[11] Aрpellant Cheryl Castleberry, as personal representative of the Estate of Billie Garner, appeals from the district court's order denying her claim for attorneys' fees. We conclude that Castleberry is entitled to attorneys' fees under the relevant contractual language and, therefore, reverse and remand.
ISSUE
[T2] Castleberry articulates a single issue on appeal:
1. When a contract provides for recovery of attorney's fees to the successful party, and the defending party has successfully contended that the other party's rights under the contract have been terminated by reason of the other party's default, should the successful party be awarded its fees?
Appellees Tom and Yvonne Phelan phrase the issue as follows:
I. Whether the District Court properly determined that the contractual provision providing for an award of attorneys' fees did not survive the voluntary termination of the Contract for Deed.
FACTS
[13] The underlying facts of this case are undisputed. In 1992, Charles and Billie Garner and Randy and Kathleen Mordhorst en
[14] Both of the Garners passed away, and Castleberry was appointed as the personal representative of the Estate of Billie Garner. Castleberry discovered that the Mordhorsts were not making payments on the Garner Contract and notified them of their default on January 283 and 24, 2002. In accordance with the terms of the Garner Contract, Castleberry informed the Mor-dhorsts that they had thirty days to cure the default. On January 28, 2002, the Mor-dhorsts entered into a contract to sell the property to Yvonne Phelan.
[15] On February 29, 2002, more than thirty days after the default notice, the Mor-dhorsts tendered a $13,680.46 payment to Castleberry. This payment was $7,117.10 less than the amount required to cure the default. Castleberry rejected the Mor-dhorsts' attempt to cure, took possession of the property, and recоrded a quitclaim deed conveying the property back to the estate. On November 25, 2002, the Mordhorsts attempted to assign their interests in the Garner Contract to the Phelans. They did not, however, obtain Castleberry's consent for the assignment as required by the Garner Contraсt.
[T6] The Phelans then initiated a lawsuit against Castleberry, alleging breach of the Garner Contract and seeking specific performance of the contract and attorneys' fees. Castleberry filed a counterclaim against the Phelans and a third-party complaint against the Mordhorsts, seeking to quiet title to the real property and requesting attorneys' fees. The district court granted a summary judgment in favor of Castleberry on her quiet title claim. The district court specifically found that the Mordhorsts breached the Garner Contract by failing to make the payments in a timely manner and failing to cure their default after notice. The district court held, however, that Castleberry was not entitled to attorneys' fees because she terminated the Garner Contract after the Mordhorsts defaulted and "[t]he рrovision for attorney's fees does not survive the termination of the Garner Contract."
[17] The Phelans initially appealed the district court's decision but later voluntarily dismissed their appeal. Castleberry filed a cross-appeal of the district court's ruling on the attоrneys' fees issue, and that appeal is still pending before this Court.
STANDARD OF REVIEW
[T8] Summary judgment is appropriate when there are no genuine issues of material fact and the moving party is entitled to judgment as a matter of law. Owsley v. Robinson,
DISCUSSION
[19] Castleberry claims that the district court erred as a matter of law in determining that she was not entitled to recover attorneys' fees under the fee-shifting provision of the Garner Contrаct. Wyoming has consistently followed the American Rule regarding attorney's fees. Under the American Rule, "each party is generally responsible for his own attorneys' fees. A prevailing party may, however, be reimbursed for his attorneys' fees when express statutory or сontractual authorization exists for such an award." Cline v. Rocky Mountain, Inc.,
In case the BUYERS shall refuse, neglect, or fail to pay the said purchase money or interest or money advanced or to keep or perform any other agreement or provisions herein contained, the SELLERS may elect to terminate this CONTRACT and shall thereupon be released from all obligations in law or еquity to convey said property and the BUYERS shall, in the event of such election by SELLERS, forfeit all right, title and interest and estate in and to any and all payments made by BUYERS pursuant to this CONTRACT, and to said land and all improvements now on said land and all such other improvements as may therеafter be placed on said land, including any structures, and fixtures.... In the event of such election by SELLERS, BUYERS shall always remain lable to SELLERS for the reasona[blle rental value of the premises for any period during which BUYERS or its tenants occupy the premises after default. SELLERS may, hоwever, in the event of default of BUYERS, elect to affirm this CONTRACT and pursue any remedy they may have at law or in equity by reason of such default.
The BUYERS shall be entitled to possession and use of said premises on the 11th day of February, 1992, and thereafter so long and only so long as the BUYERS shall perform and comply with the terms and conditions of this CONTRACT FOR DEED. However, in the event of the BUYERS' failure to perform and comply with the terms hereof and SELLERS election to terminate, the BUYERS shall immediately surrender possession of said premises to SELLERS to whom in such event there is resеrved the right to take immediate possession of said property, and to regard the person or persons in possession or occupancy at the time of such termination of this CONTRACT as tenant or tenants holding over without permission, and thereafter to recеive rents arising from said premises and to recover any damages committed or suffered on said premises and to re-enter said premises or any part thereof, either with or without process of law or notice or demand, and repossess and enjoy the sаme as was their right prior to the execution of the CONTRACT.
The attorney's fees provision of the Garner Contract stated:
It is further understood and agreed that in case of suit, foreclosure or other litigation arising out of any breach of this CONTRACT, the, Court having jurisdiction thereof may award attorney's fees to the successful party.
[T11] As with any contract, our objective in interpreting contractual fee-shifting provisions is to discern the intent of the contracting parties. Cling
[112] Under the plain language of the Garner Contract, the successful party in a suit, foreclosure, or other litigation arising out of any breach of the contract was entitled to request an award of attornеy's fees. The Phelans' complaint alleged that Castleberry breached the Garner Contract by declaring it in default. Castleberry counterclaimed, alleging that she was entitled to have title to the property quieted to her because the Mor-dbhorsts had breached the Garner Contract. The undisputed facts of the controversy showed that Castleberry followed the contractual requirements by declaring the contract in default and recording the quitclaim deed. The district court agreed with Castle-berry's position and ruled that the Mor-dhorsts had defaulted on their obligations to make timely payments under the contract
[113] Despite its ruling that the litigation pertained to the Garner Contract, the district court concluded, without any citation to authority, that the attorney's fees provision did not survive the termination of the Garner contract. In support of the district court's determination, the Phelans direct us to cases involving contractual rescission. In Pickinpaugh v. Morton,
[T14] There is, however, a critical distinction between the case at bar and cases such as Pickinpaugh and Kennedy. Unlike the parties in those cases, Castleberry did not seek rescission of the contract. Instead, she simply availed herself of the default remedies available under the contract. In this respect, the case at bar is more akin to a later Oregon Supreme Court case entitled Usinger v. Campbell,
[T15] Finally, the Phelans claim that, under the doctrine of election of remedies, Castleberry is not entitled to recover attorneys' fees. Specifically, the Phelans maintain that, because Castleberry elected to terminate the Garner Contract, she is precluded from claiming the alternative remedy of attorneys' fees. In support of their election of remedies argument, the Phelans direct us to several Wyoming cases for the rule that a party may not seek rescission of a contract and then subsequently сlaim a breach of contract. See, eg., Walters v. Michel,
Notes
. The Mordhorsts did not participate in this litigation in the district court or upon appeal.
. Our holding in this case does not depart from prior cases in which we have stated that, "[even in the face of a valid contractual provision for attorney's fees ... a trial court has the discretion to exercise its equitable control to allow only such sum as is reasonаble or the court may properly disallow attorney's fees allogether on the basis that such recovery would be inequitable." Dewey, 150. The district court's decision indicates that its decision was based upon a legal conclusion that attorneys' fees were not available. There is nothing in the decision to indicate that it was denying Castleberry attorneys' fees on the basis of equity. Id.
