CHARLESTON — The West Virginia Supreme Court of Appeals found that a lower court rightfully denied a motion for attorney's fees and expenses.
"Based on the record before us, the arguments of the parties, and the applicable law, we find that the circuit court acted within its discretion in denying Mr. Harlow's motion for attorney fees and expenses; therefore, we affirm," according to a March 15 majority opinion.
Justice Tim Armstead authored the majority opinion. He wrote that the Nicholas Circuit Court case included a bench trial in which the court denied motions from both parties for attorney fees and expenses. Michael D. Harlow then appealed.
Harlow was one of three members of Eastern Electric and during his time at Eastern, the company lost nearly $400,000 in a prevailing wage case. Harlow dissociated from the company following the loss and Eastern tendered a timely offer to purchase his interest.
"Mr. Harlow rejected Eastern’s offer, and when negotiations failed, Mr. Harlow sued Eastern to enforce his statutory right to receive 'fair value' for his interest," Armstead wrote. "After discovery, the parties agreed on the value of Mr. Harlow’s interest, but the process of reaching settlement left each side convinced that the other had behaved in bad faith."
Armstead wrote that both sides moved to recover their reasonable attorney fees and expenses.
Armstead wrote that the court refused to overturn the circuit court's order, calling it thorough and well-reasoned.
"Thus, even if we were inclined to reverse the circuit court’s findings of fact regarding Eastern’s alleged bad faith or vexatious conduct—and we are not—we would still afford substantial respect to the circuit court’s statutory discretion to refuse an award of fees," Armstead wrote. "On the facts of this case—and given the special deference we accord to a circuit court’s findings of fact after a bench trial—we find no abuse of discretion, and we refuse to overturn the circuit court’s thorough and well-reasoned order."
W.Va. Supreme Court of Appeals case number: 19-0643