Morris v. Moller
2012 ND 74
| N.D. | 2012Background
- In Oct 2009, Northern agreed to repair a water main break for time and materials with no fixed price.
- Northern billed Sisters of Mary for $103,244.11; Sisters claimed value around $40,000 and refused payment.
- Northern filed a construction lien and suit for $98,806.98; Sisters counterclaimed for breach, unlawful sales practices, and invalid lien/slander of title.
- Jury awarded Northern $81,694.23 plus 1.5% interest; issues on lien foreclosure were reserved from jury submission.
- Post-trial, Sisters sought all costs and attorney’s fees ($33,477.09) under N.D.C.C. § 35-27-24.1; Northern argued only lien-related costs/fees applicable.
- District court awarded Sisters $3,231 in attorney’s fees and Northern $743.33 costs; this ruling was appealed and cross-appealed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether § 35-27-24.1 requires full costs/fees when lien accuracy is contested | Sisters seeks all costs and fees under § 35-27-24.1. | Northern contends only reasonable, lien-related costs/fees allowed. | Not all fees; reasonable lien-related fees only |
| What constitutes 'accuracy' for purposes of § 35-27-24.1 | Accuracy means no errors in the lien compared to the value. | Accuracy should align with the contract value; any overstatement matters. | Reasonableness controls; de minimis errors do not trigger full fees |
| Should the owner recover all attorney’s fees/costs incurred contesting the lien | Sisters argues recover all related attorney’s fees for contesting the lien. | Northern argues no, only fees directly tied to contesting the lien. | Recovery limited to fees reasonably expended contesting the lien |
| Who is the prevailing party for cost-shifting under § 28-26-06 | Northern prevailed on merits and is the prevailing party. | Sisters contends not all merits-for-fees are aligned with lien issues. | Northern is prevailing party; entitled to costs |
Key Cases Cited
- Dowhan v. Brockman, 2001 ND 70 (ND) (prevailing-party determination based on success on merits)
- Lemer v. Campbell, 1999 ND 223 (ND) (prevailing party defined by favorable judgment on merits)
- Blomdahl v. Blomdahl, 2011 ND 78 (ND) (statutory interpretation aiding reasonable outcomes)
- LSV, Inc. v. Pinnacle Creek, LLC, 996 P.2d 188 (Colo. App. 1999) (owner not entitled to all attorney’s fees for unrelated claims)
- Lakloey, Inc. v. Ballek, 211 P.3d 662 (Alaska 2009) (fee reductions when not all claims litigated lien issue)