Fresk v. Kraemer

99 P.3d 282, 337 Or. 513, 2004 Ore. LEXIS 705
CourtOregon Supreme Court
DecidedOctober 21, 2004
DocketCC 0001-00693; CA A115184; SC S50443
StatusPublished
Cited by45 cases

This text of 99 P.3d 282 (Fresk v. Kraemer) 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
Fresk v. Kraemer, 99 P.3d 282, 337 Or. 513, 2004 Ore. LEXIS 705 (Or. 2004).

Opinion

*515 CARSON, C.J.

In this negligence action, the sole issue before us is plaintiffs entitlement to attorney fees under ORS 20.080(1). That statute provides, in part, that “no attorney fees shall be allowed to the plaintiff if the court finds that the defendant tendered to the plaintiff, prior to the commencement of the action * * * an amount not less than the damages awarded to the plaintiff.” ORS 20.080(1) (emphasis added). The question presented in this case is whether defendant “tendered” a money payment that precluded an award of attorney fees to plaintiff under ORS 20.080(1) when defendant made a prelitigation payment offer that exceeded the amount that plaintiff ultimately recovered in the action, but conditioned that offer upon plaintiff releasing defendant from further liability for plaintiffs negligence claim. The Court of Appeals answered that question affirmatively and reversed the trial court’s award of attorney fees to plaintiff. Fresk v. Kraemer, 185 Or App 582, 60 P3d 1147 (2003). We agree with the Court of Appeals and, consequently, affirm its decision.

FACTS AND PROCEDURAL BACKGROUND

We take the following undisputed facts from the opinion of the Court of Appeals and from the record. The dispute between plaintiff and defendant arose from a vehicle collision that occurred on December 14, 1998. On December 6,1999, plaintiff made a written demand upon defendant for $5,500 for damages resulting from that collision and notified defendant that she planned to seek attorney fees under ORS 20.080(1) if she filed an action against him. On January 14, 2000, defendant responded with a letter from his insurance carrier, in which he offered to “resolve [plaintiffs] bodily injury claim for $3,806 in addition to Personal Injury Protection benefits paid to date.” The parties agree that defendant’s payment offer to “resolve [plaintiffs] bodily injury claim” was conditioned upon plaintiff releasing defendant from further liability for her negligence claim. 1

*516 Plaintiff did not accept defendant’s offer. Instead, on January 20, 2000, plaintiff filed a complaint against defendant in the Multnomah County Circuit Court, alleging negligence and damages in the amount of $5,500, along with costs and attorney fees under ORS 20.080(1). In his answer, defendant denied liability and also denied that plaintiff was entitled to attorney fees under ORS 20.080(1).

Because of the amount in controversy, the trial court transferred the case to arbitration. See ORS 36.405(1) (requiring arbitration for certain civil claims); Multnomah County SLR 13.005 (requiring arbitration for matters with amounts in dispute of less than $50,000). After an arbitration hearing, the arbitrator ruled in favor of plaintiff and awarded her $2,972 in damages. The arbitrator’s award was $834 less than defendant’s prelitigation offer of payment. The arbitrator did not award plaintiff attorney fees under ORS 20.080(1).

Plaintiff filed a timely notice of appeal of the arbitrator’s award and requested a trial de novo. See ORS 36.425(2) (providing right to request trial de novo after arbitrator files decision and award with court). After a trial, a jury returned a verdict in favor of plaintiff, awarding her $2,930 in damages. The jury’s verdict was $42 less than the arbitrator’s award and $876 less than defendant’s prelitigation offer of payment.

Following the jury’s verdict, defendant and plaintiff filed competing petitions for attorney fees and costs. In his petition, among other things, defendant argued that ORS 36.425(4)(b) and (5)(b) 2 entitled him to recover $550 in attorney fees and $118 in costs that he had incurred after the filing of the arbitrator’s award upon the ground that plaintiff *517 had failed to improve her position in the judgment of the trial de novo. In her petition, by contrast, plaintiff argued that the arbitrator had erred in denying her attorney fees because the conditional nature of defendant’s prelitigation payment offer had prevented that offer from acting as an effective tender of a money payment for purposes of ORS 20.080(1). Plaintiff further argued that, if the trial court agreed with that contention and reversed the arbitrator’s denial of attorney fees under ORS 20.080(1), then plaintiff would have improved her position in the judgment that she obtained from the trial court and also would be entitled to recover attorney fees and costs that she had incurred after the filing of the arbitrator’s award.

After briefing and argument, the trial court, for the most part, agreed with plaintiffs position. Based upon its reading of this court’s decision in Butler v. United Pacific Ins. Co., 265 Or 473, 509 P2d 1184 (1973), the trial court determined that, because defendant had conditioned his prelitigation payment offer upon plaintiff releasing him from further liability for her negligence claim, defendant’s offer did not defeat plaintiffs claim to attorney fees under ORS 20.080(1). Relying upon that determination, the trial court further concluded that plaintiff had improved her position in the judgment that she had obtained from the trial court and, consequently, denied defendant’s petition for attorney fees and costs. In a supplemental judgment and a second supplemental judgment, the trial court awarded plaintiff $33,865 3 *518 in attorney fees and $1,922 in costs that she had incurred in connection with both the arbitration and the trial court proceedings.

Defendant appealed the trial court’s supplemental judgments awarding attorney fees and costs to plaintiff and its order denying defendant’s petition for attorney fees. 4

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Cite This Page — Counsel Stack

Bluebook (online)
99 P.3d 282, 337 Or. 513, 2004 Ore. LEXIS 705, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fresk-v-kraemer-or-2004.