June 10, 2011

In a memorandum decision, uncitable as authority under App. R. 65(D), the Indiana Court of Appeals held that an unreasonably vigorous defense did not support a claim for attorney's fees in Dulin v. Sun Mortgage Co., Cause No. 29A04-1008-PL-482. In this case, Sun Mortgage vigorously defended an $800.00 claim, incurring fees in excess of $60,000. The plaintiff argued that this shows that Sun Mortgage acted inappropriately in defending the claim. But while Sun Mortgage's "fees defy any reasonable cost-benefit analysis," this "does not mean that Sun Mortgage acted inappropriately. A vigorous defense is not tantamount to bad faith or obdurate behavior." Thus, the plaintiff was not entitled to fees.

Lessons:

1. The fact that vastly more fees are spent litigating the case than the case was worth does not demonstrate that the prevailing party is entitled to fees.