Opinion ID: 1148996
Heading Depth: 1
Heading Rank: 10

Heading: whether the appellee is entitled to attorney fees and if so was the award unreasonable?

Text: ¶ 24. The circuit court awarded Target attorney fees on its counterclaim in the amount of $67,156.49 for the collection of an open account debt pursuant to Miss. Code Ann. § 11-53-81. The relevant statute states in pertinent part: When any person fails to pay an open account within thirty (30) days after receipt of written demand therefor correctly setting forth the amount owed and an itemized statement of the account in support thereof, that person shall be liable for reasonable attorney's fees to be set by the judge for the prosecution and collection of such claim when judgment on the claim is rendered in favor of the plaintiff. Miss. Code Ann. § 11-53-81 (Supp. 1997) (emphasis added). There is no dispute between the parties that the counter claim was for an open account. ¶ 25. Like the case of S & W Const. and Materials Co., Inc. v. Dravo Basic Materials Co., Inc., 813 F. Supp. 1214, 1226 (S.D.Miss. 1992), the only defense Flexible Flyer asserts is that it is entitled to setoff of the open account based upon its claims against Target. The district court held that since the defendant prevailed on the plaintiff's claims then the defendant is entitled to judgment on its counterclaim. S & W Const. Co., 813 F. Supp. at 1226. Since judgment was rendered in favor of Target on its counterclaim for a debt on an open account after a demand for payment was made prior to filing its counterclaim, Target is the prevailing party and attorney fees were properly awarded. ¶ 26. In aiding the court in determining what a reasonable fee should be the legislature has provided: In any action in which the court is authorized to award reasonable attorneys' fees, the court shall not require the party seeking such fees to put on proof as to the reasonableness of the amount sought, but shall make the award based on the information already before it and the court's own opinion based on experience and observation; provided however, a party may, in its discretion, place before the court other evidence as to the reasonableness of the amount of the award, and the court may consider such evidence in making the award. Miss. Code Ann. § 9-1-41 (1991). In consideration of the language of this statute, this Court stated, [t]he standard for review of the award of attorneys' fees is abuse of discretion, and such awards must be supported by credible evidence. Regency Nissan, Inc. v. Jenkins, 678 So.2d 95, 103 (Miss. 1995) ( citing Young v. Huron Smith Oil Co., 564 So.2d 36, 40 (Miss. 1990)). ¶ 27. Par argues that Target must provide a basis for the court in determining what a reasonable fee should be. The judge addressed this argument at the closing of the trial when he stated, [u]nder old case law I think maybe Mr. McClanahan may have stated the case correctly in Mississippi, but the statute changed that insofar as the establishment of attorney fees and prejudgment interest on open account collections in the state. However, this Court has considered the issue of the reasonableness of attorney fees after section 9-1-41 became effective and this Court requires the award to be based on credible evidence. Regency Nissan, Inc., 678 So.2d at 103. ¶ 28. Par cites to Doe v. Doe, 644 So.2d 1199 (Miss. 1994) and McKee v. McKee, 418 So.2d 764 (Miss. 1982) in support of its claim that the attorney fees awarded were unreasonable. These cases are not controlling in reference to the award of attorney fees in an open account case. However, Par does cite to DynaSteel Corp. v. Aztec Industries, Inc., 611 So.2d 977 (Miss. 1992) which is relevant to this discussion. In DynaSteel, this Court established a presumption that an award of one-third the amount of the indebtedness in collection matters is reasonable. DynaSteel Corp., 611 So.2d at 987. But this presumption is rebuttable. Id. at 986. Par misreads DynaSteel as requiring proof of the eight enumerated factors that have a bearing on the reasonableness of an attorney fee. This Court does not require proof of each of these factors, instead this Court stated, [u]nder the circumstances of any given case, the judiciousness of adhering to this presumption may be impacted by the common factors for determining the reasonableness of an attorneys' fee award... . Id. at 986 (emphasis added). This does not mean these factors are not relevant, just that proof of them is not required before a court awards attorney fees. This Court does not leave the reasonableness of an award for attorneys' fees to the arbitrary discretion of the trial court. This Court in Cox v. Howard, Weil, Labouisse, Friedrichs, Inc ., reversed an award of attorney fees pursuant to Miss. Code Ann. § 11-53-81 because they were in excess of any reasonable calculation. Cox v. Howard Weil, Labouisse, Friedrichs, Inc., 619 So.2d 908, 915 (Miss. 1993). In Cox, the trial court granted $69,222.56 in attorney fees for the collection of an open account balance totaling $54,000.00. Id. This Court remanded the case for further review by the trial court below and directed the trial court's attention to the DynaSteel case for guidance. Id. ¶ 29. In the case sub judice the lower court specifically found that an award of one-third of the amount collected was appropriate since Target had to defend against Flexible Flyer's claim in order to collect the amount owed. Target presented testimony from attorney Pogue, an experienced trial attorney in Mississippi, who stated that 25% of the amount collected is a reasonable attorneys' fee in Mississippi for collection of an open account if suit is not filed and that 33 1/3% is appropriate if suit is filed. We find that the attorneys' fee award in this case was not an abuse of discretion and was reasonable in light of the time consumed in this case, the amount involved and the results obtained.