McComas v. Bocci

996 P.2d 506, 166 Or. App. 150, 2000 Ore. App. LEXIS 350
CourtCourt of Appeals of Oregon
DecidedMarch 8, 2000
Docket97C11861; CA A105301
StatusPublished

This text of 996 P.2d 506 (McComas v. Bocci) 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
McComas v. Bocci, 996 P.2d 506, 166 Or. App. 150, 2000 Ore. App. LEXIS 350 (Or. Ct. App. 2000).

Opinion

*152 BREWER, J.

Plaintiffs appeal from summary judgment for defendant on their legal malpractice and breach of contract claims, as well as from the denial of their cross-motion for summary judgment on the malpractice claim. We affirm.

Plaintiffs are a corporation, its president, and its secretary. This case arises out of plaintiffs’ attempt to obtain a Retail Malt Beverage (RMB) license from the Oregon Liquor Control Commission (OLCC) for a tavern they had contracted to purchase in Independence, Oregon. The purchase of the business, which was to be known as “Jammers West,” and the accompanying 25-year lease of the premises both were contingent on issuance of the RMB license. In March 1994, after conducting an investigation, OLCC regulatory staff recommended that the license be denied. Plaintiffs hired defendant in late March or early April 1994 to represent them in connection with their continuing efforts to obtain the license. Plaintiffs requested a hearing on the proposed denial. The hearing, at which defendant represented plaintiffs, was held in June 1994.

According to the affidavit of the corporation’s president Scott McComas, submitted in opposition to a motion for summary judgment, defendant made the following contractual guarantee after the OLCC hearing:

“On or about June 23,1994, plaintiff David Nault and I had lunch with [defendant] following an OLCC hearing in the Jammers West licensing matter.
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“The primary topic discussed at this lunch was how to proceed in the event that the OLCC denied an RMB license for Jammers West.
“[Defendant] repeatedly assured [plaintiffs] that if the OLCC denied a license to Jammers West, we would prevail at the Oregon Court of Appeals. [He] stated that he was completely confident that we would prevail in that forum. He stated further that if we received an adverse OLCC determination, we would ‘kick ass’ at the Court of Appeals.”

*153 Defendant contends that he “never guaranteed [p]laintiffs a result at the Court of Appeals * * *[,] that he did not believe an appeal from the OLCC’s adverse Final Order would be successful!,] and that he communicated his belief to the [p]laintiffs.”

In October 1994, the hearings examiner recommended that a license be issued with restrictions. In March 1995, after considering exceptions to the hearings examiner’s recommendation, OLCC denied the license on two grounds: (1) The establishment was located in a “problem” area, OAR 845-005-0026(3)(a) 1 ; and (2) McComas had “a record of using alcoholic beverages to excess,” OAR 845-005-0025(4)(a). 2 Plaintiffs moved for reconsideration, which OLCC denied. Although defendant proceeded with the plan to seek review of the final OLCC order, the petition for judicial review that he filed was untimely. As a consequence, we dismissed the appeal. Thus, OLCC’s order stood unchallenged and plaintiffs were unable to obtain an RMB license and complete the purchase of Jammers West.

Plaintiffs then filed this action against defendant. They alleged that defendant’s failure to file a timely petition *154 for judicial review constituted professional negligence. Furthermore, plaintiffs asserted that defendant’s omission constituted a breach of the alleged contractual guarantee to obtain a reversal of OLCC’s decision in this court. Defendant moved for summary judgment, contending, among other arguments, that plaintiffs were not damaged by his failure to file in time, because plaintiffs would not have succeeded in obtaining reversal of the adverse OLCC decision. Plaintiffs filed a cross-motion for summary judgment on the issue of liability with respect to the malpractice claim.

The trial court granted defendant’s motion for summary judgment and denied plaintiffs’ cross-motion for summary judgment, concluding that:

“[With respect to the professional negligence claim,] if the [p]laintiffs would not have prevailed at the Court of Appeals, it could also be fairly said that the [p]laintiffs would not have been damaged and therefore it makes no difference whether the [defendant missed the filing deadline.
* * * *
“In my opinion the result must be the same vis-a-vis the contract claim as it is the malpractice claim. The [p]laintiffs say the damages arose due to the failure of the [defendant to perfect the appeal. Because the appeal, in my opinion, would not have been successful, the failure to perfect [the appeal] caused the [p]laintiffs no damages.”

On appeal, plaintiffs make four assignments of error, only one of which requires extended discussion. We briefly discuss plaintiffs’ assignment of error to the grant of summary judgment on their professional negligence claim only to explain the ground for our decision and to place in perspective our discussion of plaintiffs’ contract claim.

With respect to the malpractice claim, our review of the record discloses that OLCC’s findings of fact were supported by substantial evidence and its conclusions were supported by substantial reason. Graham v. OLCC, 25 Or App 759, 762, 551 P2d 112, rev den (1976). Plaintiffs do not suggest that the order was vulnerable for any other reason. Therefore, plaintiffs would not have prevailed on the merits of their petition for review of the final OLCC order, even if the *155 petition for judicial review had been timely filed. For that reason, we agree with the trial court that plaintiffs were not damaged in the ways they alleged in their malpractice claim by defendant’s failure to timely file a petition for review. St. Paul Fire & Marine Ins. v. Speerstra, 63 Or App 533, 543, 666 P2d 255, rev den 295 Or 773 (1983). However, our analysis of plaintiffs’ contract claim takes a different path.

In their third assignment of error, plaintiffs argue that the trial court erred in granting summary judgment to defendant on their breach of contract claim. Plaintiffs argue that defendant’s guarantee arose in the context of the parties’ existing contract of representation and is, therefore, enforceable. Plaintiffs also challenge the trial court’s conclusion that their entitlement to damages for breach of contract depends on whether they would have prevailed on the merits following appellate review of the OLCC order. Plaintiffs assert that, unlike the rule governing professional negligence claims, the measure of damages for breach of a contract to produce a particular result does not require a plaintiff to prove the “case within a case.” Defendant denies making a guarantee and contends, among other arguments, that plaintiffs’ evidence opposing summary judgment was insufficient to create a genuine issue of material fact with respect to the existence of an enforceable contractual guarantee.

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Cite This Page — Counsel Stack

Bluebook (online)
996 P.2d 506, 166 Or. App. 150, 2000 Ore. App. LEXIS 350, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mccomas-v-bocci-orctapp-2000.