Wong v. Takeuchi

961 P.2d 611, 88 Haw. 46
CourtHawaii Supreme Court
DecidedMay 20, 1998
Docket20632
StatusPublished
Cited by72 cases

This text of 961 P.2d 611 (Wong v. Takeuchi) is published on Counsel Stack Legal Research, covering Hawaii Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wong v. Takeuchi, 961 P.2d 611, 88 Haw. 46 (haw 1998).

Opinion

NAKAYAMA, Justice.

Defendant-appellant/cross-appellee Sandra Ohara appeals from an order of the circuit court granting her attorneys’ fees and costs in a lower amount than she had requested. Plaintiff-appellee/cross-appellant Edmund Wong argues on cross-appeal that Ohara is not entitled to attorneys’ fees because she is not the prevailing party in the action. Because the full amount of allowable attorneys’ fees provided for under the applicable statute has already been awarded against Wong, we agree with Wong on the cross-appeal, although for different reasons. With respect to Ohara’s request for costs, we are unable to discern the rationale behind the circuit court’s reduction of her request for costs by $1,600.00. We hold that the circuit court abused its discretion by reducing Ohara’s award without explanation or a readily dis-cernable rationale. Therefore, we vacate the order of the circuit court and remand for (1) entry of an order denying Ohara’s request for attorneys’ fees and (2) determination of the appropriate amount due to Ohara for costs incurred during the prior circuit court proceedings.

I. BACKGROUND

On August 6, 1987, Wong filed a complaint for dissolution of partnership, for partnership accounting, and for contribution against defendants Ohara, Robert Takeuehi, and Harry Ushijima. The complaint sought consequential damages “in excess of $300,000.” On February 6, 1992, the circuit court entered an order granting in part and denying in part defendants’ joint motions for summary judgment. This order: (1) granted summary judgment in favor of defendants on Wong’s complaint for accounting and contribution based on two separate grounds, ie., (a) the defense of laches and (b) Wong’s failure to file the complaint within the applicable statute of limitations; and (2) denied summary judgment regarding the liability of incoming partners. On March 3, 1992, Wong appealed this order.

On March 6, 1992, Takeuehi and Ushijima filed a motion for costs and attorneys’ fees. On April 16, 1992, the circuit court granted the motion. Takeuehi was awarded $13,-968.42 in attorneys’ fees and $700.00 in costs. Ushijima was awarded $13,968.42 in attorneys’ fees and $35.00 in costs.

On May 28, 1992, the circuit court entered a final judgment against Wong in favor of defendants. The final judgment provided that “[djefendants are entitled to reasonable attorneys’ fees and costs pursuant to Hawai'i Revised Statutes [(HRS)] §§ 607-13 and 14.” On July 24, 1992, an amended final judgment was entered. This amended judgment provided that “Plaintiff owes Takeuehi $700.00 in costs and $13,968.42 in attorneys’ fees. Plaintiff owes Ushijima $35.00 in costs and $13,968.42 in attorneys’ fees.” On March 4, 1993, a satisfaction of final judgment was entered by Takeuehi and Ushijima, acknowledging full payment and satisfaction of the amended final judgment.

On August 30, 1996, the Intermediate Court of Appeals dismissed Wong’s appeal for lack of appellate jurisdiction because the order entered on February 6, 1992, from which Wong appealed, was not a final judgment disposing of all claims. On November 14, 1996, Ohara filed a motion in the circuit court seeking an award of costs and attorneys’ fees for disbursements incurred during *49 the circuit court proceedings. 1 Ohara sought $3,264.58 in costs and $53,962.50 in attorneys’ fees incurred at the circuit court level. Additionally, Ohara sought fees and costs incurred in preparing the motion for fees and costs, both at the appellate and circuit court levels. On December 6, 1996, Wong filed a memorandum in opposition to Ohara’s request, arguing that: (1) Ohara did not prevail on the merits; and (2) she did not demonstrate that the costs requested were necessary. On March 19, 1997, the circuit court entered a final judgment and order granting Ohara attorneys’ fees in the amount of $13,-000 and costs of $1,664.58. The judgment of the circuit court does not contain any findings regarding or explanation of the reductions in the fees and costs awarded from those requested by Ohara.

Ohara timely appealed the March 19, 1997 judgment of the circuit court. On appeal, Ohara argues that the circuit court: (1) either (a) erred in applying the previous statutory cap on allowable attorneys’ fees or (b) abused its discretion in awarding only $13,-000 in attorneys’ fees if it did not apply the previous cap; and (2) abused its discretion in reducing the amount of costs requested. On April 24, 1997, Wong filed a notice of cross-appeal of the judgment. In his cross-appeal, Wong argues that Ohara is not a prevailing party in this case and is therefore not entitled to attorneys’ fees and costs.

II. DISCUSSION

A. Ohara was a prevailing party at circuit court.

Wong argues in his cross-appeal that Ohara was not entitled to any attorneys’ fees for the circuit court proceedings because she was not a “prevailing party.” Wong asserts that “the only reason that Ohara prevailed at trial in this case was that the [tjrial [cjourt found that the statute of limitations had run.” Wong claims that this means Ohara did not prevail on the merits of her claim and is therefore not a prevailing party for the purposes of awarding attorneys’ fees and costs. This is incorrect.

We note at the outset that the circuit court’s grant of partial summary judgment in favor of defendants was based both on laches and on the statute of limitations. Therefore, Wong is incorrect in asserting that the only basis for the trial court’s judgment was the statute of limitations. However, even if that were the only grounds for judgment, Ohara would still be the prevailing party for the purpose of recovering her costs.

“Usually the litigant in whose favor judgment is rendered is the prevailing party.... Thus, a dismissal of the action, whether on the merits or not, generally means that defendant is the prevailing party.” Wright, Miller & Kane, Federal Practice and Procedure: Civil 2d § 2667 (1983). There is no requirement that the judgment in favor of the prevailing party be a ruling on the merits of the claim.

Wong’s reliance on Wong v. Panis, 7 Haw.App. 414, 772 P.2d 695 (1989) is misplaced. In Pañis, the Intermediate Court of Appeals addressed the essential elements for the claim of malicious prosecution. The first element of malicious prosecution is that the prior proceedings be terminated in the plaintiffs favor. The Pañis court addressed the issue of whether a voluntary dismissal of a prior civil action without prejudice was sufficient to meet this element of a malicious prosecution claim. The Pañis court held that “[t]he requirement is met when there has been an adjudication in the plaintiffs favor on the merits ... or the termination reflects on the merits.” Id. at 419, 772 P.2d at 699. Panis, however, is inapplicable to the issue of whether Ohara is a prevailing party for the purpose of recovering her attorneys’ fees and costs. Either ground relied upon by the circuit court, laches or statute of limitations, is sufficient. Judgment was entered in favor of Ohara and therefore she *50

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Bluebook (online)
961 P.2d 611, 88 Haw. 46, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wong-v-takeuchi-haw-1998.