815 N.W.2d 280
N.D.2012Background
- In Oct. 2009, Sisters of Mary and Northern entered a contract to repair a water main on Sisters’ property; price was not fixed in the contract.
- Northern billed Sisters $103,244.11 for time and materials; Sisters valued the work at about $40,000 and refused payment.
- Northern filed a construction lien for $98,806.98 and sued for breach and lien foreclosure; Sisters answered with counterclaims including breach, unlawful sales, and slander of title, and requested a jury trial.
- The jury awarded Northern $81,694.23 plus 1.5% interest; post-trial, Sisters sought full costs and attorney’s fees ($33,477.09) under N.D.C.C. § 35-27-24.1; the trial court awarded Sisters $3,231 and Northern $743.33 in costs, with disputes over prevailing party status.
- On appeal, the court held lien-accuracy contest is subject to reasonableness, reversed in part, remanded for reasonableness determinations on fees, and addressed prevailing-party status for costs.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether § 35-27-24.1 allows full costs and fees for contesting a lien. | Sisters insists she is entitled to all costs and fees ($33,477.09). | Northern contends not all fees are recoverable; only reasonable costs tied to the lien contest. | Not all; fees must be reasonable and tied to contest of the lien. |
| Whether lien accuracy must be reasonably accurate to trigger § 35-27-24.1. | Sisters argues the lien was inaccurate by about $17k, triggering full fee recovery. | Northern argues the statute does not require such reasonableness in accuracy. | Accuracy must be reasonably accurate; de minimis or trivial inaccuracies do not trigger full recovery. |
| Whether work on contesting the lien can be recovered if intertwined with other claims. | Sisters seeks fees for lien contest even if intertwined with contract issues. | Northern asserts fees should be limited to contest-specific work. | Fees for contesting the lien are recoverable if reasonably connected to contest of the lien. |
| Who is the prevailing party for costs under § 28-26-06. | N/A | Northern sought costs as the prevailing party. | Northern is prevailing on the merits; remand to determine reasonable lien-contest fees. |
Key Cases Cited
- Dowhan v. Brockman, 624 N.W.2d 690 (ND 2001) (prevailing-party determination based on merits, not damages)
- Lemer v. Campbell, 602 N.W.2d 686 (ND 1999) (definition of prevailing party; merits focus)
- Blomdahl v. Blomdahl, 796 N.W.2d 649 (ND 2011) (statutory construction to avoid absurd results; interpret § 1-02-38(3))
- LSV, Inc. v. Pinnacle Creek, LLC, 996 P.2d 188 (Colo.App.1999) (owner entitled to reasonable fees for defending an excessive lien; avoid absurd results)