Friedman v. Christy

973 P.2d 378, 158 Or. App. 189, 1999 Ore. App. LEXIS 163
CourtCourt of Appeals of Oregon
DecidedFebruary 3, 1999
Docket960201089; CA A98720
StatusPublished

This text of 973 P.2d 378 (Friedman v. Christy) 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
Friedman v. Christy, 973 P.2d 378, 158 Or. App. 189, 1999 Ore. App. LEXIS 163 (Or. Ct. App. 1999).

Opinion

HASELTON, J.

Defendant appeals from a judgment on a trial de novo following mandatory court-annexed arbitration. ORS 36.400 et seq. She asserts, principally, that the court erred in awarding attorney fees against her, ORS 36.425(4)(b) (1995), and in failing to order the return of her $150 filing fee, ORS 36.425(2)(c) (1995), based on its determination that her “position * * * [was] not improved” after judgment on the trial de novo. ORS 36.425 (1995). We agree with defendant that the trial court erred when, in comparing the results of the arbitration and the trial de novo, it took into consideration plaintiffs’ success on claims that were not presented in the arbitration but were, instead, pleaded for the first time in the trial de novo. Accordingly, we reverse the award of attorney fees and direct the court to order the return of defendant’s $150 filing fee, but otherwise affirm.

This action arose out of a contract between plaintiffs and defendant Brooke Christy,1 who agreed to supply plaintiffs with logs and consulting services for the construction of a log home. Defendant apparently delivered some of the logs, and plaintiffs paid defendant all or some of the contract price, but defendant failed to provide the agreed-upon consulting services. In February 1996, plaintiffs filed their original complaint, alleging claims for breach of contract and money had and received and seeking the same damages, $24,448, on each of those claims.

The case was submitted to mandatory court-annexed arbitration. ORS 36.400 et seq. Plaintiffs prevailed at arbitration, with the arbitrator awarding $16,000 in compensatory damages and $300 in arbitration fees. Defendant filed a written notice of appeal of the arbitration decision and award, requesting a trial de novo. ORS 36.425(2)(a) (1995).

After requesting the trial de novo, defendant filed an amended answer, alleging new affirmative defenses and counterclaims. In response, plaintiffs filed a motion to strike [192]*192the amended answer or, in the alternative, for leave to file a second amended complaint. That complaint included three new claims — negligence, “promissory estoppel” and fraud-in addition to the original claims for breach of contract and money had and received and sought increased damages of $43,962.

The circuit court judge who heard the motions denied the motion to strike the amended answer but allowed the motion to file the amended complaint, with the new claims, on the condition that

“[sjhould a jury award be comprised of newly added damages that exceed the plaintiffs’ prayer at the time of the arbitration or be based on claims not submitted to the arbitrator, this shall not adversely impact defendant’s liability for attorney fees under ORS 36.425.” (Emphasis added.)

Neither party objected to that condition.

The case proceeded to trial de novo before a jury. Before trial, defendant unsuccessfully sought to dismiss plaintiffs’ promissory estoppel claim. Ultimately, the jury returned a special verdict that awarded plaintiffs damages of $4,300 for breach of contract, $6,000 on the promissory estoppel claim, and $10,000 for fraud. The jury also found defendant liable on money had and received but awarded no damages. Plaintiffs then filed a statement of costs and disbursements, seeking, inter alia, attorney fees of $4,060. Plaintiffs asserted that under ORS 36.425(4)(b) (1995), they were entitled to recover those fees because defendant had not “improved her position” after the trial de novo in that the total award of compensatory damages after trial ($20,300) exceeded the damages awarded at arbitration ($16,000).

Defendant responded that plaintiffs’ reliance on the total damages recovered after the trial de novo was improper because the motions judge, in allowing the pretrial amendments, had explicitly provided that, to the extent plaintiffs recovered damages based on their new claims, that recovery could not “adversely impact defendant’s liability for attorney fees under ORS 36.425.” Instead, defendant asserted, plaintiffs’ entitlement to fees must be based on an “apples to apples” comparison of the damages recovered on the two [193]*193claims — breach of contract and money had and received— that were the subject of the arbitrator’s award. Thus, defendant reasoned, because plaintiffs’ recovery on those claims following trial de novo was less than the arbitrator’s award ($4,300 vs. $16,000), defendant had “improved” her “position,” could not be liable for attorney fees, and was entitled to the return of her $150 filing fee.

The trial judge, who was not the motions judge, awarded plaintiffs their requested attorney fees and declined to order the return of defendant’s filing fee. The court did not refer to the motion judge’s order or otherwise explain why damages recovered on claims that were not submitted to arbitration should be considered in determining entitlement to fees under ORS 36.425 (1995).

On appeal, defendant raises four assignments of error: (1) The motions judge erred in allowing plaintiffs to amend their complaint to plead additional claims after the mandatory arbitration award and before the ensuing trial de novo. (2) The trial court erred in submitting plaintiffs promissory estoppel claim to the jury. (3) The trial court erred in failing to order the return of defendant’s $150 filing fee where defendant, in the trial de novo, “improved her position” with respect to the claims — breach of contract and money had and received — that were actually arbitrated. (4) The trial court erred in awarding plaintiffs attorney fees where defendant, in the trial de novo, “improved her position” with respect to the claims that had been arbitrated. Plaintiffs cross-assign error, asserting that the motions judge’s order, imposing the “apples to apples” fee limitation as a condition of the filing of plaintiffs’ second amended complaint, was contrary to ORS 36.425(4)(b) (1995).

We begin by summarily rejecting the first two assignments of error. Defendant’s failure to designate pertinent portions of the record, and particularly pertinent portions of transcripts of pretrial hearings, precludes a meaningful review and assessment of those two assignments. See Grant County v. Arcanum Institute, Inc.,

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Cite This Page — Counsel Stack

Bluebook (online)
973 P.2d 378, 158 Or. App. 189, 1999 Ore. App. LEXIS 163, Counsel Stack Legal Research, https://law.counselstack.com/opinion/friedman-v-christy-orctapp-1999.