Court Opinion

ID: 9782277
Source: CourtListenerOpinion
Date Created: 2023-08-30 18:15:47.928433+00
Date Added: 2024-06-11T07:34:55.308229
License: Public Domain

CAROL M. HANSEN, C.J.,
dissenting:
T1 Attorney fees are not available under § 936 in equitable matters. Puckett v. Cornelson, 1995 OK CIV APP, 72, 897 P.2d 1154, 1157. This action is equitable in nature (law of the case appeal No. 93,856). Thus, attorney fees are not available in this action. I therefore dissent.
{2 Without explanation, the majority declares it irrelevant to the determination of the underlying nature of the instant case that in the previous appeal this action was denominated equitable rather than legal in nature. Although CNI was denied a jury trial below, the majority now declares this action to have been to recover attorney fees for services rendered. This holding is inconsistent with prior case law and with this Court's opinion filed January 26, 2001, in the previous appeal arising from this case.
3 The Oklahoma Supreme Court has consistently rejected attorney fees under § 986 in matters related to contracts for labor or services where the plaintiff did not seek damages directly arising from the rendition of labor or services. See, e.g., Russell v. Flanagan, 1975 OK 173, 544 P.2d 510, 512 (suit for breach of warranty of work performed under contract), and Burrows Const. Co. v. Indep. School Dist. No. 2 of Stephens Co., 1985 OK 57, 704 P.2d 1136, 1138 (suit for lost profits flowing from breach of contract). In those cases where the plaintiff sued to recover payment directly for labor or services, the Oklahoma Supreme Court has allowed attorney fees under $ 986. See, e.g., Doyle v. Kelly, 1990 OK 119, 801 P.2d 717 (breach of insurance agent's commission agreement).
14 An action to recover for labor or services rendered, for which attorney fees are available under $ 986, constitutes a claim at law. Puckett v. Cornelson, 1995 OK CIV APP 72, 897 P.2d 1154, 1157. In such a case, the parties are entitled to a jury trial. Okla. Const. Art. 2, § 19, and Okmulgee Producing & Refining Co. v. Wolf, 1923 OK 57, 212 P. 415, 416, 88 Okla. 188. On the other hand, trusts are within the exclusive jurisdiction of courts of equity to administer, Childers v. Breese, 1949 OK 201, 202 Okla. 377, 213 P.2d 565, 568, and a trustee in the administration of a trust is subject to the supervision of a court of equity, Evans v. First Nat. Bank of Stillwater, 1944 OK 53, 193 Okla. 665, 146 P.2d 111, 113. Attorney fees are not available under § 986 in equitable matters. Puckett, 897 P.2d at 1157.1
15 In Puckett, the Court dealt with the application of § 986 when a case involves *434both legal and equitable matters. The plaintiff sued the corporate defendant to recover consulting fees. He also sued a corporate shareholder, seeking to pierce the corporate veil and impose personal liability on the shareholder for his consulting fees. The trial court granted judgment against the corporation but denied the plaintiff's claim against the shareholder. It then granted attorney fees to the shareholder under § 986. In reversing the trial court's award, Judge Joplin stated,
An action to recover for labor or services rendered constitutes a claim at law, while an action against a corporate officer or shareholder to recover on a corporate debt stands purely in equity.... While the trial court granted judgment to [plaintiff] on his legal claim for labor and services rendered against [corporation], the trial court granted judgment to [shareholder] on [plaintiff's] equitable claim to impose liability for the corporate debt on [shareholder] individually, and we find no authority authorizing an equitable award of attorney fees absent evidence of clearly wanton, vexatious, malicious or other like egregious conduct.... [Wle therefore conclude the trial court erred in granting attorney fees to [shareholder] as prevailing party on [plaintiff's] equitable claim.
Puckett, 897 P.2d at 1157 (citations omitted).
16 The underlying nature of the instant case was litigated in the previous appeal, Case No. 98856. CNI sought a jury trial below. The trial court denied its demand. The Court of Civil Appeals affirmed, holding CNI was not entitled to a jury trial because the action was equitable in nature. The Court applied an equitable standard of review to the trial court's fact findings. "When an appellate court rules on an issue, that ruling becomes the law-of-the-case and controls all subsequent proceedings in the action which will not be reversed on appeal." Gay v. Hartford Underwriters Ins. Co., 1995 OK 97, ¶ 18, 904 P.2d 83, 88.
17 Had Law Firm sought a judgment for damages arising from CNU's failure to pay for its services, CNI would have been entitled to a jury trial. Law Firm did not seek and did not receive such a judgment. Instead, it sought and received a judgment declaring its rights in disputed client funds it held in trust as the client's fiduciary. Law Firm did not sue to recover payment of fees; rather, it already had the funds in its possession and sought the court's direction as to disbursal of the funds. Such an action is not a civil action to recover payment for labor or services within the scope of § 986. Accordingly, I would reverse the trial court's order awarding attorney fees to Law Firm.

. Although attorney fees are available in breach of trust cases, 60 O.$.Supp.1999 § 175.57(D), this case involves no allegations Law Firm caused injury to the trust res; therefore, that section is not applicable here.