Steven HOBART, Petitioner and Appellee, v. George FEREBEE, Respondent and Appellant.
Nos. 24885, 25081
Supreme Court of South Dakota.
Decided Nov. 24, 2009.
Rehearing Denied Jan. 5, 2010.
2009 SD 101 | 776 N.W.2d 67
CONCLUSIONS
[¶34.] Based upon the foregoing analysis, the trial court did not abuse its discretion in granting Hobart‘s motion in limine or in awarding Hobart attorney‘s fees under
Appellate Attorney‘s Fees
[¶35.] Hobart has filed a motion for appellate attorney‘s fees related to Ferebee‘s appeal of the attorney‘s fees the trial court awarded to Hobart under
[¶36.] Affirmed.
[¶37.] GILBERTSON, Chief Justice, and KONENKAMP, ZINTER, MEIERHENRY and SEVERSON, Justices, participating.
Timothy R. Johns, Johns & Kosel, Prof. LLC, Lead, South Dakota, Attorney for respondent and appellant.
PER CURIAM.
[¶1.] George Ferebee appeals three orders awarding Steven Hobart attorney‘s fees totaling $12,445.91 incurred in responding to a series of motions brought by Ferebee in a protection order case. The appeals have been consolidated for purposes of briefing and a decision by this Court.1 We affirm.
FACTS
Background
[¶2.] These appeals arise out of a longstanding feud between rural Pennington County neighbors George Ferebee (Ferebee) and Steven Hobart (Hobart). The two men have had a series of serious disputes for well over two decades. During that time, they have exchanged numerous accusations and complaints about insolent, devious, destructive, and even assaultive behavior. For example, Hobart once accused Ferebee of making death threats against his family. Ferebee reported on another occasion that Hobart‘s son tried to hit him with an automobile. Ultimately, Hobart and Ferebee obtained protection orders against each other and, later, extensions of those orders. In 2003, Hobart obtained a new protection order against Ferebee which Ferebee appealed to this Court. Ferebee obtained a reversal of some of the provisions of that order in this Court‘s decision in Hobart v. Ferebee, 2004 SD 138, 692 N.W.2d 509.
[¶3.] Following the 2004 Hobart decision, Ferebee began a campaign of litigation against Hobart by filing numerous motions for reconsideration, modification, or clarification of various aspects of the protection orders in place between the two men. As soon as the trial court would decide one motion and resolve one matter, Ferebee would immediately follow it up with a new motion and an allegedly new issue for consideration. In reality, Ferebee simply recycled many of his prior arguments and attempted to relitigate matters previously decided. Nevertheless, these tactics generated extensive paperwork and a number of trial court hearings. Thus, a relatively straightforward protection order case grew into a five volume
Ferebee‘s Motion to Dismiss Hobart‘s Protection Order
[¶4.] Against the above backdrop, on September 10, 2007, Ferebee filed a motion to dismiss a protection order granted to Hobart, claiming that the order had expired. Hobart resisted on res judicata grounds, alleging that the duration of the protection order was fixed in a previous order appealed to this Court, that the duration of the order was an issue in the appeal, and that this Court summarily affirmed the order. A hearing was held on Ferebee‘s motion to dismiss on September 28, 2007, and the trial court denied the motion, agreeing with Hobart‘s position. During the hearing, Hobart‘s counsel announced her intention to seek attorney‘s fees from Ferebee. Counsel subsequently served a written motion for attorney‘s fees in the amount of $1,445.18 which the trial court granted without a hearing. Ferebee appealed the award of attorney‘s fees to this Court claiming that the trial court erred in granting the fees without a hearing. This Court agreed and entered an order of reversal (without an opinion) on May 27, 2008. As part of its order, this Court remanded the matter of attorney‘s fees to the trial court for a hearing and the entry of findings of fact and conclusions of law necessary to support an award of attorney‘s fees.
Ferebee‘s Motion for Rule 11 Corrections or Sanctions
[¶5.] While the foregoing appeal of the original attorney‘s fee award was pending before this Court, Ferebee filed a pro se motion with the trial court captioned, “Motion for Rule 11 Corrections or if Needed Rule 11 Sanctions for Motion for Attorney‘s Fees.” In his motion, Ferebee sought Rule 11 sanctions2 against Hobart claiming that Hobart‘s original motion for attorney‘s fees failed to comport with the law. Hobart resisted, arguing that the trial court had no jurisdiction to hear a motion relating to the original attorney‘s fee award because of Ferebee‘s pending appeal of the issue before this Court. A hearing was held on Ferebee‘s motion on February 13, 2008. After the hearing, the trial court denied Ferebee‘s motion for Rule 11 sanctions and granted Hobart attorney‘s fees of $688.50. Ferebee appealed the judgment and order denying Rule 11 sanctions and granting Hobart attorney‘s fees to this Court on May 5, 2008.
[¶6.] After entry of this Court‘s order of May 27, 2008, reversing and remanding the original attorney‘s fee award, Hobart filed a motion for limited remand of Ferebee‘s appeal of the judgment and order denying Rule 11 sanctions and granting Hobart attorney‘s fees. Hobart asserted that no hearing was held on the attorney‘s fees and that this Court‘s order of remand of the original attorney‘s fee award meant that a hearing should also have been held as to attorney‘s fees on the Rule 11 motion. Hobart sought the limited remand for purposes of holding a hearing and the entry of findings of fact and conclusions of law to support his award of attorney‘s fees. Although this Court initially denied the limited remand, it subsequently reconsidered and granted the motion on July 9, 2008.
Ferebee‘s Motion for Determinations and Rationale Thereof
[¶7.] On May 9, 2008, while both of the above matters were still pending before
Consolidated Hearing on Attorney‘s Fees
[¶8.] On July 23, 2008, the trial court scheduled a consolidated hearing on all of the outstanding attorney‘s fee issues between Hobart and Ferebee that had been remanded by this Court to the trial court or that remained pending before the trial court. Accordingly, the hearing, held on August 26, 2008, considered attorney‘s fees related to: Ferebee‘s original motion to dismiss Hobart‘s protection order; Ferebee‘s motion for Rule 11 corrections or sanctions; and, Ferebee‘s motion for determinations and rationale thereof.
Trial Court‘s Decision and Appeal
[¶9.] Following the consolidated hearing on attorney‘s fees, the trial court entered separate findings of fact, conclusions of law and judgments and orders awarding Hobart a total of $12,445.91 in attorney‘s fees incurred in responding to Ferebee‘s three motions.3 Ferebee appealed these judgments and orders in a notice of appeal filed December 10, 2008. The appeals have been consolidated for purposes of briefing and a decision by this Court.
STANDARDS OF REVIEW
[¶10.] Under
ISSUE ONE
[¶11.] Whether the trial court abused its discretion in granting Hobart attorney‘s fees incurred in responding to Ferebee‘s motion for determinations and rationale thereof.
[¶12.] Ferebee argues that the trial court abused its discretion in granting Hobart attorney‘s fees incurred in re
[¶13.]
A motion for sanctions under this rule shall be made separately from other motions or requests and shall describe the specific conduct alleged to violate § 15-6-11(b). It shall be served as provided in § 15-6-5, but shall not be filed with or presented to the court unless, within 21 days after service of the motion (or such other period as the court may prescribe), the challenged paper, claim, defense, contention, allegation, or denial is not withdrawn or appropriately corrected. If warranted, the court may award to the party prevailing on the motion the reasonable expenses and attorney‘s fees incurred in presenting or opposing the motion. Absent exceptional circumstances, a law firm shall be held jointly responsible for violations committed by its partners, associates, and employees.
[¶14.] This rule is analogous to the “safe harbor provision” of Federal Rule of Civil Procedure 11 (Rule 11). The safe harbor provision is designed to: protect litigants from sanctions in order to mitigate Rule 11‘s chilling effect; formalize due process protections including notice; and, encourage the withdrawal of papers that violate the rule so as to avoid sanction proceedings and streamline the litigation process. 5A Charles Alan Wright & Arthur R. Miller, Federal Practice and Procedure § 1337.2 (3rd ed. 2004). Since the procedural requirements of the Rule 11 safe harbor provision are designed to protect the person against whom sanctions are sought and forestall unnecessary motion practice, a failure to comply with them will result in the rejection of the motion for sanctions as many cases since the 1993 amendment have stated or held. Id. (emphasis added).
[¶15.] Despite the support this passage might offer for Ferebee‘s argument, he ignores that he, not Hobart, was the moving party on the issue of sanctions in the “Motion for Determinations and Rationale Thereof.” This motion was nothing more than a request for the trial court to provide a rationale in support of its earlier denial of Ferebee‘s motion for Rule 11 sanctions.4 As such, it was simply a supplemental motion in the proceedings related to Ferebee‘s earlier motion for sanctions. On both motions, Hobart was the party opposing, not seeking, sanctions. In fact, Hobart filed documents captioned “Response to Motion for Rule 11 Corrections or if Needed Rule 11 Sanctions for Motion for Attorneys Fees” and “Response to Motion for Determinations and Rationale Thereof.” (Emphasis added). Clearly, by this terminology, Hobart was the party opposing sanctions. Moreover, Hobart prevailed in his opposition.
[¶16.]
[T]he filing of a motion for sanctions is itself subject to the requirements of [Rule 11] and can lead to sanctions. However, service of a cross motion under Rule 11 should rarely be needed since under the revision the court may award to the person who prevails on a motion under Rule 11—whether the movant or the target of the motion—reasonable expenses, including attorney‘s fees, incurred in presenting or opposing the motion.
Fed.R.Civ.P. 11 (Advisory Committee Notes, 1993 Amendments, Subdivisions (b) and (c)). See also 2 James Wm. Moore, Moore‘s Federal Practice § 11.22[1][f] (3rd ed. 2009)(stating that the provision allowing the court to award attorney‘s fees to the party prevailing on a Rule 11 motion “eliminates the need for cross-motions under Rule 11.“).
[¶17.] The Advisory Committee Notes precisely address the situation that occurred here. Ferebee filed a motion for sanctions and a supplemental motion on sanctions subject to the requirements of Rule 11. There was no need for Hobart to serve cross motions under Rule 11 in order to receive attorney‘s fees if he prevailed on Ferebee‘s motions because the rule already permitted such an award. Accordingly, the trial court did not abuse its discretion in granting Hobart attorney‘s fees incurred in responding to Ferebee‘s motions including the motion for determinations and rationale thereof.
[¶18.] At the close of his brief on this issue, Ferebee raises an additional argument concerning the denial of his motion for Rule 11 corrections or sanctions. He contends that the trial court erred on substantive grounds in denying this motion because it was neither frivolous nor malicious but was directed to Hobart‘s failure to follow proper procedures in obtaining attorney‘s fees on Ferebee‘s motion to dismiss Hobart‘s protection order. However, Ferebee ignores significant procedural facts.
[¶19.] At the time Ferebee served his motion for Rule 11 corrections or sanctions in January 2008, he had already appealed the original award of attorney‘s fees to this Court. Thus, any issues Ferebee had over procedures followed by Hobart in obtaining those attorney‘s fees should have been raised on appeal, not in a new motion for sanctions brought before the trial court. In fact, at that juncture, the trial court had lost jurisdiction over issues related to the original attorney‘s fee award as Hobart so argued and as the trial court so found. See Muenster v. Muenster, 2009 SD 23, ¶32, 764 N.W.2d 712, 721 (citing Reaser v. Reaser, 2004 SD 116, ¶28, 688 N.W.2d 429, 437 in stating that an appeal from a judgment or order strips the trial court‘s jurisdiction over the subject matter of the judgment or order and restrains the trial court from entering an order changing or modifying the judgment on appeal or interfering with review of the judgment). This, in conjunction with Ferebee‘s history of meritless motions and procedural maneuvers, provided ample support for the trial court‘s determination that Ferebee‘s subsequent motion for Rule 11 corrections or sanctions was frivolous and malicious and should be denied.
ISSUE TWO
[¶20.] Whether the trial court abused its discretion in holding that Hobart was entitled to attorney‘s fees under
[¶21.]
[¶22.] Ferebee contends that the trial court awarded Hobart attorney‘s fees under
[¶23.] As mentioned, the only attorney‘s fees the trial court awarded exclusively on the basis of
If a civil action or special proceeding is dismissed and if the court determines that it was frivolous or brought for malicious purposes, the court shall order the party whose cause of action or defense was dismissed to pay part or all expenses incurred by the person defending the matter, including reasonable attorneys’ fees.
(Emphasis added). Ferebee focuses on the word “dismissed” in this statute and argues that, because his motion to dismiss Hobart‘s protection order was “denied” and not “dismissed,” Hobart was not eligible for attorney‘s fees under the statute.
[¶24.] In analyzing the precursor to
[¶25.] The trial court followed a similar view of
[¶26.] Ferebee also argues that, based upon the plain language of
[¶27.] Finally, under this issue, Ferebee argues that none of his motions were frivolous or malicious and, therefore, they did not warrant attorney‘s fee awards under
[¶28.] A determination of frivolousness or maliciousness was necessary for the award of attorney‘s fees on Ferebee‘s original motion to dismiss Hobart‘s protection order.
ISSUE THREE
[¶29.] Whether the trial court erred in denying Ferebee‘s motion to dismiss.
[¶30.] As his final issue, Ferebee argues that the trial court erred in denying his original motion to dismiss Hobart‘s protection order because the order was void on jurisdictional grounds that also voided all subsequent orders in the matter, including the orders for attorney‘s fees. Ferebee‘s jurisdictional argument is premised upon the effective dates of the protection orders between Ferebee and Hobart under
[¶31.] In any event, the denial of Ferebee‘s original motion to dismiss Hobart‘s protection order is not properly before this Court for review. The order denying the motion to dismiss was entered on October 12, 2007. Attorney‘s fees related to the motion were awarded in a separate order also entered on October 12. Ferebee appealed only the order awarding attorney‘s fees, not the order denying his motion to dismiss. Moreover, this Court reversed and remanded only the order for attorney‘s fees, not the order denying the motion to dismiss. Thus, the denial of the motion to dismiss became final and unreversed on or about November 11, 2007. See
CONCLUSIONS
[¶32.] Based upon the foregoing analysis, the trial court did not abuse its discretion in granting Hobart attorney‘s fees on Ferebee‘s motion for determinations and rationale thereof. We also find no abuse of discretion in the trial court‘s award of attorney‘s fees under
Appellate Attorney‘s Fees
[¶33.] Both parties have filed motions for appellate attorney‘s fees. The motions are accompanied by itemized statements of costs incurred and legal services rendered. Based upon the above conclusions, Hobart is eligible for appellate attorney‘s fees as the successful party on the attorney‘s fee
[¶34.] Affirmed.
[¶35.] GILBERTSON, Chief Justice, and KONENKAMP, ZINTER, MEIERHENRY, and SEVERSON, Justices, participating.
