Warrington v. G.F. Clinic

2020 MT 174, 467 P.3d 567, 400 Mont. 360
Montana Supreme Court·Decided July 7, 2020·No. DA 19-0679·Published·Cited by 3 cases

Opinion

07/07/2020

DA 19-0679 Case Number: DA 19-0679

IN THE SUPREME COURT OF THE STATE OF MONTANA 2020 MT 174

LISA WARRINGTON,

Plaintiff and Appellant,

v.

GREAT FALLS CLINIC, LLP,

Defendant and Appellee.

APPEAL FROM: District Court of the Eighth Judicial District, In and For the County of Cascade, Cause No. BDV-15-118(c) Honorable John A. Kutzman, Presiding Judge

COUNSEL OF RECORD:

For Appellant:

Timothy McKittrick, McKittrick Law Office, P.C., Great Falls, Montana

For Appellee:

Gerry P. Fagan, Adam Warren, Moulton Bellingham PC, Billings, Montana

Submitted on Briefs: June 3, 2020

Decided: July 7, 2020

Filed:

r--6ta•--df __________________________________________ Clerk Justice Dirk Sandefur delivered the Opinion of the Court.

¶1 Plaintiff Lisa Warrington (Warrington) appeals the December 2, 2019, judgment of

the Montana Eighth Judicial District Court, Cascade County, adjudicating that defendant

Great Falls Clinic (Clinic) satisfied the judgment debt on her successful breach of contract

claim. The restated issue is:

Whether a stay of execution of judgment obtained by the judgment debtor on cross-appeal also tolls the continued accrual of post-judgment interest under §§ 25-9-204, and -205, MCA?

¶2 We reverse and remand for assessment of additional post-judgment interest.

FACTUAL AND PROCEDURAL BACKGROUND

¶3 This case is now before us for the third time. It began on Warrington’s assertion of

contract and related tort claims for damages caused by the Clinic’s detrimental cancellation

of an executory contract to prospectively employ her in a health care clinic management

position. We were initially involved on supervisory control where we affirmed a grant of

summary judgment that the Clinic breached the contract and that the Montana Wrongful

Discharge from Employment Act did not apply. Great Falls Clinic LLP v. Mont. Eighth

Judicial Dist. Court (Warrington I), 2016 MT 245, ¶¶ 14-15, 385 Mont. 95, 381 P.3d 550.

On remand, the case went to trial on the balance of the contract claim after the District

Court denied Warrington leave to add additional tort claims and granted summary

judgment eliminating her related claim for tortious breach of the implied covenant of good

faith and fair dealing. Warrington v. Great Falls Clinic, LLP (Warrington II),

2 2019 MT 111, ¶¶ 4-5, 395 Mont. 432, 443 P.3d 369. On February 2, 2018, the jury returned

a verdict awarding Warrington $220,000 in contract damages. Warrington II, ¶¶ 5-6.

¶4 On February 26, 2018, with ruling still pending on her amended post-verdict motion

for costs, Warrington appealed the adverse rulings on her contract bad faith and other

proposed tort claims. She did not appeal any aspect of the verdict on her successful contract

claim. The Clinic subsequently cross-appealed various adverse trial rulings and then

moved pursuant to M. R. App. P. 22 for a stay of execution of judgment, but without the

usually-required supersedeas bond. On April 23, 2018, upon ruling on Warrington’s

post-verdict claim for costs, the District Court separately granted the Clinic a stay of

execution pending appeal. The court granted the stay without requirement for bond based

on the Clinic’s assertion that M. R. App. P. 22(1)(b) applies only to appeals and thus does

not require a supersedeas bond upon a cross-appeal.1

¶5 On May 14, 2019, we affirmed Warrington’s $220,000 contract judgment in toto,

holding, inter alia, that the District Court properly granted summary judgment on her

tortious bad faith claim, denied her leave to add additional tort claims, and made no trial

error. Warrington II, ¶¶ 12-38. Remittitur issued on May 30, 2019, with filing below the

next day.

1 Warrington continues to dispute the correctness of that unsupported construction of M. R. App. P. 22(1)(b). However, it is not properly before us on appeal and we address it only to clarify that we do not endorse it by reference here.

3 ¶6 On remand, the Clinic moved pursuant to M. R. Civ. P. 60(b)(5) for declaration that

it fully satisfied Warrington’s adverse judgment as of June 28, 2019, upon prior payment

of $223,485.12 in principal, costs, and accrued interest. The motion noted that the parties’

disputed Warrington’s claim for an additional $24,428.13 in post-judgment interest that

would have accrued under § 25-9-205(1)(a), MCA, during the pendency of the appeal.

¶7 Pursuant to In re Marriage of Pospisil, 2000 MT 132, ¶ 51, 299 Mont. 527,

1 P.3d 364, the Clinic asserted that the Rule 22 stay not only stayed execution of judgment

pending appeal, but also tolled further accrual of post-judgment interest during the stay.

Citing McCulley v. U.S. Bank of Mont., 2015 MT 100, ¶¶ 57-63, 378 Mont. 462,

347 P.3d 247, and Hulstine v. Lennox Indus., Inc., 2010 MT 180, ¶¶ 27-28, 357 Mont. 228,

237 P.3d 1277, Warrington contrarily asserted that the Rule 22 stay had no effect on the

continued accrual of post-judgment interest under §§ 25-9-204 and -205, MCA. Finding

McCulley and Hulstine of only limited effect,2 the District Court granted the Clinic’s

motion pursuant to Pospisil and New Hope Lutheran Ministry v. Faith Lutheran Church of

Great Falls, Inc., 2014 MT 69, ¶ 72 n.11, 374 Mont. 229, 328 P.3d 586 (citing Pospisil

¶ 51), and thus declared Warrington’s judgment fully satisfied upon the Clinic’s prior

payment of $223,485.12. Warrington timely appeals.

2 See McCulley, ¶¶ 57-63 (holding only that post-judgment interest on compensatory jury award accrued from the date of verdict rather than the subsequent date of entry of judgment confirming the derivative punitive damages award); Hulstine, ¶¶ 27-28 (holding only that post-judgment interest on compensatory jury award accrued from the date of verdict rather than the subsequent date of entry of judgment on the verdict).

4 STANDARD OF REVIEW

¶8 The proper construction or application of a statute is a question of law. Ritchie v.

Town of Ennis, 2004 MT 43, ¶ 33, 320 Mont. 94, 86 P.3d 11. Accordingly, whether a

district court correctly construed or applied §§ 25-9-204, -205, or 27-1-211, MCA, in the

assessment of post-judgment interest is a question of law subject to de novo review.

In re Marriage of DeBuff, 2002 MT 159, ¶ 15, 310 Mont. 382, 50 P.3d 1070.

DISCUSSION

¶9 Whether a stay of execution of judgment obtained by the judgment debtor on cross-appeal also tolls the continued accrual of post-judgment interest under §§ 25-9-204, and -205, MCA?

¶10 Sections 27-1-210 and -211, MCA, generally govern the right to prejudgment

interest and §§ 25-9-204 and -205, MCA, distinctly govern the right to post-judgment

interest. See Mont. Petroleum Tank Release Comp. Bd. v. Crumleys, Inc., 2008 MT 2,

¶ 101, 341 Mont. 33, 174 P.3d 948; DeBuff, ¶¶ 38-44; Tipp v. Skjelset, 1998 MT 263,

¶¶ 15-17, 291 Mont. 288, 967 P.2d 787; Ellingson Agency, Inc. v. Baltrusch, 228 Mont.

360, 368, 742 P.2d 1009, 1014 (1987); Carriger v. Ballenger, 192 Mont. 479, 485-86,

628 P.2d 1106, 1109-10 (1981).3 Rather than matters of discretionary award, prejudgment

and post-judgment interest are matters of right under their respective governing statutes.

Healy v. Healy, 2016 MT 154, ¶ 34, 384 Mont. 31, 376 P.3d 99; Winter v. State Farm Mut.

3 See also Williams v. Budke, 186 Mont.

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Warrington v. G.F. Clinic, 2020 MT 174, 467 P.3d 567, 400 Mont. 360 (Mo. 2020).

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