Case Explained: Frank Merchant; Dorothy D. Merchant Plaintiffs— v. Billy C. Merchant Defendant—

Court: United States Court of Appeals for the Fifth Circuit Filed: 2026-06-22 The fifth-circuit affirmed the district court’s award of trial attorney fees but vacated the award of appellate attorney fees. The court held that the district court did not abuse its discretion in finding the plaintiffs’ lawsuit frivolous and awarding fees under the Mississippi Litigation Accountability Act (MLAA), Miss. Code Ann. § 11-55-5(1). Although the case survived summary judgment, the court reasoned that a claim can still lack “substantial justification” if it is groundless or prosecuted in bad faith. The district court properly found that the plaintiffs’ claims were frivolous because they failed to investigate their claims, advanced inconsistent and false justifications, misrepresented facts under oath regarding their intent to evade creditors, and refused to negotiate in good faith. However, the court ruled that the award of appellate fees was improper because the defendant’s request was untimely. Under Federal Rule of Civil Procedure 54(d)(2)(B), a motion for attorney fees must be filed within 14 days of final judgment unless extended by court order. The court found that the defendant’s initial fee motion only sought fees through trial and did not alert the parties or the court to a request for appellate fees. Because the defendant did not file a separate, timely motion for appellate fees before the deadline expired, and no court order varied this requirement, the district court lacked authority to award those fees. The practical consequence is that the judgment is remanded to the district court to enter a new judgment consistent with this opinion, which includes the trial fee award but excludes the appellate fee award. Do It For The Case Law is a news reporting service. Nothing in this episode constitutes legal advice.