Opinion ID: 2514060
Heading Depth: 3
Heading Rank: 2

Heading: In the nature of assumpsit

Text: Plaintiffs also argue that this malpractice suit sounded in tort, rather than assumpsit. Alternatively, Plaintiffs argue that any attorneys' fees awarded must be limited to those incurred in assumpsit claims and not malpractice claims. In analyzing whether a claim is in the nature of assumpsit under HRS § 607-14, this court has said: [A]ssumpsit is a common law form of action which allows for the recovery of damages for non-performance of a contract, either express or implied, written or verbal, as well as quasi contractual obligations. Schulz v. Honsador, 67 Haw. 433, 435, 690 P.2d 279, 281 (1984) (emphasis added). In deciding whether to award fees under HRS § 607-14, the court must determine the nature of the lawsuit where both assumpsit and non-assumpsit claims are asserted in an action. Id. at 436, 690 P.2d at 282 (citation omitted). TSA Int'l Ltd. v. Shimizu Corp., 92 Hawai`i 243, 264, 990 P.2d 713, 734 (1999) [hereinafter, TSA ]. [I]n ascertaining the nature of the proceeding on appeal, this court has looked to the essential character of the underlying action in the trial court. Leslie, 93 Hawai`i at 5, 994 P.2d at 1051. The character of the action should be determined from the facts and issues raised in the complaint, the nature of the entire grievance, and the relief sought. Helfand v. Gerson, 105 F.3d 530, 537 (9th Cir.1997) (citing Schulz, 67 Haw. at 436, 690 P.2d at 282). [7] Where there is doubt as to whether an action is in assumpsit or in tort, there is a presumption that the suit is in assumpsit. See Leslie, 93 Hawai`i at 6, 994 P.2d at 1052 (quoting Helfand, 105 F.3d at 537 (citing Healy-Tibbitts Const. Co. v. Independent Refinery, Inc., 673 F.2d 284, 286 (9th Cir.1982))); see also Braham v. Honolulu Amusement Co., 21 Haw. 583, 584 (1913). Additionally, this court recently stated, for the first time, that, in awarding attorneys' fees in a case involving both assumpsit and non-assumpsit claims, a court must base its award of fees, if practicable, on an apportionment of the fees claimed between assumpsit and non-assumpsit claims. See TSA, 92 Hawai`i at 264, 990 P.2d at 734 (citing Selvage v. J.J. Johnson & Assocs., 910 P.2d 1252, 1266 (Utah Ct.App.1996)). In this case, two claims for relief were alleged against Thayer in the complaint: (1) breach of implied contract and (2) negligence. Both claims were premised on the allegation that Thayer, in providing tax return preparation services, failed to take advantage of certain estate planning techniques that resulted in the loss of savings in excess of $200,000. Thus, even the Plaintiffs' negligence claim arises out of the alleged implied contract between Mrs. Hughes and Thayer. Without the implied contract, which could create a cognizable duty, Plaintiffs would have no negligence claim. See Helfand, 105 F.3d at 538 (stating in an analogous Ninth Circuit case that, without a contract between the defendant-attorney and his client, which creates the lawyer's duty, the third-party plaintiffs would have no legal malpractice claim). Further, the damages alleged were more closely akin to contract damages than to tort damages because they were economic damages arising out of the alleged frustrated expectation that Thayer would take advantage of certain tax-saving devices. See id. Thus, based on the complaint in this case, the essential character of the action against Thayer was in the nature of assumpsit, as provided under HRS § 607-14. Because the negligence claim in this case was derived from the alleged implied contract and was inextricably linked to the implied contract claim by virtue of the malpractice suit, we hold that it is impracticable, if not impossible, to apportion the fees between the assumpsit and non-assumpsit claims. Accordingly, because Thayer prevailed in the action that was in the nature of assumpsit, he is entitled to reasonable attorneys' fees, as determined by this court, to be taxed against Plaintiffs, the losing party. We now proceed to determine whether the fees requested are reasonable.