Opinion ID: 1732706
Heading Depth: 2
Heading Rank: 1

Heading: whether the chancellor erred in awarding attorney's fees to the hopkinses.

Text: ¶ 13. Hamilton asserts that the chancellor erred in awarding attorney's fees to the Hopkinses. Paragraph 12 states that, with regard to attorney's fees, If it becomes necessary to insure the performance of the conditions of this contract for purchaser to initiate litigation, then the losing party agrees to pay reasonable attorney's fees and court costs in connection therewith. [3] Contrary to the chancellor's holding, we conclude that it was error to award attorney's fees to the Hopkinses. ¶ 14. Both parties go to great lengths in their briefs to illustrate that they won and are therefore entitled to payment of attorney's fees under the contract. The Hopkinses contend that, although they did not prevail on every issue, they did succeed in getting the earnest money as liquidated damages. On the other hand, Hamilton contends that he won since the claim for specific performance was dismissed and the Hopkinses lost on their claim for damages for an intentional tort of breach of contract. ¶ 15. A close reading of the pertinent contract terms does not require a determination of which party prevailed. The contract provided, If it becomes necessary to insure the performance of the conditions of this contract for purchaser to initiate litigation, then the losing party agrees to pay reasonable attorney's fees and court costs in connection therewith. (emphasis added). Both the chancellor in his opinion and Hamilton in his brief quote the clause as necessary to insure the performance of the conditions of the contract for purchase to initiate litigation .... (emphasis added). Reading the contract as the chancellor did would naturally entail a determination of which party prevailed, since it assumes that either party could initiate litigation and be entitled to attorney's fees and costs. Under such an interpretation, whichever party in this contract for purchase was the losing party would be required to pay attorney's fees and costs. ¶ 16. We have held that parties may contractually provide that in the event of a dispute, the losing party will be charged with paying attorney's fees. Theobald v. Nosser, 752 So.2d 1036, 1042 (Miss.1999) (citing Grisham v. Hinton, 490 So.2d 1201, 1206 (Miss.1986)). However, a fair reading of this clause reveals that the right to payment of attorney's fees was contingent on the purchaser, i.e., Hamilton, initiating litigation. This contract, prepared by The Buyer's Agent, contemplated in Paragraph 12 that the seller was to accept the earnest money deposit as liquidated damages. We are, after all, obligated to enforce a contract when its terms are clear and unambiguous. Ivison v. Ivison, 762 So.2d 329, 334 (Miss.2000); Gulfside Casino P'ship v. Miss. State Port Auth. at Gulfport, 757 So.2d 250, 256 (Miss.2000); Delta Pride Catfish, Inc. v. Home Ins. Co., 697 So.2d 400, 403 (Miss. 1997); Century 21 Deep S. Props., Ltd. v. Keys, 652 So.2d 707, 717 (Miss.1995). Also, if attorney's fees are not authorized by the contract or by statute, they are not to be awarded when an award of punitive damages is not proper. Sentinel Indus. Contracting Corp. v. Kimmins Indus. Serv. Corp., 743 So.2d 954, 971 (Miss.1999); Miss. Dep't of Wildlife, Fisheries & Parks v. Miss. Wildlife Enforcement Officers' Ass'n, 740 So.2d 925, 937 (Miss.1999); Century 21 Deep S. Props., Ltd. v. Corson, 612 So.2d 359, 375 (Miss.1992); Smith v. Dorsey, 599 So.2d 529, 550 (Miss.1992); Grisham v. Hinton, 490 So.2d 1201, 1205 (Miss.1986); Stanton & Assocs., Inc. v. Bryant Constr. Co., 464 So.2d 499, 502 (Miss.1985); Bellefonte Ins. Co. v. Griffin, 358 So.2d 387, 391 (Miss.1978). ¶ 17. Here, an award of attorney's fees to the sellers was not authorized by the contract or statute. Further, as discussed below, an award of punitive damages was not warranted on these facts. Therefore, the chancellor erred as a matter of law in awarding attorney's fees to the Hopkinses.