Welch v. Hat Six Homes

2002 WY 81, 47 P.3d 199, 2002 Wyo. LEXIS 86, 2002 WL 1057447
CourtWyoming Supreme Court
DecidedMay 28, 2002
DocketNos. 00-209, 00-210
StatusPublished
Cited by7 cases

This text of 2002 WY 81 (Welch v. Hat Six Homes) 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
Welch v. Hat Six Homes, 2002 WY 81, 47 P.3d 199, 2002 Wyo. LEXIS 86, 2002 WL 1057447 (Wyo. 2002).

Opinion

GOLDEN, Justice.

[¶ 1] These two consolidated appeals arise from an award of attorney's fees and costs. In appeal number 00-209, Appellants Dawn Welch and Connie Harn appeal a court award of attorney's fees against them and their attorney. In appeal number 00-210, Appellants Hat Six Homes, Jim Jerett and Maralyne Middour appeal the amount of the attorney's fees awarded, complaining that the amount is insufficient. Finding the district court abused its discretion in awarding attorney's fees under the cireumstances, we reverse. Appeal number 00-210 is dismissed as moot.

ISSUES

[¶ 2] In appeal number 00-209, Appellants Welch and Harn present the following issues:

1. Did the trial court err as a matter of law awarding attorney's fees and costs against Plaintiffs' counsel under Count One of Plaintiffs' Complaint, Sexual Discrimination, under 42 U.S.C. § 2000(0)?
2. Did the trial court abuse its discretion as a matter of public policy and under the facts of this case by awarding attorney's fees against the Plaintiffs under Count One of Plaintiffs' Complaint, Sexual Discrimination, under 42 U.S.C. § 2000(e) and its subsections?
3. The trial court erred as a matter of law deciding issues concerning 42 U.S.C. § 2000(e) and its subsections without determining if Defendants were "prevailing parties" and that any such determination under the facts of this case would be contrary to law.
4. Did the trial court err as a matter of law imposing sanctions as a violation of W.R.C.P. Rule 11(b) against Plaintiffs and Plaintiffs' counsel as a result of pleading as Count One of their Complaint, Sexual Discrimination under 42 U.S.C. § 2000(ce) based on Plaintiffs' reasonable belief as to the number of employed persons of the Defendant?
[201]*2015. Did the trial court err as a matter of law finding the Plaintiffs' claim of intentional infliction of emotional distress was pled in violation of W.R.C.P. Rule 11(b) because Plaintiffs had not sought treatment for distress and an award of attorney's fees was appropriate as a sanction?
6. Did the trial court err awarding Rule 11 sanctions against Plaintiffs if any counts of a multiple count complaint survived summary judgment and the surviving counts, prior to trial, were voluntarily dismissed by Plaintiffs?

Appellees rephrase the issues as:

1. May Plaintiffs raise for the first time on appeal the issue of possible error by the District Court regarding the District Court's award of attorney's fees and costs under Title VII against Plaintiffs' counsel?
2. Did the District Court commit reversible error by finding that Defendants were the prevailing parties?
3. Did the District Court commit reversible error in its award to Defendants of part of their attorney's fees and costs as a sanction under W.R.C.P. 11 as to Count I?
4. Did the District Court commit reversible error in its award to Defendants of part of their attorney's fees and costs as a sanction under W.R.C.P. 11 as to Count V?
5. Did the District Court commit reversible error in awarding attorney's fees and costs under Rule 11 in light of Plaintiffs' voluntary dismissal of the rest of their baseless complaint?

[¶ 3] In appeal number 00-210, Appellants' single issue is: "Did the District Court commit reversible error by abusing it's [sic] discretion in denying Defendants a complete award of their attorney's fees under Title VII and a more appropriate sanction pursuant to W.R.C.P. 11?" Only Appellee Welch filed a brief in answer to Appellants and substantially agreed with the statement of the issue.

FACTS

[¶ 4] Dawn Welch and Connie Harn worked for Hat Six Homes. Jim Jerett and Maralyne Middour are officers and employees of Hat Six Homes. Among other complaints, Welch and Harn both alleged that Jerett was guilty of continuing instances of sexual harassment in the workplace. Welch filed an affidavit in the case below in which she alleged that, although she continuously protested against such conduct, Jerett would repeatedly put "his hands on the back of my neck, down the back of my shirt or sweater, up the back of my shirt or sweater, under my arms from behind, often times extending his hands to the front and touching my breasts." Based upon this conduct, Welch and Harn, through their attorney Phillip T. Willoughby, in December 1997 filed a multiple-count complaint against Hat Six Homes, Jerett and Middour (hereinafter collectively "Hat Six"), alleging various claims for relief.

[¶ 5] Of importance to the instant appeal are two particular counts of the complaint. One count alleged a violation of Title VII of the Civil Rights Act of 1964. Another count alleged intentional infliction of emotional distress. Hat Six moved for summary judgment on all counts. Although some counts survived the motion for summary judgment, in March 1999 summary judgment was granted to Hat Six on the above-described two counts.

[¶ 6] With regard to the alleged Title VII violation, Title VII only applies to employers who employ a minimum number of employees. Hat Six originally averred that Welch and Harn were independent contractors and not employees. In support of its motion for summary judgment, Hat Six submitted an affidavit stating that it never employed the requisite number of employees during the applicable time period. At the hearing on the motion for summary judgment, Welch and Harn conceded that Hat Six did not have the requisite number of employees during the applicable time period, and summary judgment was entered against them on Title VII on this ground. With regard to the claim for intentional infliction of emotional distress, the district court granted summary judgment on the grounds that the alleged conduct was not outrageous enough to be actionable and that any alleged distress suffered was not sufficiently severe.1

[202]*202[¶ 7] Welch and Harn have not appealed the grant of summary judgment on any count. Ultimately, Welch and Harn determined that they did not wish to continue with the litigation and moved for a voluntary dismissal. A voluntary dismissal with prejudice was granted in December 1999, with the court specifically reserving the issue of the grant of attorney's fees and costs.

[¶ 8] In February 2000, Hat Six moved for attorney's fees and costs pursuant to provisions in Title VII and separately moved for sanctions pursuant to W.R.C.P. 11. For the count alleging a violation of Title VII, the district court awarded a total of $1,000. The district court awarded the amount both as attorney's fees under Title VII and also as a sanction under Rule 11. Pursuant to Rule 11, the district court made the amount payable by Welch and Harn and by their attorney, Willoughby.

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Bluebook (online)
2002 WY 81, 47 P.3d 199, 2002 Wyo. LEXIS 86, 2002 WL 1057447, Counsel Stack Legal Research, https://law.counselstack.com/opinion/welch-v-hat-six-homes-wyo-2002.