Scott Fetzer Co. v. Weeks

786 P.2d 265, 114 Wash. 2d 109, 1990 Wash. LEXIS 12
CourtWashington Supreme Court
DecidedFebruary 15, 1990
Docket55426-9
StatusPublished
Cited by76 cases

This text of 786 P.2d 265 (Scott Fetzer Co. v. Weeks) is published on Counsel Stack Legal Research, covering Washington Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Scott Fetzer Co. v. Weeks, 786 P.2d 265, 114 Wash. 2d 109, 1990 Wash. LEXIS 12 (Wash. 1990).

Opinions

Durham, J.

— The principal issue presented for decision is whether the fees awards provision of Washington's long-arm statute, RCW 4.28.185(5), authorizes an award of attorney fees when a foreign defendant prevails on jurisdictional grounds. We hold that it does. Additionally, we offer [111]*111some guidance on the scope and amount of fees awards that properly may be made under this statute.

I

Respondent The Scott Fetzer Company, Kirby Company Division (Kirby), a vacuum cleaner manufacturer, commenced this action in the Superior Court for Spokane County on July 14, 1986. Kirby named petitioner Dwight's Discount Vacuum Cleaner City, Inc. (Dwight's), a Texas vacuum cleaner retailer, among several defendants, charging that Dwight's had tortiously interfered with Kirby's contractual relationship with a Spokane distributor. In its answer, filed in October 1986, Dwight's denied Kirby's assertion of jurisdiction under the long-arm statute. Dwight's did not bring a motion asserting the defense of lack of jurisdiction until February 9,1987, however.

At the instance of the trial court, an evidentiary hearing on Dwight's' jurisdictional motion was held on March 6, 1987, and the motion was granted. The trial court's formal order noted that "[t]he continuation of this suit against this defendant would offend the traditional notions of fair play and substantial justice, and would be in violation of the due process clause of the 14th Amendment of the Constitution of the United States."

In addition to dismissing the action, the trial, court granted Dwight's' application for an award of attorney fees and costs pursuant to RCW 4.28.185(5) in the amount of $116,787.54. While Kirby's appeal from these rulings was pending, judgment was entered in another suit between these same two parties by a federal court in Texas.1 The parties having agreed that the Texas judgment rendered the present case moot, the Court of Appeals decided only the appeal from the fees award and declined to review the [113]*113play and substantial justice" standard with the constitutional test of jurisdiction creates a curious analytic redun-daitqy, rendering fees awards decisions in some cases paradoxical, and in others seemingly inescapable.

The-question before the Court of Appeals in Mahnkey was whether RCW 4.28.185(5) violates constitutional equal protection^guaranties by allowing fees awards only to nonresident defendants. The Court of Appeals upheld the provision on the basis that the distinction drawn between resident and nonresident defendants had not been demonstrated to be unreasonable or arbitrary. To the contrary, the court explained, fees awards are appropriately authorized for nonresident defendants to compensate for the extra burdens they face When litigating in Washington.

On its own terms, me Mahnkey opinion would have been complete without further elaboration. However, the opinion continued: \

The reason for delineating out-of-state defendants as a specific class is amply set forth in [Omstead v. Brader Heaters, Inc., 5 Wn. App. 258, 487 P.2d 23,4 (1971), adopted in 80 Wn.2d 720, 497 P.2d 1310 (1972)]. Thh action by the legislature was intended to bring the statute within the traditional notions of "fair play and substantial justice." International Shoe Co. v. Washington, 326 U.S. 310, 90 L, Ed. 95, 66 S. Ct. 154, 161 A.L.R. 1057 (1945).

Mahnkey, at 559.

Mahnkey's claim that the Legislature intended the fees provision to confprm the statute to constitutional standards for long-arm jurisdiction is insupportable. First, as the Mahnkey court itself acknowledged, Mahnkey, at 559, an authorization'of fees awards is not necessary for this purpose. Second, Omstead v. Brader Heaters, Inc., 5 Wn. App. 258, 487 P.2d 234 (1971), the sole source of Mahnkey's statutory'' interpretation, said nothing about the legislative intent ^underlying the fees award statute. The Court of Appeals comment in Omstead that a foreign defendant's burdens of litigating in Washington are eased somewhat by [112]*112trial court's jurisdictional ruling. We similarly do not address the question of jurisdiction.2

With respect to Dwight's' fees application, the Court of Appeals reversed the trial court, holding that because Dwight's had not prevailed on the merits of the litigation, RCW 4.28.185(5) does not authorize a fees award. The Court of Appeals has applied this same "merits" limitation in another case. Osborne v. Spokane, 48 Wn. App. 296, 738 P.2d 1072 (1987). We do not believe this is a proper interpretation of the long-arm statute's fees award provision, however. Thus, we reverse the Court of Appeals holding in this case and reject as well its decision in Osborne.

II

RCW 4.28.185(5) authorizes an award of reasonable attorney fees to a defendant who, having been hailed into a Washington court under the long-arm statute, "prevails in the action". The statute says nothing to suggest that awards are permitted only when the defendant prevails on the merits. Nor does our case law support a "merits" limitation.

In Osborne, the Court of Appeals interpreted State v. O'Connell, 84 Wn.2d 602, 528 P.2d 988 (1974), as supportive of a "merits" limitation, quoting the following passage from the O'Connell opinion:

The statute provides for the award of attorney fees to a defendant who prevails "in the action." Undoubtedly the reference is to the action on the merits.

Osborne, at 303 (quoting O'Connell, at 605). The emphasis, and the conclusion drawn from it, are misplaced. At issue in O'Connell was this court's power to award attorney fees to a foreign defendant who had successfully defended a trial verdict on appeal. We held that RCW 4.28.185(5) gave us that power, rejecting the plaintiffs' contention that the [113]*113defendants, having lost their cross appeal from an order denying an award of fees for litigation in the trial court, see State v. O'Connell, 83 Wn.2d 797, 844, 523 P.2d 872, 77 A.L.R.3d 874 (1974), had not "prevailed in the action" within the meaning of the statute:

We do not find this argument persuasive. The statute provides for the award of attorney fees to a defendant who prevails "in the action." Undoubtedly the reference is to the action on the merits.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
786 P.2d 265, 114 Wash. 2d 109, 1990 Wash. LEXIS 12, Counsel Stack Legal Research, https://law.counselstack.com/opinion/scott-fetzer-co-v-weeks-wash-1990.