Opinion ID: 2614994
Heading Depth: 1
Heading Rank: 4

Heading: d: attorney's fees

Text: Where there is no money judgment in a case, attorney's fees may be awarded by the trial court in its discretion in a reasonable amount. Alaska R.Civ.P. 82(a)(1). The purpose of Rule 82 is to partially compensate a prevailing party for the costs and fees incurred where such compensation is justified but not to penalize a party for litigating a good faith claim. Malvo v. J.C. Penney, Inc., 512 P.2d 575, 588 (Alaska 1973). However, where there is evidence that the losing party did not have a good faith claim, the trial court may appropriately impose a heavier burden, up to and including the full amount of the fees requested. Id. In this case, the trial court ordered a 15% augmentation of its fee award on the grounds that the Papperts knew or should have known of [Mr. Sargent's] condition, and the implications to be drawn therefrom. Since the trial court concluded that the Papperts knew all along that Mr. Sargent was not competent, it apparently reasoned that they had litigated this case in bad faith. Since we have held that this finding was erroneous, we vacate that portion of the fee award.
We therefore AFFIRM the trial court's finding of incompetency, REVERSE its finding concerning the Papperts' knowledge of Mr. Sargent's condition, VACATE the augmented portion of the fee award and REMAND for further proceedings to determine the proper restitutionary remedy.