Opinion ID: 747826
Heading Depth: 2
Heading Rank: 2

Heading: Attorney's Fees Under Section 936

Text: 27 We have vacated the verdict in favor of STM on economic duress, and therefore, we do not need to consider STM's argument on cross appeal that the district court should have granted attorney's fees for STM's counsel's work on that claim. Cf. Thompson v. Independent Sch. Dist., 886 P.2d 996, 998 (Okla.1994) (holding that an award of attorney's fees is automatically vacated once the underlying judgment upon which it had been based was reversed.). 28 STM's breach of contract verdict, however, remains. On that claim, the district court awarded STM $118,690 in attorney's fees as a prevailing party under Okla. Stat. Ann. tit. 12, § 936. We review de novo any legal conclusions that provide a basis for an award under § 936. Tulsa Litho Co. v. Tile & Decorative Surfaces Magazine Publishing, Inc., 69 F.3d 1041, 1043 (10th Cir.1995). The determinations of which party prevailed in the litigation and the reasonableness of the attorney's fees award, however, fall within the discretion of the trial judge and are reviewed under an abuse of discretion standard. Arkla Energy Resources v. Roye Realty & Developing, Inc., 9 F.3d 855, 865-66 (10th Cir.1993) (construing § 936 and citing, among others, Wilkerson Motor Co. v. Johnson, 580 P.2d 505, 509 (Okla.1978)). 29 AT&T does not argue that STM does not qualify as a prevailing party for purposes of § 936. Nor does AT&T question the reasonableness of the district court's attorney's fee award to STM. Consequently, the only issue we address on appeal is the district court's conclusion that § 936 applies to STM's breach of contract claim, a determination that we review de novo. 30 Section 936 provides: In any civil action to recover on an open account, a statement of account, account stated, note, bill, negotiable instrument, or contract relating to the purchase or sale of goods, wares, or merchandise, or for labor or services ..., the prevailing party shall be allowed a reasonable attorney fee. OKLA. STAT. ANN. tit. 12, § 936 (West 1988). In Russell v. Flanagan, 544 P.2d 510, 512 (Okla.1975), the Oklahoma Supreme Court interpreted § 936 narrowly, finding that the phrase contract relating to did not modify labor or services. As a result, to recover under section 936, a prevailing party on a labor or services contract claim must demonstrate that the claim is for labor or services rendered, not just that the claim relates to the performance of services rendered. Merrick v. Northern Natural Gas Co., 911 F.2d 426, 434 (10th Cir.1990). Even with this limitation, however, it is undisputed that the statute applies if recovery is sought for labor and services where there has been a failure to pay for labor or services rendered. Id. (quoting Burrows Constr. Co. v. Independent Sch. Dist., 704 P.2d 1136, 1138 (Okla.1985)). 31 STM complains that AT&T paid less than the contract required for its management of the Lightguide Project. It alleges, in the plainest terms, a failure to pay for services rendered. Thus, the attorney's fees statute applies to the breach of contract claim. We therefore affirm the district court's award of attorney's fees on this claim.