Kapsner, Justice.
[¶ 1] Don Bruce, Vinier Davis, and Linda Davis ("Defendants") appeal from a judgment granting their motion to dismiss and denying their request for attorney fees. We reverse the district court's denial of the Defendants' request for attorney fees under N.D.C.C. § 28-26-01(2) and remand for calculation of attorney fees based upon accepted factors and order the district court award attorney fees to the Defendants.
[¶ 2] On January 5, 2015, Joni Tillich, Nicole LaFloe, Shawn Marcellais, Lisa DeCoteau, and Lynn Boughey ("Plaintiffs") filed an action in district court against the Defendants. The complaint alleged a tort claim for abuse of process based upon the Defendants filing an action against the Plaintiffs in Turtle Mountain Tribal Court. The Defendants answered the complaint and raised defenses of lack of subject matter jurisdiction, lack of personal jurisdiction, and alleged the claim to be frivolous. The Defendants also filed a motion to dismiss for lack of subject matter and personal jurisdiction and requested attorney fees and statutory costs for defending the action. The Defendants filed and served several discovery requests and motions including interrogatories, requests for production, notice of deposition, subpoena duces tecum, and motions to command compliance with subpoena and to command attendance at deposition. The case was not assigned to a district court judge until March 11, 2015.
[¶ 3] After a hearing on the motion to dismiss for lack of subject matter jurisdiction, the district court converted the motion to dismiss into a motion for summary judgment because matters outside the pleadings were presented. The Defendants' argument the district court lacked jurisdiction was based upon the fact the Plaintiffs' action was a tort claim against members of a federally recognized Indian tribe for actions alleged to have occurred between tribal members within the exterior boundaries of the Turtle Mountain Indian Reservation. The parties submitted
[¶ 4] The district court granted the motion for summary judgment and dismissed the action without prejudice. In its order, the district court found the Plaintiffs' action was frivolous and stated the Defendants were entitled to an award of reasonable costs and attorney fees under N.D.C.C. § 28-26-01(2). In making the determination of amount and reasonableness of attorney fees to be awarded, the court noted the rate and time spent on the billed activities appeared to be appropriate. The court then made an analysis of the reasonableness of attorney fees as something "also ... measured in the totality of circumstances relating to the time and resources committed to the motion and the necessity for it[.]" The court weighed conduct by both parties in the proceedings and the presence of another action involving both attorneys and a similar jurisdictional issue. The court ultimately denied the Defendants' request for attorney fees, determining no fees should be awarded in the case after "[t]aking into account fees and expenses previously awarded in the companion case, 40-2015-CV-3." An inaccuracy in the judgment following the district court's order was found and corrected. The district court entered a corrected judgment on May 12, 2016. The Defendants appealed from the corrected judgment entered May 12, 2016.
[¶ 5] The Defendants argue the district court erred by denying their request for attorney fees after finding the Plaintiffs' claim to be frivolous. Under North Dakota law, the general rule is each party bears its own attorney fees absent statutory or contractual authority.
[¶ 6] The Defendants requested attorney fees under N.D.C.C. § 28-26-01(2) at the district court. The Defendants argue N.D.C.C. § 28-26-01(2) requires a district court to award attorney fees once it makes a finding an action is frivolous. Section 28-26-01(2), N.D.C.C., provides:
This Court has previously interpreted this statute as granting limited discretion to the district court. "Based upon this statute's language ... the district court's decision whether to award attorney's fees is not completely within the court's discretion."
[¶ 7] "Under N.D.C.C. § 28-26-01(2), the district court has discretion to decide whether a claim is frivolous and to determine the amount and reasonableness of an award of attorney fees. But when the court decides a claim is frivolous, it must award attorney fees."
[¶ 8] The Plaintiffs argue the district court erred by finding the action to be frivolous, or failing to find the action was pursued based on a good-faith argument to change existing law. The Plaintiffs ask this Court to affirm the judgment based on this reasoning. The Plaintiffs filed no cross-appeal in this case. "[A]n appellee for whom a favorable judgment was entered may, without a cross-appeal, attempt to save the judgment by urging any ground raised in the trial court."
[¶ 9] Under N.D.C.C. § 28-26-01(2), the district court has discretion to determine the amount and reasonableness of attorney fees after finding an action frivolous.
The statute's exception for an unwarranted claim based upon a "good-faith argument for an extension, modification, or reversal of the existing law" is inapplicable to this case. Moreover, the district court noted the Plaintiffs conceded dismissal without prejudice was appropriate.
[¶ 11] The Defendants contend the district court's order was contradictory and argue the district court improperly considered a second separate civil action defended by the same counsel. We agree. Generally, a court "should not rely on any single item in determining reasonable attorney fees[,]" and the "number of hours spent in total and the rate per hour are the predominant factors in determining reasonable attorney fees."
[¶ 12] The district court examined several of the above-listed factors in determining the amount of attorney fees to be
The above factors are those which this Court has recognized as appropriate for a district court to rely on in determining reasonable attorney fees.
[¶ 13] The district court then applied a "totality of circumstances" analysis to the reasonableness of attorney fees. The court indicated the Plaintiffs had made some efforts to settle the suit, but recognized the Plaintiffs could have moved to dismiss the action on their own. The district court continued its analysis:
(Emphasis added.)
[¶ 14] The record shows the district court held a hearing at which the Defendants' counsel appeared telephonically. The two cases referenced above had the same counsel, but different parties, and both involved similar, but not identical, questions of jurisdiction relating to tribal membership. The district court heard arguments in the present case and also discussed the other, separate case, which named a different defendant. It was improper for the district court to rely solely on information in a separate case to determine the attorney fees to be awarded in this case. This Court has not previously had occasion to recognize consideration of separate civil actions as a valid factor for determining the amount and reasonableness of attorney fees under N.D.C.C. § 28-26-01(2). It is important to note the other action, while having the same counsel
[¶ 15] The district court noted its disagreement with the Defendants' actions in discovery. Specifically, the district court disapproved of the Defendants' behavior regarding requests for production and the manner in which the Defendants noticed a deposition of the opposing party/attorney. The district court noted the Defendants' attorney had unilaterally selected a time and place for a deposition and production of documents, despite the fact the Plaintiffs' attorney advised the Defendants' attorney of his unavailability. The Plaintiffs moved for a protective order after the Defendants noticed a deposition of attorney/party Boughey. The district court indicated its opinion the Defendants' behavior added unnecessary time and expense to discovery.
[¶ 16] While the district court has discretion to determine the amount and reasonableness of attorney fees under N.D.C.C. § 28-26-01(2), the district court abused its discretion by failing to award any attorney fees after finding the Plaintiffs' action was frivolous and unsupported by any good faith argument for a modification of the law. No caselaw indicates the district court is without discretion to limit an award of attorney fees based on the moving party's behavior in discovery. However, the reasons given by the district court in this case do not justify a complete denial of attorney fees to the Defendants. The order indicates the district court viewed at least a portion of the work done by the Defendants' counsel as necessary, appropriate, and competent. The district court stated, "[t]he defendants' legal counsel received favorable results for his efforts and had to take it through motion proceedings to do so with some exception as hereafter noted. The time spent on the itemized activities appears appropriate." As a result, the district court abused its discretion by completely denying the Defendants' request for attorney fees after finding the Plaintiffs' action was frivolous.
[¶ 17] The district court misapplied the law, and its order is not "the product of a rational mental process leading to a reasoned decision."
[¶ 18] Carol Ronning Kapsner
Lisa Fair McEvers
Daniel J. Crothers
Dale V. Sandstrom, S.J.
VandeWalle, Chief Justice, concurring specially.
[¶ 20] I understand the district court stated the action was "frivolous" not because the underlying claim was necessarily frivolous but, rather, that the claim was brought in a North Dakota state court when the court clearly held no jurisdiction over the action because the defendants were members of a recognized Indian tribe. If the underlying claim had been without any merit, presumably it would not have been dismissed without prejudice although it is unclear to me whether a court which has no jurisdiction can dismiss a claim for any reason other than a lack of jurisdiction, whether or not the claim has merit. In any event, here the trial court, although it found the action to be frivolous, did dismiss without prejudice and did not assess any attorney fees. Whether or not the trial court believed the claim was frivolous, in the wording of N.D.C.C. § 28-26-01(2), that, upon a finding that a "claim for relief" was frivolous the court must award attorney fees, is left to be explained in light of the dismissal without prejudice. While I agree the matter should be remanded, the trial court should have the opportunity to further explain its rationale for not awarding attorney fees and, if it determines to award attorney fees, to consider it dismissed for lack of jurisdiction rather than because the underlying "claim for relief" was frivolous.
[¶ 21] Gerald W. VandeWalle, C.J.