Broyles v. Estate of Brown

671 P.2d 94, 295 Or. 795, 1983 Ore. LEXIS 1630
CourtOregon Supreme Court
DecidedOctober 25, 1983
DocketTC A8103-01329, CA A25385, SC 29607
StatusPublished
Cited by20 cases

This text of 671 P.2d 94 (Broyles v. Estate of Brown) is published on Counsel Stack Legal Research, covering Oregon Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Broyles v. Estate of Brown, 671 P.2d 94, 295 Or. 795, 1983 Ore. LEXIS 1630 (Or. 1983).

Opinions

[797]*797JONES, J.

This case presents the question of the proper procedure and test to be used in deciding whether a penalty should be assessed under ORS 19.160 for pursuing an appeal without probable cause. The Court of Appeals allowed plaintiffs motion for the assessment of such a penalty. We affirm.

Plaintiff Broyles was injured when the car in which she was riding was hit by a car driven by Carroll Brown.1

At trial, where Broyles sought damages for her personal injuries, she testified during cross-examination as follows:

“Q. [by defense counsel] How long was it after the impact, the crash, that Mr. Brown’s car pulled up beside you?
“A. Just a matter of seconds.
“Q. Okay. Was his window down, too?
“A. Yes, it was.
“Q. Did he say anything to you then?
“A. Yes. He said — he said, ‘You hurt me’, or something. And then I said, ‘What?’ And [the driver] said, — he said something about, ‘You didn’t have your turn signal on’, and [the driver] said, ‘Yes, I did. It’s still engaged.’
“And then I asked him for his name and his insurance company.”

Defense counsel immediately moved for a mistrial. Even though the trial court advised plaintiff that he believed the verdict would not stand on appeal, plaintiff resisted a mistrial. The trial court stated:

“Your verdict won’t stand up, [plaintiffs counsel.]
* * * *
“* * * I would do anything in the world not to grant a mistrial. I’m open to any suggestion; but I have never known of a case that survived inteijection of insurance into it and survived on appeal.
* * * *
[798]*798“I suppose, counsel, in a sense it’s your risk. You put on four or five professional witnesses. You must have an inordinate amount of expense involved in the case.”

The court then ruled:

“All right, [plaintiffs counsel], I’m going to overrule the motion for mistrial. I think that you are the person — deny the motion for mistrial. I think you are the person — you and your client are the ones bearing the greatest risk in going ahead and obviously you desire to go ahead. And that’s, I assume, a considered judgment on your part. I hope it works out well for you. I have grave concern about the position our appellate court will take, but I guess all we can do is try —”

The court instructed the jury to disregard plaintiffs mention of insurance and the trial continued.

The jury found for plaintiff. Following trial, defendant stipulated that plaintiffs reference to insurance was inadvertent.2

Defendant appealed, contending that the trial court was required by law to grant its motion for a mistrial, and in the alternative, that it abused its discretion in denying the motion for mistrial upon the plaintiffs injection of defendant’s insurance company in a non-responsive answer.

Neither the defendant nor the insurance company filed a supersedeas bond. Plaintiff was required to obtain a writ of garnishment against the insurance company in order to collect a portion of her judgment.

On March 16, 1983, two days prior to oral argument on the merits before the Court of Appeals, plaintiff filed a motion for the assessment of a 10 percent penalty. The Court of Appeals heard oral arguments on the failure to grant a mistrial on March 18,1983, but the possibility of a 10 percent penalty was not discussed. The case was affirmed without opinion on April 13,1983. 62 Or App 662, 662 P2d 813 (1983). On May 4, 1983, the Court of Appeals received an affidavit from plaintiffs attorney in support of the motion for the assessment of a 10 percent “penalty,” and allowed the motion. [799]*799Defendant’s counsel filed an affidavit in opposition which was received May 9,1983.

Defendant petitioned this court, presenting as the sole issue the propriety of the assessment. The statute in question, ORS 19.160, states:

“Whenever a judgment or decree is affirmed on appeal, and it is for recovery of money, or personal property or the value thereof, the judgment or decree shall be given for 10 percent of the amount thereof, for damages for the delay, unless it appears evident to the appellate court that there was probable cause for taking the appeal.”

Plaintiff argues that the court should use an objective standard in determining this assessment and the only inquiry should be whether the appeal raises a genuine question of law. If it does not, then the appeal was taken without probable cause and the penalty should be assessed. Affidavits concerning the subjective intent of the appellant would be irrelevant.

The plain reading of the statute justifies this interpretation. However, as far back as Coffin v. Hanner, Jennings & Co., 1 Or 236 (1857), this court refused to assess a penalty under this statute unless it was certain whether the writ of error had been taken in other than good faith. Therefore, this court has declined to impose this discretionary penalty in a case of uncertain merit. We have also said that clear and convincing proof of bad faith in taking the appeal is necessary to support the imposition of this “penalty.” Morrison v. Hall, 55 Or 243, 244, 104 P 963 (1909).

In Stirling v. Dari-Delite, Inc., 262 Or 359, 491 P2d 1168 (1971), 494 P2d 252, 498 P2d 753 (1972), no probable cause existed for the appeal and the appeal was part of a “long-continued and calculated scheme by defendant to prevent the enforcement of a valid obligation for which defendant had no proper defense.” These facts were extreme and aggravated; therefore, we held plaintiffs were entitled to the additional amount of 10 percent of the judgment as damages. Id. 366-67. We reiterated that the purpose of the statute was to impose a penalty to discourage frivolous appeals taken without probable cause for the purpose of delay. Id. at 370.

We decline, today, to follow past cases that required prior to imposition of the 10 percent penalty a determination [800]*800that the appeals were taken for “purposes of delay” or “in bad faith.” The statute simply provides a 10 percent assesssment “for damages for delay.” Further, there is no reference to “bad faith” or “purposes of delay”; the reference is to “probable cause.”3 The 10 percent assessment will be given unless there was probable cause for taking the appeal.

Under this statute as it is written, an appeal might be taken for the sole purpose to delay the payment of a money judgment so that the appellant can take advantage of favorable interest rates pending appellate decision, but no 10 percent assessment would be allowed if the appellant could prove that there was probable cause for the appeal.

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Broyles v. Estate of Brown
671 P.2d 94 (Oregon Supreme Court, 1983)

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Bluebook (online)
671 P.2d 94, 295 Or. 795, 1983 Ore. LEXIS 1630, Counsel Stack Legal Research, https://law.counselstack.com/opinion/broyles-v-estate-of-brown-or-1983.