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Hardesty v. Aldridge

12/18/2001

Appeal by defendant from judgment entered 25 September 2000 by Judge Cheryl Spencer in Craven County District Court. Heard in the Court of Appeals 28 November 2001.


Defendant, Oscar Aldridge, appeals from a judgment awarding attorney fees to plaintiff, Tanesha Hardesty, in a personal injury action resulting from an automobile accident. For the reasons discussed herein, we affirm the trial court and remand the issue of attorney fees pending appeal.


The facts are as follows: On 28 January 1997, a vehicle owned and operated by defendant struck the vehicle plaintiff was operating. Plaintiff sustained injuries and was first treated at the Craven Regional Medical Center emergency room and then at a chiropractic center.


Subsequently, defendant's insurance carrier, Allstate Insurance Company (Allstate), engaged in negotiations with plaintiff's counsel. Allstate offered to settle for a total of $1,997.50, which equaled the amount of medical bills, but the offer was refused and suit was filed on 28 October 1997.


There was no answer to the complaint and plaintiff obtained a default judgment of $5,000 plus $2,134 for costs, interest, and attorney fees against defendant. Allstate, however, filed a motion to vacate the judgment because plaintiff had never forwarded a copy of the complaint to the company. Plaintiff signed a consent order to both vacate the entry of default and set aside the judgment. Defendant then filed an answer, which included a Rule 68 offer of judgment for $1,997.50.


In May 2000, a jury returned a verdict for plaintiff in the amount of $350. On 25 September 2000, the trial court granted plaintiff's motion for attorney fees and awarded $2,625.00. Defendant appeals the order.


By defendant's sole assignment of error, he argues the trial court abused its discretion in granting plaintiff's motion for attorney fees pursuant to N.C. Gen. Stat. § 6-21.1. We disagree.


The North Carolina General Statutes provide:


In any personal injury or property damage suit, or suit against an insurance company under a policy issued by the defendant insurance company and in which the insured or beneficiary is the plaintiff, upon a finding by the court that there was an unwarranted refusal by the defendant insurance company to pay the claim which constitutes the basis of such suit, instituted in a court of record, 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. N.C. Gen. Stat. § 6-21.1 (1999).


Under this statute, the trial court is given the discretion to award attorney fees to the prevailing party. See Porterfield v. Goldkuhle, 137 N.C. App. 376, 528 S.E.2d 71 (2000). The trial court's ruling will not be disturbed on appeal absent a showing of abuse of discretion. West v. Tilley, 120 N.C. App. 145, 461 S.E.2d 1 (1995). An abuse of discretion occurs when the trial court's ruling "is so arbitrary that it could not have been the result of a reasoned decision." Chicora Country Club, Inc. v. Town of Erwin, 128 N.C. App. 101, 109, 493 S.E.2d 797, 802 (1997), disc. review denied, 347 N.C. 670, 500 S.E.2d 84 (1998)(citations omitted). When determining whether to award attorney fees, the trial court must consider the entire record, including the following factors: (1) settlement offers made prior to institution of the action; (2) offers of judgment made pursuant to Rule 68 and whether the judgment finally obtained was more favorable than such offe

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