unambiguous, [and] it applies the contingency fee to all money paid to the client for whatever cause. The plain meaning of the contingency fee agreement is that the 88 1/3% would apply to any award or judgment, whether for general damages, punitive damages, or attorney[ ] fees.

Therefore, the district court held that "the only possible interpretation [of the Agreement] is that [Redd] should receive 83 1/3% of the $593,034.40 in attorney[ ] fees awarded to [Hill]."

{10 Hill timely appealed the district court's final order and raises the question of whether "[Redd] is entitled to a judgment against [Hill] under the [Agreement] entered into by the parties for one-third of the attorney feels) award granted by the [dlistrict [clourt in a separate proceeding, plus one-third of the whole or primary judgment."

111 After the district court entered its final judgment and after Hill filed her notice of appeal, Redd filed a motion in the district court for augmentation of judgment, seeking his attorney fees arising from the declaratory action. He then filed a petition for supplemental relief under Utah Code section 78B-6-406, restating the claims he made in his motion for augmentation. The district court denied Redd's motion for augmentation in favor of proceedings on the supplemental relief petition but has not yet ruled on the matter.

112 In this court, Redd filed a motion seeking summary disposition of his appeal. We declined Redd's invitation to rule on summary disposition and deferred that motion pending plenary presentation on the merits. We have jurisdiction under Utah Code seetion 78A-8-102(8)(G).

STANDARD OF REVIEW

118 Summary judgment is proper only where "there is no genuine issue as to any material fact and ... the moving party is entitled to a judgment as a matter of law." Utarx R. Civ. P. 56(c). "In considering a grant of summary judgment, we review the [district] court's legal decision for correctness, giving no deference, and review the facts and inferences to be drawn therefrom in the light most favorable to the nonmoving party." Peterson v. Coca-Cola USA, 2002 *864 UT 42, ¶ 7, 48 P.3d 941 (internal quotation marks omitted).

114 Because the parties stipulated that "[tlhere are no private understandings, side agreements, or other writings" related to the Agreement, the district court was not required to look beyond the four corners of the Agreement when it ruled on summary judgment. "Questions of contract interpretation not requiring resort to extrinsic evidence are matters of law, and on such questions we accord the trial court's interpretation no presumption of correctness." Zions First Nat'l Bank, N.A. v. Nat'l Am. Title Ins. Co., 749 P.2d 651, 653 (Utah 1988).

115 Finally, "[wlhether attorney fees are recoverable in an action is a question of law, which we review for correctness. However, the district court has broad discretion in determining what constitutes a reasonable fee, and we will consider that determination against an abuse-of-discretion standard." - Softsolutions, Inc. v. Brigham Young Univ., 2000 UT 46, ¶ 12, 1 P.3d 1095 (alteration in original) (citation and internal quotation marks omitted).

ANALYSIS

I. REDD IS ENTITLED TO ONE-THIRD OF THE ATTORNEY FEES AWARD BASED ON THE PLAIN LANGUAGE OF THE AGREEMENT

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Redd v. Hill, 2013 UT 35, 304 P.3d 861, 737 Utah Adv. Rep. 35, 2013 WL 3008596, 2013 Utah LEXIS 88 (Utah 2013).

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