Charles H. HOUGH, Plaintiff/Appellant, v. Ashley H. HOUGH, Defendant/Appellee.
No. 96,862.
Supreme Court of Oklahoma.
June 8, 2004.
2004 OK 45 | 92 P.3d 695
George H. Brown and Lee F. Peoples of Klingenberg & Associates, P.C., of Oklahoma City, OK, for Special Master/Appellee.
LAVENDER, J.
¶ 1 The issue in the present cause is whether the trial court abused its discretion in determining that its order requiring Husband to pay the fees and costs of the special master and the order awarding a judicial lien to special master to secure such payment, were intended to provide support for the wife and thus, non-dischargeable in bankruptcy. We hold that the trial court did not abuse its discretion in making such determinations in this case and the COCA erred in vacating the portion of the trial court‘s order denominating the special master‘s fees as support for the wife and the portion of the order providing the judicial lien is non-dischargeable.
I
FACTS AND PROCEDURAL HISTORY
¶ 2 Husband filed for divorce from Wife on February 12, 1997. This case involves a complicated marital estate, which included the parties’ co-ownership of two businesses (A-C Air and A-C Rentals, Inc.1) and 44 rental properties, but Husband maintained exclusive control over the businesses, properties and income therefrom. Wife was primarily a homemaker and mother of two daughters during the 16-year marriage, while Husband operated the businesses.
¶ 3 Evidence reflects that throughout the course of this litigation, Husband was generally uncooperative in discovery and in compliance with the trial court‘s orders 2, he intentionally misused and/or dissipated joint business funds 3, and that he provided incomplete, false and/or misleading information to the court concerning his true income 4 and/or
¶ 4 Given Husband‘s misconduct, Wife filed a motion to appoint a special master “to oversee all matters relating to the marital estate of the parties ... to determine the value of the marital estate, to conduct discovery regarding the estate, to control the Husband‘s ability to further dissipate the estate, to determine the Husband‘s prior dissipation of the marital assets and all other such matters regarding the estate.”5 Wife‘s motion specifically requested the need for a special master, who would be both an attorney and certified public accountant, given the “diverse nature of the marital estate” and noted such an appointment would spare the parties “considerable time and expense of hiring two experts for the same purpose.”6 Wife proposed the appointment of attorney/C.P.A. Ken Klingenberg to serve as special master, with such fees and costs of the special master to be paid by Husband. Husband objected to the appointment of a special master “as being outside the scope of any Statutory authority and there being no case law for same.”7
¶ 5 The trial court ultimately entered the following Order:
[A]ppointment of a special master will be of benefit to the Court in matters relating to discovery, valuation and preservation of the marital estate ... [and such special master] shall have control of all matters relating to discovery, valuation and preservation of the marital estate (including the two businesses); shall control Plaintiff‘s ability to expend the marital estate and to determine the Plaintiff‘s prior expenditures and/or depletion of the marital assets; and shall control all other matters regarding the marital estate. Said fees and costs shall be paid by the [Husband] from the marital estate.8
Husband thereafter filed his Motion to Discharge Special Master 9 on March 12, 1999,
¶ 6 The parties’ divorce proceedings ended in settlement on September 8, 2000, with the issue of attorney fees and costs expressly reserved in the Consent Decree of Divorce. Special master thereafter filed his Application for Attorneys Fees on September 15, 2000, seeking fees and costs in the amount of $43,404.98. Husband reiterated his objections to special master‘s Application for payment of fees and costs, arguing that “the initial referral to a special master was ultra vires in that there was no good cause for the appointment,” the trial court‘s order granting the special master authority to conduct discovery was improper, vague and overly broad, and the fee was excessive. During the pendency of the trial court‘s consideration of the reserved issues of fees and costs including those of the special master, Husband filed his Chapter 13 Bankruptcy Petition in the U.S. Bankruptcy Court in March, 2001.11 Special master filed his Amended Application for Payment of Attorney‘s Fees with the trial court on August 27, 2001, seeking additional fees since the filing of the original Application for a total fees and costs of the special master of $48,703.40.
¶ 7 On September 4, 2001, the trial court granted special master‘s Application for Payment of Attorney‘s Fees and approved total payment of fees and costs in the amount of $48,703.40, and further granted special master a judicial lien in that amount over all property awarded to Husband from the marital estate, and determined such “judicial lien shall not be discharged by [Husband] in bankruptcy.” Additionally, the trial court determined as follows:
[t]he initial order requiring the [Husband] to pay the fees and costs of the Special Master from the marital estate and the order awarding a judicial lien to the Special Master, were intended to provide support to the [Wife] by allowing her to use the money awarded to her for support instead of using the money for payment of the attorney‘s fees and costs of the Special Master.
Finally, the trial court concluded “[t]hat substantially all efforts expended by the Special Master in ensuring compliance with discovery order, valuation and preservation of the marital estate, were necessitated by the [Husband‘s] hindrance, delay and general ‘uncooperativeness’ in this case; and that such an award as stated above is more than reasonable, considering the [Husband‘s] actions taken in this case.”
¶ 8 Husband appealed, arguing the trial court erred in the following respects: (a.) the trial court improperly delegated judicial authority to the special master; (b.) the trial court‘s order was vague and overbroad in its appointment of special master to conduct “blanket discovery” in a case that does not present complex issues of accounting or valuation; (c.) the trial court erred in awarding special master fees in this case because there is no statutory basis for such award; (d.) the order surpasses the relief prayed for by improperly granting a judicial lien against Husband‘s property and finding that fees were intended for support of Wife and determining that the fees are not dischargeable in bankruptcy. COCA affirmed the order awarding special master fees and costs in the amount
II
THE TRIAL COURT DID NOT ABUSE ITS DISCRETION IN CHARACTERIZING SPECIAL MASTER‘S FEE AWARD IN THE NATURE OF SPOUSAL SUPPORT AND DETERMINING THAT JUDICIAL LIEN GRANTED TO SECURE HUSBAND‘S PAYMENT OF SUCH FEE NON-DISCHARGEABLE IN BANKRUPTCY
¶ 9 As a starting point, we note that an action for divorce, alimony and division of property such as this one is one of equitable cognizance and in reviewing a case of equitable cognizance, the judgment of the trial court will not be disturbed unless the trial court abused its discretion or unless the court‘s finding was clearly against the weight of the evidence. Merritt v. Merritt, 2003 OK 68, ¶ 7, 73 P.3d 878, 882, cert. denied, ___ U.S. ___, 124 S.Ct. 820, 157 L.Ed.2d 697 (2003); Creech v. Creech, 1956 OK 10, 292 P.2d 376, 378; Tschauner v. Tschauner, 1952 OK 230, 245 P.2d 448. In this case, the COCA concluded that the trial court abused its discretion in its determination that its Order requiring Husband‘s payment of special master‘s fee was “intended to provide support to [Wife]” and ordering that the judicial lien (granted to secure Husband‘s payment of special master‘s fees) shall not be discharged in Husband‘s bankruptcy. The COCA based its determination on the unsupported basis that “special master‘s fees and costs are not support for Wife. The fees were not paid to Wife for her use.” The COCA further reasoned that
¶ 10 We disagree with the COCA‘s conclusions. Consistent with and pursuant to the exceptions to discharge section of the U.S. Bankruptcy Code,
¶ 11 Turman v. Turman and Owens v. Owens further clearly demonstrate there is no requirement that the payments pursuant to an award arising out of an Oklahoma divorce action be paid directly to the spouse in order to constitute an obligation in the nature of alimony, maintenance or support. In Turman, the obligation deemed in the nature of alimony was not to be paid directly to the former spouse, but rather, directly to her attorney for fees for legal services in representing the former spouse in the subject divorce action she instituted. Turman, 438 P.2d at 490. The obligation in Owens, which was determined there to be in the nature of support was the husband‘s divorce-decree imposed obligation to pay two mortgages on the parties’ jointly held real property including the marital home. Owens, 897 P.2d at 1147. In both Turman and Owens, while the former spouse in each respective case was the recipient of the benefit
III
SPECIAL MASTER‘S MOTION FOR APPEAL-RELATED ATTORNEY‘S FEES
¶ 12 Special master filed his “Motion for Appellate Attorney‘s Fees” pursuant to
¶ 13 The general rule is “[a]ppeal-related attorney fees are recoverable if statutory authority exists for their award in the trial court.” Casey v. Casey, 2002 OK 70, ¶ 26, 58 P.3d 763, 772 (footnotes omitted). This case presents a unique question concerning a non-party‘s quest for appeal-related attorney‘s fees. We are unaware of express statutory authority for the recovery of a special master‘s attorney fees. However, statutory authority exists for the award of “compensation [to referees] for their services
¶ 14 In this case, the trial court ordered Husband to pay the fees and costs of special master and the COCA affirmed this award pursuant to
¶ 15 Special master seeks recovery of appeal-related attorney fees pursuant to
¶ 16 Finally, to the extent special master‘s assertion of “compelling and overriding equitable considerations” equates to a demand for the balancing of judicial equities as between special master and Husband, special master cites no authority in support of the application of such a balancing of judicial equities test as between a non-party special master and a party to an underlying divorce action in support of recovery of appeal-related attorney fees.17 A proposition which is unsupported by citation to authority will not be considered on appeal. Witt v. Westheimer, 1938 OK 249, 79 P.2d 250; Mid-Continent Cas. Co. v. Jenkins, 1967 OK 54, 431 P.2d 349; see Vernor v. Poorman, 1916 OK 608, 158 P. 615 (providing “attorneys who present cases here have no right to place the burden upon this court and consume their time in a laborious research for authorities to support their argument.“). In light of these authorities, special master‘s Motion for Appeal-Related Attorney‘s Fees is denied.
IV
SUMMARY
¶ 17 In sum, we hold the trial court did not abuse its discretion in characterizing the obligation arising out of this divorce action that Husband pay special master‘s fees and costs and judicial lien over Husband‘s property granted to special master to secure payment of such fees and costs as in the nature of support for the Wife and therefore non-dischargeable in Husband‘s bankruptcy and the COCA erred in determining the trial court lacked judicial authority to make such a determination in this case. The trial court‘s September 4, 2001 order awarding special master fees and costs in the amount of $48,703.40 is affirmed in its entirety.
¶ 18 Upon certiorari previously granted, THE COURT OF CIVIL APPEALS’ OPINION IS VACATED; JUDGMENT OF THE TRIAL COURT IS AFFIRMED.
¶ 19 WATT, C.J., HODGES, HARGRAVE, KAUGER, BOUDREAU, WINCHESTER and EDMONDSON, JJ., concur.
¶ 20 OPALA, V.C.J., concurs in part; dissents in part.
OPALA, V.C.J., dissenting in part.
¶ 1 The court reverses today the trial court‘s counsel-fee award to the special master and denies his appeal-related attorney‘s fee quest. I agree with the court‘s pronouncement insofar as it rejects the notion that the provisions of
I
A SPECIAL MASTER‘S QUEST FOR AN ATTORNEY‘S FEE PRESENTS AN ANCILLARY CLAIM
¶ 2 The court has apparently adopted the mistaken view that a special master‘s compensation quest is not fit for classification as a claim. I disagree. It is as much a court claim as any other. It falls under the rubric of ancillary claims. Our pronouncement in Rand v. Nash, 1935 OK 1086, ¶ 8, 51 P.2d 296, 298 2 empowers a judge to appoint an “arm of the court” to secure needed services. One so appointed has an ancillary claim for the value of services performed.3 A dispute over liability for the services may be treated by a court as ancillary to a case.4 The special master‘s counsel-fee quest for trial-related legal services stands preserved here by his timely nisi prius request and by his later demand, made both in the petition in error and the brief, for an appeal-related attorney‘s fee.
II
THE SPECIAL MASTER‘S COUNSEL-FEE AWARD SHOULD BE AFFIRMED BASED ON A DIFFERENT LEGISLATIVE AUTHORITY SOURCE FROM THAT INVOKED BY HIS COUNSEL
¶ 3 The special master‘s claim to affirmance of his nisi prius counsel-fee award is neither fatally nor eternally flawed by his erroneous district-court reliance on the terms of
III
BY THE AUTHORITY OF 12 O.S.2001 § 936 A SPECIAL MASTER MAY BE GRANTED A COUNSEL-FEE AWARD FOR SERVICES INCIDENT TO A § 619 COMPENSATION RECOVERY
¶ 4 The terms of
¶ 5 I hence recede from the court‘s view that § 619—either by its text or by its juris-prudential gloss—prevents a prevailing service renderer from invoking a § 936 right to a counsel-fee award. The court has indeed used pure ipse dixit to pronounce today that a § 619 compensation-for-service recovery will not support the special master‘s counsel-fee quest. No extant jurisprudence negates the notion that a prevailing special master in a § 619 proceeding is entitled to an attorney‘s fee authorized by § 936.
IV
THERE IS NO STATUTORY OR JURISPRUDENTIAL AUTHORITY FOR THE COURT‘S SUB SILENTIO NOTION THAT A BENEFICIARY OF COURT-GRANTED COMPENSATION FOR SERVICES MAY NOT RECEIVE AN ATTORNEY‘S FEE ABSENT SOME EXPLICIT LEGISLATIVE APPROVAL
¶ 6 It appears that the court‘s refusal to affirm the trial court‘s counsel-fee allowance rests on its unsupportable sub silentio assumption. There is no jurisprudential basis for the notion that in the absence of some explicit legislative approval an attorney‘s fee may not be added to a judge-allowed compensation-for-service recovery to one who acted as a court-appointed arm. Oklahoma case law supports the opposite view. In Hamilton 14 this court granted a counsel-fee award to a lawyer for collecting and enforcing his own earlier-granted fee for legal services.15
¶ 8 A special master performs services pursuant to court appointment. As a prevailing party, a special master is as much entitled to an attorney‘s fee as are others who sue to recover for services rendered under a contract. If Hamilton (and national jurisprudence) allow a lawyer‘s fee award to be augmented by the time spent on enforcing that award, a special master‘s compensation for court-required services may also be enhanced by the value of legal work rendered to secure and enforce the master‘s judicially approved compensation in the case.
V
THE SPECIAL MASTER IS ENTITLED TO AN APPEAL-AS WELL AS A CERTIORARI-RELATED ATTORNEY‘S FEE
¶ 9 When statutory authority supports one‘s quest for an attorney‘s fee as a prevailing party in a proceeding for services, a counsel-fee award may also be allowed for legal services in the reviewing courts.18 It is hence appropriate here to authorize an attorney‘s fee for the special master to compensate him for legal services on review. The provisions of § 936 afford ample legal basis for that award. In short, the special master should be allowed an attorney‘s fee for appeal- and certiorari-related legal services.
VI
THE COURT IS MISTAKEN IN THE AMOUNT OF RECOVERY IT AFFIRMS TODAY
¶ 10 Although the court reverses today the trial court‘s award of an attorney‘s fee, it nevertheless mistakenly allows that fee by affirming the nisi prius judgment for $48,703.40. That amount includes an attorney‘s fee.19 The stated figure is hence plainly in error. According to the record, the sum of $48,703.40 represents both recovery and attorney‘s fee for the trial-related services, rather than solely the § 619 compensation to the master. Severing the total award into two parts—recovery and fee—would be impossible. The materials in the record do not show these figures separately.20
VII
SUMMARY
¶ 11 I would affirm the award of $48,703.40 for the master‘s compensation-for-service recovery and for his nisi prius counsel-fee allowance; I would also authorize that he be
