North American Savings Bank, F.S.B. v. Nelson
3:21-cv-00184-GHD-RP
N.D. Miss.Dec 12, 2023Background
- North American Savings Bank, F.S.B. (NASB) brought an action against Patrick Nelson and Brian Nelson, seeking to enforce a guaranty agreement and recover on a debt.
- Judgment was entered for NASB for over $5.6 million plus interest and costs, holding both defendants liable for breach of guaranty; the court also upheld an indemnity agreement between the defendants.
- NASB, as the prevailing party, moved for attorneys' fees and expenses, seeking compensation for both the primary and related bankruptcy proceedings.
- The motion for attorneys’ fees and costs was unopposed by Patrick and Brian Nelson.
- NASB supported its motion with affidavits, itemized billing, and evidence that its rates and total fees were reasonable and below the presumptively reasonable one-third-of-recovery threshold under Mississippi law.
- The court reviewed the motion under both state law and federal standards applicable to bankruptcy-related fee requests.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Entitlement to attorneys’ fees | NASB is entitled under the guaranty and related agreements. | None (no opposition filed) | NASB entitled to recover attorneys’ fees and costs. |
| Reasonableness of attorneys’ fees | Fees requested are below presumptive reasonableness, supported by affidavits and comparable rates. | None (no opposition filed) | Fees requested were reasonable and supported by the record. |
| Court's jurisdiction post-appeal | District court retains jurisdiction to award fees after notice of appeal. | None (no opposition filed) | Jurisdiction retained; motion for fees can be decided. |
| Inclusion of bankruptcy-related fees | Fees and costs related to associated bankruptcy proceeding are recoverable. | None (no opposition filed) | Bankruptcy-related fees and costs allowed as requested. |
Key Cases Cited
- DynaSteel Corp. v. Aztec Indus., Inc., 611 So. 2d 977 (Miss. 1992) (presumption favoring the award of one-third of the indebtedness as reasonable attorneys’ fees in collection suits)
- McKee v. McKee, 418 So. 2d 764 (Miss. 1982) (factors for evaluating reasonableness of attorneys’ fees in Mississippi)
- Johnson v. Georgia Highway Express, Inc., 488 F.2d 714 (5th Cir. 1974) (factors for determining attorney’s fee awards in federal courts)
- Cox v. Howard, Weil, Labouisse, Friedrichs, Inc., 619 So. 2d 908 (Miss. 1993) (reinforces fee award presumptions in collection actions)