Court Opinion

ID: 9514935
Source: CourtListenerOpinion
Date Created: 2023-08-06 22:52:35.02012+00
Date Added: 2024-06-11T09:06:22.898363
License: Public Domain

SABERS, Justice
(concurring in part and dissenting in part).
[¶ 36.] I concur in all respects except for the denial of damages to Jacobson resulting from Gulbransen’s fraud in the form of attorney’s fees. These attorney’s fees were directly caused by Gulbransen’s fraud and his refusal to deed the property to Jacobson, and constitute Jacobson’s damages. The majority opinion incorrectly characterizes Jacobson’s attempt to recover these damages under these facts as an attempt to carve out a new exception to the rule barring such recovery. Therefore, I dissent as to issue 3.
[¶ 37.] As a general rule, attorney’s fees may only be awarded by contract or when explicitly authorized by statute. O’Connor v. King, 479 N.W.2d 162, 166 (S.D.1991). Yet, “[i]n singular circumstances we have allowed attorney[’s] fees as damages, though not expressly authorized by statute.” Schuldies v. Millar, 1996 SD 120, ¶ 37, 555 N.W.2d 90, 100. In so doing, we have recognized a limited exception allowing the recovery of attorney’s fees as damages for a party attempting to recovery property wrongfully converted by another. Colton v. Decker, 540 N.W.2d 172, 178 (S.D.1995). See generally, Dan B. Dobbs, Law of Remedies § 3.10(3) (2d Ed. 1993) (outlining exceptions to the general rule); John Leusdorf, Recovering Attorney’s Fees as Damages, 38 Rutgers L. Rev. 439 (1986). The facts in this case clearly support the application of this rationale.
[¶ 38.] A party is entitled to recover attorney’s fees as damages for a party’s wrongful conversion of property. These “pursuit” expenses include attorney’s fees, as those fees properly flow from the act of recovering property wrongfully dispossessed. See Rollins v. Leibold, 512 P.2d 937, 945 (Alaska 1973); Motors Ins. Corp. v. Singleton, 677 S.W.2d 309, 315 (Ky.Ct.App.1984); Fulks v. Fulks, 95 Ohio App. 515, 121 N.E.2d 180, 182 (1953); Schuldies, 1996 SD 120 at ¶48, 555 N.W.2d at 100 (Sabers J., concurring).
[¶ 39.] In this case, SDCL 20-10-1 provides in part that “[o]ne who willfully deceives another ... is liable for any damage which he thereby suffers.” (emphasis added). The legislature did not exempt Gulbransen from any damage except attorney’s fees, and we should not either. In Colton, 540 N.W.2d at 178, we stated that attorney’s fees were reasonable expenses incident to recovering clear title to an impounded vehicle. The statutory authority we relied upon in Colton provided that the party should recover for their reasonable expenses resulting from the failure to provide clear title. See SDCL 57A-2-715. That statutory authority does not specifically grant attorney’s fees but utilizes language similar to SDCL 20-10-1 by providing recovery for “expenses reasonably incurred,” “any other reasonable expenses,” and resulting from “any loss” or “any breach.” This rationale is equally applicable to granting attorney’s fees as damages under SDCL 20-10-1 on these facts.
[¶ 40.] Jacobson was forced to incur substantial legal expenses as a result of Gulbransen’s attempt to keep the property he previously agreed to convey. This is particularly egregious conduct as Gulbran-sen was permitted to make this purchase only because he fraudulently obtained Jacobson’s approval to the proposed sale. After Jacobson gave his approval, Gul-bransen refused to sell the identified property pursuant to the agreement. Gulbran-sen’s fraudulent conduct forced Jacobson to bring an action for specific performance forcing Gulbransen to convey the property as agreed. The majority opinion recognizes Jacobson was legally entitled to the property. Gulbransen’s actions are tanta*93mount to the conversion of the property-identified for sale to Jacobson. Jacobson’s damages were suffered in pursuit of the property he was entitled to purchase, and attorney’s fees as damages are recoverable in this circumstance.
[¶ 41.] I would reverse and remand for a determination of the reasonable amount of attorney’s fees as damages reasonably incurred or expended to recover the property.