Williams v. Capps Trailer Sales, Inc.

• Decision Date: 04 September 1992
• Citation: 607 So.2d 1272
• Parties: Jessie E. WILLIAMS v. CAPPS TRAILER SALES, INC. CAPPS TRAILER SALES v. Julia McCain Lampkin ASAM. GUARANTEE INSURANCE COMPANY v. Julia McCain Lampkin ASAM. 2910421, 2910421-X and 2910421-XX.
• Court: Alabama Court of Civil Appeals

Page 1272

607 So.2d 1272

Jessie E. WILLIAMS v. CAPPS TRAILER SALES, INC.

CAPPS TRAILER SALES v. Julia McCain Lampkin ASAM.

GUARANTEE INSURANCE COMPANY v. Julia McCain Lampkin ASAM.

2910421, 2910421-X and 2910421-XX.

Court of Civil Appeals of Alabama.

Sept. 4, 1992.

Rehearing Denied Oct. 9, 1992.

Certiorari Denied Nov. 25, 1992

Alabama Supreme Court 1920045.

Julia McCain Lampkin Asam, Northport, for appellant.

M. Alston Keith, Jr. of Keith & Keith, Selma, and William P. Sawyer of Weiss & Sawyer, Montgomery, for Capps Trailer Sales and Huey H. Capps.

Morris Wade Richardson and E. Berton Spence of Lange, Simpson, Robinson & Somerville, Birmingham, for Guarantee Ins. Co.

Henry C. Chappell, Jr. of Rushton, Stakely, Johnston & Garrett, Montgomery, for Reliance Ins. Co.

J. Garrison Thompson and Philip Henry Pitts of Pitts, Pitts and Thompson, Selma, for Alfa Ins. Co.

PER CURIAM.

This case involves an appeal and two cross-appeals from a judgment of the trial court granting attorney fees and costs under the Alabama Litigation Accountability Act, §§ 12-19-270 through -276, Ala.Code 1975.

On March 12, 1990, Jessie Edward Williams, through his attorney, Julia McCain Lampkin Asam, filed a complaint in the Circuit Court of Dallas County, seeking damages as a result of a motor vehicle accident that had occurred in March 1973. Williams alleged "newly discovered evidence of fraud on an implied contract" that led to his injuries in the 1973 accident. The complaint named numerous parties as defendants, including Capps Trailer Sales and its owner Huey Capps (Capps); James Chester Ryan, the driver of the other vehicle involved in the accident; and Burnis C. Barton, the owner of the other vehicle. Williams also named Guarantee Insurance Company (Guarantee), Reliance Insurance Company (Reliance), and Alfa Insurance Company (Alfa), which allegedly insured the various defendants. Each of the defendants filed a motion for dismissal, asserting a number of defenses, including the running of the two-year statute of limitations that normally applies to personal injury claims. See § 6-2-38(l), Ala.Code 1975. Williams maintained, however, that his action had not accrued until his discovery of "new" evidence of fraud in February 1990 and that, pursuant to § 6-2-3, Ala.Code 1975, he had two years from that date within which to prosecute his action. After hearing arguments by the parties, the trial court granted each defendant's motion for dismissal in an order dated July 23, 1990. Williams's motion to reconsider was heard on October 4, 1990, and overruled by operation of law after 90 days.

Williams appealed to the supreme court, which affirmed the judgment of the trial court on the ground that Williams's action was barred by the statute of limitations. Williams v. Capps Trailer Sales, 589 So.2d 159 (Ala.1991). In its written opinion the supreme court concluded that Williams had based his fraud action solely on his "re-evaluation" of evidence that had "been in existence and [had] been at Williams's disposal since 1973." Id. at 160. The court stated that

"[t]he purpose of § 6-2-3 is not to toll the statute of limitations pending a 're-evaluation' of known facts. Therefore, we conclude that the tolling provisions of § 6-2-3 do not apply to this action. Where a complaint, on its face, demonstrates that the cause of action is barred by the statute of limitations, and the tolling provisions do not apply, dismissal is proper."

Id. at 160 (citations omitted).

The record shows that following the trial court's dismissal of Williams's action and prior to the supreme court's ruling on appeal, each defendant filed a motion with the trial court seeking attorney fees and costs pursuant to the Alabama Litigation Accountability Act. After the supreme court decided Williams, the defendants amended their motions to include the costs of participating in the appeal. Attached to the defendants' amended motions were affidavits itemizing their attorneys' billable time, hourly charges, and expenses.

On April 6, 1992, the trial court entered an order finding that Williams's action had been filed without justification and assessing attorney fees against Williams's attorney, Asam, pursuant to the provisions of the Litigation Accountability Act. Asam was ordered to pay attorney fees of $1,000 to each of six law firms representing defendants in Williams's action.

Asam appeals from the judgment of the trial court, contending that the award of attorney fees was inappropriate. ¹ Two of the defendants, Capps and Guarantee, cross-appeal, contending that the amount of fees awarded to the firms representing them was inadequate and arbitrary in light of the evidence before the trial court.

As an initial matter, we note that Asam appears to argue in her brief that she received inadequate notice of the defendants' intent to proceed against her under the Litigation Accountability Act and that she was deprived of due process when the trial court ultimately ruled on the defendants' motions for attorney fees. However, a review of the record reveals that by August 1990 all defendants had filed motions or otherwise notified Asam of their intent to seek attorney fees under the statute. According to the case action summary, these motions were scheduled for argument before the trial court on October 4, 1990, and were taken under advisement on that date. The trial court thereby reserved its jurisdiction to later rule on the motions for fees. Notwithstanding Asam's assertions to the contrary, we find that there is no evidence in the record indicating that Asam was deprived of notice.

The Alabama Litigation Accountability Act permits a trial court to award attorney fees and costs when the court determines that an action, claim, or defense has been asserted "without substantial justification." § 12-19-272, Ala.Code 1975. Such fees may be assessed against the offending attorneys or parties, or both. § 12-19-272(b). The court is required to set forth specifically the reasons for the award, considering, among other things, the factors enumerated in § 12-19-273.

The trial court's order read, in part, as follows:

"WHEREAS, on May 28, 1990, this Court heard Motions to Dismiss by all defendants in the above styled case and entered an Order granting all Motions to Dismiss because [the] Statute of Limitations had run and thereafter heard Plaintiff's Motion to Reconsider the Dismissal of All Defendants on October 4, 1990, and same being overruled by operation of law, and

"WHEREAS this case was appealed to the Supreme Court of the State of Alabama, who affirmed the decision of this Court, and

"WHEREAS, the various defense attorneys in this cause have given notice and filed claims under the Alabama Litigation Accountability Act, and the Court having considered same and the factors set out to be considered in Section 12-19-273 of the Code of Alabama 1975, the Court finds as follows:

"1. That the plaintiff's attorney apparently made no effort to determine the validity of any action or claim before it was asserted. That she made no efforts to reduce the number of claims asserted or to dismiss claims that had been found not to be valid. All facts were available to the plaintiff's attorney. With two exceptions, all defendants are financial institutions or businesses while the plaintiff is a disabled man with apparently little or no funds. The Court finds no evidence of bad faith or improper purpose by the plaintiff in filing the suit and no apparent issues were in conflict.

"2. The plaintiff was unable to prevail on any complaint against any defendant in this...