In Re the Marriage of Bidwell

21 P.3d 161, 173 Or. App. 288, 2001 Ore. App. LEXIS 409
Court of Appeals of Oregon·Decided March 28, 2001·No. 9611-72413; CA A100737·Published·Cited by 7 cases

Opinion

*290 BREWER, P. J.

Wife has petitioned for attorney fees under ORS 107.105(5), 1 following our decision on the merits of husband’s appeal from a judgment dissolving the parties’ marriage. We affirmed the trial court’s judgment, designated wife as the prevailing party, and awarded wife costs. Bidwell and Bidwell, 170 Or App 239, 12 P3d 76 (2000), on recons 172 Or App 292 (2001). In support of her petition for attorney fees, wife filed a “supplemental affidavit” in which her attorney asserted that husband had not pursued the appeal or settlement in an objectively reasonable manner. Three written settlement communications between the parties’ attorneys were attached to the affidavit. Two of the attached letters had been sent while the appeal was held in abeyance pending mediation. 2 Husband has moved to strike the letters and references to them from the affidavit on the ground that they contain confidential settlement communications.

When a party seeks attorney fees under a statute, such as ORS 107.105(5), that authorizes a discretionary award of attorney fees, the court must consider the objective reasonableness and diligence of the parties and their attorneys during the proceedings generally and in pursuing settlement of the dispute. ORS 20.075(l)(e) and (f). Husband’s motion to strike presents the issue of whether a party relying on ORS 20.075(l)(e) and (f) may introduce evidence of communications between the parties exchanged in the course of settlement discussions or mediation of the case. For the reasons explained below, the motion to strike is granted in part and denied in part. 3

*291 The first ten paragraphs of counsel’s supplemental affidavit contain information of a sort typically submitted in support of a petition for attorney fees, such as a description of the nature of the case, a statement of the experience and skills of the attorneys who worked on the appeal, a statement of the attorneys’ hourly rates, and assertions that those rates are reasonable. Paragraphs 11 through 21 of the affidavit are based on ORS 20.075(1), which sets forth various factors that courts must consider under a statute authorizing discretionary awards of attorney fees. Specifically, wife relies on ORS 20.075(l)(e) and (f), which provide:

“(1) A court shall consider the following factors in determining whether to award attorney fees in any case in which attorney fees are authorized by statute and in which the court has discretion to decide whether to award attorney fees:
"* * * * *
“(e) The objective reasonableness of the parties and the diligence of the parties and their attorneys during the proceedings.
“(f) The objective reasonableness of the parties and the diligence of the parties in pursuing settlement of the dispute.”

The first of the letters attached to the affidavit, dated December 9,1998, was written by wife’s trial attorney to husband’s trial attorney. The other two letters, dated April 16,1999, and May 7,1999, respectively, were written by one of husband’s appellate attorneys to wife’s then-appellate attorney. The December 1998 and April 1999 letters explored possibilities for settling the parties’ continuing dispute. The May 1999 letter may be fairly characterized as explaining why husband’s attorney believed that husband would prevail on appeal and as withdrawing his last settlement offer. The 1998 letter was written before the case was referred to the appellate mediation program. The two 1999 letters were written after referral of the case to mediation and after a mediation conference had taken place.

Husband contends that the settlement letters are inadmissible under OEC 408. 4 He argues that ORS *292 20.075(l)(e) and (f) did not create an “exception” to OEC 408 for attorney fee disputes. Husband asserts that, although OEC 408 may make it more difficult to comply with ORS 20.075(l)(e) and (i), litigants must accommodate that limitation because of the value the legislature has placed on protecting frank exchanges during settlement negotiations.

Wife responds that OEC 408 prohibits only the use of evidence of settlement negotiations for the purpose of proving liability on the claims that were the subject of the negotiations. According to wife, OEC 408(2)(b) permits use of evidence of settlement negotiations for a different purpose, such as here, to prove husband’s liability for her attorney fees on appeal. Wife relies on Weems v. American International Adjustment Co., 123 Or App 83, 86-87, 858 P2d 914 (1993), affdon other grounds 319 Or 140, 874 P2d 72 (1994). Weems was a workers’ compensation case in which the claimant challenged the Workers’ Compensation Board’s disapproval of a third-party settlement. In an effort to demonstrate the unreasonableness of the proposed settlement, the insurer had offered evidence of the terms of the claimant’s wife’s settlement of her claim for loss of consortium with the same third party. The Board received the evidence over the claimant’s objection. On review, we upheld the Board’s admission of the evidence, stating that “OEC 408 proscribes the admission of offers of compromise to prove liability on the same claim. Evidence of claimant’s wife’s settlement was not offered for that purpose here.” 123 Or App at 86 (emphasis added).

*293 Similarly, here, wife did not offer the letters to “prove liability for or invalidity of’ any of the claims at issue on appeal from the dissolution judgment. Although wife challenges the objective reasonableness of husband’s claims, we have already rejected those claims on their merits. Wife offered the evidence for a different purpose, namely, to establish husband’s liability for wife’s attorney fees on appeal. OEC 408 does not bar admission of the letters for the purpose of determining the objective reasonableness of the parties’ positions under ORS 20.075(l)(e) and (f).

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In Re the Marriage of Bidwell, 21 P.3d 161, 173 Or. App. 288, 2001 Ore. App. LEXIS 409 (Or. Ct. App. 2001).

21 P.3d 161 (In Re the Marriage of Bidwell) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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