Uthman Cavallo, M.D. v. Allied Physicians of Michiana, LLC
2015 Ind. App. LEXIS 591
| Ind. Ct. App. | 2015Background
- Cavallo signed an employment contract with Allied after Allied purchased OB/GYN assets.
- Contract included a fee-shifting provision allowing attorney fees if Allied prevailed on enforcing the covenant not to compete.
- Allied sued Cavallo for breach of the covenant; Cavallo counterclaimed that Allied breached the contract; a jury trial found Cavallo breached.
- After judgment, Allied petitioned for attorney fees totaling $89,706.11; Cavallo objected to the fee petition as unreasonable and untimely.
- The trial court ruled Cavallo’s pre-trial jury demand applied to the fee issue but allowed a potential second jury on reasonableness; Cavallo requested a jury trial on the fees.
- The court ultimately denied Cavallo’s jury request and awarded Allied $89,706.11, and Allied sought appellate fees after prevailing on appeal.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Allied's fee claim is barred by res judicata or waiver | Allied: fee claim ripe post-judgment; not barred since not ripe earlier | Cavallo: res judicata/waiver bar because fees could have been litigated at trial | Not barred; fees not ripe earlier and not identical to prior action |
| Whether Cavallo had a right to a jury for determining reasonable attorney fees | Allied: jury trial not required; fee issue equitable and not triable by jury | Cavallo: Parrish II requires jury on reasonable fees; Trial Rule 38 applies | No right to jury on reasonableness of fees; no reversible error |
| Whether the trial court abused its discretion in awarding attorney fees | Fees reasonable based on local rates, issues, counsel experience, and time to prepare | Fees excessive or not adequately proven; hearing required | No abuse; evidence supported reasonableness; no mandatory hearing required |
| Whether Allied may recover appellate attorney fees | Contract allows recovery of appellate fees where Allied prevails on appeal | None stated beyond standard challenge to fee amount | Appellate fees available; remand for reasonable appellate fee amount |
Key Cases Cited
- Parrish v. Terre Haute Sav. Bank, 431 N.E.2d 132 (Ind. Ct. App. 1982) (jury on reasonable attorney fees may be required when fee is contractual and remand occurs)
- Parrish v. Terre Haute Sav. Bank (Parrish II), 438 N.E.2d 1 (Ind. Ct. App. 1982) (Trial Rule 39 governs jury issues on remand for fees)
- McGuire v. Russell Miller, Inc., 1 F.3d 1306 (2d Cir. 1991) (distinct legal right to recover fees vs. reasonable amount determined later; fees may be equitable)
- Daimler Chrysler Corp. v. Franklin, 814 N.E.2d 281 (Ind. Ct. App. 2004) (guides reasonableness factors for attorney fees)
- Evergreen Shipping Agency Corp. v. Djuric Trucking, Inc., 996 N.E.2d 337 (Ind. Ct. App. 2013) (test for claim preclusion requires same matter and final judgment on merits)
- R.L. Turner Corp. v. Town of Brownsburg, 963 N.E.2d 453 (Ind. 2012) (ripeness of fee petitions post-judgment)
- Songer v. Civitas, 771 N.E.2d 61 (Ind. 2002) (constitutional underpinnings of jury rights and equity)
- Resolution Trust Corp. v. Marshall, 939 F.2d 274 (5th Cir. 1991) (Seventh Amendment considerations in contract-based fee determinations)