Costs--attorney fees--contract action
The trial court did not err by denying attorney's fees under
N.C.G.S. § 6-21.1 in an action arising from a contract to inspect
plaintiff's property for termites where the only two issues
presented to the jury were whether defendant breached its
contract to plaintiffs and the amount of damages. There is no
mention of breach of contract cases in the current version of
N.C.G.S. § 6-21.1, just as such a cause of action was omitted
when the statute was established in 1959 and amended in 1963,
1967, 1969, 1979, and 1986. The Legislature has had ample
opportunity to extend the statute's remedial provisions to causes
of action it intends to cover.
Judge WALKER concurring. Appeal by plaintiffs from order filed 6 April 1998 by Judge
James E. Ragan, III, in Craven County Superior Court. Heard in
the Court of Appeals 13 January 1999.
Sumrell, Sugg, Carmichael & Ashton, P.A., by Scott C. Hart,
for plaintiff-appellants.
Hutson Hughes & Powell, P.A., by Kathryn P. Fagan, for
defendant-appellee.
LEWIS, Judge.
Plaintiffs had a contract with defendant under which
defendant was to inspect plaintiffs' property for termites.
After their home was damaged by termites, plaintiffs filed an
action against defendant in Craven County Superior Court alleging
breach of contract, negligence, breach of express warranty,
breach of implied warranty, specific performance, fraud, and
unfair trade practices. The case was tried before a jury, and at
the close of plaintiffs' evidence the trial court presented only
two issues to the jury: whether defendant breached its contract
with plaintiffs and if so, the amount of damages plaintiffs
sustained. On 12 February 1998 the jury unanimously answered
that defendant had breached its contract, and that plaintiffs had
sustained damages in the amount of $2,030.00 as a result.
Plaintiffs then moved for attorney's fees under N.C. Gen. Stat.section 6-21.1 (1997).
In an order signed 30 March 1998 and filed 6 April 1998, the
presiding judge found that plaintiffs were "not entitled to
attorney's fee since this was as [sic] action for breach of
contract with property damage." The court further found that it
did not have discretion to order attorney's fees in this breach
of contract case, but that if it did, it would have allowed
attorney's fees in the amount of $9,750.00. From this decision
plaintiffs appeal, arguing only that the trial court did in fact
have discretion to award attorney's fees under section 6-21.1.
The sole issue to be decided in this case is one of
statutory interpretation. The statute at issue, entitled
"Allowance of counsel fees as part of costs in certain cases"
(emphasis added), reads in relevant part:
In any personal injury or property damage
suit, . . . where the judgment for recovery
of damages is ten thousand dollars ($10,000)
or less, the presiding judge may, in his
discretion, allow a reasonable attorney fee
to the duly licensed attorney representing
the litigant obtaining a judgment for damages
in said suit, said attorney's fee to be taxed
as a part of the court costs.
G.S. § 6-21.1. Plaintiffs argue that because this breach of
contract case involved property damage, they are entitled to
attorney's fees under section 6-21.1. They attempt to support
this assertion by citing Hicks v. Albertson, 284 N.C. 236, 200S.E.2d 40 (1973), a case resulting from a suit filed when a
plaintiff's automobile was damaged as a result of the defendant's
alleged negligence. In that case, our Supreme Court interpreted
the statute and stated, "This statute, being remedial, should be
construed liberally to accomplish the purpose of the Legislature
and to bring within it all cases fairly falling within its
intended scope." Id. at 239, 200 S.E.2d at 42.
We look, then, at the intended scope of this statute. It
appears from the title of the statute that it is to apply to
"certain cases," and from the text of the statute it seems clear
that these certain cases are "personal injury or property damage
suit[s]," as well as particular suits against insurance
companies. G.S. § 6-21.1. There is no mention of breach of
contract cases in the current version of section 6-21.1, just as
such a cause of action was omitted from the purview of this
statute when it was established in 1959 and amended in 1963,
1967, 1969, 1979, and 1986. It is well worth noting that the
provisions regarding suits against insurance companies were not
in the original version of the statute, either. They were added
by amendment in 1967, just as breach of contract cases could have
been at that time or any time since, had the legislature so
intended.
"It appears to be well established that ordinarilyattorneys' fees are recoverable only when expressly authorized by
statute." Construction Co. v. Development Corp., 29 N.C. App.
731, 734, 225 S.E.2d 623, 625, disc. review denied, 290 N.C. 660,
228 S.E.2d 459 (1976). The consumer relief sought by plaintiffs
is available in Chapter 75 of our statutes and, as noted in
plaintiffs' complaint, N.C. Gen. Stat. section 75-16.1 (1994)
provides for the awarding of attorney's fees in unfair trade
practices actions. Plaintiffs' unfair trade practices claim,
however, did not reach the jury, and plaintiffs do not appeal
from the trial court's decision to limit the jury's deliberations
to breach of contract issues.
This is clearly a case in contract. To embrace property
damages under this statute because some damage may have resulted
from the termites would be to make attorney's fees in every
contract case compensable by extending the damages to some sort
of property or personal injury. Nearly forty years have now
passed since G.S. section 6-21.1 was made the law of this state,
and the legislature has had ample opportunity to extend the
statute's remedial provisions to the causes of action it intends
to cover. Such an extension was made in 1967 for certain
insurance cases, and breach of contract claims could be addressed
just as easily if the legislature wished to include them among
the "certain cases" it enumerates in the statute. It has notchosen to do so, and we are unable to do so now by reading
additional words into the plain language of the statute. As
such, we affirm the trial court's decision to deny attorney's
fees under the statutory theory cited by plaintiffs.
Affirmed.
Judge TIMMONS-GOODSON concurs.
Judge WALKER concurs with separate opinion.
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