Opinion ID: 1197758
Heading Depth: 1
Heading Rank: 4

Heading: Expert Account Fees

Text: The trial court also included one-half of Pirkle's accountant/expert witness fees as part of the general award of damages. We hold the court had no authority on which to base this award and, therefore, reverse this award of fees. Washington follows the American rule concerning attorneys' fees and litigation expenses. Rorvig v. Douglas, 123 Wn.2d 854, 861, 873 P.2d 492 (1994). The American rule states fees and expenses are not recoverable absent specific statutory authority, contractual provision, or recognized grounds in equity. State ex rel. Macri v. City of Bremerton, 8 Wn.2d 93, 102, 111 P.2d 612 (1941); Fiorito v. Goerig, 27 Wn.2d 615, 619-20, 179 P.2d 316 (1947). CR 54(d) authorizes a prevailing party to recover certain costs as provided in RCW 4.84 or any other applicable statute. [4] Expert witness fees are not included in the definition of costs [5] or recoverable as costs under RCW 4.84.030, [6] .080 [7] or RCW 2.40.010. [8] Jordan v. Berkey, 26 Wn. App. 242, 245, 611 P.2d 1382 (1980); Andrews v. Burke, 55 Wn. App. 622, 631, 779 P.2d 740, review denied, 113 Wn.2d 1024 (1989). [3, 4] Here, the trial court awarded one-half of Mr. Pirkle's fees as part of the general award of damages and not explicitly as costs. Despite the court's characterization of this part of the award as damages, expert witness fees are not a proper element of damages, nor are they awardable as costs. We have clearly articulated this rule: Where an expert is employed and is acting for one of the parties, it is not proper to charge the allowance of fees for such expert against the losing party as a part of the costs of the action. If the services of an expert are necessary for the proper presentation and determination of the case, such expert or accountant should be appointed by and act under the direction of the court. .... [W]e held that the court has no power in an adversary proceeding to assess attorneys' fees in the absence of statute or contract, and that the rule is applicable in equitable as well as in law actions. We further stated that the rule applies with as much or greater force to charges of accountants. Fiorito, 27 Wn.2d at 620 (citations omitted). Thus in this case, whether Mr. Pirkle's fees are characterized as expert witness fees or accountant fees, the court may not award them as costs or damages absent specific statutory, contractual, or recognized equitable grounds. No such grounds exist in this case, nor did the trial court or Court of Appeals cite any such grounds in awarding these fees. Mr. Pirkle is an accountant and attorney, employed by and acting for one party in an adversarial proceeding. He owed his professional duty to Wagner and not to the court. His report included his financial opinion as well as conclusions of law, that supported his client's position. Therefore, this case falls squarely within the rule articulated in Fiorito, 27 Wn.2d at 620. The trial court erred in awarding one-half of Pirkle's fees. Neither RCW 4.84.030, .080 or RCW 2.40.010 authorize the award of expert witness fees as costs. Additionally, no grounds in equity support an award of expert witness fees in this case. We reverse the trial court and order the damage award to Wagner be reduced by $1,325.25, the amount awarded for one-half of Lawrence Pirkle's fees.