Mayes v. Ramos

536 P.3d 638, 327 Or. App. 640
Court of Appeals of Oregon·Decided August 30, 2023·No. A172429·Published·Cited by 1 cases

Opinion

Argued and submitted June 6, supplemental judgment reversed and remanded August 30, 2023

Kelly MAYES, Plaintiff-Appellant,

v.

Anthony RAMOS, Defendant-Respondent.

Clackamas County Circuit Court 18CV25192; A172429

536 P3d 638

Plaintiff appeals a supplemental judgment denying her request for attorney fees-on-fees. The trial court denied plaintiff’s fee request on four separate bases: that it was (1) barred by entry and satisfaction of a prior general judgment; (2) barred by claim preclusion principles; (3) “excessive and without merit”; and (4) “frivolous.” On appeal, plaintiff challenges each of those bases, arguing that the trial court erred in denying her fee request. Held: The trial court erred in concluding that plaintiff’s request for fees-on-fees was barred by entry and satisfaction of a prior general judgment; defendant did not point to any case law nor any relevant statutory provision indicating that, in the circumstances of this case, the legislature intended to depart from the accepted practice of allowing recovery of fees-on-fees. Further, the trial court erred in concluding that plaintiff ’s request for fees-on-fees was barred by claim preclusion principles; plaintiff ’s request for fees-on-fees was not raised in a second or subsequent action but was raised as part of plaintiff’s auto-injury action against defendant. Finally, because the trial court’s determination that plaintiff’s request for fees-on-fees was “excessive and without merit” and “frivolous” were not sufficient to permit meaningful appellate review, the court remanded for further proceedings per McCarthy v. Oregon Freeze Dry, Inc., 327 Or 84, 86, 957 P3d 1200 (1998).

Supplemental judgment reversed and remanded.

Kathie F. Steele, Judge. Jesse A. Buss argued the cause for appellant. Also on the briefs was Willamette Law Group.

James B. Rich argued the cause for respondent. Also on the brief was Harris, Wyatt & Amala, LLC.

Before Tookey, Presiding Judge, and Egan, Judge, and Kamins, Judge.

TOOKEY, P. J. Supplemental judgment reversed and remanded.

Cite as 327 Or App 640 (2023) 641

TOOKEY, P. J. Plaintiff appeals a supplemental judgment denying her request for attorney “fees-on-fees”—i.e., “fees incurred in litigating the amount of an attorney fee award.” Peabody v. SAIF, 326 Or App 132, 136, 531 P3d 188 (2023). The trial court denied plaintiff’s fee request on four separate bases: that the fee request was (1) barred by entry and satisfaction of a prior general judgment; (2) barred by claim preclusion principles; (3) “excessive and without merit”; and (4) “frivolous .” In a single assignment of error, plaintiff challenges each of those bases, arguing that the trial court erred in denying her fee request. The parties also dispute whether we have appellate jurisdiction and whether plaintiff’s arguments are preserved.

As explained below, we conclude that we have jurisdiction to review the supplemental judgment and that plaintiff ’s arguments are adequately preserved. We further conclude that the trial court erred in denying plaintiff’s request for fees-on-fees, and we reverse and remand for further proceedings.

I. BACKGROUND

The relevant facts are largely procedural and pertain to three stages of the case: the initial arbitration, the subsequent dispute about fees-on-fees, and plaintiff’s appeal to this court. A. The Initial Arbitration Following an automobile collision, plaintiff brought a personal injury suit against defendant, and the case went into mandatory arbitration pursuant to ORS 36.400. Plaintiff prevailed, and the arbitrator filed an award in favor of plaintiff that included $15,000 in attorney fees, which was only part of the roughly $25,000 fee award that plaintiff had requested under ORS 20.080 (authorizing attorney fees “where the amount pleaded is $10,000 or less”).

Pursuant to ORS 36.425(6), plaintiff filed “exceptions”

in the trial court, challenging the arbitrator’s attorney-fee award and seeking the total fee that she had requested. Briefly, ORS 36.425(6) provides that a party may file in the 642 Mayes v. Ramos

trial court “exceptions” as to “the legal grounds for” or “the amount of” an arbitrator’s attorney-fee award, and the trial court must enter a decision as to those exceptions within 20 days after the exceptions are filed, otherwise the arbitrator ’s fee award “shall be considered affirmed.” In opposition to plaintiff’s exceptions, defendant filed a response, arguing that plaintiff’s fee request was unreasonable and that the arbitrator’s fee award should be affirmed.

On June 3, 2019—one day before the 20-day period under ORS 36.425(6) was to elapse—the trial court held a hearing on plaintiff’s exceptions. At that hearing, the trial court acknowledged that it would not have enough time to enter a decision before the 20-day period elapsed. Consequently, the trial court orally stated that it would sign an order to abate the case until June 24, 2019, to provide more time to make a decision as to plaintiff’s exceptions; however, that abatement order was not ultimately entered until after the 20-day period under ORS 36.425(6) had already elapsed.1 Nonetheless, on June 18, 2019, the trial court issued a letter opinion concluding that the arbitrator had abused his discretion in reducing plaintiff’s attorney-fee award and that plaintiff was entitled to her requested fees of roughly $25,000.

Shortly thereafter, plaintiff moved for, and the trial court entered, an order nunc pro tunc backdating the abatement order to June 3, 2019—that way, the case would be abated one day before the 20-day period elapsed, so the arbitrator ’s award would not be considered affirmed by operation of ORS 36.425(6). On July 11, 2019, the trial court entered a “General Judgment and Money Award,” which reflected the arbitrator’s damages award to plaintiff, plus the increased attorney-fee award to plaintiff outlined in the trial court’s June 18 letter opinion. Defendant then promptly paid that judgment amount, and on July 17, 2019, a “satisfaction judgment ” was entered, reflecting that defendant had paid the judgment against him in the underlying auto injury case.

1 ORS 36.425(6) was recently amended to omit the requirement that the trial court enter a decision as to exceptions within 20 days after the exceptions are filed. See Or Laws 2023, ch 16, § 1. The amendments to ORS 36.425(6) do not apply in this case. See Or Laws 2023, ch 16, § 2 (providing that amendments to ORS 36.425(6) apply to arbitrations commenced on or after January 1, 2024).

Cite as 327 Or App 640 (2023) 643

B. The Dispute About Fees-on-Fees On July 26, 2019, plaintiff filed a new attorney-fee statement, requesting supplemental fees-on-fees of roughly $8,000 for the work that plaintiff’s attorney had performed since May 15, 2019, in “successfully prosecuting the original fee request over defendant’s vigorous opposition.” In that statement, plaintiff argued that she was entitled to such fees under Trimet v. Aizawa, 362 Or 1, 403 P3d 753 (2017) and ORCP 68. Defendant filed a memo in opposition to that request, arguing that plaintiff’s request for fees-on-fees was (1) barred by entry and satisfaction of the general judgment; (2) barred by claim preclusion principles; (3) “excessive and without merit”; and (4) “frivolous.”

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Mayes v. Ramos, 536 P.3d 638, 327 Or. App. 640 (Or. Ct. App. 2023).

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Mayes v. Ramos
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