Madison County Board of Commissioners and Madison County Highway Department v. American Federation of State County and Municipal Employees Local 3609 (mem. dec.)
33A01-1609-PL-2136
Ind. Ct. App.Apr 19, 2017Background
- Two Madison County Highway Department employees (Amos and Benfield), represented by AFSCME Local 3609, were disciplined and terminated for alleged "ghost employment" after GPS and supervisor observations suggested excessive idling/long lunches.
- Under the parties' collective bargaining agreement (CBA), an arbitrator’s decision was final; arbitration found no ghost employment but concluded the conduct was a Class B infraction and imposed a five-day unpaid suspension instead of discharge.
- The County sought to vacate/correct the arbitrator’s award in court under Indiana’s Uniform Arbitration Act; the trial court confirmed the award, this Court affirmed, and the Indiana Supreme Court denied transfer.
- The Union sought attorney’s fees for defending against the County’s vacatur efforts; the arbitrator said he lacked authority to award fees but called the County’s appeals "frivolous, groundless, and unreasonable."
- The trial court awarded the Union stipulated attorney’s fees ($23,992.50) under Indiana Code § 34-52-1-1(b); the County appealed, challenging the award and the characterization of its litigation as frivolous.
Issues
| Issue | Plaintiff's Argument (Union) | Defendant's Argument (County) | Held |
|---|---|---|---|
| Can a trial court award appellate attorney’s fees under Ind. Code § 34-52-1-1(b)? | Statute authorizes attorney fees to prevailing party; includes appellate fees. | Statute limited to trial-level fees; trial court needs appellate mandate. | Statute not limited; trial court may award appellate fees; no mandate needed. |
| Were appellate fees waived because Union didn’t request them on original appeal? | No—fees may be recovered by statute; County stipulated to fee amount and had opportunities to contest. | Waiver and lack of opportunity to defend on appeal. | No waiver; County had opportunity and stipulated to amounts. |
| May a trial court award trial attorney’s fees that the arbitrator declined to award? | Yes—arbitrator lacked statutory/contractual authority; trial court can decide under statute. | Arbitrator’s denial was on the merits/res judicata; trial court should not re-award. | Arbitrator’s denial was jurisdictional; res judicata inapplicable; trial court properly awarded fees. |
| Was the County’s pursuit of vacatur frivolous, groundless, or unreasonable? | Yes—County persisted after losses at arbitration, trial court, appellate court, and Supreme Court; statute authorizes fees. | No—County reasonably argued arbitrator exceeded authority; pursuit not frivolous. | County’s vacatur efforts were groundless and unreasonable; fee award affirmed. |
Key Cases Cited
- City of Jeffersonville v. Envtl. Mgmt. Corp., 954 N.E.2d 1000 (Ind. Ct. App. 2011) (attorney fees recoverable only when authorized by contract, rule, statute, or agreement)
- Benge v. Miller, 855 N.E.2d 716 (Ind. Ct. App. 2006) (statutory awards of fees may include appellate fees)
- Madison Cty Bd. of Com’rs v. Am. Fed’n of State Cty & Mun. Emp’s. Local 3609, 45 N.E.3d 868 (Ind. Ct. App. 2015) (prior panel affirmed confirmation of arbitrator’s award)
- Purcell v. Old Nat. Bank, 972 N.E.2d 835 (Ind. 2012) (standards and multi-level review for fee awards under Indiana statute)
- Thacker v. Wentzel, 797 N.E.2d 342 (Ind. Ct. App. 2003) (Appellate Rule 66(E) sanctions limited and sparingly applied)