425 S.W.3d 133
Mo. Ct. App.2013Background
- Gabriel was hired as a clerk at Saint Joseph License on Sept. 14, 2009 and terminated after ~6 weeks; she alleged multiple MHRA and other employment-related claims against Saint Joseph License, owners/managers Montee, Gutshall, and Williams.
- Many claims were dismissed before trial (summary judgment, directed verdict, voluntary dismissals); the only claim submitted to the jury was MHRA gender harassment against Saint Joseph License, and the jury returned a defense verdict.
- Defendants served a Rule 77.04 offer of judgment for $10,000 more than 30 days before trial; Gabriel did not accept.
- After trial, Defendants sought costs incurred after the offer (fourteen depositions totaling $4,488.70) under Rule 77.04; the trial court denied and ordered each party to bear its own costs.
- On appeal, the court affirmed Gabriel’s three appellate points (in unpublished memorandum) but reversed the trial court on the cross-appeal: Rule 77.04 requires the losing plaintiff to pay costs incurred after an unaccepted pretrial offer when the plaintiff fails to obtain a more favorable judgment.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the trial court erred in refusing to tax post-offer costs to Gabriel under Rule 77.04 | Gabriel argued Rule 77.04 should not apply because MHRA §213.111.2 limits awarding costs to prevailing respondents only when the case is "without foundation" | Defendants argued Rule 77.04 is mandatory: an unaccepted pretrial offer triggers taxation of costs incurred after the offer when the plaintiff fails to obtain a more favorable judgment | The court held Rule 77.04 controls and the trial court erred; remanded to determine which post-offer costs are reasonable and properly assessed to Gabriel |
| Whether Missouri statute §213.111.2 (MHRA) conflicts with Rule 77.04 | Gabriel argued the MHRA restricts awarding costs to prevailing respondents unless the case is without foundation, so Rule 77.04 cannot be applied to MHRA claims | Defendants argued procedural Supreme Court rules govern and Rule 77.04 applies to costs after an offer, even in MHRA cases | The court held no conflict: Rule 77.04 is procedural and governs; it can be read harmoniously with §213.111.2 because the statute applies in different circumstances |
| Whether Rule 77.04 is procedural and therefore prevails over conflicting statute | Gabriel contended the statute limits costs and is substantive for MHRA protections | Defendants contended Rule 77.04 is a procedural rule authorized by the Supreme Court and governs practice and costs | The court held Rule 77.04 is procedural; rules prevail over statutes on procedure, so Rule 77.04 applies |
| Whether the requested deposition costs were properly claimed post-offer and recoverable | Gabriel disputed preservation/appropriateness of the requested costs and argued other procedural objections | Defendants submitted an itemized list of fourteen depositions incurred after the offer totaling $4,488.70 and sought taxation under Rule 77.04 | The court concluded these costs fall within Rule 77.04’s scope and remanded to determine reasonableness and allocation consistent with the rule |
Key Cases Cited
- Sasnett v. Jons, 400 S.W.3d 429 (Mo. Ct. App. 2013) (standard: awarding costs reviewed for abuse of discretion)
- Riggs v. Clark, 14 S.W.3d 719 (Mo. Ct. App. 2000) (Rule 77.04 permits defendant to avoid court costs by making an offer of judgment)
- Katz Drug Co. v. Commercial Standard Ins. Co., 647 S.W.2d 831 (Mo. Ct. App. 1983) (discussing purpose of offer-of-judgment practice)
- Bishop v. Cummines, 870 S.W.2d 922 (Mo. Ct. App. 1994) (Rule 77.04 assesses costs incurred after the offer against the losing party)
- Caldwell v. Heritage House Realty, 32 S.W.3d 773 (Mo. Ct. App. 2000) (Rule 77.04 contains mandatory directives requiring entry of judgment when offer accepted)
- State ex rel. Union Elec. v. Barnes, 893 S.W.2d 804 (Mo. banc 1995) (Supreme Court rules prevail over statutes when addressing practice, procedure, or pleadings)