Quick Collect, Inc. v. Higgins

308 P.3d 1089, 258 Or. App. 234, 2013 WL 4451229, 2013 Ore. App. LEXIS 1008
CourtCourt of Appeals of Oregon
DecidedAugust 21, 2013
Docket100506548; A149114
StatusPublished
Cited by12 cases

This text of 308 P.3d 1089 (Quick Collect, Inc. v. Higgins) 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
Quick Collect, Inc. v. Higgins, 308 P.3d 1089, 258 Or. App. 234, 2013 WL 4451229, 2013 Ore. App. LEXIS 1008 (Or. Ct. App. 2013).

Opinion

ORTEGA, P. J.

In this appeal, plaintiff challenges the trial court’s denial of plaintiffs exceptions to an arbitrator’s award of attorney fees to defendant, contending that defendant’s fee petition was fatally defective or, alternatively, that defendant was awarded fees for noncompensable work. We affirm, concluding that plaintiff did not preserve its argument that the fee petition was fatally defective, and that the trial court did not abuse its discretion in denying plaintiffs exceptions under ORS 36.425(6), and awarding defendant $15,800 in attorney fees.

The facts are undisputed. Plaintiff, a debt collection company, originally filed a complaint in small claims court in December 2009 to collect a debt owed by defendant for medical treatment. That case was transferred to circuit court and then dismissed without prejudice by stipulated judgment. Plaintiff again filed suit in circuit court in May 2010, seeking to recover the debt. Several months later, the case was transferred to court-mandated arbitration. See ORS 36.400 (establishing mandatory arbitration program in circuit court for certain cases). In January 2011, before the arbitration hearing, defendant filed counterclaims that alleged that plaintiff had engaged in unlawful collection practices in violation of the federal Fair Debt Collection Practices Act, 15 USC sections 1692 to 1692p, and Oregon’s statutory counterpart, ORS 646.639.

After the arbitration hearing, the arbitrator issued an award in favor of plaintiff on the debt, but also issued an award in favor of defendant on his counterclaims for unlawful collection practices. Accordingly, the arbitrator awarded plaintiff $5,584.00 on its claim, plus pre-award interest and costs, and $3,062.50 in attorney fees. The arbitrator awarded defendant $1,200 for his counterclaims, as well as costs, and $15,800 in attorney fees.

Pursuant to ORS 36.425(6),1 plaintiff filed an exception to the arbitrator’s award of costs and attorney fees to [236]*236defendant, acknowledging that defendant was entitled to fees by statute, but contending that the fees sought were “unreasonable and unjustified.” In particular, plaintiff maintained that defendant could not recover any fees that were incurred before defendant filed his counterclaims. Plaintiff explained that, because defendant had prevailed on his counterclaims, but not on plaintiffs claim on the debt, defendant was only eligible to recover fees incurred while prosecuting his counterclaims. In addition, plaintiff generally objected to the amount of fees awarded for work performed after defendant filed his counterclaims as “unreasonable.”

Defendant responded to plaintiffs exception by outlining the history of the case and indicating that defendant, in response to plaintiffs complaint in small claims court, had actually filed an answer and counterclaims back in December 2009. In addition, defendant countered that his fee request was reasonable, particularly because he had reduced it to 62 hours of work from the 73.7 hours his attorney actually spent on the case.

The trial court held a hearing on the attorney fees issue and subsequently entered an order concluding that

“the arbitrator’s decision to award the $15,800.00 [is] reasonable. To the extent there is any issue about the inclusion of hours unrelated to the claim upon which the defendant succeeded, those concerns are adequately addressed by the defendant’s voluntary reduction in the number of hours for which payment is sought.”

The trial court then entered a general judgment. Plaintiff appeals.

[237]*237On appeal, plaintiff assigns error to the trial court’s denial of its exceptions to the arbitrator’s attorney fee award. First, plaintiff argues that defendant’s fee petition was fatally defective because it “fails to segregate compensable from noncompensable time so that a compensable fee could be calculated.” In particular, plaintiff asserts that the fee petition does not adequately identify which tasks are related to defending against plaintiffs debt claim and which tasks are related to prosecuting defendant’s counterclaims. Plaintiff contends, relying on ORCP 68 C(4)(a)(i), that defendant’s failure to segregate his time entries in such a manner renders his fee petition deficient in its entirety as a matter of law.

Alternatively, plaintiff challenges the amount of attorney fees awarded to defendant, asserting that “the majority of the task descriptions contained in the fee petition are for noncompensable work.” Plaintiff explains that the statutes authorizing attorney fees to defendant, ORS 646.641(2) and 15 USC section 1692k(a)(3), only allow recovery of the fees incurred to prosecute an unlawful collection practices action, i.e., defendant’s counterclaims. Plaintiff identifies time periods in defendant’s fee petition that it maintains include work that could not be related to defendant’s prosecution of his counterclaims. First, plaintiff contends that 17 hours and 29 minutes of time billed between November 30, 2009 and February 23, 2010, was not compensable because that work occurred before plaintiff filed the present action. To the extent that any of the work in that time frame related to the action initially filed in small claims court, plaintiff contends that that time is not compensable because that case was dismissed by a stipulated judgment that “did not provide either party a fee award.” Second, plaintiff asserts that 18 hours and 48 minutes of time billed between June 21,2010 and January 11,2011, was not compensable because those tasks relate exclusively to the defense of plaintiffs debt claim. Third, plaintiff attacks 35 hours and 3 minutes billed between January 12, 2011 and April 24, 2011, claiming that defendant’s use of “block billing” makes it impossible to determine how much time defendant expended defending against plaintiffs claim.

[238]*238Finally, plaintiff attacks the trial court’s award of fees, asserting that, because ORS 646.641 and 15 USC section 1692k(a)(3) allow a discretionary award of attorney fees, the court was required to consider the factors under ORS 20.075 for discretionary fee awards. Plaintiff maintains that nothing in the record indicates that the trial court considered those factors in denying plaintiffs exceptions to the arbitrator’s fee award.

Defendant responds that plaintiff failed to preserve most of the arguments it now makes on appeal. In defendant’s view, plaintiffs written exceptions to the arbitrator’s fee award only objected generally to the recovery of any attorney fees incurred prior to the date defendant filed his counterclaims, and also to some of the fees sought for time billed subsequent to that time.

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Cite This Page — Counsel Stack

Bluebook (online)
308 P.3d 1089, 258 Or. App. 234, 2013 WL 4451229, 2013 Ore. App. LEXIS 1008, Counsel Stack Legal Research, https://law.counselstack.com/opinion/quick-collect-inc-v-higgins-orctapp-2013.