Fresk v. Kraemer

60 P.3d 1147, 185 Or. App. 582, 2003 Ore. App. LEXIS 34
CourtCourt of Appeals of Oregon
DecidedJanuary 8, 2003
Docket0001-00693; A115184
StatusPublished
Cited by3 cases

This text of 60 P.3d 1147 (Fresk v. Kraemer) is published on Counsel Stack Legal Research, covering Court of Appeals of Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fresk v. Kraemer, 60 P.3d 1147, 185 Or. App. 582, 2003 Ore. App. LEXIS 34 (Or. Ct. App. 2003).

Opinion

HASELTON, P. J.

Defendant appeals from a supplemental judgment and second supplemental judgment awarding plaintiff costs and attorney fees pursuant to ORS 20.080(1). The dispositive issue here is one that we expressly reserved in Reed v. Jackson County Citizens League, 183 Or App 89, 96 n 8, 50 P3d 1287 (2002): When a prelitigation offer to pay money is conditioned upon a discharge of the disputed claim, is that offer a “tender” for purposes of ORS 20.080(1)? We answer that question in the affirmative. Consequently, we reverse and remand.

The material facts are undisputed. On December 6, 1999, plaintiffs counsel made a demand on defendant pursuant to ORS 20.080 for payment of $5,500 for damages arising out of an auto accident between plaintiff and defendant.1 On January 14, 2000, defendant, by way of a letter from her insurance carrier, offered to pay $3,806, in addition to all Personal Injury Protection benefits paid up to that date, to “resolve [plaintiffs] bodily injury claim.” Although that letter did not expressly state that payment was contingent upon discharge of the disputed claim, the parties agree that the reference to “resolve” in that letter establishes that the offer of payment was so conditioned.

Plaintiff did not accept defendant’s offer. On January 20,2000, plaintiff filed this action for negligence, seeking to recover unpaid medical expenses of $306, unpaid rental car costs of $380, and noneconomic damages of $4,814 — a total of $5,500 — as well as attorney fees and costs pursuant to ORS 20.080(1). Given the amount in controversy, the matter was subject to mandatory court-annexed arbitration. ORS 36.415(1); UTCR ch 13. Defendant filed an answer that, in part, denied plaintiffs alleged entitlement to costs and fees.

The arbitrator ultimately rendered a decision and award in favor of plaintiff, allowing recovery of $2,750 in noneconomic damages and $222 in unpaid medical bills — a [585]*585total recovery of $2,972. The arbitrator did not award plaintiff any attorney fees under ORS 20.080. Although the arbitration award and decision did not state any reason for the nonallowance of costs and fees, the parties had, during the course of the arbitration, briefed and argued the question of whether defendant’s January 14, 2000, letter evinced or embodied a legally sufficient preclusive “tender” for purposes of ORS 20.080(1).

Plaintiff filed a timely notice of appeal of the arbitrator’s award and decision and requested a trial de novo pursuant to ORS 36.425(2). The trial de novo resulted in a jury verdict awarding plaintiff total damages of $2,930 — $42 less than the arbitrator’s award — and $876 less than defendant’s prelitigation offer of settlement. Following the jury’s verdict, defendant petitioned to recover his costs and attorney fees incurred in connection with the trial de novo. Defendant asserted that, because the jury’s award on trial de novo was less than the amount of the arbitrator’s award, defendant was entitled to costs and fees pursuant to ORS 36.425(4)(a).2 In the alternative, defendant asserted that he was entitled, at least, to costs and an award of $550 in attorney fees pursuant to ORS 36.425(4)(b) and (5)(b).3

[586]*586Plaintiff opposed that petition and countered with an attorney fee petition of her own. Plaintiff contended, inter alia, as follows: (1) Defendant’s prelitigation offer of $3,806 was not a “tender” within the meaning of ORS 20.080(1) because it was not unconditional and, particularly, was conditioned upon a discharge of liability on the underlying claim. (2) Because defendant had made no “tender” for purposes of ORS 20.080(1) — much less one that exceeded plaintiffs recovery in arbitration — plaintiff was entitled to her attorney fees incurred in connection with the arbitration proceedings, and the arbitrator had erred in concluding otherwise. (3) Alternatively, even if plaintiffs prelitigation offer otherwise qualified as a “tender,” that “tender” was legally insufficient in that defendant did not ultimately comply with the requirements of ORS 20.180.4 (4) The sum of plaintiffs damages recovered in the trial de novo plus the circuit court’s award of plaintiffs reasonable arbitration-related costs and fees would exceed the amount of the arbitrator’s award. (5) Consequently, although the jury’s verdict was less than the arbitration award, when the circuit court’s award of arbitration-related costs and fees is taken into account, plaintiff actually “improved her position” in the circuit court proceedings. (6) Thus, under ORS 36.425(4)(a), plaintiff was entitled to her reasonable attorney fees and costs incurred not only with respect to arbitration but also in connection with the circuit court proceedings.

After extensive briefing and argument, the trial court agreed with plaintiff that defendant’s prelitigation offer was not a preclusive “tender” for purposes of ORS 20.080. In so holding, the court viewed Oregon Supreme Court decisions addressing the meaning of “tender” in ORS 742.061, which governs recovery of attorney fees in actions against insurers, as decisive:

[587]*587“I am persuaded that the use of the phrase, ‘tendered to the plaintiff has meaning which is critically distinct from ‘offer’ on the one hand or ‘pays’ on the other. Butler v. United Pacific Ins. Co., 265 Or 473[, 509 P2d 1184] (1973), arose under a different scheme governing relations between insurers and insureds, but that scheme is close enough in purpose and effect to those of ORS 20.080 that Butler’s reasoning seems unavoidable. At least this much of Butler

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Related

Trapp v. Hodges
555 P.3d 819 (Court of Appeals of Oregon, 2024)
Mathis v. St. Helens Auto Ctr., Inc.
447 P.3d 490 (Court of Appeals of Oregon, 2019)
Fresk v. Kraemer
99 P.3d 282 (Oregon Supreme Court, 2004)

Cite This Page — Counsel Stack

Bluebook (online)
60 P.3d 1147, 185 Or. App. 582, 2003 Ore. App. LEXIS 34, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fresk-v-kraemer-orctapp-2003.