DocketNumber: No. ED 106335
Citation Numbers: 558 S.W.3d 573
Judges: Quigless
Filed Date: 8/28/2018
Status: Precedential
Modified Date: 10/19/2024
Gregory Kinsey ("Kinsey") appeals from the trial court's partial order and judgment granting Russell Clark's ("Clark") motion to dismiss Kinsey's counterclaim seeking an award of attorney's fees. On appeal, Kinsey argues the trial court erred in dismissing his motion and counterclaim for attorney's fees against Clark, and failing to award him attorney's fees pursuant to the prevailing party fee shifting provision in the Shareholders' Agreement. We affirm the trial court's judgment.
Factual and Procedural History
Because this is the third time this case has been before this Court, it is necessary we set forth the complete procedural history as it is significant to the disposition of this appeal.
In 2007, Bart Mantia ("Mantia"), Clark, and Kinsey formed a company known as the Three Wine Guys, Inc. The parties dissolved the company in 2008. On July 20, 2009, Clark filed a lawsuit against Kinsey in small claims court, alleging damages due to a breach of the Shareholders' Agreement in the amount of $2,800 ("2009 small claims petition"). Kinsey subsequently filed a counterclaim for unpaid wages. On August 25, 2009, Clark voluntarily dismissed the 2009 small claims petition without prejudice, and Kinsey voluntarily dismissed his counterclaim without prejudice.
On June 10, 2010, Clark and Mantia filed an action against Kinsey in small claims court, alleging damages due to a breach of the Shareholders' Agreement in the amount of $3,000 ("2010 small claims petition"). Thereafter, Clark and Mantia voluntarily dismissed their 2010 small claims petition without prejudice.
On August 22, 2011, Clark and Mantia filed an amended petition against Kinsey ("August 2011 petition"). The August 2011 petition asserted six claims, relating to Kinsey's alleged failure to pay his portion *576of money owed pursuant to the Shareholders' Agreement. Counts I, III, and V were brought by Clark, and Counts II, IV, and VI were brought by Mantia. Counts I and II, causes of action for unjust enrichment, alleged Kinsey received benefits from loans from Best Buy and Montgomery Bank, and failed to reimburse Clark and Mantia for the portion of the money he owed. Counts III and IV, causes of action for breach of the Shareholders' Agreement, alleged Kinsey failed to make repayments of all jointly held debts pursuant to the Shareholders' Agreement. Counts V and VI, causes of action for contribution, alleged Kinsey owed Clark and Mantia for their payment of Kinsey's debts. The August 2011 petition requested damages in excess of $25,000, including attorney's fees and costs. In response, Kinsey filed an answer and affirmative defenses.
On March 21, 2012, Kinsey filed a motion for summary judgment, asserting he was entitled to judgment as a matter of law on the claims in the August 2011 petition because the 2009 and 2010 small claims actions that were voluntarily dismissed without prejudice had a res judicata effect. The trial court granted Kinsey's motion, and Clark and Mantia appealed. Clark v. Kinsey ,
On May 20, 2014, Clark and Mantia filed a motion for leave to amend the August 2011 petition, seeking additional damages in excess of $25,000 for legal fees arising out of the first appeal. The trial court denied the motion for leave to amend. Thereafter, Kinsey filed a second motion for summary judgment, arguing (1) the claims were barred by Rule 67.02,
This Court affirmed the trial court's grant of summary judgment as to Clark's claims in the August 2011 petition, finding they were barred by Rule 67.02.
This Court issued its mandate in Clark II on May 27, 2016. At no time between the filing of the August 2011 petition and the issuance of the mandate in Clark II did Kinsey file either a counterclaim or motion requesting attorney's fees against Clark. Nor did Kinsey make such a request in the prayer for relief of one of his numerous court filings during this time.
We now address the procedural posture relevant to the present appeal. On April 19, 2017, Mantia, alone, filed a second amended petition against Kinsey ("April 2017 petition"), asserting causes of action for breach of indemnity contract, unjust enrichment, and contribution and indemnity. The April 2017 petition requested damages in excess of $25,000 plus costs, attorney's fees, and interest. On April 28, 2017, Kinsey filed an answer to the April 2017 petition and raised affirmative defenses. Kinsey also asserted several counterclaims against Mantia and Clark, including a claim for breach of the Shareholders' Agreement. Specific to this appeal, Kinsey alleged he "successfully defended the claims brought against him by Counterclaim-Defendants Mantia and Clark and was victorious on summary judgment as to all counts raised by Counterclaim-Defendant Clark." Kinsey argued Clark breached the Shareholders' Agreement by not reimbursing Kinsey's attorney's fees pursuant to the Shareholders' Agreement, and requested "reimbursement of the attorney's fees, costs, and interest that Kinsey has expended in the defense of this action up to this point[.]"
In addition to filing his answer, affirmative defenses, and counterclaims, Kinsey simultaneously filed a motion for attorney's fees against Clark. Kinsey argued he was entitled to attorney's fees pursuant to the Shareholders' Agreement, which provided: "In the event a suit is brought to enforce any provision of or declare a breach of this Agreement, the prevailing party shall be entitled to recover in addition to any other amounts awarded, reasonable legal costs, including attorneys' fees, incurred by such party." Kinsey argued he became the prevailing party when this Court affirmed the trial court's grant of summary judgment as to Clark's claims in Clark II , and, therefore, he was entitled to nearly $60,000 in attorney's fees plus costs.
On May 27, 2017, Mantia filed a motion to dismiss Kinsey's counterclaim. Mantia argued Kinsey improperly alleged claims against Clark because Clark was not a named party in the April 2017 petition and had been dismissed from the case following Clark II . Kinsey subsequently filed a motion to add Clark as a counterclaim-defendant, which the trial court granted. On July 14, 2017, Clark filed a motion to dismiss Kinsey's counterclaim, arguing he was dismissed as a plaintiff from the action following this Court's opinion and mandate in Clark II , and Kinsey failed to present a claim for attorney's fees against Clark prior to the mandate.
*578On October 13, 2017, the trial court entered a partial order and judgment regarding pending motions to dismiss and requests for jury trial on Kinsey's motion for attorney's fees. Therein, the trial court granted Clark's motion to dismiss Kinsey's counterclaim seeking an award of attorney's fees against Clark. The trial court made clear that its partial order and judgment "does not decide any other matter raised in [Kinsey's] counterclaim, nor does it decide [Mantia's] or [Kinsey's] liability for attorneys' fees under the shareholder's agreement or the extent of attorneys' fees recoverable."
On November 14, 2017, Kinsey filed a motion for reconsideration of the trial court's grant of Clark's motion to dismiss Kinsey's counterclaim for attorney's fees, and an accompanying memorandum. On January 22, 2018, the trial court entered its order and judgment, denying the motion for reconsideration. The trial court found that although Kinsey was the prevailing party on his motion for summary judgment as to Clark's claims, Kinsey failed to request attorney's fees until after this Court issued its mandate in Clark II . As such, the trial court was without jurisdiction to award attorney's fees because the mandate did not authorize or instruct the court to enter such an award. On February 23, 2018, the trial court entered an amended order and judgment, granting Kinsey's request to certify the partial order and judgment granting Clark's motion to dismiss as final for purposes of appeal and finding there was no just reason for delay. Mantia's claims against Kinsey in the April 2017 petition remain pending in the trial court.
Point on Appeal
In his sole point on appeal, Kinsey argues the trial court erred in dismissing his motion and counterclaim for attorney's fees against Clark, and failing to award Kinsey's attorney's fees pursuant to the prevailing party fee shifting provision in the Shareholders' Agreement. Kinsey contends the trial court had jurisdiction over the parties and subject matter of the claim, and Missouri case law clearly mandates that a court must award attorney's fees when a contract provides for such an award and no case law explicitly requires a party to formally request fees prior to appeal. In the alternative, Kinsey asserts the Wherefore Clause in his answers and affirmative defenses, his motion and counterclaim for attorney's fees, and the Shareholders' Agreement provided sufficient notice of his right to fees as a prevailing party for both Clark and the trial court.
Standard of Review
At the outset, we note there is confusion as to the proper standard of review in this *579case. In his appellate brief, Kinsey contends he is appealing from the trial court's partial order and judgment granting Clark's motion to dismiss Kinsey's counterclaim for attorney's fees. Kinsey correctly states in his brief that this Court reviews the trial court's grant of a motion to dismiss de novo. See Murphy v. Stonewall Kitchen, LLC ,
After considering the arguments in Kinsey's brief, reviewing the filings on the motion to dismiss and motion for reconsideration, and reviewing the applicable law, we find our analysis and ultimate conclusion would be the same whether we reviewed the trial court's grant of the motion to dismiss de novo or we reviewed the trial court's denial of the motion for reconsideration for an abuse of discretion. Therefore, under either standard of review, we would affirm the trial court's judgment.
As stated above, this Court reviews the trial court's order granting a motion to dismiss de novo. Murphy ,
Discussion
Ordinarily, under the "American Rule," litigants must bear the expense of their own attorney's fees. Green v. Plaza in Clayton Condo. Ass'n ,
This Court has defined a "prevailing party" for purposes of a contractual award as "the party prevailing on the main issue in dispute, even though not necessarily to the extent of its original contention." Desu ,
Kinsey argues that, as the prevailing party, the trial court was required to award him attorney's fees pursuant to the Shareholders' Agreement, and the court's failure to do so was error. Although we agree that Kinsey was the prevailing party on his motion for summary judgment against Clark, Kinsey failed to request attorney's fees from Clark until after this Court affirmed the trial court's judgment as to Clark's claims and issued its mandate in Clark II . Consequently, when this Court issued its mandate, the trial court was without jurisdiction to make any determinations-including awarding attorney's fees-other than those necessary to execute the judgment in accordance with the mandate. See Vanderford v. Cameron Mut. Ins. Co. ,
In Clark II , this Court (1) reversed the trial court's grant of summary judgment in favor of Kinsey as to Mantia's claims in the August 2011 petition, (2) reversed the trial court's denial of Mantia's motion for leave to amend the August 2011 petition and remanded with directions to grant Mantia leave to amend, and (3) affirmed the trial court's grant of summary judgment in favor of Kinsey as to Clark's claims in the August 2011 petition. In accordance with our opinion, the mandate provided:
The Court, being sufficiently advised of and having considered the premises, adjudges that the judgment rendered by the St. Louis County Circuit Court in cause No. 11SL-AC02801-01 be reversed in part as to the trial court's grant of summary judgment in favor of Kinsey on Mantia's Counts II, IV and VI in the August 2011 petition and be remanded in part to the aforesaid court with directions to grant Mantia leave to amend his August 2011 petition and for further proceedings, and be affirmed in all respects in accordance with this Court's opinion delivered May 3, 2016. It is further ordered that the appellants recover from respondent one-half of the costs of their appeal, namely:
Docket fee in Appellate Court..... $70.00
Total Appellate Court Cost........ $70.00
It is ordered that one-half of these costs, or thirty-five ($35.00) dollars, be taxed in the Circuit Court in favor of appellants for which execution may issue.
(emphasis added).
Generally, a decision of the appellate court is considered final at the time the mandate is issued. Amburn v. Aldridge ,
In Papin v. Papin , the appellate court rejected a post-mandate request for attorney's fees similar to the present case. Papin involved the proper distribution of funds held in trust. Papin v. Papin ,
Here, as in Papin , Kinsey failed to request attorney's fees against Clark in either his pleadings or by motion to the trial court prior to appeal in Clark II . Nor did Kinsey request attorney's fees on appeal, pursuant to our Local Rule 400, which requires a party to make such a request prior to the submission of the cause.
Kinsey contends Missouri law does not require a party to file a counterclaim or written motion in order to recover its attorney's fees pursuant to the prevailing party provision of a contract. We are unable to find a case addressing a party's request for attorney's fees pursuant to a prevailing party provision raised after a mandate. However, in the cases cited by Kinsey as well as the legal precedent this Court reviewed, the party seeking to recover attorney's fees always made a formal request prior to appeal when the trial court still had jurisdiction. See, e.g. , Sheppard ,
Kinsey argues that even if the prevailing party is required to make a formal request for attorney's fees, the prayer for relief of his first answer filed on June 3, 2011 to Clark's original petition
Accordingly, we find the trial court neither erred in granting Clark's motion to dismiss Kinsey's counterclaim nor abused its discretion in denying Kinsey's motion to reconsider because Kinsey failed to request attorney's fees against Clark until after this Court issued its mandate in Clark II , and, therefore, the trial court was without jurisdiction to award attorney's fees. Point denied.
Conclusion
Finding no error, we affirm the trial court's judgment.
Roy L. Richter, P.J., and Robert M. Clayton III, J., concur.
Clark II referred to Missouri Supreme Court Rules (2015) when citing Rule 67.02.
Construing the language of Rules 67.01 and 67.02 together, this Court held:
[A] civil action is barred when the following four elements are established (1) a party voluntarily dismisses an initial civil action without prejudice; (2) the party thereafter files a second civil action based upon the "same claim" against the same defendant; (3) the party then voluntarily dismisses the second civil action without prejudice; and (4) the party does not file a stipulation to the dismissal signed by the opposing party or there is no order of the court made on the motion in which the ground for dismissal is set forth.
Clark II ,
Kinsey alleged he was billed $117,827.72 in attorney's fees and $1,372.90 in costs for his representation in this cause. Because Mantia's claims are still pending, however, Kinsey limited his request to $58,913.86 plus $686.45 in costs, which represented one half of the total amount billed.
Respondent Clark failed to timely file a brief on appeal within the mandatory time limits of Rule 84.05. Pursuant to Rule 84.05(a), Clark was required to file a responsive brief on April 30, 2018, thirty days after the filing of Kinsey's brief. Clark filed a motion for leave to file brief on appeal out of time, and this Court granted an extension until June 7, 2018. However, Clark did not file his brief until nearly two months later on July 27, 2018, and then filed a motion for leave to file brief on appeal out of time on August 2, 2018, the day of oral arguments. During oral arguments, this Court orally denied Clark's motion and struck his untimely-filed brief. This Court did not permit Clark's counsel to orally argue the case, however, counsel was allowed to observe in the gallery. Consequently, we treat Clark's brief as if it were never filed, and our holding in this appeal is based solely upon Kinsey's brief and legal file, the order and judgment of the trial court, and legal precedent. See Shomaker v. Dir. of Revenue ,
Rule 400-Attorney's Fees on Appeal, provides: "Any party claiming an amount due for attorney's fees on appeal pursuant to contract, statute or otherwise and which this court has jurisdiction to consider, must do so before submission of the cause. This shall not apply to claims for damages under Rule 55.03 or Rule 84.19."
Prior to filing the August 2011 amended petition, Clark and Mantia filed their original petition on January 19, 2011. In response, Clark filed his first answer on June 3, 2011.