303 P.3d 333
Or. Ct. App.2013Background
- Plaintiff landlord sued for rent and defendants counterclaimed for damages and fees under ORS ch. 90; amounts prepaid into court, arbitrator awarded part to plaintiff, remaining counterclaims to be tried.
- On the second trial day, the court ruled on statute of limitations and fees, concluding defendants could be prevailing for attorney fees if they proved monetary damages.
- Parties settled on the record after the court’s early rulings, the jury was dismissed, and the court interpreted ORS 90.370(4) to govern attorney fees.
- Two days later the court retracted its fee ruling, stating further discussion was needed, and a record meeting followed with undisclosed details.
- April 7, 2011, the court issued a letter opinion reversing its fee analysis and proposing either a new settlement conference or a new jury trial, which the parties apparently rejected.
- In August 2011 the court entered a general judgment reflecting the settlement, designated defendants as prevailing parties, and reserved ORCP 68 fees; plaintiff then moved for a new trial under ORCP 64 B.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Was there an irregularity under ORCP 64 B(1) | Plaintiff argues the court’s pretrial and postsettlement actions created an irregularity. | Defendants contend no irregularity occurred; settlement preserved fairness. | No irregularity; settlement and postsettlement rulings did not constitute irregularity under ORCP 64 B(1). |
| Was there an error in law under ORCP 64 B(6) | Plaintiff claims the later fee ruling and its reversal represented error in law. | Defendants assert no objected-to legal error occurred at trial; no timely objection. | No basis for ORCP 64 B(6) due to lack of objections to the alleged error. |
| Applicability of ORCP 64 B to settlements mid-trial | Placing judgment based on settlement while allowing for potential new trial was irregular. | Settlement-based judgment does not automatically trigger ORCP 64 B remedies; rule not plainly applicable. | ORCP 64 B does not apply to settlements mid-trial in a way that supports relief here. |
| Effect of settlement on enforceability given potential mutual mistake | Settlement based on the court’s initial fee ruling could be revisited; mutual mistake potentially undermines enforceability. | Settlement was voluntary and informed; no fundamental mutual mistake. | Remand to reinstate judgment; the majority did not find mutual mistake invalidating the settlement. |
Key Cases Cited
- McCollum v. Kmart Corp., 228 Or App 101 (2009) (irregularity requires deviation from established rule; settlement context considered procedural)
- State v. Swain / Goldsmith, 267 Or 527 (1974) (judge may change disposition between hearing and final action)
- Hayes Oyster Co. v. Dulcich, 170 Or App 219 (2000) (court rulings are not final until proper order entered)
- Beardsley v. Hill, 219 Or 440 (1959) (memo to judgments not effective until entered)
- Clement v. Mills, 245 Or App 308 (2011) (settlement not enforceable if based on fundamental mutual mistake)
- City of Canby v. Rinkes, 136 Or App 602 (1995) (binding settlement; open-court agreement)
