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Smart Summary

Factual and Procedural Background

The appeal originated from a federal court action where Oliver Dixon sued his superior officers at the Highway Patrol under 42 U.S.C. § 1983 for failing to act after discovering his phone had been illegally wiretapped. Dixon obtained a consent judgment for $225,000. The State of Missouri refused to pay this judgment, prompting Dixon to file a declaratory judgment action in state court asserting that the State was responsible for satisfying the judgment under the State Legal Expense Fund, §§ 105.711-105.726, RSMo 1994. The defendants were Robert Holden, State Treasurer, and Richard A. Hanson, Commissioner of Administration. This court affirmed the trial court’s ruling that Missouri was responsible for satisfying the federal judgment in a prior opinion, Dixon v. Holden, 923 S.W.2d 370 (Mo. App. 1996).

Subsequently, Dixon filed a new action under § 527.100 RSMo 1994 and 42 U.S.C. § 1988 seeking attorney fees incurred in enforcing the judgment. The defendants resisted, and the trial court denied the attorney fee motion, citing sovereign immunity and the inapplicability of 42 U.S.C. §§ 1983 and 1988 to the defendants in this context.

Legal Issues Presented

  1. Whether defendants (state officials) are subject to an award of attorney fees under 42 U.S.C. § 1988 in connection with enforcement of a § 1983 judgment against the State.
  2. Whether sovereign immunity bars an award of attorney fees as costs under § 527.100 RSMo 1994 against the State officials in this case.

Arguments of the Parties

The opinion does not contain a detailed account of the parties' legal arguments.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Dixon v. Holden, 923 S.W.2d 370 (Mo. App. 1996) Established that the State Legal Expense Fund covers § 1983 claims and that sovereign immunity does not bar the State from satisfying judgments against state employees acting in official capacity. Reaffirmed that Missouri must satisfy the federal civil rights judgment and that sovereign immunity is not implicated in this context.
Blanchard v. Bergeron, 489 U.S. 87 (1989) Allows courts discretion to award attorney fees to prevailing parties under 42 U.S.C. § 1988 unless special circumstances make it unjust. Supported the court’s discretion to award attorney fees to Dixon as the prevailing party.
Hutto v. Finney, 437 U.S. 678 (1978) Attorney fees under § 1988 can be awarded against state governments without violating the Eleventh Amendment. Confirmed that attorney fees may be collected from state officials or state funds in enforcement of civil rights judgments.
Martinez v. California, 444 U.S. 277 (1980) State courts may award attorney fees as costs pursuant to § 1988. Supported the authority of the state court to award attorney fees under § 1988.

Court's Reasoning and Analysis

The court began by referencing the prior decision in Dixon v. Holden, which clarified that the State Legal Expense Fund covers § 1983 claims and that sovereign immunity does not bar the State from satisfying judgments against state employees for official acts. The court then examined the statutory framework of 42 U.S.C. § 1988, which authorizes the award of attorney fees to prevailing parties in § 1983 actions, noting that this award may be made against state governments without violating the Eleventh Amendment, as supported by Supreme Court precedent.

The trial court’s denial of attorney fees was based on an erroneous application of sovereign immunity and misunderstanding of the defendants’ liability under § 1988 and § 527.100 RSMo. The appellate court held that the defendants are subject to an award of attorney fees under § 1988 and that sovereign immunity does not preclude such an award under the state statute. Therefore, the court reversed the denial and remanded for a hearing to determine reasonable attorney fees.

Holding and Implications

The judgment denying attorney fees is reversed and remanded for a determination of reasonable attorney fees.

The direct effect of this decision is to permit Dixon to recover attorney fees incurred in enforcing the prior civil rights judgment against the State officials. The court clarified that sovereign immunity does not bar such awards under the applicable federal and state statutes. This decision does not establish new precedent beyond applying existing legal principles to the facts but reaffirms the State’s responsibility to satisfy attorney fees under § 1988 and the State Legal Expense Fund.

OLIVER DIXON, APPELLANT, v. ROBERT HOLDEN, TREASURER, STATE OF MISSOURI, RICHARD A. HANSON, COMMISSIONER OF ADMIN., RESPONDENT.

LOWENSTEIN, Judge.

The genesis of this appeal was in federal court where Dixon, under 42 U.S.C. § 1983, sued his superior officers at the Highway Patrol for their failure to take action after learning Dixon's phone at headquarters had been illegally wiretapped. Dixon obtained a consent judgment for $225,000. Missouri refused to pay the judgment. Dixon then attempted to have the judgment satisfied by Missouri by filing for a declaratory judgment in state court claiming the state was responsible for the judgment under the auspices of the State Legal Expense Fund, §§ 105.711- 105.726, RSMo 1994. The defendants in the circuit court declaratory suit were Holden, Missouri's State Treasurer, and Hanson, the state Commissioner of Administration. This court affirmed the trial court's judgment declaring Missouri was responsible in satisfying the U.S. District Court's judgment. Dixon v. Holden, 923 S.W.2d 370 (Mo. App. 1996).

Dixon then filed this action under § 527.100 RSMo 1994 (declaratory judgment chapter allowing award of costs as may seem equitable and just) and 42 U.S.C. § 1988 (Civil Rights Attorney's Fees Awards Act), an application for his attorneys' fees expended in collecting on the judgment. The same defendants from the prior declaratory suit resisted. The trial court denied the attorney fee motion saying the defendants are not subject to suit under 42 U.S.C. § 1983 or to an award of attorneys' fees under 42 U.S.C. § 1988 and, because of the doctrine of sovereign immunity defendants are not subject to an award of attorneys fees as costs under § 527.100 . . ." RSMo. 1994.

Without unduly rehashing Dixon, that opinion made abundantly clear: (1) a § 1983 claim for denial of constitutional rights under color of state law is covered in the State Legal Expense Fund, § 105.711.2, and this law was the legal basis for the state bearing the burden to satisfy the federal civil rights judgment of Dixon, 923 S.W.2d at 374 — 75; and (2) the doctrine of sovereign immunity is not altered by the Act nor implicated in the case, as § 105.711 et. seq. "does not expand the state's tort liability, [but] is merely a voluntary assumption of defense and payment of judgments . . . against state employee (sic) sued for their conduct arising out of and performed in connection with official duties on behalf of the state." Id. at 379. In no uncertain terms, Dixon held the defendants were to satisfy the judgment they had resisted though writs and appeals leading up to the opinion.

Section 1988(b) of the Civil Rights Attorney's Fees Awards Act specifically allows a court to award the successful party attorney fees as costs in any action or proceeding to enforce rights claimed to have been denied under § 1983. Blanchard v. Bergeron, 489 U.S. 87, 89 (1989). Where it is in the court's discretion to award attorney fees under § 1988, the prevailing party should ordinarily recover unless special circumstances would make it unjust. Such an award under § 1988 may be entered against state government without running afoul of the Eleventh Amendment. Hutto v. Finney, 437 U.S. 678, 694 (1978) ("[I]t is intended that the attorneys' fees like other items of costs, will be collected either directly from the official, in his official capacity, from funds of his agency under his control . . ."). Likewise state courts may award attorney fees as costs pursuant to § 1988. Martinez v. California, 444 U.S. 277 (1980).

The defendants here are subject to an award of attorney fees under 42 U.S.C. § 1988. The doctrine of sovereign immunity does not impact on this case to preclude an assessment costs under § 527.100 RSMo 1994. The judgment, on the basis of an error of law, is reversed and remanded for a hearing to determine reasonable attorney fees.

The judgment is reversed and remanded for findings in accordance with this opinion.

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DIXON v. HOLDEN
(Dec 16, 1997)