Hiroshi Ishimatsu v. Royal Crown Ins. Corp.
CourtSupreme Court of The Commonwealth of The Northern Mariana Islands
Date FiledDecember 27, 2012
Docket2011-SCC-0016-CIV
JudgeCastro
StatusPublished
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Full Opinion
IN THE
SUPREME COURT
OF THE
COMMONWEALTH OF THE NORTHERN MARIANA ISLANDS
HIROSHI ISHIMATSU, BERNARDO A. HIPONIA, and SERAFIN ESPERANCILLA,
Plaintiffs-Appellees/Cross-Appellants,
v.
ROYAL CROWN INSURANCE CORP.,
Defendant-Appellant/Cross-Appellee.
SUPREME COURT NO. 2011-SCC-0016-CIV
SUPERIOR COURT NO. 02-0065C
Cite as: 2012 MP 17
Decided December 27, 2012
G. Anthony Long, Saipan, MP, for Defendant-Appellant/Cross-Appellee Royal Crown Insurance Corp.
Joseph E. Horey, Saipan, MP, for Plaintiffs-Appellees/Cross-Appellants Bernardo A. Hiponia and Serafin
Esperancilla.
BEFORE: ALEXANDRO C. CASTRO, Chief Justice; JOHN A. MANGLONA, Associate Justice; ROBERT C.
NARAJA, Justice Pro Tem.
CASTRO, C.J.:
¶1 Defendant-Appellant/Cross-Appellee Royal Crown Insurance Corporation (“Royal Crown”)
appeals the trial court’s amended judgment, which awarded attorney fees and post-judgment interest to
Plaintiffs-Appellees/Cross-Appellants Bernardo A. Hiponia and Serafin Esperancilla (“Plaintiffs”). 1 On
appeal, Royal Crown contends this Court exceeded its jurisdiction in authorizing the trial court to award
fees for appellate work completed in Ishimatsu v. Royal Crown Insurance Corp., 2010 MP 8. 2 Royal
Crown also alleges the trial court: (1) exceeded the scope of this Court’s mandate from Ishimatsu II by
awarding appellate attorney fees and costs to Plaintiffs, (2) abused its discretion by refusing to force
Plaintiffs to segregate their appellate attorney fees, and (3) abused its discretion by awarding
unreasonable appellate fees to Plaintiffs. Plaintiffs filed a cross-appeal, claiming the trial court erred in
refusing to award attorney fees to Plaintiffs for their work to force Royal Crown to obtain a supersedeas
bond (“supersedeas bond phase”), which they completed after trial, but prior to the Ishimatsu II appeal.
For the reasons stated herein, we AFFIRM the trial court’s amended judgment.
I
¶2 The original action between Plaintiffs and Royal Crown involved claims arising from Royal
Crown’s refusal to provide insurance coverage for a car accident between Plaintiffs (who both held
insurance from Royal Crown). The case proceeded to a jury trial, where the jury found for the Plaintiffs
on all claims and awarded both compensatory and punitive damages. After the jury returned its verdict,
Plaintiffs filed its first motion for attorney fees in March 2005. That same month, Royal Crown
challenged the jury award through several post-trial motions in the trial court. After briefing these post-
trial motions, Plaintiffs filed a supplemental motion for attorney fees in June 2005 for work completed
from the first fee motion until the end of April 2005. In August 2005, the trial court issued an omnibus
order where it: (1) sided with Royal Crown on certain claims but upheld the jury’s verdict as to many of
Plaintiffs’ claims, including a claim for breach of the covenant of good faith and fair dealing as well as a
claim under the Commonwealth Consumer Protection Act (“CPA”), 4 CMC § 5101-5123; (2) reduced the
jury’s compensatory and punitive damages awards; and (3) awarded Plaintiffs attorney fees for work
completed through April 2005. After the trial court’s omnibus order, Plaintiffs, seeking to protect their
recovery, convinced the trial court to order a supersedeas bond consisting of: (a) their recovery in the trial
1
Plaintiff Hiroshi Ishimatsu is not involved in the appeal.
2
This matter has previously been before this Court two times, in Ishimatsu v. Royal Crown Insurance Corp.,
2006 MP 9, and Ishimatsu v. Royal Crown Insurance Corp., 2010 MP 8. For convenience, we will refer to 2010 MP
8 as Ishimatsu II.
court, (b) ten percent interest on that recovery, and (c) $250 for costs. After further legal wrangling, this
time regarding a separate document, the trial court issued a final entry of judgment in October 2006.
Plaintiffs never filed a second supplemental motion for attorney fees for work performed during the
supersedeas bond phase (May 2005 through October 2006).
¶3 In Ishimatsu II, this Court affirmed the trial court on the merits, found the attorney fee award
reasonable, and reduced the cost award slightly. 2010 MP 8 ¶ 76. Neither the opinion nor the
accompanying judgment mentioned interest on the damages award, attorney fees for appellate work, or
attorney fees for the supersedeas bond phase. Royal Crown filed a petition for rehearing after our opinion,
which we denied on August 31, 2010. After denying the petition, this Court issued a mandate for the case
on September 7, 2010. Royal Crown Appendix (“RC App.”) at 22,26 (“[T]he Superior Court is instructed
to act upon the JUDGMENT.”).
¶4 Plaintiffs then filed a motion for attorney fees for their appellate work on September 14, 2010, in
this Court. 3 Due to a peculiarity in the NMI Supreme Court Rules in place at the time, Plaintiffs’ fee
motion was timely despite being filed after the mandate. Rather than recall the mandate and determine
Plaintiffs’ fee motion, we denied the motion based on our lack of jurisdiction over the matter and
indicated that 4 CMC § 5112(a), the CPA provision allowing for attorney fees for prevailing parties,
seemed to identify the trial court as the proper court to decide all motions for attorney fees.
¶5 On remand, Plaintiffs filed a motion to amend the trial court’s judgment in February 2011 to:
(1) conform with the mandate from Ishimatsu II, (2) add post-judgment interest to the previous judgment
at a rate of nine percent per year, and (3) award attorney fees and costs. Plaintiffs sought attorney fees for
two sets of work: (a) supersedeas bond phase work, and (b) appellate phase work. The trial court
separated its consideration of the motion into phases. First, the trial court ordered the release of
$103,895.14 from the supersedeas bond to Plaintiffs. This payment reflected the amount of damages,
attorney fees, and costs that we upheld in Ishimatsu II. The trial court then issued an order regarding
Plaintiffs’ fee motion.
¶6 In its order on Plaintiffs’ fee motion, the court found the motion timely because NMI Rule of
Civil Procedure 54 mandates that a fee motion be filed within fourteen days of entry of judgment and the
trial court had yet to enter an amended judgment on remand. Regarding fees for appellate work in
Ishimatsu II, the court awarded Plaintiffs all claimed fees, holding that: (1) Plaintiffs were entitled to fees
as prevailing parties pursuant to 4 CMC § 5112 4 of the CPA; (2) Plaintiffs did not need to segregate their
3
Plaintiffs’ motion for appellate fees did not include a request for supersedeas bond phase fees.
4
In relevant part, 4 CMC § 5112 provides:
(a) Any person aggrieved as a result of a violation of this article may bring an action in the
Commonwealth Superior Court for such legal or equitable relief as the court may order. In
fees for work on different claims because the claims involved the same facts; and (3) Plaintiffs’ appellate
fees were reasonable. Ishimatsu v. Royal Crown Ins. Corp., No. 02-0065-C (NMI Super. Ct. May 17,
2011) (Order Granting in Part Plaintiffs’ Request for Attorneys Fees at 6) (“Remand Fee Order”).
Regarding fees for the supersedeas bond phase, however, the court rejected Plaintiffs’ request, reasoning
that these fees were “not part of the appeal” and could not, therefore, be recovered by Plaintiffs on
remand. Id. at 5. Finally, the trial court awarded $39,964.05 in post-judgment interest. The court issued an
amended final judgment in July 2011 summarizing its previous decisions, itemizing the various elements
of the amended judgment, and awarding Plaintiffs an additional $79,108.75. 5
II
¶7 The Supreme Court has appellate jurisdiction over final judgments and orders of the
Commonwealth Superior Court. 1 CMC § 3102(a). The amended final judgment issued in July 2011 is a
final judgment of the Superior Court.
III
A. Jurisdiction of Supreme Court to Authorize Trial Court to Hear a Claim for Attorney Fees
¶8 Royal Crown argues this Court exceeded its jurisdiction by authorizing the trial court to award
Plaintiffs appellate attorney fees in the Court’s order denying attorney fees in Ishimatsu II. Jurisdictional
questions are reviewed de novo. Commonwealth v. Yi Xiou Zhen, 2002 MP 4 ¶ 13. Background regarding
the procedural history of Ishimatsu II is necessary to determine this issue. In June 2010, we issued our
opinion in Ishimatsu II. We then denied Royal Crown’s petition for rehearing on August 31, 2010 and
issued the mandate on September 7, 2010, pursuant to NMI Supreme Court Rule 41, which requires this
Court to issue the mandate “7 calendar days after entry of an order denying a timely petition for
rehearing.” NMI Sup. Ct. R. 41(b). Thereafter, on September 14, 2010, Plaintiffs filed a request for
appellate attorney fees pursuant to NMI Supreme Court Rule 39-1. When Plaintiffs made their request,
NMI Supreme Court Rule 39-1 allowed prevailing parties to seek fees “no later than 14 days after the
court’s disposition of the petition [for rehearing].” NMI Sup. Ct. R. 39-1(a)(1) (amended January 2011).
addition to actual damages, the court shall award liquidated damages in an amount equal to the
actual damages in cases of willful violations, and shall award costs and reasonable attorney’s fees
if the plaintiff prevails.
5
The itemization breaks down as follows:
$105,811.65 Original Judgment
- $1,916.51 Costs rejected by the Supreme Court in Ishimatsu II
+ $609.10 Costs awarded by the Supreme Court in Ishimatsu II
+ $38,535.60 Attorney fees for appellate work
+ $39,964.05 Post-judgment interest through 2-15-11
- $103,895.14 Credit for payment of partial judgment from supersedeas bond
$79,108.75 Total Amended Judgment
RC App. at 2-3.
Thus, under the Supreme Court Rules in place at the time of Plaintiffs’ request, their request was timely
even though this Court had lost jurisdiction over the appeal by issuing the mandate. 6 Pac. Amusement,
Inc. v. Villanueva, 2006 MP 8 ¶ 6 (“A mandate brings the proceedings in a case on appeal to a close and
removes it from the jurisdiction of the appellate court . . . .” (internal quotation marks and citation
omitted)).
¶9 When faced with the conundrum of a timely fee request filed after issuance of the mandate, this
Court had two options: (1) recall the mandate and decide the fee request on the merits, or (2) deny the
request for lack of jurisdiction without prejudice to the timely filing of a request with the trial court on
remand. Recognizing that the Court will only withdraw a mandate when presented with “extraordinary
circumstances,” this Court chose the latter option and denied the fee request. Ishimatsu v. Royal Crown
Ins. Corp., No. CV-06-0043-GA (NMI Sup. Ct. Dec. 27, 2010) (Order Denying Attorney Fees at 2 n.3,
4). Royal Crown claims this Court’s order denying attorney fees instructed the trial court to award
attorney fees upon remand. Although the order denying fees included some discussion of 4 CMC §
5112(a), it clearly stated “we lack jurisdiction to consider the request for attorneys fees pursuant to 4
CMC § 5112(a), and the request is DENIED without prejudice to the same being filed with the trial
court.” Id. at 4. It is unreasonable to suggest that the order’s statement, “the same being filed with the trial
court,” was in any way an authorization for the trial court to award attorney fees. Our order merely left
open the possibility that a fee motion might be filed on remand. As such, we reject Royal Crown’s
argument on this point.
B. Trial Court’s Appellate Fee Award
¶ 10 Royal Crown challenges the trial court’s appellate attorney fee award on three grounds. First,
Royal Crown claims the award of appellate attorney fees was outside the scope of this Court’s mandate in
Ishimatsu II. Second, Royal Crown claims the trial court’s award was an abuse of discretion because the
lower court did not require Plaintiffs to segregate their time entries for claims on which they prevailed
from entries for claims on which they lost. Third, Royal Crown contends that the amount of fees awarded
was unreasonable. 7
6
In order to ensure that fee motions are filed prior to issuance of the mandate in future cases, NMI Supreme
Court Rule 39-1 now requires prevailing parties to request attorney fees “no later than 5 days after the court’s
disposition of the petition [for rehearing].” NMI Sup. Ct. R. 39-1(a)(1).
7
Our review of the trial court’s award of appellate attorney fees was severely hampered by the parties’
failure to include any attorney billing slips in the appendix to the briefs. As the party challenging the decision, Royal
Crown bears the burden of providing an adequate record to allow this Court to determine the issues. Guerrero v.
Tinian Dynasty Hotel & Casino, 2006 MP 26 ¶ 28 (“It is the appellant’s burden to submit the relevant evidentiary
record before this Court and identify the parts of the record which support the appeal.”).
1. Scope of the Ishimatsu II Mandate
¶ 11 Royal Crown argues that the trial court could not award appellate attorney fees because that issue
was beyond the scope of the mandate. Questions concerning the trial court’s compliance with the mandate
are reviewed de novo. In re Estate of Malite, 2010 MP 20 ¶ 28. Generally, “the trial court must ‘comply
strictly’ with the mandate of the appellate court.” Id. ¶ 29 (quoting Loren v. E’Saipan Motors, Inc., 1 NMI
133, 138 (1990)). However, “in the ‘absence of a specific remand directive[,]’ the trial court [can] take
action as long as it ‘would not be inconsistent with the mandate of the earlier opinion[,] as gleaned from
the judgment together with the accompanying opinion.’” Id. ¶ 30 (quoting Wabol v. Villacrusis, 2000 MP
18 ¶ 16). In sum, the “lower court may consider issues not foreclosed by the mandate.” Id. ¶ 33 (citations
omitted).
¶ 12 The mandate in Ishimatsu II ordered the trial court to act upon the judgment and also addressed
the issue of appellate costs. The judgment, in turn, instructed the trial court to comply with the Supreme
Court’s slip opinion. The slip opinion addressed Royal Crown’s appeal of the substantive claims made by
Plaintiffs, as well as the trial court’s award of attorney fees and costs for the original trial. The issue of
appellate attorney fees was not addressed in the slip opinion, judgment, or mandate. This is most likely
because the Court was unaware of Plaintiffs’ intention to seek appellate attorney fees when it issued the
Ishimatsu II slip opinion, judgment, and mandate. On remand, the trial court had no official direction
regarding the matter of appellate attorney fees apart from this Court’s non-binding order denying attorney
fees. Because the issue of appellate attorney fees was not addressed by–or inconsistent with–anything in
the Ishimatsu II mandate, we hold that the trial court adhered to its duty to strictly comply with the
mandate. 8
2. Segregation of Time Entries
¶ 13 Royal Crown concedes that in Ishimatsu II this Court upheld the trial court’s award of attorney
fees despite Plaintiffs’ failure to segregate “given the interrelating facts.” Royal Crown Opening Br. at 6.
Unlike fees for the trial court phase of the case, Royal Crown claims “the segregation of attorney fees on
appeal is more feasible given that research and briefing is limited to the precise issues Royal Crown
raised on appeal.” Id. at 6-7. Because of this difference, Royal Crown asks this Court to find that the trial
court abused its discretion by failing to require segregation or at least an explanation as to why the
appellate fees could not be segregated. Plaintiffs urge this Court to uphold the trial court’s decision
8
While we hold that the trial court’s award of appellate attorney fees was not foreclosed by the mandate, we
do not review the trial court’s determination that Plaintiffs were entitled to appellate attorney fees. This is because
Royal Crown waived any challenge to Plaintiffs’ entitlement to appellate attorney fees by failing to raise the issue in
its briefs. Commonwealth v. Delos Reyes, 4 NMI 340, 343 n.11 (1996) (“The appellant bears the burden of pointing
out clearly and specifically the error asserted on appeal. Where the appellant fails to carry this burden, we need not
even address his or her argument.” (citation omitted)).
because, like the trial court fee award reviewed in Ishimatsu II, “the claims in this case were intertwined
and could not and need not be segregated.” Plaintiffs’ Opp’n Br. at 6-7 (citing Ishimatsu II, 2010 MP 8 ¶
67) (“The theories Esperancilla and Hiponia sought to recover under all involve a common core of facts,
and are also based on related legal theories.” (internal quotation marks and citation omitted)).
¶ 14 Generally, this Court “require[s] the segregation of fees when several causes of action are joined
and tried in a single suit.” Ishimatsu II, 2010 MP 8 ¶ 66. However, trial courts have “‘discretion in
determining the amount of a fee award.’” Id. ¶ 65 (quoting Hensley v. Eckerhart, 461 U.S. 424, 437
(1983)). As part of this exercise of discretion, we recognize an exception to the general rule requiring
segregation “when the attorney fees rendered are in connection with claims arising out of the same
transaction and are so interrelated that their prosecution or defense entails proof or denial of essentially
the same facts.” Id. ¶ 66 (quoting Werdann v. Mel Hambelton Ford, Inc., 79 P.3d 1081, 1091-92 (Kan.
2003)).
¶ 15 In Ishimatsu II, this Court reviewed the trial court’s award of attorney fees for the trial court
phase of the case. Plaintiffs had prevailed in their cause of action brought under the CPA, but not on other
causes of action. One issue on appeal was whether the trial court erred in not requiring Plaintiffs to
segregate time expended on the CPA claim from time spent on claims where Plaintiffs did not prevail.
The Court concluded that segregation of the trial court phase attorney fees in Ishimatsu II was
unnecessary because “[t]he theories Esperancilla and Hiponia sought to recover under all ‘involve a
common core of facts,’ and are also ‘based on related legal theories.’” Id. ¶ 67 (quoting Hensley, 461 U.S.
at 435).
¶ 16 After concluding that segregation was unnecessary, the Ishimatsu II Court analyzed whether
Plaintiffs were entitled to recover fees for the claims they lost. Rather than adopt a rule whereby
prevailing parties can only recover for claims on which they prevail, the Court adopted a more holistic
approach, requiring trial courts to analyze “‘the significance of the overall relief obtained by the plaintiff
in relation to the hours reasonably expended on the litigation.’” Id. (quoting Hensley, 461 U.S. at 435).
Regarding the facts of Ishimatsu II, the Court upheld the trial court’s order awarding fees for all work
performed during the trial court phase of the case, reasoning that “Plaintiff’s [sic] counsel enjoyed a high
degree of success in this particular lawsuit, and we largely uphold that success on appeal.” Id.
¶ 17 Lee v. Lee, relied on by Plaintiffs, addresses both trial court and appellate attorney fees in a case
with a similar factual scenario. 47 S.W.3d 767 (Tex. App. 2001). In Lee, an estate brought suit against a
trustee to recover damages related to a breach of fiduciary duty and to remove the trustee. Id. at 797. The
estate prevailed and made a motion for attorney fees. The trial court awarded the estate attorney fees for
both claims despite a statute precluding recovery of attorney fees for actions seeking the removal of a
trustee. Id. On appeal, the appellate court noted that the effort and facts supporting the estate’s damages
claims were “inextricably intertwined” with the facts related to their action to remove the trustee. Id.
Because of this interrelation, the appellate court applied the exception to the general rule requiring
segregation of attorney fees and held that the trial court erred in refusing to award fees to the estate for its
work before the trial court. Id. The appellate court also addressed the estate’s claim for appellate attorney
fees. The court stated that the issues on appeal were the same as those before the trial court and, thus, the
court’s holding–that segregation was unnecessary–applied equally to the estate’s claim for appellate
attorney fees. Id.
¶ 18 The issues on appeal in Ishimatsu II were the same as the issues before the trial court. As such,
we find this Court’s holding in Ishimatsu II regarding segregation equally applicable to Plaintiffs’ claim
for appellate attorney fees. Royal Crown’s only argument to distinguish Plaintiffs’ work on appeal from
its work before the trial court is that Plaintiffs’ appellate work was limited solely to defending the
judgment against issues raised on appeal by Royal Crown. This statement is false because Plaintiffs cross-
appealed certain decisions of the trial court, meaning that their briefing on appeal was not limited to
issues raised by Royal Crown. Additionally, Royal Crown’s effort to distinguish the trial court and
appellate court phases is unconvincing. Appellate work is at least as complex as work before trial courts.
See Center for Biological Diversity v. County of San Bernardino, 115 Cal. Rptr. 3d 762, 776 (Cal. Ct.
App. 2010) (“[P]reparation of an appellate brief and record is far more complicated than merely
‘repackaging’ the trial court brief.”). As the court in Center for Biological Diversity noted:
Appellate work is most assuredly not the recycling of trial level points and
authorities. . . . For better or worse, appellate briefs receive greater judicial scrutiny than
trial level points and authorities, because three judges (or maybe seven) will read them,
not just one judge. The judges will also work under comparatively less time pressure, and
will therefore be able to study the attorney’s ‘work product’ more closely. They will also
have more staff (there are fewer research attorneys per judge at the trial level) to help
them identify errors in counsel’s reasoning, misstatements of law and miscitations of
authority, and to do original research to uncover ideas and authorities that counsel may
have missed, or decided not to bring to the court’s attention.
Id. (quoting In re Marriage of Shaban, 105 Cal. Rptr. 2d 863, 870 (Cal. Ct. App. 2001)). In sum, we find
no abuse of discretion in the trial court’s conclusion that Plaintiffs did not have to segregate their
appellate attorney fees.
3. Reasonableness of Plaintiffs’ Appellate Attorney Fees
¶ 19 Royal Crown claims the “trial court did not make a sufficient and thorough determination on the
reasonableness of the requested fees and it certainly did not make an independent analysis or
determination.” Royal Crown Opening Br. at 9 (citation omitted). We review the amount of fee awards
for abuse of discretion. Ishimatsu II, 2010 MP 8 ¶ 64. Although trial courts have “wide latitude in
awarding fees,” that latitude is not endless. Estate of Malite, 2010 MP 20 ¶ 44. When reviewing fee
motions, trial courts should determine whether requested fees are reasonable through analysis of the
factors in Rule 1.5(a) of the ABA Model Rules of Professional Conduct (“MRPC”). 9 Id. ¶ 40 (citing
Camacho v. J.C. Tenorio Enters., 2 NMI 509, 511 (1992)). As we stated in Estate of Malite:
What is crucial for purposes of our ruling is not how the MRPC Rule 1.5 factors are
balanced, but that the lower court must consider more than only time billings. . . . While
time billings constitute an important element of a reasonableness hearing as the Court
considers the time and labor a case required, billings alone are insufficient. While the trial
court is empowered to balance the MRPC Rule 1.5 factors as it deems appropriate, it is
not free to disregard all of the factors (and MRPC Rule 1.5 in the process), and reduce a
reasonableness hearing to only a review of time billings. In many cases . . . a court will
want to consider the time and labor required, the novelty and difficulty of the questions
involved, and the skill required to perform the requested legal services. Depending on the
circumstances in a given case, some factors may be weighted more heavily than others.
Id. ¶ 44 (footnotes omitted). At the end of the day, “a trial court must exercise its discretion and wisdom
to tailor the balancing of factors to the particular circumstances in a given case.” Id.
¶ 20 The Remand Fee Order’s section on the reasonableness of Plaintiffs’ appellate attorney fees is
quite short. The trial court spends only two sentences laying out the standard for determining the
reasonableness of attorney fees and makes no reference to Estate of Malite, this Court’s most recent and
in-depth discussion of attorney fees. Remand Fee Order at 5. The order states: “[a]fter reviewing the
billing summaries, the Court finds that Plaintiffs [sic] billings are not vague or excessive.” Id. The trial
court then states, without citation to any evidence, that the fees requested are reasonable, “based on
counsel’s hourly rates[,] which are on par with the rates charged for similar work done here, in the
CNMI.” Id. Finally, the trial court refused to award Plaintiffs fees for work done to prepare and file the
fee motions before the Supreme Court and the trial court. Id.
¶ 21 As mentioned above, when reviewing a trial court’s attorney fee award, we look to see if the
“lower court . . . consider[ed] more than only time billings.” Estate of Malite, 2010 MP 20 ¶ 44. Here, the
trial court reviewed the “billing summaries” and compared counsel’s hourly rates to other rates in the
9
MRPC Rule 1.5(a) states, in relevant part:
(a) A lawyer shall not make an agreement for, charge, or collect an unreasonable fee or an
unreasonable amount for expenses. The factors to be considered in determining the reasonableness
of a fee include the following:
(1) the time and labor required, the novelty and difficulty of the questions involved, and
the skill requisite to perform the legal service properly;
(2) the likelihood, if apparent to the client, that the acceptance of the particular
employment will preclude other employment by the lawyer;
(3) the fee customarily charged in the locality for similar legal services;
(4) the amount involved and the results obtained;
(5) the time limitations imposed by the client or by the circumstances;
(6) the nature and length of the professional relationship with the client;
(7) the experience, reputation, and ability of the lawyer or lawyers performing the
services; and
(8) whether the fee is fixed or contingent.
Commonwealth. Remand Fee Order at 5. Comparison of hourly rates is one of the MRPC Rule 1.5
factors. MRPC Rule 1.5(a)(3) (“the fee customarily charged in the locality for similar legal services”).
Because the trial court considered more than just Plaintiffs’ time billings, and Royal Crown provided this
Court with no billing slips that might have led us to a contrary conclusion, we find no abuse of discretion
in the appellate attorney fee award. However, we note that the Remand Fee Order’s anemic analysis is far
from ideal. While trial courts need not provide an exhaustive analysis of every MRPC Rule 1.5(a) factor
when awarding fees, we urge the trial court to provide greater analysis and discussion of relevant MRPC
Rule 1.5(a) factors to facilitate more effective review of trial court orders by this Court. Cf. Colon v.
Howard, 215 F.3d 227, 232 (2d Cir. 2000) (noting that “development of a detailed record [by trial courts]
will assist appellate review.”).
C. Trial Court’s Award of Post-Judgment Interest
¶ 22 Royal Crown claims that the award of post-judgment interest 10 exceeded the scope of this Court’s
mandate from Ishimatsu II. Royal Crown Opening Br. at 5, 9-10. Royal Crown then argues that the trial
court’s release, on remand, of supersedeas bond funds to Plaintiffs satisfied the judgment and took away
the trial court’s authority to award post-judgment interest. Id. at 9-10. In support, Royal Crown quotes the
trial court’s order releasing the bond money, where it stated, “the only issue that remains is the attorney
fees and costs for the appeal which is currently before the Supreme Court. All other issues have been
resolved.” Id. at 11 (emphasis omitted) (quoting RC App. at 14) (internal quotation marks omitted). This
court reviews both compliance with the mandate and awards of interest de novo. Estate of Malite, 2010
MP 20 ¶ 28; Tano Group, Inc. v. Dep’t of Pub. Works, 2009 MP 18 ¶ 52.
¶ 23 Regarding the trial court’s compliance with the mandate, the award of post-judgment interest is
permissible, despite the absence of a discussion of post-judgment interest in this Court’s mandate from
Ishimatsu II, because our mandate did not foreclose the award of post-judgment interest. Estate of Malite,
2010 MP 20 ¶ 33 (“[T]he lower court may consider issues not foreclosed by the mandate.”). Post-
judgment interest is not mentioned in the slip opinion, judgment, or mandate in Ishimatsu II, and nothing
in these documents foreclosed the trial court’s consideration of Plaintiffs’ request.
¶ 24 Turning to the merits of the award, the trial court awarded $39,964.05 in post-judgment interest.
A statute, 7 CMC § 4101, controls this issue: “[e]very judgment for the payment of money shall bear
10
We find Royal Crown’s argument on this point unacceptably misleading. Royal Crown’s section heading is
“The Superior Court Awarding Prejudgment Interest Was Improper.” Royal Crown Opening Br. at 9 (emphasis
added). Its two subsection headings also refer to prejudgment interest. Id. at 9-10. However, this Court has
determined that Royal Crown’s argument is actually related to the trial court’s award of post-judgment interest. Id.
at 10-11 (“Amending the judgment to award post judgment interest did not affect an existing issue or any matter
before the Superior Court as Hiponia and Esperancilla had have [sic] received payment for the judgment ordered and
mandated by the Supreme Court.”). Counsel for Royal Crown must take greater care in the future to prevent such
easily avoidable errors.
interest at the rate of nine percent a year from the date it is entered.” See N. Marianas Housing Corp. v.
Flores, 2006 MP 23 ¶ 5 (noting that “7 CMC § 4101 is unambiguous” regarding entitlement to post-
judgment interest). Strangely, neither party mentions this controlling provision. This section does not
discuss any deadline for requesting post-judgment interest. Instead, the section merely defines a
mandatory amount of interest that the trial court must add to every judgment. Because of the mandatory
nature of 7 CMC § 4101, the trial court’s isolated statement that “[a]ll other issues have been resolved” in
its order regarding release of the supersedeas bond has no bearing on Plaintiffs’ entitlement to post-
judgment interest. For these reasons, we affirm the trial court’s award of post-judgment interest. 11
D. Trial Court’s Denial of Supersedeas Bond Phase Attorney Fees
¶ 25 On cross-appeal, Plaintiffs argue that the trial court applied the wrong legal standard when
denying their request for supersedeas bond phase attorney fees by stating that the fees were “not part of
the appeal.” Plaintiffs’ Opp’n Br. at 13 (quoting Remand Fee Order at 5). They contend that the correct
standard is whether the fees were reasonable. Id. (quoting 4 CMC § 5112(a) (“[T]he court shall
award . . . reasonable attorney’s fees if the plaintiff prevails.”)). Royal Crown counters that the trial court
properly denied supersedeas bond phase fees because Plaintiffs’ request for supersedeas bond phase fees
was untimely, relying on NMI Rule of Civil Procedure 54(d)(2)(B), 12 which requires a fee motion to be
filed “no later than 14 days after entry of judgment.” This Court reviews an award of attorney fees for
abuse of discretion, but we review de novo whether the trial court applied the right legal standard. Estate
of Malite, 2010 MP 20 ¶ 38.
¶ 26 As noted by Plaintiffs, the trial court denied the supersedeas bond phase fees because those fees
were “not part of the appeal.” Remand Fee Order at 5. This is not a standard for determining an award of
attorney fees. Assuming, without deciding, 13 that 4 CMC § 5112(a) entitled Plaintiffs to attorney fees, the
standard is whether those fees are reasonable, since the statute allows recovery only of “reasonable
attorney’s fees.” 4 CMC § 5112(a).
¶ 27 Having held that the trial court applied the wrong legal standard, we must now determine whether
Plaintiffs’ fee request was timely. NMI Rule of Civil Procedure 54(d)(2)(B) requires a fee motion to be
11
Royal Crown only challenged Plaintiffs’ entitlement to post-judgment interest, not the amount awarded.
Although the trial court did not provide an accounting of exactly how it arrived at the $39,964.05 figure, Royal
Crown waived the ability to challenge the amount by failing to discuss the issue in its brief. Delos Reyes, 4 NMI at
343 n.11 (“The appellant bears the burden of pointing out clearly and specifically the error asserted on appeal.
Where the appellant fails to carry this burden, we need not even address his or her argument.” (internal citations
omitted)).
12
Royal Crown incorrectly cited NMI Rule of Civil Procedure 54(b).
13
We assume this entitlement without deciding the issue because Royal Crown failed to challenge Plaintiffs’
entitlement on appeal. See Delos Reyes, 4 NMI at 343 n.11 (“The appellant bears the burden of pointing out clearly
and specifically the error asserted on appeal. Where the appellant fails to carry this burden, we need not even
address his or her argument.” (internal citations omitted)).
filed “no later than 14 days after entry of judgment.” The trial court’s order addressed Royal Crown’s
timeliness argument in a single section–presumably regarding Plaintiffs’ fee request for both the
supersedeas bond phase and the appellate phase. The court found both requests timely based on an
Advisory Committee Note regarding the 1993 amendments to Federal Rule of Civil Procedure
54(d)(2)(B). 14 Remand Fee Order at 2-3 (citing Fed. R. Civ. P. 54 advisory committee’s note). The trial
court’s interpretation of NMI Rule of Civil Procedure 54(d)(2)(B) is a question of law reviewed de novo.
Commonwealth v. Jai Hoon Yoo, 2004 MP 5 ¶ 2.
¶ 28 After remand from Ishimatsu II, Plaintiffs filed a motion for attorney fees related to the
supersedeas bond phase that occurred prior to the appeal. This February 2011 motion was the first request
for supersedeas bond phase fees filed by Plaintiffs in any court, even though these fees were incurred
between April 2005 and October 2006. The October 2006 final entry of judgment constituted the separate
document perfecting Royal Crown’s appeal that became Ishimatsu II. Had no appeal been filed, the plain
language of NMI Rule of Civil Procedure 54(d)(2)(B) required Plaintiffs’ supersedeas bond phase fee
request to be filed no later than 14 days after the October 2006 final entry of judgment. However, since
Royal Crown appealed the October 2006 judgment, we must determine the effect of that appeal on the
timeliness of Plaintiffs’ request for supersedeas bond phase fees.
¶ 29 While the Advisory Committee Notes to the Federal Rules of Civil Procedure do not bind this
Court because they interpret the Federal Rules (and would not bind us even if we applied the federal
rules), federal courts “accord[] great weight [to advisory notes] in interpreting federal rules.” United
States v. Davenport, 668 F.3d 1316, 1321 n.9 (11th Cir. 2012) (citation omitted). In 1993, Federal Rule of
Civil Procedure 54(d)(2)(B) was amended to add the 14-day filing deadline for attorney fee motions. The
1993 Advisory Committee Note states that the 14-day deadline is meant to “assure that the opposing party
is informed of the claim before the time for appeal has elapsed.” Fed. R. Civ. P. 54(d)(2)(B) advisory
committee’s note. The Note continues that “[p]rompt filing