Potter v. Schlesser Co., Inc.

63 P.3d 1172, 335 Or. 209, 2003 Ore. LEXIS 119
CourtOregon Supreme Court
DecidedFebruary 21, 2003
DocketTC 9710-08216; CA A105159; SC S48493
StatusPublished
Cited by15 cases

This text of 63 P.3d 1172 (Potter v. Schlesser Co., Inc.) is published on Counsel Stack Legal Research, covering Oregon Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Potter v. Schlesser Co., Inc., 63 P.3d 1172, 335 Or. 209, 2003 Ore. LEXIS 119 (Or. 2003).

Opinion

*211 DE MUNIZ, J.

The issue presented in this case is whether plaintiff, an attorney, can enforce an attorney’s lien for fees against defendant when plaintiffs client and defendant settled their action without plaintiffs knowledge and without satisfying plaintiffs lien. The Court of Appeals and the trial court concluded that plaintiff could not enforce the lien against defendant. We disagree and reverse the decision of the Court of Appeals and the judgment of the trial court.

We take the material facts from the Court of Appeals’ opinion:

“Plaintiff, an attorney, represented George Hunt in an action for racial discrimination against defendant. That action was filed in federal court in December 1996. In February 1997, Hunt and plaintiff entered into a retainer agreement entitling plaintiff to one third ‘of all amounts recovered in the event of a settlement after Complaint is filed and more than 14 days before any scheduled trial or hearing date[.]’ On September 4, 1997, Steven Schlesser, president of defendant Schlesser Co., Inc., met privately with Hunt and entered into an agreement to settle the racial discrimination action for the sum of $12,000. Schlesser made out a check to Hunt in that amount, and Hunt cashed it that same day. During their meeting, Schlesser asked Hunt if he intended to pay plaintiff, and Hunt responded that his relations with plaintiff were his business. Schlesser and Hunt then drafted an additional signed and notarized document stating that Schlesser had ‘expressed his concern to [Hunt] that he inform his attorney, Don Potter, that he has settled the case.’ By the following day, plaintiff apparently had received information about the settlement and filed in the federal court a ‘Notice of Claim of Attorney’s Lien Under ORS 87.445,’ asserting his entitlement to a portion of the settlement proceeds in accordance with his retainer agreement.
“In November 1997, plaintiff initiated this action in state court to enforce his attorney’s lien against defendant Schlesser Co., Inc. Hunt is not a party to this action. Plaintiff asserted that defendant violated ORS 87.475 by paying *212 Hunt $12,000 in settlement of Hunt’s case against defendant without first satisfying plaintiffs lien and that plaintiff suffered damages in the amount of $6,568.86. Plaintiff moved for partial summary judgment on his attorney’s lien claim, arguing that his lien was enforceable against defendant as a matter of law. Defendant moved for summary judgment on the same claim, asserting that any lien plaintiff might have under the attorney’s lien statutes was not enforceable against defendant. The trial court denied plaintiffs motion and granted defendant’s motion for summary judgment on plaintiffs attorneys lien claim, concluding that there is no statutory authority for enforcement of attorney liens against third parties when settlement occurs before judgment.”

Potter v. Schlesser Co., Inc., 171 Or App 646, 648-49, 17 P3d 529 (2000) (footnote omitted). Plaintiff appealed, and the Court of Appeals affirmed. Id. at 656.

On review, plaintiff argues that, because he has an attorneys lien upon the action that he filed for Hunt against defendant, he may bring a separate action to satisfy his attorney’s lien against either or both of them. In response, defendant contends that plaintiffs lien attaches only to the “proceeds” that the settlement agreement between defendant and Hunt generated. Because the proceeds in this case are now in Hunt’s possession, defendant asserts that plaintiff may not pursue his lien claim against it. For the reasons set out below, we reject that argument.

To determine the meaning of the attorney lien statutes, we apply the methodology established in PGE v. Bureau of Labor and Industries, 317 Or 606, 610-11, 859 P2d 1143 (1993). Under PGE, our function is to discern the intent of the legislature. To do so, we give statutory terms of common usage their ordinary meaning and look first to the text and context of the statute as the best evidence of legislative intent. 317 Or at 611. If the intent is clear from the text and context, then no further analysis is necessary. Id.

We begin with ORS 87.445, which provides:

“An attorney has a lien upon actions, suits and proceedings after the commencement thereof, and judgments, decrees, orders and awards entered therein in the client’s *213 favor and the proceeds thereof to the extent of fees and compensation specially agreed upon with the client, or if there is no agreement, for the reasonable value of the services of the attorney.”

That statute does not define the term “lien.” We therefore give the word its ordinary meaning. PGE, 317 Or at 611. According to its dictionary definition, a “lien” denotes a “charge upon real or personal property for the satisfaction of some debt or duty ordinarily arising by operation of law” or “a right in one to control or to hold and retain or enforce a charge against the property of another until some claim of the former is paid or satisfied [.]” Webster’s Third New Int’l Dictionary 1306 (unabridged ed 1993). Under a similarly worded predecessor statute, 1 this court defined an attorney’s lien, consistent with the dictionary definition, as an attorney’s “equitable right” to have fees for services and charges for costs advanced “secured by the judgment or recovery in the suit or action in which the attorney’s services were rendered.” Crawford v. Crane, 204 Or 60, 62, 282 P2d 348 (1955).

ORS 87.445 thus serves as notice to the world that an attorneys lien for fees arises when an action is commenced. 2 Under the statute, an attorneys lien is a charge on (1) actions, suits, and proceedings after the commencement thereof; (2) judgments, decrees, orders, and awards entered therein in the client’s favor; and (3) the proceeds thereof to the extent of fees and compensation specially agreed upon with the client.

*214 We next turn to ORS 87.475, because that statute cross-references the lien created in ORS 87.445. ORS 87.475 provides:

“(1) Except as provided in subsections (3) and (4) of this section, the lien created by ORS 87.445

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Cite This Page — Counsel Stack

Bluebook (online)
63 P.3d 1172, 335 Or. 209, 2003 Ore. LEXIS 119, Counsel Stack Legal Research, https://law.counselstack.com/opinion/potter-v-schlesser-co-inc-or-2003.