Opinion ID: 2615088
Heading Depth: 1
Heading Rank: 6

Heading: attorney's fees under nrcp 68

Text: Prior to trial in the instant case, Drs. Thomas and Pitts each tendered a $15,000 offer of judgment to Beattie under NRCP 68. [3] Beattie elected to proceed to trial against both Thomas and Pitts, although he accepted a $15,000 settlement offer from the orthopedic surgeon. The jury returned a verdict in favor of Drs. Thomas and Pitts. On proper motion, the district court held that their settlement offers had been reasonable and in good faith, and awarded them their costs in the amount of $7,415 and attorney's fees in the amount of $29,700. Appellant first contends that insofar as NRCP 68 permits an award of attorney's fees, it is an invalid court rule, because it is inconsistent with NRS 17.115 and NRS 18.010. The latter statute authorizes the court to award attorney's fees to a prevailing defendant, but only when the plaintiff has not sought more than $10,000. See Ecklund v. State, 95 Nev. 430, 596 P.2d 218 (1979). NRS 17.115 expressly governs judgment offers, but varies from NRCP 68 in that it allows recovery of only costs and expert witness fees, and not attorney's fees, by an offeror whose opponent fails to obtain a judgment more favorable than the offer. NRS 17.115(4). Appellant does not cite any authority holding that these statutes are exclusive, and our comments in Armstrong v. Riggi, 92 Nev. 280, 549 P.2d 753 (1976), indicate just the opposite. [4] Appellant argues secondly that NRCP 68 does not apply where the jury gave its verdict for the defendant. He relies on Delta Air Lines, Inc. v. August, 450 U.S. 346, 101 S.Ct. 1146, 67 L.Ed.2d 286 (1981), in which the High Court, in a 5-4 decision, held that the phrase judgment finally obtained by the offense as used in Federal Rule of Civil Procedure 68 does not encompass a judgment against the offeree as well as a judgment in favor of the offeree. We decline to follow the Delta Air Lines reasoning, not only because of the differences between NRCP 68 and FRCP 68, [5] but because such reasoning leads to an anomalous result. Under the rule proposed by appellant and followed by the majority in Delta Air Lines, an offeree would be penalized for recovering a judgment less favorable than the offer, but would suffer no penalty if he did not recover any judgment whatsoever. As the Alaska Supreme Court held in Wright v. Vickaryous, 611 P.2d 20, 23 (Alaska 1980), [w]e see nothing to recommend such a result, and thus reject the interpretation offered by [appellant]. On the other hand, while the purpose of NRCP 68 is to encourage settlement, it is not to force plaintiffs unfairly to forego legitimate claims. In exercising its discretion regarding the allowance of fees and costs under NRCP 68, see Armstrong v. Riggi, supra , the trial court must carefully evaluate the following factors: (1) whether the plaintiff's claim was brought in good faith; (2) whether the defendants' offer of judgment was reasonable and in good faith in both its timing and amount; (3) whether the plaintiff's decision to reject the offer and proceed to trial was grossly unreasonable or in bad faith; and (4) whether the fees sought by the offeror are reasonable and justified in amount. After weighing the foregoing factors, the district judge may, where warranted, award up to the full amount of fees requested. On the other hand, where the court has failed to consider these factors, and has made no findings based on evidence that the attorney's fees sought are reasonable and justified, it is an abuse of discretion for the court to award the full amount of fees requested. In the instant case, the district court found only that the settlement offers of Drs. Thomas and Pitts had been reasonable and in good faith. The district court took no evidence and made no findings on the other factors mentioned above. We therefore reverse the district court's award of $29,700 in attorney's fees to respondents Thomas and Pitts, and remand for a redetermination on the record of the amount of attorney's fees to be awarded in light of the factors enumerated in this opinion.