Jones v. City of Billings

• Citation: 927 P.2d 9,279 Mont. 341
• Decision Date: 21 November 1996
• Docket Number: No. 96-250,96-250
• Parties: Annette JONES, Plaintiff and Appellant, v. CITY OF BILLINGS, an Incorporated Municipality, Defendant and Respondent.
• Court: United States State Supreme Court of Montana

Page 9

927 P.2d 9

279 Mont. 341

Annette JONES, Plaintiff and Appellant, v. CITY OF BILLINGS, an Incorporated Municipality, Defendant

and Respondent.

No. 96-250.

Supreme Court of Montana.

Submitted on Briefs Aug. 29, 1996.

Decided Nov. 21, 1996.

Paul E. Toennis, Oliver, Graves, Toennis & Gustafson, Billings, Patrick E. Kenney, Kenney Law Firm, Billings, for plaintiff and appellant.

K.D. Peterson, Peterson & Schofield, Billings, for defendant and respondent.

GRAY, Justice.

Annette Jones (Jones) appeals from the order of the Thirteenth Judicial District Court, Yellowstone County, denying her postjudgment motion for attorney fees. We affirm.

The sole issue on appeal is whether the District Court abused its discretion in denying Jones' motion for attorney fees.

FACTUAL AND PROCEDURAL BACKGROUND

Jones was employed by Mountain Harvest, a pizza crust factory in Billings, Montana. On October 15, 1993, she left work in her vehicle shortly after 3:00 p.m., accompanied by a passenger, Anthony Payton (Payton). Jones proceeded north on South 24th Street West. As she approached the intersection of South 24th Street West and Monad Road, she moved her vehicle into the left turn lane, intending to turn left and head west on Monad Road.

The intersection of South 24th Street West and Monad Road was controlled by a so-called "lagging protected/permissive" traffic light. At the end of the traffic light cycle, the northbound, eastbound and westbound lights would all be red, but the southbound light would remain green for a preset amount of time or until southbound traffic turning left to head east on Monad Road cleared the intersection. The car ahead of Jones in the left turn lane completed its turn and, while the northbound light was still green, Jones pulled into the intersection, waiting to turn left. While she waited for oncoming traffic to clear the intersection, the northbound light turned yellow and then red. Seeing no southbound traffic approaching at a distance close enough to concern her, Jones began to clear the intersection. Her vehicle was struck broadside by a car traveling south on South 24th Street West which had proceeded through the intersection at Monad Road on a green light.

Jones and Payton were injured in the accident and Jones' vehicle was totaled. Jones submitted a claim to the City of Billings (City) for damages resulting from the City's alleged negligence in improperly timing the traffic light at the intersection of South 24th Street West and Monad Road. The City denied the claim and Jones filed suit. In answering the complaint, the City denied that it was negligent and affirmatively alleged that Jones' negligence caused her injuries and damages.

After a four-day trial, the jury found that the City negligently established and maintained the traffic signal system at the intersection and that its negligence was a proximate cause of the accident. The jury also found that Jones acted negligently, but that her negligence was not a proximate cause of the accident. Finally, the jury awarded Jones $20,000 for the personal injuries she sustained as a result of the accident.

The District Court entered judgment in Jones' favor for $20,000, postjudgment interest and costs. Jones subsequently moved for attorney fees and costs pursuant to § 25-10-711, MCA. The District Court granted her motion for reasonable costs because the City did not object, but denied the motion for attorney fees. Jones appealed.

DISCUSSION

Did the District Court abuse its discretion in denying Jones' motion for attorney fees?

Jones moved for attorney fees under § 25-10-711, MCA, contending that the City's defense against her negligence claim was frivolous or in bad faith. Section 25-10-711, MCA, provides, in pertinent part:

(1) In any civil action brought by or against the state, a political subdivision, or an agency of the state or a political subdivision, the opposing party, whether plaintiff or defendant, is entitled to ... reasonable attorney's fees as determined by the court if:

(a) he prevails against the state, political subdivision, or agency; and

(b) the court finds that the claim or defense of the state, political subdivision, or agency that brought or defended the action was frivolous or pursued in bad faith.

Here, Jones clearly prevailed against the City and, as a result, she satisfied § 25-10-711(1)(a), MCA. Thus, she was entitled to attorney fees pursuant to § 25-10-711(1), MCA, if the City's defense was frivolous or in bad faith pursuant to § 25-10-711(1)(b), MCA. A claim or defense is frivolous or in bad faith under § 25-10-711(1)(b), MCA, when it is "outside 'the bounds of legitimate argument on a substantial issue on which there is a bona fide difference of opinion.' " See Armstrong v. State, Dept. of Justice (1991), 250 Mont. 468, 469-70, 820 P.2d 1273, 1274 (quoting Dept. of Revenue v. New Life Fellowship (1985), 217 Mont. 192, 195, 703 P.2d 860, 862; citing Albertson's Inc. v. Dept. of Business Regulation (1979), 184 Mont. 12, 18, 601 P.2d 43, 46).

The District Court ultimately found, pursuant to § 25-10-711(1)(b), MCA, that the City's defense was not frivolous or in bad faith because (1) the City presented expert testimony that the traffic signal system complied in all respects with the Manual on Uniform Traffic Control Devices (CD Manual), which state law required the City to follow; (2) the jury found that Jones was negligent as the City claimed; and (3) the jury only awarded Jones approximately one-third of the damages she sought. In essence, these are findings of fact because they relate to matters of record. We review a trial court's findings of fact under the "clearly erroneous" standard, the first part of which is whether the findings are supported by substantial evidence. Rule 52(a), M.R.Civ.P.; Aasheim v. Reum (1996), 277 Mont. 471, ----, 922 P.2d 1167, 1169, 53 St.Rep. 771, 772 (citation omitted). Given the Armstrong test, however, it is clear that an element of discretion remains in a trial court's § 25-10-711(1)(b), MCA, determination regarding a frivolous or bad faith defense. Thus, our usual abuse of discretion standard for reviewing a trial court's denial of a motion for attorney fees also applies here to the District Court's ultimate denial of Jones' motion for attorney fees under the statutory frivolous or bad faith standard. See McKamey v. State (1994), 268 Mont. 137, 148, 885 P.2d 515, 522 (citingArmstrong, 820 P.2d at 1274).

Here, the City defended against Jones' negligence claim on three bases: it was not negligent; Jones was negligent and her negligence caused the accident; and Jones' damages were excessive and not proximately caused by the accident. The District Court essentially found that the City's defenses were supported at trial.

In response to Jones' claim that the City caused the accident by negligently establishing and maintaining a mistimed traffic light at the intersection, the City presented expert testimony that the traffic light phasing at the intersection was safe and conformed to the requirements of state law. The City's traffic engineer testified that he considered such variables as the volume of traffic on both South 24th Street West and Monad Road and the speed limit on these streets in determining which traffic light display would be the safest to use at the intersection. He testified that when the traffic light phasing at the accident intersection was modified in 1991, he reviewed and approved the modification because it complied with the CD Manual the City was required to follow. The City's traffic transportation engineering consultant also testified that the traffic light phasing at the accident intersection met the requirements of the CD Manual. In addition, the City's traffic electrician advisor testified that, after the 1991 modification, he monitored the intersection for approximately six months and determined that drivers at that intersection...