Daimler Chrysler Corp. v. Derek Franklin (8/30/04 IndCtApp) [Arbitration, Contract, Attorney Fees]
Kirsch, Judge
Daimler Chrysler Corporation (“Daimler”) brings two appeals following a jury trial that resulted in a verdict in favor of Derek Franklin on his claims regarding a 2001 Dodge Neon automobile that he purchased. In its first appeal, Daimler raises several issues, one of which we find dispositive: whether Franklin agreed to arbitrate claims against Daimler when he entered into a contract with Community Chrysler (“Community”) that contained a provision requiring the parties to submit any claims against one another to arbitration. Franklin argues on cross-appeal that he should be awarded appellate attorney’s fees.Posted by Marcia Oddi at August 30, 2004 02:09 PMIn its second appeal, Daimler argues that the amount of trial attorney’s fees the trial court awarded to Franklin was excessive. We affirm in part, reverse in part, and remand. * * *
On August 12, 2003, the trial court conducted a jury trial on Franklin’s claims. The jury decided in Franklin’s favor and awarded him $12,123.99 and ordered Daimler to accept return of the vehicle pursuant to the IMVPA. Daimler filed a motion for directed verdict, which the trial court denied.
Franklin filed a motion for attorney’s fees, which the trial court granted in the amount of $19,405 after submission of Franklin’s petition documenting his attorneys’ time. Daimler now appeals from the denial of its motion to dismiss and compel arbitration and the award of attorney’s fees. * * *
Here, Daimler, like Hyundai, is not in privity with the consumer, Franklin, and therefore cannot enjoy the benefit of the terms of Franklin’s contract with Community.
Finally, we note that Daimler is not an intended third-party beneficiary of the contract between Franklin and Community. To enforce a contract under this theory, the claimant must show 1) a clear intent by the parties to the contract to benefit the third party, 2) a duty imposed on one of the contracting parties in favor of the third party, and 3) performance of the contract. Angell Enters., Inc. v. Abram & Hawkins Excavating Co., Inc., 643 N.E.2d 362, 365 (Ind. Ct. App. 1994). Here, the body of the contract and the arbitration agreement between Community and Franklin does not reference Daimler and does not show a clear intent to benefit it. Accordingly, Daimler could not have been an intended third-party beneficiary of the contract, and it may not rely on the arbitration provision. The trial court did not err in denying Daimler’s motion to dismiss and compel arbitration.
Franklin argues that he should recover appellate attorney’s fees for defending his IMVPA [Motor Vehicle Protection Act ] judgment on appeal. Generally, the right to recover attorney’s fees from one’s opponent does not exist in the absence of a statute or some agreement. State Bd. of Tax Comm’rs v. Town of St. John, 751 N.E.2d 657, 659 (Ind. 2001). However, IC 24-5-13-22 provides that a consumer who prevails in an IMVPA claim is entitled to recover as part of the judgment the amount of his or her cost and expenses, including attorney’s fees based on actual time expended by the attorney determined by the court to have been reasonably incurred by the consumer “for or in connection with the commencement and prosecution of the action.” * * *
Daimler makes numerous challenges to the trial court’s award of attorney’s fees. It alleges multiple entries, an hourly rate not justified by the locality, and entries for purely clerical, not legal, duties. It first argues that attorney’s fees were charged for clerical, non-legal services. Franklin’s attorneys submitted itemized time sheets to the trial court detailing the amount of time spent by the two attorneys and one paralegal who worked on Franklin’s case. Daimler points to numerous time entries by the paralegal for copying and mailing documents. While Daimler concedes that a paralegal’s time may be included in the award of attorney’s fees, it argues that inclusion is only appropriate when the paralegal is performing legal services that involve professional legal skills. * * *
In this case, the paralegal’s hourly rate was $100. We find that the trial court abused its discretion in including her fees for copying and mailing documents, which is work that requires no particular knowledge of legal concepts and is more in the nature of clerical or support staff work. * * *
We affirm the trial court’s decision denying Daimler’s motion to compel arbitration, and affirm the trial court’s decision to award trial attorney’s fees. However, we reverse the trial court’s inclusion of paralegal’s fees for clerical work and remand for a redetermination of the amount of trial attorney’s fees and for a determination of the proper amount of appellate attorney’s fees. Affirmed in part, reversed in part, and remanded.
NAJAM, J., and RILEY, J., concur.