Windel v. Carnahan

379 P.3d 971, 2016 Alas. LEXIS 114, 2016 WL 5335675
CourtAlaska Supreme Court
DecidedSeptember 23, 2016
Docket7128 S-15801
StatusPublished
Cited by16 cases

This text of 379 P.3d 971 (Windel v. Carnahan) is published on Counsel Stack Legal Research, covering Alaska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Windel v. Carnahan, 379 P.3d 971, 2016 Alas. LEXIS 114, 2016 WL 5335675 (Ala. 2016).

Opinion

OPINION

MAASSEN, Justice.

I. INTRODUCTION

This case has returned to us for review of the superior court's decision of attorney's fees issues following our remand in Windel v. Mat-Su Title Insurance Agency, Inc. (Windel I). 1 The underlying lawsuit involved the validity of an easement that Thomas Carna-han claimed extended over property belonging to Keven and Marlene Windel, as well as Carnahan's responsibility for damage allegedly caused by improvements within that easement. The substantive issues were resolved in Carnahan's favor in Windel I, but we remanded the case to the superior court for its reconsideration of attorney's fees issues. On remand, the superior court awarded attorney's fees to Carnahan under Alaska Civil Rule 68, finding that, when the case was viewed in its entirety, he had prevailed and had done better than his offer of judgment.

The Windels again appeal. They argue that the superior court erred in its analysis of Rule 68, failed to decide whether Carnahan's offer of judgment was valid, and erred in disregarding objections to specific billing entries in Carnahan's claim for fees. We conclude that the superior court did not err in its Rule 68 analysis or in its attorney's fees award, and we therefore affirm the judgment of the superior court.

II. FACTS AND PROCEEDINGS

A. First Appeal And Our Decision In Windel I

On their first appeal in 2011, the Windels challenged the superior court's rulings that Carnahan's claimed easement across their property was valid, that Carnahan was not responsible for the easement's continued maintenance, and that Carnahan was entitled to an award of attorney's fees under Rule 68. 2 In Windel I we affirmed the superior court's ruling that the easement was valid 3 and held that the superior court did not err in declining to hold Carnahan responsible for the easement's future maintenance and improvements. 4 But we remanded the case to the superior court for reconsideration of attorney's fees. 5

On appeal the Windels had made alternative arguments about attorney's fees, involving both Rule 68 and Rule 82. The Rule 68 arguments stemmed from an offer of judg *974 ment Carnahan made in 2006, a year after the Windels filed suit. The offer of .judgment had four essential terms: (1) a declaratory judgment that Carnahan’s claimed easement was valid; (2) payment to the Windels of $10,000 in trespass damages; (3) an award of attorney’s fees and costs to the Windels; and (4) dismissal of Carnahan’s counterclaims. 6 The Windels did not accept the offer. 7

The Windels’ first Rule 68 argument on appeal was based on a partial settlement agreement reached in early 2009, after the superior court had ruled on summary judgment that Carnahan’s claimed easement was valid. Under the settlement agreement the parties dismissed their remaining damages claims against each other except with regard to the Windels’ recently raised nuisance abatement claim, which alleged they were damaged when work within the easement exacerbated ponding on their property. 8 For the nuisance abatement claim, the parties agreed to hire an independent engineer to evaluate its basis and recommend a resolution; if either party declined to accept the engineer’s recommendation they would submit the claim to the judge for decision. 9 The Windels argued in the first appeal that this partial settlement agreement resolved all claims for attorney’s fees incurred up to early 2009, when they asserted their nuisance abatement claim.

The Windels’ second Rule 68 argument was that if the partial settlement agreement did not resolve the attorney’s fees issues, it was error for the superior court to decide that Carnahan beat his offer of judgment. 10

The Windels’ - Rule 82 arguments addressed the superior court’s decision that the case could be divided into two segments for purposes of attorney’s fees: the first “concerning the validity of the easements and associated damages issues, and-the second solely regarding the nuisance claim.” 11 The superior court decided that Carnahan was the prevailing party in the first segment because he beat his offer of judgment but that neither party prevailed in' the second segment, 12 The Windels argued that for Rule 82 purposes the case should be considered not as separate segments but as a whole, and that under such an analysis neither party prevailed because one main issue, the validity of the easement, was resolved in Carnahan’s favor and the other main issue, nuisance, was resolved in the Windels’ favor. 13 Alternatively, the Windels maintained that under a bifurcated analysis they should have been considered the prevailing parties because the case’s first segment settled (and Carnahan was therefore entitled to no fees for it) and they prevailed in the second part, which involved only their nuisance claim. 14

In Windel I “we first rejected] the Win-dels’ argument that the 2009 settlement agreement resolved attorney’s, fees for the litigation up to the point of the settlement.” 15 Noting that an amendment to the settlement agreement stated that “[t]he final judgment will be subject to motions for costs and attorney’s fees, and to appeal,” 16 we determined that the agreement “clearly re-fleet[ed] that the parties expected and left open questions of which party would be entitled to recover costs and attorney’s fees for both the litigation up. to the settlement agreement and the anticipated future litigation, over the equitable nuisance abatement claim.” 17 We therefore concluded that the settlement agreement did not preclude Car-nahan from recovering attorney’s fees for the entire litigation. 18

*975 We then considered whether the superior court had correctly determined that Carna-han beat his offer of judgment as to the first part of the litigation. We remanded the Rule 68 issue to the superior court, concluding that "on the record before us it [was] impossible to determine whether (1) it was permis-gible to limit the application of Rule 68 to a bifurcated portion of the. superior court proceedings, and (2) Carnahan 'beat' his offer of judgment." 19

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Cite This Page — Counsel Stack

Bluebook (online)
379 P.3d 971, 2016 Alas. LEXIS 114, 2016 WL 5335675, Counsel Stack Legal Research, https://law.counselstack.com/opinion/windel-v-carnahan-alaska-2016.