Opinion ID: 2514285
Heading Depth: 1
Heading Rank: 18

Heading: Segregation of Attorney Fees

Text: [ś 109] The City argues that HCI was required to segregate its attorney fees between its successful and unsuccessful claims and should not have been awarded fees for its breach of contract claim. On appeal of an award of attorney fees, the burden is on the party attacking the district court's ruling to show an abuse of discretion, and the ultimate issue is whether the court could reasonably conclude as it did. Burnett v. Steeley, 2008 WY 94, ś 35, 190 P.3d 132, 139 (Wyo.2008). In State Surety Co., 625 P.2d at 184, we required apportionment of attorney fees based upon the distinct nature of the issues in the suit between the subcontractor and the owner and the suit between the general contractor and the owner. In that case, we concluded counsel for the owner was engaged in distinct activities that related only to one matter or the other. More recently, in Forshee v. Delaney, 2005 WY 103, ś 16, 118 P.3d 445, 450 (Wyo.2005), we could not say that counsel for Delaney could so distinctly divide his activities. We concluded instead that the defense of Forshee's counterclaim was inextricable from pursuing Delaney's claim for breach of contract and payment of the invoices related to that contract. In Forshee, the issue was whether or not Forshee owed Delaney money and if so, how much. Had Forshee been successful in his counterclaim, his damages would have offset the amount he owed to Delaney, rendering his counterclaim a necessary aspect of Delaney's suit to collect the past due invoices. [ś 110] The same can be said in this case. HCI's breach of the implied covenant claim was inextricably intertwined with its breach of contract claim. We cannot say, and neither could the district court, that counsel was engaged in distinct activities when pursuing one claim or the other. The issue was whether there was a breachâ of contract or the implied covenantâ and, if so, how much HCI was damaged. We hold the district court did not abuse its discretion by refusing to require HCI to allocate its fees between the two claims.