Mendoza v. Xtreme Truck Sales, LLC

537 P.3d 563, 328 Or. App. 471
CourtCourt of Appeals of Oregon
DecidedOctober 4, 2023
DocketA177639
StatusPublished
Cited by1 cases

This text of 537 P.3d 563 (Mendoza v. Xtreme Truck Sales, LLC) 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
Mendoza v. Xtreme Truck Sales, LLC, 537 P.3d 563, 328 Or. App. 471 (Or. Ct. App. 2023).

Opinion

Argued and submitted November 28, 2022, reversed and remanded October 4, 2023

Adi D. MENDOZA, Plaintiff-Respondent, v. XTREME TRUCK SALES, LLC, an Oregon company, Defendant-Appellant, and HUDSON INSURANCE COMPANY, a foreign surety company, Defendant. Marion County Circuit Court 17CV36085; A177639 537 P3d 563

In this case involving a dispute over a used vehicle that plaintiff purchased from defendant, the parties went to mandatory court-annexed arbitration, which resulted in an arbitration award in plaintiff’s favor. The trial court entered a judgment for plaintiff based on that arbitration award. Defendant then filed a motion asserting that plaintiff failed “to obtain a judgment more favorable than the offer to allow judgment” that defendant had made before the parties went to arbitration, ORCP 54 E(3), and that, consequently, plaintiff was limited to recovering pre-offer attorney fees and costs and defendant was entitled to recover post-offer costs. The trial court initially denied the motion as untimely. We reversed that ruling in Mendoza v. Xtreme Truck Sales, LLC, 314 Or App 87, 497 P3d 755 (2021). On remand, the trial court denied the motion on the merits. Defendant argues that the trial court exceeded the scope of the remand or, alternatively, misapplied ORCP 54 E. Plaintiff raises a cross-assignment of error. Held: The trial court did not exceed the scope of the remand. The court did err, however, by not considering, as part of its ORCP 54 E(3) analysis, a term in the arbitration award and judgment requiring plaintiff to return the vehicle to defendant. The cross-assignment of error is not well taken. Reversed and remanded.

J. Channing Bennett, Judge. David Wallace argued the cause and filed the brief for appellant. John Gear argued the cause for respondent. Also on the brief was John Gear Law Office LLC. 472 Mendoza v. Xtreme Truck Sales, LLC

Before Aoyagi, Presiding Judge, and Joyce, Judge, and Jacquot, Judge.* AOYAGI, P. J. Reversed and remanded.

______________ * Jacquot, J., vice James, J. pro tempore. Cite as 328 Or App 471 (2023) 473

AOYAGI, P. J. This case, which involves an offer of judgment under ORCP 54 E, is before us for the second time. At issue is a motion made by defendant Xtreme Truck Sales, LLC,1 asserting that plaintiff failed “to obtain a judgment more favorable than the offer to allow judgment” that defendant made before the parties went to arbitration, ORCP 54 E(3), and that, consequently, plaintiff is limited to recovering pre-offer attorney fees and costs and defendant is entitled to recover post-offer costs. The trial court initially denied the motion as untimely. We reversed that ruling in Mendoza v. Xtreme Truck Sales, LLC, 314 Or App 87, 497 P3d 755 (2021) (Mendoza I). On remand, the trial court denied the motion on the merits. Defendant now argues that the trial court exceeded the scope of the remand or, alternatively, misapplied ORCP 54 E. Plaintiff raises a cross-assignment of error. We conclude that the court did not exceed the scope of the remand, but that it erred in not considering the dis- position of property in the judgment as part of its ORCP 54 E(3) analysis; we reject the cross-assignment of error. Accordingly, we reverse and remand. FACTS In September 2016, plaintiff purchased a used Chrysler Pacifica van from defendant for $4,250. She later came to believe that defendant had misrepresented its acci- dent history. Plaintiff filed a claim against defendant for willful misrepresentation in violation of the Unlawful Trade Practices Act, seeking $9,952 in damages for the purchase price of the van, repairs, and loss of use. Defendant made an offer of judgment in the amount of $5,500, including costs and fees to date. Plaintiff rejected the offer. The case went through mandatory court-annexed arbitration on January 8, 2018. See ORS 36.400 (providing, along with ORS 36.405, for mandatory court-annexed arbi- tration in certain civil matters involving $50,000 or less). On January 10, 2018, the arbitrator issued a damages award to plaintiff. The written award stated that it was a “Judgment/ Award for Plaintiff and against Defendant” and identified 1 Defendant Hudson Insurance Company is not a party to this appeal. For purposes of this opinion, “defendant” refers solely to Xtreme Truck Sales, LLC. 474 Mendoza v. Xtreme Truck Sales, LLC

plaintiff as the prevailing party. It contained a money award to plaintiff for damages and stated the amount of the money award as “$5,300 but as part of the award plaintiff must return the Chrysler Pacifica to Xtreme Truck Sales, LLC.” The award was sent to the parties, but not filed with the court, pending resolution of attorney fees and costs. On January 15, 2018, plaintiff informed the arbitra- tor and the parties that the van had sustained substantial damage on January 5 when it was hit, while parked, by an intoxicated driver. Plaintiff subsequently agreed to accept $5,339.48 from the intoxicated driver’s insurance company for the totaled van. On January 22, 2018, plaintiff sent an email to the arbitrator and the parties requesting to “slightly modify the initial arbitration award.” To avoid double recov- ery and facilitate resolution of the matter, plaintiff proposed to credit the full amount of the insurance payment to defen- dant, such that the $5,300 award to plaintiff “stands but the insurance proceeds offset it at payment when this case ulti- mately resolves,” which would mean that defendant “ends up out of pocket nothing on the award to plaintiff.” In February 2018, the arbitrator heard arguments on plaintiff’s petition for attorney fees and costs and decided to award plaintiff $10,553.88 in attorney fees, $656 in costs, and a $300 prevailing party fee. The arbitrator added that infor- mation to the previously drafted arbitration award, attached “Findings Regarding Attorney’s Fees, Prevailing Party Fee, and Costs,” and filed the award with the court. See ORS 36.425(1) (requiring the arbitrator in court-annexed arbitra- tion to file the decision with the court). The arbitrator did not modify the award as plaintiff had requested, or otherwise, to account for the recent accident. The accident is briefly men- tioned in the attached findings on fees and costs: “Between the time of my decision on the merits and the attorney fees peti- tion, the Pacifica vehicle was totaled in a separate accident.”2 2 That statement is substantively repeated later in the same document: “I am now filing my arbitration decision. The decision was made prior to the Pacifica vehicle being totaled. The findings as to attorney fees, prevailing party fee, and costs was made after the vehicle was totaled.” It appears to be undisputed that the van was totaled on January 5, before the arbitration began, so it is unclear whether the arbitrator meant to refer to his learning of the accident, meant to refer to when the insurance company declared the van totaled, or misunderstood when the actual accident occurred. Cite as 328 Or App 471 (2023) 475

On March 19, 2018, the trial court entered a general judgment, stating that no appeal had been filed and that the court was therefore entering the arbitration award—which was attached—as the final judgment of the court. See ORS 36.425(2)(a) (allowing parties 20 days to appeal the arbitra- tion decision, which triggers the right to a trial de novo of the action in court).

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Bluebook (online)
537 P.3d 563, 328 Or. App. 471, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mendoza-v-xtreme-truck-sales-llc-orctapp-2023.