OPINION OF THE COURT
(March 27, 2015)
The appellants, Mikey Kalloo and Harry Dipchan, appeal from an order of the Appellate Division of the Superior Court affirming an order entered by the Magistrate Division, which
I. FACTUAL AND PROCEDURAL BACKGROUND
On January 19, 2007, the appellants filed a lawsuit against Small to recover personal injury damages resulting from a car accident on St. Croix in November 2006. In re Estate of Small,
On November 10, 2010, the Appellate Division of the Superior Court affirmed the decision of the magistrate, and the appellants appealed to this Court. Id. at 421. In this Court’s September 17, 2012 opinion, we concluded that the magistrate did not commit clear error in determining that the appellants received actual notice of the commencement of probate proceedings. Id. at 432. After we affirmed the Appellate Division’s order, the estate moved for attorney’s fees and costs incurred on appeal to this Court pursuant to Virgin Islands Supreme Court Rule 30(a). We denied the estate’s motion for attorney’s fees and costs without prejudice, permitting the estate to re-file the motion in the Superior Court for a determination of whether the estate was entitled to attorney’s fees and costs on appeal.
On January 30, 2013, the magistrate granted the estate’s motion and ordered the appellants to pay the full amount of attorney’s fees and costs. The magistrate determined that because the matter arose from a “probate action” and not a personal injury action, an award of attorney’s fees was allowed under section 541. Additionally, the magistrate declined to consider the appellants’ financial condition when making the award, holding that there “is no authority” for a magistrate to consider their ability to pay when fashioning an award of attorney’s fees and costs. The appellants appealed this order to the Appellate Division of the Superior Court, and on October 4, 2013, the Appellate Division affirmed the magistrate’s order, finding that “the action before the magistrate was based in [pjrobate” and was not a personal injury case. The Appellate Division also concluded that while the magistrate could “have considered [the appellants’] ability to pay attorney’s fees in [fashioning its] award, [it] was not required, as a matter of law, to do so.” The appellants filed a timely notice of appeal on October 28, 2013.
II. JURISDICTION
We have jurisdiction over this appeal pursuant to title 4, section 32(a) of the Virgin Islands Code, which provides that “[t]he Supreme Court shall have jurisdiction over all appeals arising from final judgments, final decrees or final orders of the Superior Court, or as otherwise provided by
III. DISCUSSION
The appellants argue, as they did before the Appellate Division, that because the matter arose from a personal injury case, an award of attorney’s fees in this case is prohibited by 5 V.I.C. § 541(b). They also argue that the Appellate Division erred by failing to remand the matter once it concluded that the magistrate could have considered their ability to pay.
A. Attorney’s Fees
The appellants argue that the Appellate Division should have reversed the award of attorney’s fees because the probate matter arose from a personal injury case and attorney’s fees were therefore prohibited under the personal injury exception in section 541(b). When reviewing decisions of a judge of the Appellate Division of the Superior Court, we consider the underlying rulings made by the magistrate only to the extent that the Appellate Division affirmed them. Maso v. Morales,
Supreme Court Rule 30 provides that “reasonable costs, which may include attorney’s fees, shall be taxed against” the losing party in proceedings before this Court, but “if a party seeks attorney’s fees as
Costs awards in probate proceedings in the Magistrate Division are governed by section 165 of title 15 of the Virgin Islands Code, which provides that with respect to probate proceedings,
costs may be awarded in favor of one party against another, to be paid personally or out of the estate or fund, in any proceedings contested adversely. Such costs shall not exceed those allowed in the trial of a civil action in the [Superior Court].3 Witness fees and other disbursements similar to those allowed on the trial of a civil action may also be allowed, to be paid in like manner.
15 V.I.C. § 165. “The first step when interpreting a statute is to determine whether the language at issue has a plain and unambiguous meaning. If the statutory language is unambiguous and the statutory scheme is coherent and consistent, no further inquiry is needed.” In re Reynolds,
By generally allowing a prevailing party to recover attorney’s fees, section 541 serves as an exception to the “American Rule” against shifting fees to the losing party, which serves as the general rule in most United States jurisdictions.
And since an “award of attorney’s fees in [a] personal injury case[] is prohibited” in a non-frivolous civil action before the Superior Court by section 541(b), it follows that when the underlying claim that formed the basis of a dispute in probate arises from a personal injury action, an award of attorney’s fees would similarly be prohibited by section 165, and in turn be prohibited under Supreme Court Rule 30, since “this Court will not award on appeal what is strictly unavailable at the trial level.” Williams,
The estate argues that section 541(b)’s personal injury exception does not apply to the award of attorney’s fees in this case because the appeal at issue arose from a “probate case,” governed “by probate law,” which bore no relationship to the underlying personal injury case. But by referring to the prior underlying dispute as a “probate case,” the estate confuses the difference between a specific cause of action (for example, a “personal injury case”) and the forum in which a proceeding takes place (“probate court”). Compare BLACK’S Law DICTIONARY 251 (9th ed. 2009) (defining a “cause of action” as “[a] group of operative facts giving
Indeed, when read in the context of chapter 23 of title 15, governing the procedure for presenting claims in probate, it is apparent that the substantive law of the underlying claim (contract, tort, personal injury, etc.) is critical to the outcome of the dispute in probate. For instance, although a claimant seeking to have a claim recognized in probate must initially present the claim to the executor of the estate, if the executor rejects the claim, see 15 V.I.C. § 394, the claimant may then “present [the] claim to the [probate] court” for an adjudication of the underlying claim in a “summary manner.” 15 V.I.C. § 395. If the claimant then presents the claim to the magistrate overseeing the probate matter, to “hear and determine” the claim, the magistrate can weigh evidence, hear testimony, and ultimately enter an order “allowing] or rejecting]” the claim. Id. (“No claim which has been rejected by the executor . . . shall be allowed by the court, except upon some competent or satisfactory evidence other than the testimony of the claimant.”); see generally Ottley v. Estate of Bell61 V.I. 480, 488-491 (V.I. 2014). Thus, in determining whether the underlying claim for money damages should be taxed against the estate in probate, the magistrate must necessarily consider the merits of the underlying claim and apply the substantive law governing its resolution. See, e.g., In re Estate of Wright,
In this case, the appellants sought to have their pending
This plain language reading of section 165 is consistent with the Oregon Supreme Court’s interpretation of an identical Oregon statute,
This plain language interpretation is also consistent with the policy behind the Legislature’s addition of the personal injury exception to section 541(b) in 1986, namely to “preserve] access to the courts for indigent litigants” seeking to bring personal injury suits. Perez,
B. Costs
The appellants also argue that the Appellate Division erred when it failed to remand the matter after it held that the magistrate had the authority to consider their ability to pay when determining attorney’s fees and costs. While attorney’s fees awards in non-fnvolous personal injury cases are prohibited by 5 V.I.C. § 541(b) as applied through 15 V.I.C.
Although the appellants do not challenge the reasonableness of the costs awarded in this case,
IV. CONCLUSION
The Appellate Division erred in affirming the magistrate’s award of attorney’s fees on appeal because the civil action that formed the basis of the probate dispute was a personal injury case, for which attorney’s fees are prohibited. The Appellate Division also erred when it failed to remand on the issue of other costs because the magistrate impermissibly limited its own discretion by concluding that it could not consider the appellants’ ability to pay. Therefore, we reverse the Appellate Division’s October 4, 2013 opinion and order affirming the magistrate’s award of attorney’s fees and other costs to the estate, and remand the portion awarding other costs for further proceedings consistent with this opinion.
Notes
Under the rules of this Court, “if a party seeks attorney’s fees as among the costs to be taxed, the amount of attorney’s fees to be awarded — if any •— shall be determined by the Superior
The estate’s bill of costs itemized attorney’s fees in the following manner: $23,925.00 total fees for services rendered by Attorney Waldman; $450.00 total fees for services rendered by Attorney Hamm; resulting in a total of $24,375.00 in attorney’s fees. The total amount of costs requested was $436.81. Accordingly, the estate moved for attorney’s fees and costs of $24,811.81.
Although 15 V.I.C. § 165 continues to refer to “the district court,” the Legislature granted “original jurisdiction... to supervise and administer estates” to the Superior Court effective Octoberl, 1991.5ee4V.I.C. § 76(a). Therefore, the reference to “the district court” in section 165 — like all references to the District Court in the Virgin Islands Code enacted before the Legislature adopted 4 V.I.C. § 76 — “ha[s] been implicitly repealed.” In re Reynolds,
Section 541 provides as follows:
(a) Costs which may be allowed in a civil action include:
(1) Fees of officers, witnesses, and jurors;
(2) Necessary expenses of taking depositions which were reasonably necessary in the action;
(3) Expenses of publication of the summons or notices, and the postage when they are served by mail;
(4) Compensation of a master as provided in Rule 53 of the Federal Rules of Civil Procedure;
(5) Necessary expense of copying any public record, book, or document used as evidence on the trial; and
(6) Attorney’s fees as provided in subsection (b) of this section.
(b) The measure and mode of compensation of attorneys shall be left to the agreement, express or implied, of the parties; but there shall be allowed to the prevailing party in the judgment such sums as the court in its discretion may fix by way of indemnity for his attorney’s fees in maintaining the action or defenses thereto; provided, however, the award of attorney’s fees in personal injury cases is prohibited unless the court finds that the complaint filed or the defense is frivolous.
(c) For the purposes of this section, ‘frivolous’ means:
(i) without legal or factual merit; or
(ii) for the purpose of causing unnecessary delay; or
(iii) for the purpose of harassing an opposing party.
5V.I.C. §541.
This rule is typically traced back to 1796, when the United States Supreme Court declined to create a judicial rale allowing the award of attorney’s fees to the prevailing party in federal courts in the absence of legislation. Arcambel v. Wiseman,
The appellants filed a personal injury lawsuit in the Superior Court on January 19, 2007, docketed as Super. Ct. Civ. No. 30/2007 (STX). At the time of the proceedings in probate, this lawsuit was still pending in the Superior Court.
As we noted in In re Estate of Small, 57 V.I 416, 420-21 (V.I. 2012), the appellants were unable to present their claim to the magistrate because they failed to timely present their claim to the administrator of Small’s estate prior to its final distribution, in accordance with 15 V.I.C. §§ 391-398, and instead filed a motion, approximately one month after the magistrate issued the final order, to set aside the final distribution of the estate’s assets. Estate of Small,
While it is sufficient to simply “present a certified copy of the judgment” obtained “against the deceased in his lifetime” to “the executor.. .for allowance or rejection,” 15 V.I.C. § 397, when a party seeks to have a debt contingent on a judgment not yet obtained recognized in probate, it must “presentf] [the claim] as any other claim,” 15 V.I.C. § 392, which, if allowed, may be satisfied “by the payment into court for the benefit of the creditor, subject to the contingency” of the expected judgment. 15 V.I.C. § 425.
Compare Or. Laws tit. XVI, § 1137 (1910) (superseded) (“Costs may be awarded in favor of one party against another, to be paid personally or out of the estate or fond, in any proceedings contested adversely, but such costs cannot exceed those allowed in the trial of a civil action in the county court. Witness’ fees and other disbursements similar to those allowed on the trial of a civil action may also be allowed, to be paid in like manner. Orders or decrees for the payment of money may be enforced by execution, or otherwise, in the same manner as orders or decrees forthe payment of money in the circuit court.”), with 15 V.I.C. § 165 (“With respect to matters to which this chapter relates, costs may be awarded in favor of one party against another, to be paid personally or out of the estate or fund, in any proceedings contested
Although section 541(b) generally prohibits an award of attorney’s fees to the prevailing party in personal injury cases, it does not prohibit such an award if “the court finds that the complaint filed or the defense is frivolous.” However, since the estate does not assert that the appellants’ pending personal injury case in the Superior Court is in any way “frivolous” within the meaning of section 541(c), that issue has been waived. V.I.S.CT.R. 22(m).
Although we need not address here the appropriate standard to apply when determining reasonable attorney’s fees, we note that attorney’s fees awards should represent “ ‘a fair and reasonable portion of... [the] attorney’s fees incurred in the prosecution or defense of the action, and not [necessarily] the whole amount charged by the attorney. ’ ” Estien v. Christian,
Because probate proceedings are equitable in nature, we do not determine here whether a party’s inability to pay can be taken into consideration in non-equity proceedings under 5 V.I.C. § 541. See Cacciamani & Rover Corp. v. Banco Popular,
