Jones v. Bhattacharyya

471 P.3d 135, 305 Or. App. 503
CourtCourt of Appeals of Oregon
DecidedJuly 15, 2020
DocketA165249
StatusPublished
Cited by2 cases

This text of 471 P.3d 135 (Jones v. Bhattacharyya) 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
Jones v. Bhattacharyya, 471 P.3d 135, 305 Or. App. 503 (Or. Ct. App. 2020).

Opinion

Argued and submitted January 3, 2019; reversed and remanded July 15; on appellant’s petition for reconsideration filed July 23, reconsideration allowed by opinion October 7, 2020 See 307 Or App 200, 474 P3d 464 (2020)

Kajuanda JONES, Plaintiff, and Troy Austin PICKARD, Respondent, v. Keya BHATTACHARYYA, Defendant-Appellant. Multnomah County Circuit Court 15CV32162; A165249 471 P3d 135

An attorney, after representing the prevailing party in a civil action against appellant, began garnishment proceedings against appellant for an amount stated in a supplemental judgment awarding attorney fees. Appellant challenged the garnishment because she had already paid the full amount of that judgment to the attorney’s client, who was the listed judgment creditor, before the attorney filed notice of his claim of an attorney lien. The trial court denied appellant’s challenge to the garnishment because appellant had not paid the judgment sum to the attorney directly or into court to satisfy the attorney’s lien. Appellant renews her arguments on appeal. Held: An attorney must file notice in order to claim the right to enforce an attorney fee lien against a money judgment. If the attorney does not file notice before the judgment debtor pays the full amount to the creditor listed on the judgment, the attorney may not then enforce the lien against the judgment debtor. Accordingly, the trial court erred in denying appel- lant’s motion to challenge garnishment. Reversed and remanded.

Jerry B. Hodson, Judge. Steven F. Cade argued the cause for appellant. Also on the briefs were Charles R. Markley and Williams Kastner Greene & Markley. Brooks F. Cooper argued the cause for respondent. Also on the brief were Mark Maricle and Draneas & Huglin PC. 504 Jones v. Bhattacharyya

Before DeHoog, Presiding Judge, and Aoyagi, Judge, and Kamins, Judge.* KAMINS, J. Reversed and remanded.

______________ * Kamins, J., vice Hadlock, J. pro tempore. Cite as 305 Or App 503 (2020) 505

KAMINS, J. This case presents the question of whether the attorney of a prevailing party in litigation can enforce a lien for attorney fees against the losing party of that litigation without first filing a notice of claim of the lien. In this case, the losing party (appellant) attempted to satisfy the judg- ment awarding attorney fees by paying the award amount to the prevailing party (plaintiff). After that payment, plaintiff’s attorney (respondent) filed notice of his attor- ney fee lien and sought to enforce that lien directly against appellant through garnishment. Appellant challenged the garnishment, arguing that she had satisfied the judgment by paying the full amount of the award to plaintiff before respondent filed his notice of the lien. Because appellant did not first satisfy the attorney’s lien by paying the fee amount to respondent directly or into court, the trial court denied appellant’s challenge to the garnishment. We conclude that an attorney must file notice in order to claim the right to enforce an attorney fee lien against a judgment debtor. If the attorney does not file notice before the judgment debtor pays the full amount to the creditor listed on the judgment, the attorney may not then enforce the lien against the judg- ment debtor. Because the trial court erred in denying appel- lant’s motion to challenge the garnishment, we reverse and remand for further proceedings. The relevant facts are undisputed. Respondent rep- resented plaintiff in a forcible entry and detainment action against appellant. Plaintiff prevailed in a jury trial and was awarded a general judgment of $7,493.16. The trial court also entered a supplemental judgment of $47,694.49 for attorney fees, costs, and disbursements. Respondent did not file a notice of his claim of an attorney lien either when he filed his proposed supplemental judgment or at the time that the court entered that judgment. Appellant entered into an installment payment plan with respondent for the general judgment and subse- quently paid the full amount. Appellant requested a similar installment plan for the supplemental judgment awarding fees and costs, but respondent refused. Instead, respondent demanded that appellant provide financial information 506 Jones v. Bhattacharyya

within four days of the entry of the supplemental judgment. Appellant was unable to contact her then-attorney within that time frame. On May 5, 2017, the deadline that respondent set for appellant to provide her financial information, appellant “rushed to the bank, got three loans,” and sent a certified check for the full amount of the supplemental judgment to plaintiff, the prevailing party and only creditor listed in the supplemental judgment. Plaintiff promptly cashed the check, but she did not give respondent the money. On May 16, 2017, respondent filed his first notice of claim of an attorney lien on the supplemental judgment and initiated garnishment proceedings.1 Appellant challenged the garnishment. She argued that the attorney lien was extinguished when she paid the supplemental judgment in full because respondent had not filed a notice of claim by that time. The trial court denied the motion, reasoning that because an attorney lien attaches as soon as an action commences, respondent did not need to give notice before enforcing the lien. The court concluded that a judgment debtor may satisfy an existing attorney lien only by paying the attorney or paying the money into court. Because appellant instead paid the judgment creditor directly, the trial court approved the garnishment. We review a trial court’s ruling denying a motion challenging garnishment for legal error. See Hughes v. Ephrem, 277 Or App 193, 195, 371 P3d 501 (2016). Our resolution of this case depends on the correct interpreta- tion of the notice requirement in the attorney lien statutes. Resolution of that question requires us to evaluate the func- tion and effect of the statutory requirement that an attorney file notice when he claims a lien on a money judgment. As we turn to the applicable statutes, we must dis- tinguish between two separate points at which an attor- ney may attempt to enforce a lien for fees in an underlying action: before and after a judgment is entered.

1 Respondent filed two subsequent notices of claim of lien on May 19, 2017, and June 19, 2017. Only the June 19 notice satisfied the requirement set out in ORS 87.470 that the notice be “verified by the oath of the attorney.” Cite as 305 Or App 503 (2020) 507

Attorney liens are created by ORS 87.445, which provides that “[a]n attorney has a lien upon actions, suits and proceedings after the commencement thereof, and judgments, orders and awards entered therein in the client’s favor and the proceeds thereof to the extent of the fees and compensa- tion specially agreed upon with the client, or if there is no agreement, for the reasonable value of the services of the attorney.” (Emphases added.) The statute recognizes two types of attorney liens: those on “actions, suits and proceedings” and those on “judgments, orders and awards.” Under ORS 87.450(1), attorney liens on “judgments” require an attorney to file notice of the lien.2 There is no cor- responding requirement for liens on “actions.” The Supreme Court recognized that distinction in Potter v. Schlesser Co., Inc., 335 Or 209, 213 n 2, 63 P3d 1172 (2003): “Unlike other types of liens available to attorneys, there is no requirement that a lien upon an action under ORS 87.445

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Related

Twigg v. Opsahl
505 P.3d 486 (Court of Appeals of Oregon, 2022)
Jones v. Bhattacharyya
474 P.3d 464 (Court of Appeals of Oregon, 2020)

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Bluebook (online)
471 P.3d 135, 305 Or. App. 503, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jones-v-bhattacharyya-orctapp-2020.