Newell v. Weston

965 P.2d 1039, 156 Or. App. 371, 1998 Ore. App. LEXIS 1573
CourtCourt of Appeals of Oregon
DecidedSeptember 30, 1998
Docket9212-08470; CA A89561
StatusPublished
Cited by43 cases

This text of 965 P.2d 1039 (Newell v. Weston) 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
Newell v. Weston, 965 P.2d 1039, 156 Or. App. 371, 1998 Ore. App. LEXIS 1573 (Or. Ct. App. 1998).

Opinions

[373]*373ARMSTRONG, J.

Defendant Weston petitions for an award of attorney fees based on his lease agreement with plaintiff. He contends that he is entitled to fees because he prevailed on plaintiff’s cross-appeal, in which plaintiff unsuccessfully attempted to overturn the trial court’s decision that plaintiff could not recover damages from defendant for a breach of the lease. Plaintiff contends that defendant is not entitled to an award of fees, because plaintiff prevailed on the appeal, and, as a result, judgment ultimately will be entered in his favor. We allow defendant’s petition in the amount of $14,731.28.

The facts of the case are set forth in detail in our decision on the merits, Newell v. Weston, 150 Or App 562, 946 P2d 691 (1997), rev den 327 Or 317 (1998). For the purpose of resolving the current dispute, only a brief summary of those facts is required. Plaintiff is the owner of a parcel of real property. He leased the property to defendant, who used the property for his automobile dealership. Paragraph 23 of the lease contains the following clause:

“In the event that suit or action is instituted by Lessor or Lessee to enforce compliance with any of the terms, covenants and conditions of this agreement on the part of the other to be kept and performed, the prevailing party shall recover in addition to the costs and disbursements provided by statute such sums as the court may adjudge reasonable as attorney fees and in the event of appeal, such further sum as may be fixed by the appellate court on appeal in such suit or action.”

The lease ultimately expired, and plaintiff leased the premises to another party. Meanwhile, gasoline contamination at the site was uncovered. Plaintiff sued defendant to recover the costs of the remediation of the contamination. Plaintiff alleged that he was entitled to recover those costs because defendant’s use of the premises caused the contamination and that use constituted a breach of the lease in various particulars. Plaintiff also alleged a right to recover under ORS 465.255(1), which generally provides for strict liability for remedial action costs from any owner or operator of premises at which contamination occurred.

[374]*374The trial court concluded that defendant had not breached the lease but that defendant was liable under ORS 465.255(1). Defendant appealed, arguing that the trial court had erred in concluding that the statute applied to him. Plaintiff cross-appealed, arguing that the trial court had erred in concluding that defendant had not breached the lease. Plaintiff argued that he was entitled to relief on the cross-appeal, regardless of the outcome of the appeal, because the lease provided for damages over and above those provided for under ORS 465.255(1) and provided for attorney fees.

We affirmed on the appeal and on the cross-appeal; that is, we held that the trial court had correctly concluded that plaintiff prevailed under the statute and that defendant prevailed on the claims for breach of the lease. We designated plaintiff as the prevailing party on the appeal and defendant as the prevailing party on the cross-appeal. Defendant now requests an award of $14,731.28 in attorney fees under paragraph 23 of the lease, on the ground that he prevailed both at trial and on the cross-appeal on plaintiffs claims for breach of the lease. Plaintiff contends that defendant is not entitled to attorney fees under paragraph 23 of the lease, because defendant is not the prevailing party. Relying on our opinion in Meduri Farms, Inc. v. Robert Jahn Corp., 120 Or App 40, 852 P2d 257 (1993), plaintiff argues that, because the contract does not define prevailing party, the definition of “prevailing party’ contained in ORS 20.096(5) controls. That statute provides that, subject to exceptions not applicable to this case, “prevailing party” means “the party in whose favor final judgment or decree is rendered.” ORS 20.096(5). Plaintiff argues, therefore, that defendant cannot recover attorney fees for prevailing on the lease claims, because plaintiff is the party in whose favor final judgment will be entered in the action, so defendant is not the prevailing party for purposes of an award of attorney fees under the lease.

In Meduri Farms, we applied the principle established in Zidell v. Greenway Landing Devel. Co., 89 Or App 525, 528, 749 P2d 1210 (1988), under which a party must prevail in the action as a whole, as well as on the contract claims in the action, in order to recover attorney fees under ORS [375]*37520.096. We are now persuaded that Zidell misinterpreted the statute. We therefore overrule Zidell and award attorney fees to defendant based on a correct interpretation of ORS 20.096.

ORS 20.096 provides for an award of attorney fees to the prevailing party, which the statute defines as “the party in whose favor final judgment or decree is rendered.” ORS 20.096(5). By its terms, that definition does not specify whether the prevailing party is the one in whose favor final judgment is rendered in the action or the one in whose favor it is rendered on the claims subject to ORS 20.096 in the action. The Zidell court settled on the former interpretation, based on the proposition that there can be only one prevailing party in an action, so the reference to a prevailing party in the statute must be to the party who prevails in the action. Zidell, 89 Or App at 528. But that begs the question. The term “prevailing party” usually does refer to the party who prevails in an action, see Marquam Investment Corp. v. Myers, 35 Or App 23, 30, 581 P2d 545 (1978), but that does not mean that the legislature intended the term to have that meaning in ORS 20.096. In context, the legislature could have intended either of the meanings identified above, which makes the statute ambiguous. Consequently, it is appropriate to look to legislative history to determine which meaning the legislature intended.

House Bill 1342, the 1971 bill that became ORS 20.096, was drafted by the Legal Aid Committee of the Oregon State Bar to eliminate one-sided attorney-fee provisions in contracts. The people about whom that committee principally was concerned were consumers who enter into contracts that give sellers of goods and services the unilateral right to recover attorney fees. See Minutes, House Judiciary Committee, Subcommittee 1, HB 1342, Feb. 25,1971, pp 2-3.

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Cite This Page — Counsel Stack

Bluebook (online)
965 P.2d 1039, 156 Or. App. 371, 1998 Ore. App. LEXIS 1573, Counsel Stack Legal Research, https://law.counselstack.com/opinion/newell-v-weston-orctapp-1998.