Hedrick v. Spear

907 P.2d 1123, 138 Or. App. 53, 1995 Ore. App. LEXIS 1663
CourtCourt of Appeals of Oregon
DecidedNovember 29, 1995
Docket9206-04215; CA A80747
StatusPublished
Cited by7 cases

This text of 907 P.2d 1123 (Hedrick v. Spear) 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
Hedrick v. Spear, 907 P.2d 1123, 138 Or. App. 53, 1995 Ore. App. LEXIS 1663 (Or. Ct. App. 1995).

Opinion

RIGGS, P. J.

Plaintiff, an attorney, brought this action against defendant, his former client, to collect fees for legal services rendered. Defendant filed counterclaims for unlawful debt collection practices, ORS 646.639 et seq, and unlawful trade practices, ORS 646.605 etseq. The jury returned a verdict for defendant on plaintiffs claim and on both counterclaims. On the counterclaim for unlawful debt collection practices, it awarded the statutory minimum damages of $200 and punitive damages in the amount of $8,482.79. On the counterclaim for unlawful trade practices, it awarded statutory minimum damages of $200 and punitive damages in the amount of $20,500. The trial court granted plaintiffs motion for a judgment notwithstanding the verdict judgment n.o.v. on the unlawful debt collection counterclaim. Plaintiff appeals the judgment for defendant on the unlawful trade practices counterclaim. Defendant cross-appeals the judgment for plaintiff on the unlawful debt collection practices claim.

Plaintiff and defendant had a longstanding personal and professional relationship. In late 1986, defendant hired plaintiff to provide legal services with regard to a real estate transaction. There was no written retainer or fee agreement between them. At the bottom of each bill that plaintiff sent to defendant appeared the following:

“LATE PAYMENT CHARGE: Monthly periodic rate of 1 72%, 50 cent Minimum. ANNUAL PERCENTAGE RATE 19.56% on balances over 30 days, after deducting current payments. To avoid future LATE PAYMENT CHARGES, pay new balance within 10 days of receipt of statement.”

Defendant received and paid a bill for legal services in January 1987. Plaintiff continued to represent defendant on the matter. In February, March and April defendant received bills from plaintiff but did not pay them. In May 1987, plaintiff began to assess late charges on defendant’s bill. After plaintiff had completed his legal services to defendant, a large portion of the bill remained unpaid, and plaintiff filed this action. The dispute concerning the unpaid bills largely related to an alleged agreement by plaintiff to limit his fees. Plaintiff does not challenge the jury’s resolution of that claim in defendant’s favor.

[56]*56Plaintiffs first five assignments of error relate to the trial court’s denial of his motions to “strike” or withdraw from the jury’s consideration defendant’s counterclaim for unlawful trade practices. In reviewing those assignments, we view the evidence in the light most favorable to defendant. Green v. Uncle Don’s Mobile City, 279 Or 425, 427, 568 P2d 1375 (1977).

The counterclaim alleged, in part:

“14. At all times material herein, plaintiff and the professional corporation which purportedly assigned its account to plaintiff, were involved in the business, vocation and occupation of providing legal services.
“15. In communications between plaintiff and defendant which resulted in defendant hiring plaintiff or the professional corporation which employed plaintiff, plaintiff made certain representations concerning the nature of the obligation being incurred. Plaintiff also made certain representations of fact concerning the price of services being provided.
“16. Plaintiff’s representations to defendant were made in the course of plaintiffs business, or the business of the professional corporation by which he was employed, and said representations were made willfully and are false.
“17. Plaintiff and the professional corporation which employed him * * * in fact charged defendant substantially more fees than were represented.
“18. Plaintiffs conduct has violated ORS 646.608(l)(k) in that plaintiff made false or misleading representations concerning the nature of the transaction or obligation incurred.
“19. Plaintiffs conduct violated ORS 646.608(l)(s) in that plaintiff made false or misleading representations of fact concerning the offering price of services.
“20. Defendant is entitled to recover $200 as actual damages under ORS 646.638(1).”

On the morning of trial, plaintiff filed what he characterized as a motion to strike the unlawful trade practices counterclaim, on the ground that the allegation concerning damages in paragraph 20 was inadequate. The court denied the motion as untimely, saying, “We will see what the evidence has to show.” At the close of the evidence, plaintiff renewed his [57]*57motion to strike the counterclaim. The court treated the motion as a motion for directed verdict and denied it. We agree with the trial court that the motion is properly characterized as a motion for directed verdict, and we treat it accordingly.

ORS 646.638(1) provides that damages are recoverable by

“any person who suffers any ascertainable loss of money or property, real or personal, as a result of willful use or employment by another person of a method, act or practice declared unlawful by ORS 646.608.” (Emphasis supplied.)

When asked on direct examination to describe his damages, defendant testified:

“I am missing work right now. A considerable amount of time that I am being away from the factory and other court costs that I have to pay, more attorney fees that I have to pay.”

Defendant’s lost time from work while attending trial is not the type of loss intended to be recoverable in a claim for unlawful trade practices. Moreover, his testimony about additional fees refers to defendant’s legal fees in this litigation, not to the disputed fees charged by plaintiff. Defendant’s attorney fees and court costs incurred in this litigation may be separately recoverable in his claim for unlawful trade practices, if he prevails; they are not recoverable as damages. C.A.R. Tow, Inc. v. Corwin, 76 Or App 192, 708 P2d 644 (1985). There is an absence of any reference to any loss that defendant sustained as a result of the alleged excessive legal fees charged by plaintiff. There was much testimony concerning an alleged agreement by plaintiff to limit his fees, and testimony concerning what amounts were billed and what fees were collected. There was no evidence, however, that defendant actually paid fees in excess of the amount agreed upon or owed, only that he was billed for more than he had agreed to pay.

Although defendant correctly notes that he is not required to prove the amount of ascertainable loss in order to recover nominal damages in a claim for unlawful trade practices, Scott v. Western Int. Sales, Inc., 267 Or 512, 517 P2d 661 (1973), there must, at least, be some cognizable loss.

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Cite This Page — Counsel Stack

Bluebook (online)
907 P.2d 1123, 138 Or. App. 53, 1995 Ore. App. LEXIS 1663, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hedrick-v-spear-orctapp-1995.