333 P.3d 552
Wash. Ct. App.2014Background
- Trust leases property from Wilson and seeks declaratory relief on lease terms in 2009, expressly stating it is not seeking money or attorney fees.
- Wilson answers in 2010 with counterclaims for breach and misconduct, seeking monetary damages and an award of attorney fees under the lease.
- Trust continues to pursue the declaratory relief without requesting attorney fees; Wilson dismisses his counterclaim in 2012.
- Trust moves for attorney fee award in 2012, arguing entitlement under the lease's prevailing-party clause; trial court denies for lack of pleading notice.
- Trial court treats attorney fees as potential special damages requiring pleading; relies on CR 9(g) and denies under CR 54(c) as inapplicable.
- Washington Supreme Court holds that CR 54(c) provides an exception; where the nonprevailing party raises contractual attorney fees, notice is sufficient to award fees to the prevailing party.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Must contractual attorney fees be pleaded to be awarded | Trust: fees are special damages requiring pleading. | Wilson: CR 54(c) allows award when issue raised; pleading not strictly required here. | Generally plead; CR 54(c) exception applies when issue raised with sufficient notice. |
Key Cases Cited
- State ex rel. Macri v. City of Bremerton, 8 Wn.2d 93 (1941) (pleading and notice required to entitle relief)
- Jensen v. Torr, 44 Wn. App. 207 (1986) (special damages must be pleaded)
- Allstot v. Edwards, 114 Wn. App. 625 (2002) (CR 54(c) can save unpleaded issues actually litigated)
- State ex rel. A.N.C. v. Grenley, 91 Wn. App. 919 (1998) (costs/fees under interplay of rules)
- Maidmore Realty Co. v. Maidmore Realty Co., 474 F.2d 840 (1973) (claims for attorney's fees as special damages under Fed. Rule 9(g))
- W. Cas. & Sur. Co. v. Southwest Bell Tel. Co., 396 F.2d 351 (1968) (attorney fees are special damages requiring pleading)
- In re Am. Cas. Co., 851 F.2d 794 (1988) (federal precedent on pleading attorney fees as special damages)
- United Indus., Inc. v. Simon-Hartley, Ltd., 91 F.3d 762 (5th Cir. 1996) (attorney fees as special damages; pleading requirement)