Opinion ID: 1870644
Heading Depth: 1
Heading Rank: 10

Heading: attorneys' fees/expert's fee and punitive damages

Text: Tideway Oil is the seminal case governing the award of punitive damages in chancery court. Tideway Oil Programs Inc. v. Serio, 431 So.2d 454 (Miss. 1983). Tideway Oil instructs that punitive damages are recoverable where the defendant has done to the plaintiff such a wrong as to import insult, fraud, oppression or reckless disregard for the rights of the plaintiff. Tideway Oil, 431 So.2d at 465. Such damages ought to be awarded only where the plaintiff, at great trouble and personal expense, has rendered a public service by bringing the wrongdoer to account. Id. at 461. The rationale of Tideway Oil has been applied consistently in our case law and is now frequently cited with approval. See Southeast Bank of Broward, Florida v. I.P. Sarullo Enterprises, Inc., 555 So.2d 704, 712 (Miss. 1989) ( Tideway Oil lists circumstances under which punitive damages can be awarded); Central Bank of Mississippi v. Butler, 517 So.2d 507, 512 (Miss. 1987) (punitives are assessed in extreme cases). Additionally, this Court has analogized an allowance of attorneys' fees to the grant of punitive damages. Absent statutory authority or contractual provisions, attorneys' fees cannot be awarded unless punitive damages are also proper. Defenbaugh and Company of Leland v. Rogers, 543 So.2d 1164, 1167 (Miss. 1989); Central Bank of Mississippi v. Butler, 517 So.2d 507, 512 (Miss. 1988); Grisham v. Hinton, 490 So.2d 1201, 1205 (Miss. 1986); Gardner v. Jones, 464 So.2d 1144, 1150 (Miss. 1985); Aetna Casualty & Surety Co. v. Steele, 373 So.2d 797, 801 (Miss. 1979). Within these guidelines, the allowance and the amount of a fee is a matter committed to the sound discretion of the trial judge. Young v. Huron Smith Oil Co., Inc., 564 So.2d 36, 40 (1990); Carter v. Clegg, 557 So.2d 1187, 1192 (Miss. 1990). The chancellor found that the illegal expenditures were so blatant and extreme that punitive damages and attorneys' fees should be granted. Since there was no testimony of the defendants' net worth, the chancellor granted $1.00 in punitive damages. The final judgment by Chancellor Jenkins allowed punitive damages of $1.00 and a fee of $25,638.00 for two attorneys employed by the plaintiffs. An expert's fee in the amount of $5000.00 for the plaintiffs' accountant was also allowed. We find no abuse of discretion in the chancery court's allowance of all fees in this case. We consider this case to be the classic public interest lawsuit, where the plaintiffs at great trouble and expense have rendered an invaluable public service by bringing the wrongdoers to account. See Tideway Oil Programs, Inc. v. Serio, 431 So.2d 454, 461 (Miss. 1983). Further, we note from the record that subsequent to the trial of this case, a hearing was conducted on the petition of plaintiffs' attorneys for an allowance of fees. The court heard oral and documentary evidence in support of the motion and allowed attorneys' fees and an expert's fee to the plaintiffs' accountant. The order allowing fees makes specific findings relative to the novelty and difficulty of the case, requisite skill in performing the proper legal services, preclusion of other employment while engaged in this case, etc. This is the correct approach which trial courts are to take in ascertaining fair and reasonable fees as described in McKee v. McKee, 418 So.2d 764, 767 (Miss. 1982). See Carter v. Clegg, 557 So.2d 1187 (Miss. 1990).