A & E Security & Electronic Solutions, Inc. v. Fortalesa, Incorporation
253 Or. App. 448
Or. Ct. App.2012Background
- Plaintiff and defendant entered into a contract to install a security system, with an attorney-fee provision in the contract.
- Plaintiff sued for breach of contract and quantum meruit; defendant counterclaimed for breach, warranty, and rescission.
- Arbitration held; arbitrator granted rescission of the contract.
- After filing the arbitrator’s decision, defendant sought attorney fees under ORS 20.083; plaintiff objected.
- Trial court awarded defendant $9,273 in fees; plaintiff appealed on the theory that rescission bars a contract-based fee award.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether ORS 20.083 authorizes fees when the contract is rescinded. | Contract rescission defeats the contract; no contract terms remain to authorize fees. | ORS 20.083 applies even if rescission occurs, restoring reciprocity for fee awards. | Yes; ORS 20.083 allows fee awards despite rescission; affirmed the defense. |
Key Cases Cited
- State v. Gaines, 346 Or 160 (2009) (statutory interpretation guidance for ORS 20.083 context and text)
- King v. Neverstill Enterprises, LLC, 240 Or App 727 (2011) (identifies two-clause structure of ORS 20.083 and broad operative clause)
- Golden West Insulation v. Stardust Investment Co., 47 Or App 493 (1980) (reciprocity under ORS 20.096 and related implications)
- Bodenhamer v. Patterson, 278 Or 367 (1977) (rejected fee recovery when contract rescission negated fee provision)
- Care Medical Equipment, Inc. v. Baldwin, 331 Or 413 (2000) (voiding a contract provision precludes fee recovery under that contract)