FOR PUBLICATION
ATTORNEY FOR APPELLANTS: ATTORNEYS FOR APPELLEE:
ROBERT M. BAKER III EDWARD L. MURPHY, JR.
Johnson, Smith, Pence & Heath, LLP STEFANIE R. CRAWFORD
Indianapolis, Indiana Miller Carson Boxberger & Murphy, LLP
Fort Wayne, Indiana
IN THE
COURT OF APPEALS OF INDIANA
INDIANA HIGH SCHOOL ATHLETIC )
ASSOCIATION, INC., BOB GARDNER, )
In his capacity as Commissioner of the )
Indiana High School Athletic Association, )
Inc., and MARY KEEFER, in her capacity as )
Principal of Bishop Luers High School, )
)
Appellants-Defendants, )
)
vs. ) No. 02A05-0005-CV-178
)
JESSAH MARTIN, )
)
Appellee-Plaintiff.
APPEAL FROM THE ALLEN SUPERIOR COURT
The Honorable Nancy Eschoff Boyer, Special Judge
Cause No. 02D01-9911-CP-1980
SULLIVAN, Judge
Appellant, Indiana High School Athletic Association, Inc. (IHSAA), appeals the trial courts judgment
ordering it to pay attorney fees to Edward L. Murphy, Jr. and Stephanie
Crawford, attorneys for Jessah Martin, the Appellee, for prosecuting a contempt action against
the IHSAA. Our opinion in this matter is a companion decision to
the opinion in the contempt action, also issued today.
Upon appeal, we restate the issues raised by the Appellant as follows:
(1) Whether a trial court may order payment of attorney fees based upon a
finding of contempt;
(2) Whether a trial court may order attorney fees as an additional sanction for
contempt; and
(3) Whether a trial court may order payment of attorney fees requested by a
party in his or her initial petition alleging contempt, when that party fails
to present evidence as to such fees at the contempt hearing.
We affirm.
MR. MURPHY: No, not unless, I would assume that the Court would
do one of two things, in the event that the evidence is sufficient
to hold the Defendant, the IHSAA in contempt, would set a reasonable attorney
fee based upon the Courts experience, or that the attorney fees would be
delayed, referred to another date. If it is not, I will present
evidence on that.
COURT: Alright, no other witnesses then?
MR. MURPHY: I have no other witnesses. Record at 524.
The trial court did not request that Murphy proceed at that time to
present evidence concerning attorney fees and instead heard closing remarks from counsel.
The trial court took the issue of contempt under advisement and on January
21, 2000, issued its Order or Judgment of the Court (Contempt Judgment).
In its Contempt Judgment, the trial court held that the IHSAA was in
contempt, and found that the injunction was specific, that the IHSAA had actual
knowledge of the injunction, that the IHSAA purposefully and knowingly violated the terms
of the injunction, and that this violation took place during the time the
injunction was in effect. The trial court specifically found that the
IHSAA has willfully and contemptuously disregarded its Order by forcing Bishop Luers High
School to comply with the IHSAAs original decision that Jessah Martin is ineligible
to participate in varsity interscholastic athletics. Record at 308. The trial
court also concluded that Martin had suffered both emotional and financial harm and
assessed the IHSAA $500.00 per day for so long as it remained in
contempt. However, the trial court allowed the IHSAA to purge itself of
contempt by specifically waiving the Restitution Rule as it pertained to Martin.
A few weeks after the Contempt Judgment, on February 8, 2000, Martin filed
a verified motion for attorney fees requesting that the trial court determine the
amount of attorney fees Martin incurred and would continue to incur as a
result of the contempt proceedings. On February 25, 2000, Martin filed a
verified supplemental motion for attorney fees requesting attorney fees through March 3, 2000,
the date of the attorney fee hearing.
At the fee hearing, Martin contended that the assessment against the IHSAA included
in the Contempt Judgment did not amount to an award of attorney fees
and that an additional assessment, for attorney fees, would be proper. The
IHSAA responded that an assessment of attorney fees would be penal rather than
coercive or remedial, that the request for attorney fees had been considered in
the trial courts original assessment, and that Martins request for attorney fees was
waived because she failed to present proof of attorney fees at the contempt
hearing. During the fee hearing, attorney Edward L. Murphy, Jr. testified concerning
the hours spent by himself and attorney Stephanie Crawford from December 14, 1999,
through the month of February, 2000, in dealing with the contempt issue.
Attorney Murphy also presented evidence to support his request that the hourly rate
for services rendered by him be $175.00 per hour and the hourly rate
for services rendered by attorney Crawford be $150.00 per hour.
On March 24, 2000, the trial court entered its Order or Judgment of
the Court (Fee Judgment) which contained specific findings that [t]he Courts Order [dated
January 21, 2000] did not include an award for attorney fees and was
instead based upon the financial harm suffered by Martin in lost opportunities,See footnote that
Martin had reasserted her request for attorney fees in her motions for attorney
fees, and that [t]he IHSAAs response is exclusively agrument [sic], failing to provide
any supporting citations or authority. Record at 335-36. The Fee Judgment
awarded attorney fees to attorney Murphy in the amount of $1,050.00 and to
attorney Crawford, at the reduced rate of $100.00 per hour, for a total
amount of $760.00. On April 24, 2000, the IHSAA filed its praecipe
for appeal.
Indiana follows the American Rule which provides that each party to litigation pay
his or her own attorney fees, absent a statute, agreement, or stipulation to
the contrary.
Crowl v. Berryhill (1997) Ind.App., 678 N.E.2d 828, 831.
Indiana Code 34-26-1-15 (Burns Code Ed. Repl. 1998) provides for an award of
attorney fees in an action to enforce an injunction.
See footnote Furthermore, trial courts
have authority to award attorney fees in civil contempt proceedings.
Crowl, supra
at 831; Cowart v. White (1999) Ind., 711 N.E.2d 523, 533, clarified in
716 N.E.2d 401.
The IHSAA initially contends that because the trial court abused its discretion by
finding the IHSAA in contempt of the preliminary injunction, the trial court also
abused its discretion in ordering the IHSAA to pay the attorney fees Martin
incurred in preparing and prosecuting the contempt proceedings. Essentially, the IHSAA asserts
in this argument the same argument concerning propriety of the Contempt Judgment that
it asserts in Appellate Case No. 02A03-0001-CV-29. We have already concluded
that the trial court did not abuse its discretion in finding the IHSAA
in contempt of its preliminary injunction. See Indiana High School Athletic Assn,
Inc. v. Martin (2000) Ind.App., ___ N.E.2d ___.
The IHSAA also contends that the trial court abused its discretion in ordering
it to pay Martins attorney fees both because the attorney fees would be
an additional sanction for the very same alleged contempt and because Martin waived
her right to attorney fees by failing to raise the attorney fees issue
at the contempt hearing and by failing to introduce evidence of fees at
the Contempt Hearing.
See footnote Appellants Brief at 11-12, 15, 27-8 (emphasis in original).
We address each contention in turn.
The thrust of the IHSAAs first argument is that because the trial court
initially assessed the IHSAA $500.00 per day, which amounted to a sanction for
its contemptuous behavior, the trial court should not be permitted to punish it
again for the same contemptuous behavior by awarding attorney fees. In contempt
proceedings, the trial court has discretion to determine damages, including attorney fees.
Meade v. Levett (1996) Ind.App., 671 N.E.2d 1172, 1181.
Here, however, notwithstanding the trial courts designation, the $500.00 per day assessment against
the IHSAA may not be held to represent compensatory damages to Martin.
In the companion case of Indiana High School Athletic Assn, Inc. v.
Martin (2000) Ind.App., ___ N.E.2d ____ also issued today, we held that the
findings contained in the trial courts Contempt Judgment concerning Martins financial damages from
lost scholarships were erroneous and that the assessment was not remedial. However,
we further held that the assessment imposed by the Contempt Judgment was coercive
in nature and that the trial court did not abuse its discretion when
it imposed the assessment against the IHSAA. Similarly, the trial court
found, in its Fee Judgment, that the Contempt Judgment assessment was based upon
financial harm. Although this Fee Judgment finding was also erroneous, it is
not determinative of our holding in this case as the judgment otherwise supported.
Robertson v. Board of Zoning Appeals, Town of Chesterton (1998) Ind.App., 699
N.E.2d 310, 315.
In its Fee Judgment, the trial court found that the Contempt Judgment did
not include an award of attorney fees. In our companion case, we
concluded that the $500.00 assessment against the IHSAA was coercive in nature and
designed to compel the IHSAA to comply with the preliminary injunction. The
IHSAA directs us to no evidence in the record, and our own search
reveals no such evidence, to support its contention that the contempt Judgment presumably
included attorney fees. Appellants Brief at 11. At the contempt hearing,
although the issue was clearly preserved, the trial court had no evidence before
it concerning the amount of attorney fees Martins attorneys had incurred up until
that time. It was not until the subsequent fee hearing that evidence
was presented of the hours spent preparing and prosecuting the contempt action and
of the reasonable hourly rate of compensation for her attorneys. Thus, the
$500.00 assessment could not have represented an award of attorney fees. Furthermore,
based upon the discussion between attorney Murphy and the trial court, it is
clear that the trial court deferred the issue of attorney fees. Finally,
because the assessment in the Fee Judgment was remedial, in that it compensated
Martin for the attorney fees she incurred as a result of the contempt
proceedings, the Fee Judgment was not duplicative of the $500.00 assessment, which was
coercive.
See footnote See
Crowley v. Crowley (1999) Ind.App., 708 N.E.2d 42, 52 (finding
that sanctions imposed in contempt proceedings must be coercive or remedial in nature).
We further find that Martin did not waive her right to attorney fees
for failing to raise the issue and present evidence of the fees at
the contempt hearing. The IHSAA contends that Martin failed to raise the
attorney fee issue at the contempt hearing and that she waived any right
to attorney fees by failing to introduce evidence of fees at the Contempt
Hearing. Appellants Brief at 28. This argument is both legally and
factually incorrect. In Stepp v. Duffy (1995) Ind.App., 654 N.E.2d 767, 775,
rehg denied, trans. denied, this court determined that the plaintiffs in a fraud
suit did not waive their claim for attorney fees by not presenting evidence
of the fees at trial because they included a timely request for the
fees in their initial complaint.
Like the plaintiffs in Stepp, Martin requested attorney fees in her initial petition
for contempt. She also raised the issue of attorney fees during the
contempt hearing and offered to present evidence of the fees at that time.
It is clear from the discussion between the trial court and Murphy
that the trial court preferred that evidence regarding attorney fees be presented at
a subsequent hearing. Thus, after the trial court issued its Contempt Judgment,
Martin again requested attorney fees. The evidence clearly supports the trial courts
finding that [t]he request of attorneys fees was properly before the Court and
was not waived. Record at 336. Having addressed the IHSAAs arguments
and in light of the fact that the IHSAA does not challenge the
amount of the attorney fee award, we conclude that the trial court did
not abuse its discretion by awarding Martin attorney fees.
The judgment is affirmed.
BAILEY, J., concurs.
VAIDIK, J., dissents with separate opinion.
Vaidik, Judge, dissenting
Because I believe that the trial court erred in holding the IHSAA in
contempt in the companion case issued today, I also conclude that the trial
court erred in awarding Martin attorney fees.