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35 N.C. App. 259

241 S.E.2d 108

Harrison v. Herbin

Court of Appeals of North Carolina

Decided February 7, 1978

Court of Appeals of North Carolina · decided 1978-02-07

Attorneys at Law 7.5 — denial of attorney's fees The trial court did not abuse its discretion in refusing to award attorney's fees pursuant to G.S. <cross_reference>6-21.1</cross_reference> to the successful plaintiff in an action to recover for damages to plaintiff's automobile where the jury awarded plaintiff $250 and defendant's insurance carrier had offered to settle plaintiff's claim for $200.

Key passage — most relied on by later courts

“[w]e perceive of no exercise of any unjustly superior bargaining power on the part of the defendant. While the statute is aimed at encouraging injured parties to press their meritorious but pecu-niarily small claims, we do not believe that it was intended to encourage parties to refuse reasonable settlement offers and give rise to needless litigation by guaranteeing that counsel will, in all cases, be compensated.”

quoted by 3 later decisions, including Williams v. Manus, 132 N.C. App. 347 - Washington v. Horton

Relies on Hicks v. Albertson

Good law ✅— No negative treatment on recordhow we know

Decided 1978-02-07

How this case has been cited

Cited by 16 later decisions — most recently March 2001

16 state decisions

601978198019902000decided

Later decisions citing this case, by decade. The current decade is in progress, and our corpus holds fewer opinions from the most recent years, so the latest bars are undercounted — not a real decline.

View the full empirical analysis of this case →

*261 BROCK, Chief Judge.

¶1 Plaintiff contends that the trial judge abused his discretion in denying plaintiff’s motion that attorney’s fees be taxed against defendant in this action. Plaintiff argues that, as illustrated by questions asked by the trial judge during argument on the motion, the judge by denying the motion, apparently intended to penalize plaintiff for bringing her action in district court rather than in magistrate’s court, for requesting a jury trial, for refusing to seek damages from her own insurance carrier, for refusing defendant’s offer of settlement, and as being, in general, responsible for this litigation. We find no merit in plaintiff’s arguments.

¶2 G.S. 6-21.1 authorizes the presiding judge, in his discretion, to allow a reasonable attorney fee for the successful party in a personal injury or property damage suit where the damage recovery is $2,000.00 or less. The rationale behind the statute was stated by our Supreme Court in Hicks v. Albertson, 284 N.C. 236, 239, 200 S.E. 2d 40, 42 (1973).

“The obvious purpose of this statute is to provide relief for a person who has sustained injury or property damage in an amount so small that, if he must pay his attorney out of his recovery, he may well conclude that it is not economically feasible to bring suit on his claim. In such a situation the Legislature apparently concluded that the defendant, though at fault, would have an unjustly superior bargaining power in settlement negotiations.”

¶3 It remains a fact, however, as set out in the express language of the statute, that the allowance of fees is in the discretion of the presiding judge. Upon examining the record in this case, we cannot say that the judge abused his discretion in denying the award of fees. Defendant’s insurance carrier communicated an offer of settlement to plaintiff in the amount of $200.00, just $50.00 less than the ultimate damage award at trial. We perceive of no exercise of any unjustly superior bargaining power on the part of the defendant. While the statute is aimed at encouraging injured parties to press their meritorious but pecuniarily small claims, we do not believe that it was intended to encourage parties to refuse reasonable settlement offers and give rise to needless litigation by guaranteeing that counsel will, in all cases, be compensated.

¶4*262 Therefore we hold that plaintiff has shown no abuse of discretion by the trial judge. The judgment denying plaintiff’s motion for an award of attorney fees is

¶5 Affirmed.

Judges Martin and Clark concur.
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