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IN THE SUPREME COURT OF APPEALS OF WEST VIRGINIA
January 2005 Term
___________
No. 31859
___________
CYNTHIA STANLEY, LEXIE REDDEN,
JERRY L. PAYNE, DAVID KINDER,
GEORGE CREMEANS, MARY SUE CATLETT,
and WILLIAM ANNON,
Petitioners Below, Appellees
v.
THE DEPARTMENT OF TAX AND REVENUE
AND THE DIVISION OF PERSONNEL,
Respondents Below,
THE DEPARTMENT OF TAX AND REVENUE,
Appellants
________________________________________________________
Appeal from the Circuit Court of Kanawha County
Hon. Paul Zakaib, Jr., Judge
Case No. 01-AA-93
________________________________________________________
AND
___________
No. 31868
___________
CONSTANCE BUFFEY,
Petitioner Below, Appellant
v.
HARRISON COUNTY BOARD OF EDUCATION,
Respondent Below, Appellee
________________________________________________________
Appeal from the Circuit Court of Harrison County
Hon. John Lewis Marks, Jr., Judge
Case No. 01-C-213-1
________________________________________________________
AND
___________
No. 31944
___________
SHIRLEY CROCK and GRACE WASHINGTON,
Petitioners Below, Appellants
v.
HARRISON COUNTY BOARD OF EDUCATION,
Respondent Below, Appellee
________________________________________________________
Appeal from the Circuit Court of Harrison County
Hon. John Lewis Marks, Jr., Judge
Case No. 00-C-154-1
CASE
NOS. 31868 and 31944 REVERSED AND REMANDED
CASE NO. 31859 AFFIRMED
_______________________________________________________
Submitted: April 6, 2005
Filed: May 26, 2005
James P. McHugh, Esq.
Barrett, Chafin, Lowry, Amos & McHugh
Charleston, West Virginia
Attorney for Cynthia Stanley, Lexie
Redden, Jerry L. Payne, David Kinder,
George Cremeans, Mary Sue Catlett,
and William Annon
Barbara Evans Fleischauer, Esq.
Morgantown, West Virginia
Attorney for Constance Buffey
Amy M. Smith, Esq.
Nancy W. Brown, Esq.
Steptoe & Johnson
Clarksburg, West Virginia
Attorneys for Harrison County Board
of Education
Kathleen Abate, Esq.
Cohen, Abate & Cohen
Morgantown, West Virginia
Attorney for Shirley Crock and
Grace Washington
Charles F. Donnelly, Esq.
Donnelly, Carbone & Kettler
Charleston, West Virginia
Amici Curiae for the West Virginia
Federation of Teachers, AFL-CIO and
American Federation of State, County
and Municipal Employees Council 77
| Darrell V. McGraw, Jr.
Attorney General
John S. Dalporto
Senior Assistant Attorney General
Charleston, West Virginia
Attorney for The Department of Tax and
Revenue
Karen O'Sullivan Thornton
Assistant Attorney General
Amicus Curiae for the West Virginia Division of Personnel
B. Allen Campbell
Senior Assistant Attorney General
Amicus Curiae for the West Virginia Division of Health and Human
Resources
Paul T. Farrell, Jr., Esq.
Wilson, Frame, Benninger & Metheney
Morgantown, West Virginia
Amicus Curiae for the West Virginia Trial
Lawyers Association
William B. McGinley, Esq.
Charleston, West Virginia
Amicus Curiae for the West Virginia
Education Association |
JUSTICE STARCHER delivered the Opinion of the Court.
SYLLABUS BY THE COURT
1. In
a multiple-employee grievance proceeding to which
W.Va. Code, 29- 6A-10
[1998] applies, the statutory attorney fee award limits apply per employee _
that is, to the attorney fees of each employee _ and not per grievance.
2. In
court appeals of grievance proceedings under W.Va. Code, 18-29-1 et
seq., pursuant to W.Va. Code, 18-29-8 [1992] a prevailing employee
is entitled to recover reasonable attorney fees and court costs that are not
subject to the attorney fee limitation set forth in W.Va. Code, 18A-2-11
[1985].
Starcher, J.:
In the
instant case, we affirm one circuit court's decision regarding attorney fee awards
in public employee grievances; we reverse another circuit court's decision in
two other public employee grievance attorney fee award cases.
I.
Facts & Background
The
instant case combines three appeals from the lower courts.
In Case
No. 31859, the appellants are the West Virginia Department of Tax and Revenue
and the West Virginia Division of Personnel. They appeal from a Kanawha County
Circuit Court order requiring them to pay $10,500.00 in attorney fees ($1,500.00
per employee) to the appellees, seven Tax Department employees (the tax
employees) who prevailed in a circuit court employment grievance case whose
procedures are governed by the provisions of W.Va. Code, 29-6A-1 et
seq. This section prescribes grievance procedures for State employee grievances
(but not county school board employees). The Tax Department argues that W.Va.
Code, 29-6A-10 [1998] authorizes a total maximum attorney fee award
to the employees of only $1,500.00.
In Cases
Nos. 31868 and 31944, the appellants are several Harrison County School Board
employees (the school employees) who prevailed in two separate employment
grievances; the Harrison County School Board is the appellee. School Board
employee grievance law is generally set forth in W.Va. Code, 18-29-1, et
seq. In both cases, the Harrison County Circuit Court held that a separate
statute, W.Va. Code, 18A-2-11 [1985] authorizes a maximum award of $1,000.00
in attorney fees for the appellants' circuit court proceedings and $1,000.00
for their appeals to this Court _ notwithstanding the fact that W.Va. Code, 18-29-8
[1992] authorizes an award of reasonable attorney fees _ with no
attorney fee cap _ in school employee grievance cases.
II.
Standard of Review
The
instant case turns on matters of law that we decide de novo. Syllabus
Point 1, Chrystal R. M. v. Charlie A. L., 194 W.Va. 138, 459 S.E.2d
415 (1995).
III.
Discussion
A.
The Tax Employee Case
W.Va.
Code, 29-6A-10 [1998], which applies to public employee grievances
generally, but not to school board employee grievances, states:
If
an employee appeals to a circuit court an adverse decision of a hearing examiner
rendered in a grievance proceeding pursuant to provisions of this article or
is required to defend an appeal and the person substantially prevails, the adverse
party or parties is liable to the employee, upon final judgment or order, for
court costs, and for reasonable attorney's fees, to be set by the court, for
representing the employee in all administrative hearings and before the circuit
court and the supreme court of appeals, and is
further liable to the employee for any court reporter's costs incurred during
any administrative hearings or court proceedings: Provided, That in no event
shall such attorney's fees be awarded in excess of a total of one thousand
five hundred dollars for the administrative hearings and circuit court proceedings
nor an additional one thousand dollars for supreme court proceedings: Provided,
however, That the requirements of this section shall not be construed to limit
the employee's right to recover reasonable attorney's fees in a mandamus proceeding
brought under section nine of this article. (Emphasis added.)
The appellants
in the tax employee case argue that it is clear from the foregoing statutory
language that the statutory caps of $1,500.00/1,000.00 are all-inclusive
for all administrative hearings, circuit court, and supreme court proceedings
in a grievance case, regardless of the number of employees in the case _ that
is, the appellants argue that the statutory fee caps apply per grievance, not per
employee.
(See footnote
1)
These
appellants also argue that if the foregoing statutory language is not clear on
this issue, and requires any construction, the applicable principle of construction
should be that statutes in derogation of the common law should be given a strict
and narrow construction _ and that because West Virginia common law on
attorney fees is the American Rule (parties are responsible only
for their own attorney fees), the fee-shifting
statute W.Va. Code, 29-6A-10[1998] should be strictly construed against
a party claiming a right to receive an award of attorney fees.
Finally,
these appellants argue that in grievance cases involving multiple employees,
there could be a potential windfall of unreasonably high fees to an attorney
who is representing many employees, if the possibility exists that the attorney
can receive fees in the amount of $1,500.00/1,000.00 per employee.
Our review
of the language of W.Va. Code, 29-6A-10 [1998] does not
reveal the compelling clarity _ in their favor _ that is asserted by these appellants.
The statute does not authorize an award of attorney fees to a grievant (a
term that may include multiple employees, see note 1.) Rather, in W.Va.
Code, 29-6A-10 [1998], a fee award is authorized to
be made to an employee _ for the work of an attorney representing the employee. (Emphasis
added). W.Va. Code, 29-6A-10 [1998] further states
that the statutory fee caps apply to such attorney fees; and
the modifying term such refers directly back to an or the individual
employee's attorney fees. (Emphasis added.)
Thus,
although not a model of clarity or certainty, W.Va. Code, 29-6A-10
[1998] can be quite plausibly read to apply the statutory fee caps to
the reasonable attorney fees of each individual employee in a multiple-employee
grievance proceeding. This construction permits the aggregation of the individual
attorney fee limit in multiple-employee grievances, and authorizes the action
taken by the circuit court in the instant case, the award of $10,500.00 in attorney
fees (7 x $1,500.00).
With
respect to the appellants' contention that the circuit court's per employee interpretation could
mean an undeserved windfall for an attorney _ if, for example, a multi-employee
grievance case has several hundred employees _ we note that
W.Va. Code,
29-6A-10 [1998] does not automatically authorize an attorney fee award of $1,500.00/1,000.00
to each employee.
W.Va. Code, 29-6A-10 [1998] clearly
states that a total attorney fee award in a multiple-employee grievance fee award
still must be justified as reasonable _ under the standard this Court
set out in Syllabus Point 4 of
Aetna Casualty & Surety Co. v. Pitrolo,
176 W.Va. 190, 342 S.E.2d 156 (1986).
(See
footnote 2) There is no dispute as to the reasonableness of
the $10,500.00 fee award that was made by the circuit court in the tax employee
case. Based
on the foregoing reasoning, we hold that in a multiple-employee grievance proceeding
to which
W.Va. Code, 29-6A-10 [1998] applies, the statutory attorney fee
award limits apply per employee _ that is, to the attorney fees of each employee
_ and not per grievance.
(See
footnote 3)
The judgment
of the Circuit Court of Kanawha County in Case No. 31859 is therefore affirmed.
B.
The School Employee Case
W.Va.
Code, 18A-2-11 [1985], which applies to school personnel, states:
If
an employee shall appeal to a circuit court an adverse decision of either a county
board of education or of a hearing examiner rendered in a grievance or other
proceeding pursuant to provisions of chapters eighteen and eighteen-a of this
code and such person shall substantially prevail, the adverse party or parties
shall be liable to such employee, upon final judgment or order, for court costs,
and for reasonable attorney's fees, to be set by the court, for representing
such employee in all administrative hearings and before the circuit court and
the supreme court of appeals, and shall be further liable to such employee for
any court reporter's costs incurred during any such administrative hearings or
court proceedings: Provided, That in
no event shall such attorney's fees be awarded in excess of a total of one
thousand dollars for the administrative hearings and circuit court proceedings
nor an additional one thousand dollars for supreme court proceedings: Provided,
however, That the requirements of this section shall not be construed to limit
the school employee's right to recover reasonable attorney's fees in a mandamus
proceeding brought under section eight, article four, chapter eighteen-a of
this code.
(Emphasis added.)
W.Va.
Code, 18-29-8 [1992], which applies to school personnel grievances, states:
Any
expenses incurred relative to the grievance procedure at levels one through three
shall be borne by the party incurring such expenses except as to the costs of
transcriptions as provided for in section six of this article.
In
the event an employee or employer appeals an adverse level four decision to the
circuit court or an adverse circuit court decision to the supreme court, and
the employee substantially prevails upon such appeal, the employee or the organization
representing the employee is entitled to recover court costs and reasonable attorney
fees, to be set by the court, from the employer.
W.Va.
Code, 18A-2-11 [1981] was originally enacted at a time when there was no
comprehensive grievance scheme for school board employees. The statute limited
attorney fees to $500.00 for circuit court proceedings and $500.00 for appeals
to this Court. Acts of the Legislature 1981, ch. 95. In 1985, this statute
was amended to establish caps of $1,000.00 for administrative and
circuit court proceedings and $1,000.00 for appeals to this Court. Acts of
the Legislature 1985, ch. 71.
In
1985, the Legislature also enacted provisions of Chapter 18 that established
a four-tier grievance process for school personnel, setting forth a specific
right of appeal to the circuit court (and then to this Court) from administrative
grievance decisions. W.Va. Code, 18-29-1 et seq. Acts of the
Legislature 1985, ch. 71.
Notably,
in 1985 Chapter 18 did not make any provision for awards of attorney fee awards
for court appeals, id., W.Va. Code, 18-29-8 [1985], thus apparently leaving
the provisions of W.Va. Code, 18A-2-11 [1985] as solely speaking to such
fee awards.
Then,
in 1992, the foregoing-quoted statutory language, specifically authorizing awards
of reasonable (but not capped) attorney fees in grievance
appeals, was added to W.Va. Code, 18-29-8 [1992], Acts of the Legislature 1992,
ch. 62.
At oral
argument in the instant case, counsel for the school employee appellants stated
_ without contradiction by the appellees _ that since W.Va. Code, 18-29-8
[1992] was enacted, it has been the consistent interpretation of the circuit
courts in school board employee grievance cases that the reasonable-but-uncapped
fee provisions of W.Va. Code, 18-29-8 [1992] are now applicable to such
cases _ inasmuch as these provisions were added to the specific chapter that
created and contains the new school employee grievance procedure scheme.
The school
employee appellants' counsel also stated at oral argument (again without contradiction)
that the first time the applicability of the fee provisions of
W.Va. Code,
18-29-8 [1992] was questioned in a circuit court case was after this Court stated
in
Wines v. Jefferson County Board of Education, 213 W.Va. 379, 386, 582
S.E.2d 826, 833
(2003) (
per curiam), that the School Board's violation of Appellant's
due process rights entitles her to an award of attorney's fees in the amount
of $2,000.00, as authorized by
W.Va. Code, § 18A-2-11.
(See
footnote 4)
The general
rule for interpreting differing statutory sections is that courts should attempt
to harmonize them, if possible. Syllabus Point 9, Bailey v. Norfolk and Western
Railroad Co., 206 W.Va. 654, 527 S.E.2d 516 (1999) states:
A
statute should be so read and applied as to make it accord with the spirit, purposes
and objects of the general system of law of which it is intended to form a part;
it being presumed that the legislators who drafted and passed it were familiar
with all existing law, applicable to the subject matter, whether constitutional,
statutory or common, and intended the statute to harmonize completely with the
same and aid in the effectuation of the general purpose and design thereof, if
its terms are consistent therewith.
However, where
two distinct statutes stand in pari materia, and sections thereof are
in irreconcilable conflict, that section must prevail which can properly be
considered as the last expression of the law making power . . .. State
ex rel. Pinson v. Varney, 142 W.Va. 105, 109, 96 S.E.2d 72, 74 (1956).
The appellee
School Board argues that the earlier-enacted language of W.Va. Code, 18A-2-11
[1985] supplements the attorney fee language of the later-enacted W.Va.
Code, 18-29-8 [1992].
It is
true that this Court must generally apply, when and where feasible, the principle
of the harmonization of statutes _ and also the presumption that the Legislature
is aware of previously enacted statutes. Bailey, supra. But it
would strain the meaning of the word supplement to apply that term
to a situation where purportedly supplemental language was enacted
seven years earlier than the subsequent language that is said to be supplemented.
Furthermore,
it is also true _ indeed, paramount _ that this Court must presume that the Legislature
has a new purpose in enacting a new statute. Id. In this regard, it appears
that the specific addition in 1992 of a reasonable-but-uncapped attorney fee
provision to Chapter 18 for court appeals of school personnel grievances would
simply have been unnecessary _ if the Legislature had intended the attorney fee
award limitation provisions of W.Va Code, 18A-2-11 [1985] to govern
such appeals.
Additionally,
we are mindful that statutes relating to school employees are generally to be
construed in favor of employees, Syllabus Point 1, Morgan v. Pizzino,
163 W.Va. 454, 256 S. E. 2d 592 (1979); and that specific statutes generally
prevail over general statutes, Carvey v. W. Va. State Bd. of Ed., 206
W. Va. 720, 731, 527 S.E.2d 831, 842 (1999). Applying
the foregoing principles, it simply cannot be reasonably concluded that the Legislature
clearly intended the earlier-enacted fee-capping provisions of W.Va Code,18A-2-11
[1985] to trump the specific provisions of the later-enacted, more specific statute, W.Va.
Code, 18-29-8 [1992] _ to the detriment of the interests of school employees
who pursue a successful grievance appeal in court.
Absent
such a conclusion, we are constrained to apply the clear meaning of
W.Va.
Code, 18-29-8 [1992] in the instant case. We therefore hold that in court
appeals of grievance proceedings under
W.Va. Code, 18-29-1
et seq., pursuant
to
W.Va. Code, 18-29-8 [1992] a prevailing employee is entitled to recover
reasonable attorney fees and court costs that are not subject to the attorney
fee limitation set forth in
W.Va. Code,18A-2-11 [1985].
(See
footnote 5)
Consequently,
the appealed-from orders of the Circuit Court of Harrison County in Cases
Nos. 31868 and 31944 regarding attorney fee awards are reversed, and those
cases are remanded to that court for further proceedings consistent with this
opinion.
Cases
Nos. 31868 and 31944 Reversed and Remanded; Case No. 31859 Affirmed.
W.Va. Code, 29-6A-3(e)
[1998] provides for the voluntary consolidation of grievances; 29-6A-2(k) [1988]
defines grievant as any named employee or group of named
employees filing a grievance . . .; 29-6A-2(i) [1988] defines grievance as any
claim by one or more affected state employees . . .; 29-6A-4 [1998],
discussing grievance procedures, consistently uses the singular term grievant.
Footnote: 2
Where
attorney's fees are sought against a third party, the test of what should be
considered a reasonable fee is determined not solely by the fee arrangement
between the attorney and his client. The reasonableness of attorney's fees
is generally based on broader factors such as: (1) the time and labor required;
(2) the novelty and difficulty of the questions; (3) the skill requisite to
perform the legal service properly; (4) the preclusion of other employment
by the attorney due to acceptance of the case; (5) the customary fee; (6) whether
the fee is fixed or contingent; (7) time limitations imposed by the client
or the circumstances; (8) the amount involved and the results obtained; (9)
the experience, reputation, and ability of the attorneys; (10) the undesirability
of the case; (11) the nature and length of the professional relationship with
the client; and (12) awards in similar cases.
Syllabus Point 4,
Aetna Casualty & Surety Co. v. Pitrolo, 176 W.Va.
190, 342 S.E.2d 156 (1986).
Footnote: 3
As to the appellants' argument
that such a construction of the statute would contravene the common-law American
Rule and thus should be disfavored, the short answer to this argument
is that in the context of actions against the government by citizens (including
public employees) who are successful in using the court system to require public
officials to correctly follow the law, West Virginia's common law (and, for
that matter, our statutory law) is not unqualifiedly disfavoring of fee awards
for prevailing citizens. No individual citizen ought to bear the legal
expense incurred in requiring the government to do its job.
Nelson
v. West Virginia Public Employees Ins. Bd., 171 W.Va. 445, 451, 300 S.E.2d
86, 92 (1982).
Footnote: 4
It appears that in the
instant case the Harrison County Circuit Court felt that it was bound by the
quoted statement from
Wines; and the Tax Department and Division
of Personnel appellees argue that this Court should feel similarly bound. In
Wines,
the issues of the applicability of a statutory cap on attorney's fees, and
of a potential conflict between two statutes, were not raised by either party
and were not discussed by the Court in its decision or in the partial dissent.
The quoted statement from
Wines was clearly
dicta, therefore
_ and, moreover, was made in a
per curiam case.
Per curiam opinions
have precedential value as an application of settled principles of law to facts,
but this Court will use signed opinions when new principles of law are announced.
Walker
v. Doe, 210 W.Va. 490, 558 S. E. 2d 290 (2001). In deciding the legal issues
of first impression before the Court in the instant case, the statement from
Wines has
no binding or precedential
value under the doctrine of
stare decisis.
Footnote: 5
It is not without significance
that after 1992 and prior to Wines _ according to the statements made
at oral argument in the instant case _ this holding was the understanding of
the Legislative intent adopted by courts and practitioners on both sides of
school personnel grievances. This apparent fact supports the conclusion that
it is a reasonable construction of the law to find a Legislative intent not
to impose attorney fee caps in appeals under W.Va. Code, 18-29-1 et
seq. If we have misread that intent, the Legislature may readily make its
different purpose known. Additionally, we note that in the school employee
case it has been suggested that there may be a limited class of education employees
whose grievances do not fall within the procedures of W.Va. Code, 18-29-1 et
seq., and who therefore are subject to the statutory cap. Inasmuch as this
issue is not presented in the instant case, we do not address it.