Ringolsby v. Johnson

2008 WY 127, 193 P.3d 1167, 2008 Wyo. LEXIS 132, 2008 WL 4571901
CourtWyoming Supreme Court
DecidedOctober 15, 2008
DocketS-08-0022
StatusPublished
Cited by8 cases

This text of 2008 WY 127 (Ringolsby v. Johnson) is published on Counsel Stack Legal Research, covering Wyoming Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ringolsby v. Johnson, 2008 WY 127, 193 P.3d 1167, 2008 Wyo. LEXIS 132, 2008 WL 4571901 (Wyo. 2008).

Opinion

CRANFILL, District Judge.

[T1] Appellants Tracy L. Ringolsby and Jane E. Swanhorst appeal from the district court's order denying their claim for attorneys' fees. We conclude that Appellants are not entitled to attorneys' fees due to a failure of proof. We affirm.

ISSUES

[12] Appellants presented one issue for review as follows:

Whether the trial court abused its discretion by ruling that Appellants did not meet their burden of proving the reasonableness of their attorneys' fees where Appellants submitted redacted billing statements along with an offer of in camera review to the trial court.

Appellees' brief did not contain a statement of the issue.

FACTS

Underlying Action

[13] On June 10, 2005, Appellants, as plaintiffs, initiated a civil action in the Laramie County District Court captioned Rin-golisby v. Daimaec Construction, Inc. (the "underlying action"). The underlying action was based upon contractual relationships between Appellants, as owners, and defendant Dalmac Construction, Inc., as contractor. Appellants named Dalmae Construction, Inc. as the sole defendant in the underlying action. However, it is important to note Appel-lee Dallas Johnson acted as President, a director and full-time employee of Dalmac Construction, Inc., and Appellee Arla Johnson acted as Vice President, Treasurer, a director, and an employee of Dalmae Construction, Inc. Appellees Dallas Johnson and Arla Johnson were the sole directors, officers, shareholders, and owners of Dalmac Construction, Inc.

[14] The district court conducted a bench trial finding that defendant Dalmace Construction, Inc. breached various contracts, breached the implied warranty of habitability, and breached oral promises. The district court found defendant Dailmac Construction, Inc. liable for damages and awarded a total of $85,208.96, plus costs, expenses and attorneys' fees to Appellants in the underlying action on June 6, 2006.

[T5] Dalmae Construction, Inc. did not appeal the underlying action, as such an appeal required Dalmae Construction, Inc. to post an appeal bond in the amount of the judgment. The Johnsons instead decided to file bankruptey on behalf of Dalmae Construction, Inc., in an effort to avoid paying the judgment in the underlying action.

[16] Appellants filed their Motion for Costs, Expenses and Attorneys Fees pursuant to W.R.C.P. 54(d)(2)(b) during the time Dalmae Construction, Inc. filed for bankruptcy. In support of their motion, Appellants submitted billing statements with the descriptions of the work performed redacted, claiming such redaction was prudent and nee-essary to maintain attorney-client privilege since the dispute between Appellants and Dalmac Construction, Inc. was not finalized. *1169 Appellants also stated they would submit the billing statements without the redactions for a review in camera if so requested by the court. Dalmae Construction, Inc. opposed using the redacted billing statements. Ultimately, the district court awarded Appellants attorneys' fees totaling $63,050.88.

Piercing Action

[T7] While their Motion for Costs, Expenses and Attorney Fees was being considered by the district court, Appellants attempted to collect their judgment against Dalmace Construction, Inc., by filing as a creditor in the bankruptcy court and by bringing the action that is the subject of this appeal, also known as the "piercing action." Appellants filed suit against Dallas Johnson, Arla Johnson, Dalmace Construction, Inc., Dalmac Homes, Inc., AAA Lazy D Land Company, LLC, and AAA Lazy D Enterprises, Inc. The piercing action was assigned to a different judge.

[18] The district court found only Dallas Johnson and Arla Johnson had invested any money or assets into AAA Lazy D Land Company, LLC or AAA Lazy D Enterprises, Inc. The district court also found that Dallas and Arla Johnson were the sole officers and shareholders of Dalmac Homes, Inc., which filed its Articles of Incorporation with the Wyoming Secretary of State on June 22, 2006, sixteen days after the district court entered its Judgment and Order in the underlying action.

[19] In the piercing action, the district court concluded, after stating very particularized Findings of Fact, that a unity of interest and ownership between Dallas Johnson, Arla Johnson, Dalmae Homes, Inc., AAA Lazy D Land Company, LLC, and AAA Lazy D Enterprises, Inc. existed. The district court found the corporate entities had been manipulated by their owners Dallas and Arla Johnson in an effort to avoid payment of a particular ereditor. As such, the court awarded Appellants $148,259.84, plus statutory interest from November 8, 2006. Appellants were also awarded their costs, expenses and attorneys' fees for presenting their claims to the court.

[110] Appellants filed their Motion for Award of Costs, Expenses and Attorneys Fees, using the same redaction method as in the underlying action and again stating they would provide the statements without the redactions for an in camera review if so requested by the district court. In support of their motion, Appellants also submitted the affidavit of Robert T. McCue, attorney for Appellants in the piercing action, and the affidavit of Randall B. Reed, a practicing attorney from the same location as the attorney for Appellants. Both affiants stated the costs, expenses and attorneys' fees incurred were reasonable and necessary in prosecuting the matter. Appellees opposed the motion, arguing, inter alia, that Appellants failed to present sufficient credible evidence entitling them to an award of costs, expenses and attorneys' fees.

[T11] The district court awarded no attorneys' fees to Appellants, finding Appellants failed to meet their burden of providing proof of reasonableness of the fees as they did not submit itemized billings and that Appellants improperly suggested the in camera review as this would give them a second chanee to meet the burden of proof. Some expenses and costs were awarded by the district court, totaling $2,904.02.

STANDARD OF REVIEW

[112] An award of attorneys' fees is reviewed under an abuse of discretion standard. Johnston v. Stephenson, 988 P.2d 861, 862 (Wyo.1997) (citing State Dep't of Family Servs., Div. of Pub. Assistance & Soc. Servs. v. DDM, 877 P.2d 259, 262 (Wyo.1994)).

A court abuses its discretion only when it acts in a manner which exceeds the bounds of reason under the cireumstances. (Goff v. Goff, 844 P.2d 1087, 1092 (Wyo.1993). The burden is placed upon the party who is attacking the trial court's ruling to establish an abuse of discretion, and the ultimate issue is whether the court could reasonably conclude as it did. Id.

Johnston, 988 P.2d at 862.

[1183] "Judicial discretion is a composite of many things, among which are con *1170 clusions drawn from objective criteria; it means a sound judgment exercised with regard to what is right under the cireum-stances and without doing so arbitrarily or capriciously." Martin v.

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2008 WY 127, 193 P.3d 1167, 2008 Wyo. LEXIS 132, 2008 WL 4571901, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ringolsby-v-johnson-wyo-2008.