Samuel v. Frohnmayer

779 P.2d 1028, 308 Or. 362
CourtOregon Supreme Court
DecidedSeptember 19, 1989
DocketTC 137346; CA A47340; SC S36166
StatusPublished
Cited by27 cases

This text of 779 P.2d 1028 (Samuel v. Frohnmayer) 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
Samuel v. Frohnmayer, 779 P.2d 1028, 308 Or. 362 (Or. 1989).

Opinion

*364 GILLETTE, J.

This case raises questions concerning the scope of a trial court’s authority to provide “further relief’ to a successful party in a declaratory judgment proceeding. The pertinent statute, ORS 28.080, provides in part:

“Further relief based on a declaratory judgment or decree may be granted whenever necessary or proper.”

Specifically, the issue is whether an award of attorney fees to the winning party for expenses incurred in pursuing the declaratory judgment may be “proper” further relief under the statute, when only the statute itself is relied upon as the source of the court’s authority to make the award. The trial court held that it did not have such authority. The Court of Appeals, one judge dissenting, reversed, holding that ORS 28.080 was sufficient authority for such an award. Samuel v. Frohnmayer, 95 Or App 561, 770 P2d 914 (1989). We reverse the decision of the Court of Appeals and reinstate the judgment of the trial court.

Plaintiff Samuel, a chiropractor, originally brought this declaratory judgment action to obtain indemnification from defendant Frohnmayer, the state’s Attorney General and chief legal officer, for expenses Samuel incurred in defending an earlier civil action. The earlier action was brought against Samuel by another chiropractor for damages allegedly caused when a “peer review committee” that Samuel chaired concluded that the chiropractor was rendering unnecessary services to an injured worker. Samuel, who was then president of the Oregon Association of Chiropractic Physicians (OACP), had established the committee at the request of the Workers’ Compensation Department to review chiropractor billings for injured workers.

Samuel tendered defense of the civil case to the Attorney General, claiming that his work for the peer review committee was service “performed for and at the request of the State of Oregon.” The tender was refused because OACP had never been an agency of the State of Oregon and because the Workers’ Compensation Department had not retained, employed or appointed the peer review committee to act as an agent for the state. Samuel then brought the present action *365 seeking a declaration that the Attorney General was obliged to undertake the defense of the earlier case. 1

After a trial court held that the Attorney General was not required to defend Samuel, Samuel appealed to the Court of Appeals. That court held that the peer review committee was performing investigative functions for the Workers’ Compensation Department under sufficient control by the Department to make the committee (and, therefore, Samuel) an agent of the Department. Samuel, the court held, should have been provided a defense by the Attorney General. Samuel v. Frohnmayer, 82 Or App 375, 381, 728 P2d 97 (1986), rev den 303 Or 261 (1987).

On remand to the trial court, Samuel petitioned for “further relief,” viz., the attorney fees he had incurred in bringing the indemnity action against the Attorney General. The trial court denied his petition, and he once again appealed to the Court of Appeals.

The Court of Appeals held that attorney fees could be a “proper” form of further relief under the statute. The court reasoned as follows:

“ORS 28.080 is based on the Uniform Declaratory Judgment Act, which, in turn, is based on the Federal Declaratory Judgment Act, 28 USC §§ 2201,2202. Federal cases interpreting 28 USC § 2202, which is identical for present purposes to ORS 28.080, thus are helpful in deciding what ORS 28.080 means. See ORS 28.150.
“Several federal courts have construed 28 USC § 2202 (albeit without much analysis) to allow an award of attorney fees in a declaratory judgment action in the absence of contractual or other statutory authority for doing so. * * * None of those cases involved a public official; each concerned a dispute between an insured and its private insurer about the existence or extent of coverage. However, in tort claims against the state and its agents, the Attorney General takes the role of an insurer and assumes an insurer’s duty to defend. ORS 30.285(3). For that reason, the cited cases are persuasive by analogy.
“When, as here, the Attorney General fails to discharge his *366 statutory duty and an agent of the state must resort to litigation to force him to perform it, awarding that agent the expense of litigation will often be both ‘proper’ and fair. In Van Gordon v. Ore. State Bd. of Dental Examiners, 63 Or App 561, 568, 666 P2d 276 (1983), we noted that ‘fairness’ is a factor that we consider in deciding whether to assess attorney fees against a state agency pursuant to ORS 183.495, when that agency misconstrues a statute. Whether an award is proper requires a case by case consideration and depends on many factors, including benefit to the public at large, see Deras v. Myers, 272 Or 47, 535 P2d 541 (1975), and the reasonableness of the Attorney General’s refusal to defend. See ORS 28.120 and ORS 182.090.”

95 Or App at 563-64 (footnotes and citations omitted).

Judge Warden 2 dissented. He argued that (1) the majority misunderstood the federal precedent on which it relied while ignoring precedent to the contrary; (2) Oregon case law does not permit a court to award attorney fees unless there is authority to do so in a statute or contract; and (3) the only way an award of attorney fees may be made against the Attorney General is pursuant to a statute, ORS 182.090, which authorizes such awards under the particular circumstances described in that statute — circumstances not pleaded or proved by Samuel. We agree substantially with the dissent.

The analysis of the Court of Appeals majority is incorrect in several respects. First, although it is true that our declaratory judgment act was derived from the federal act, federal decisions are not helpful concerning the issue now before us.

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Bluebook (online)
779 P.2d 1028, 308 Or. 362, Counsel Stack Legal Research, https://law.counselstack.com/opinion/samuel-v-frohnmayer-or-1989.