Interstate Roofing, Inc. v. Springville Corp.Interstate Roofing, Inc. v. Springville Corp.
This сase requires us to determine whether certain formalities must be satisfied for a limited judgment to be final and appealable. Specifically, the issues are: (1) whether either a limited judgment document, or the record more generally, must reflect an express determination by the circuit court that there is “no just reason for delay”; and (2) whether a limited judgment
The pertinent facts are largely procedural. In September 2004, plaintiff filed a civil action against defendant in circuit court. Plaintiff pleaded three claims for relief: foreclosure of a construction lien, breach of contract, and quantum meruit. Under its breach of contract claim, plaintiff also sought attorney fees. In its answer, defendant asserted counterclaims for breach of cоntract and for negligence. Defendant also sought an award of attorney fees under the terms of the contracts.
The case was bifurcated, with plaintiffs construction lien claim and defendant’s counterclaims for breach of contract and negligence to be first tried to the court; any claims not resolved at trial, together with the remaining claims, would be later tried to a jury. Trial was held in July and
August 2006. After trial, both parties, apparently understanding that the trial court intended to resolve some but not all claims in the case, submitted proposed forms of limited judgment. The trial court did not adopt either of the proposed limited judgment documents; instead, the court entered its own document titled “Limited Judgment and Money Award.” That document, which was entered on September 29, 2006, provided, in part:
“Having heard the testimony оf the witnesses, and having reviewed their accompanying exhibits, and having heard the statements of counsel, and then being fully advised in the matter, the Court recited [its] ruling from the bench, including some findings of fact. In addition to all findings related on the record, the Court found, by a preponderance of the evidence, that:
“1. Plaintiffs Construction Lien was overstated and thus is invalid as a matter of law. As such, Defendant Springville is the Prevailing Party on that claim and is entitled to an Award of Attorney Fees and Costs to be determined by ORCP 68.
“2. As to Defendant Springville’s Claim of Breach of Contract, Defendant is entitled to a Judgment against Plaintiff and a Money Award in the amount of $346,872.22. Prevailing Party Status has not yet been determined on this claim.
“3. The Court finds Defendant’s Claims for Negligence, including Negligence per se[,] are inapplicable to the subject case. Specifically, the Court finds that, as a matter of law, a remedy in Tort is not available.
“Notwithstanding the remaining issues and claims in the case, the determination of prevailing party status, and awards of Attorney’s Fees and Costs, the Court does find it in the interest of clarity and judicial economy to render said Limited Judgment and hereby Orders the following Money Award: [followed by a money award of $346,872.22].
“IT IS SO ORDERED.”
Neither party appealed that document within 30 days after its entry.
1
Defendant
In November 2006, plaintiff moved to dismiss its remaining claims for breach of contract and quantum meruit, asserting that they were the only remaining unadjudicatеd claims in the case. Defendant objected on the theory that it was still entitled to a jury trial on its counterclaims. After a hearing, the trial court, which determined that defendant’s counterclaims had been resolved by the limited judgment and that only plaintiffs claims remained in the case, granted plaintiffs motion to dismiss. On April 20,2007, the trial court entered a general judgment dismissing plaintiffs claims for breach of contract and quantum meruit.
On May 16, 2007, within 30 days of entry of the general judgment, defendant filed a notice of appeal. The notice of appeal purported to appeal (among other things) the general judgment entered on April 20, 2007, and the limited judgment entered on September 29, 2006. Defendant acknowledged in the notice of appeal that the Court of Appeals’jurisdiction was in doubt.
Plaintiff moved to dismiss the appeal as to the limited judgment on the ground that the appeal was untimely in that regard. Defendant countered with a motion to determine jurisdiction, in which it argued that none of the three judgments was final and appealable. 2 As to the limited judgment, defendant specifically contended that it was not final because (1) the judgment itself contained no adjudicative wording, but, rather, it made only findings and announced a money award; and (2) the trial court had not made an express judicial determination of “no just reason for delay,” which defendant argued is required by ORCP 67 B. 3
The Court of Appeals rejected both of defendant’s arguments as to the formalities that a trial court must satisfy to render an appealable limited judgment.
Interstate Roofing, Inc.,
The Court of Appeals then examined the limited judgment entered in this case to determine whether it actually had conclusively decided any claims in the case, in which event, defendant’s appeal as to those claims would be untimely. The court considered the wording of the limited
judgment
— e.g., referring to legal conclusions as “findings”— to be ambiguous, because it suggested the possibility that the trial court was merely reciting prior determinations with respect to all three claims mentioned in the limited judgment.
Id.
at 418-19. Still, the Court of Appeals concluded that the limited judgment finally resolved defendant’s breach-of-contract counterсlaim, reasoning that the money award on that claim demonstrated that the trial court intended the limited judgment to conclusively decide it.
Id.
at 419-20. As to that claim, the
On plaintiffs petition, the Court of Appeals reconsidered whether plaintiffs lien foreclosure claim and defendant’s negligence counterclaim also were conclusively decided by the limited judgment.
Interstate Roofing, Inc.,
The Court of Appeals concluded that it could resolve the ambiguity by considering the text of the limited judgment document itself in the context of the appellate record more generally.
Id.
at 676-77 (citing
Bennett v. Bennett,
On review, the parties renew the arguments that they made to the Court of Appeals. Their arguments particularly focus on whether, for a limited judgment to be appealable, a trial court must make an express determination that there is no just reason for delay, and whether, to conclusively decide а claim, a limited judgment must resolve it using words of adjudication. Although they disagree on those points, the parties agree that, in all events, an appellate court should not look beyond the limited judgment document to determine which, if any, claims were resolved by the limited judgment. And, finally, the parties disagree on which claims, if any, were resolved by the limited judgment entered in this case.
The starting point for our analysis is the statutory scheme that governs entry of judgment and appellate court jurisdiction.
5
In 2003, the legislature comprehensively revised the statutes governing judgments and many of the provisions governing their appealability; many of those revisions now are codified in ORS chapter 18.
See
Or Laws 2003, ch 576 (enacting extensive statutory scheme regarding judgments). Of importance to this case, that statutory scheme now distinguishes — in a way that the former statutes did not — between the trial court’s subjective decision resolving a claim and the way in
“ ‘Judgment’ means the concluding decision of a court on one or more requests for relief in one or more actions, as reflected in a judgment document.”
“ ‘Judgment document’ means a writing in the form provided byORS 18.038 that incorporates a court’s judgment.”
The statutory definition of “judgment” thus broadly consists of two distinct parts, one substantive and one formal. Substantively, the trial court must make a “concluding decision * * * on one or more requests for relief.”
Under the 2003 judgments legislation, there are three basic types of judgments: general judgments, limited judgments, and supplemental judgments.
See
“When more than one claim for relief is presented in an action, whether as a claim, counterclaim, cross-claim, or third party claim, or when multiple parties are involved, the court may render a limited judgment as to one or more but fewer than all of the claims or parties. A judge may render a limited judgment under this section only if the judge determines that there is no just reason for delay.”
See
Or Laws 2003, ch 576, § 90 (amending prior version of ORCP 67 B). Parallel requirements are imposed by
“If the judgment is a limited judgment rendered under the provisions of ORCP 67 B, the judge must determine that there is no just reason for delay, but the judgment document need not reflect that determination if the title of the judgment document indicates that the judgment is a limited judgment.”
Defendant is correct that both ORCP 67 B and
Before 2003, no statutory equivalent to
Thus, the law before 2003 was that ORCP 67 B (2001) required the trial court to make a determination of no just reason for delay.
The 2003 judgments legislation eliminated that one requirement that the judgment document expressly state the trial court’s determination of no just reason for delay. And it did so in two ways. First, the 2003 amendment to ORCP 67 B specifically deleted the requirement of an “express determination” of no just reason for delay. Or Laws 2003, ch 576, § 90. Second,
The legislative history confirms that the legislature intended no such thing. The Oregon Law Commission submitted to the legislature a report that analyzed the provisions of House Bill 2646, which became Oregon Laws 2003,
сhapter 576.
10
Regarding what was later codified as
“The most significant provision in this section is the last sentence of subsection (1) [ORS 18.052(1) ]. As can been seen, this sentence eliminates the requirement of ORCP 67 B that ‘magic words’ appear in the judgment document to acquire an appealable judgment. Instead, the judge is charged with making the required determination (no just reason for delay) and by the very act of signing a ‘limited, judgment’ attests to having made that determination.”
Testimony, House Judiciary Committee, HB 2646, Mar 25, 2003, Ex C, at 13 (Judgments/Enforcement of Judgments: Judgments Report (HB 2646)) (emphasis added) (hereafter OLC Judgments Report). Thus, as the text of the 2003 legislative changes itself indicates, the legislature in fact intended (1) to dispense with the requirement of an express trial court determinаtion of no just reason for delay, and (2) to make the trial court’s signature sufficient to manifest that determination, as long as the signed document bears the title “limited judgment.” We therefore conclude that defendant’s first argument is not well taken.
We turn to defendant’s second argument regarding the formalities that a limited judgment must satisfy. Specifically, defendant argues that the limited judgment in this case failed to resolve any claim with finality, because the limited judgment document did not use the word “adjudged” (or some
variant) in resolving any of the claims before the trial court. Instead, this limited judgment used the words “[ojrders” and “IT
The pertinent statutes, however, do not impose any such formalistic requirement. The legislature has specified that, to render a legally effective “judgment,” the trial court must arrive at a “concluding decision * * * on one or morе requests for relief!.]”
In that regard, we emphasize that we are rejecting a very narrow
argument
— viz., the contention that a limited judgment, to be appealable, must contain in the body of the document particular words of adjudication, such as “adjudged.” Although we reject that as a formal requirement for a “judgment document,” the fact remains that, substantively, the judgment document must express a concluding decision on one or more claims in a case.
See
The remaining issue, then, is whether the trial court in this action rendered a “concluding decision” on one or more of the claims and, if so, which ones. That issue subsumes one further issue: What may an appellate court examine to make that determination? Both plaintiff and defendant contend that the Court of Appeals erred on reconsideration in
Interstate II,
because it looked beyond the judgment document and more broadly examined the record to determine whether the foreclosure lien claim and the negligence counterclaim had been conclusively decided by the limited judgment. Although the Court of Appeals expressed misgivings, it concluded that it was required to do so by this court’s decision in
Bennett,
As we earlier explained, the statutory definition of judgment requires two basic components. Substantively, the trial court must have made a concluding decision as to one or more claims in the action; and formally, the trial court must enter a judgment document that reflects the concluding decision.
See
“(1) Upon entry of a judgment, the judgment:
“(a) Becomes the exclusive statement of the court’s decision in the case and governs the rights and obligations of the parties that are subject to the judgment[.]”
(Emphasis added.)
Under those provisions, the judgment document, as opposed to the record more generally, must manifest the trial court’s concluding decision on the claim or claims. The trial court’s subjective intent to decide a claim is not relevant if the judgment document fails to expressly reflect that decision. Consequently, if a judgment document does not unambiguously manifest the concluding decision on a claim, an appellate court cannot address that defect by consulting the record to determine what the trial court subjectively intended. 13 Assuming that Bennett permitted appellate courts to examine the record to determine thе finality or appealability of an ambiguous judgment, it no longer reflects the correct state of the law, given the 2003 amendments to the statutes governing judgments. 14
We therefore turn to the three claims discussed in the limited judgment. The Court of Appeals determined, first, that the limited judgment did conclusively determine the breach-of-contract counterclaim.
Interstate I,
We do not agree with defendant. No statute or rule requires a trial court to designate a prevailing party at the time it enters a judgment. To the contrary, the statutory scheme provides that attorney fees may be awarded by a supplemental judgment, thus implicitly contemplating that a prevailing party designation can be made after entry of a limited or general judgment.
See
ORCP 68 C(5)(b) (attorney fees may be awarded by supplemental judgment);
Plaintiff, for its part, takes issue with the Court of Appeals’ conclusion that the limited judgment did not, by its express terms, finally resolve the lien foreclosure claim or the negligence counterclaim. 15 We agree with plaintiff on both points.
Regarding the lien foreclosure claim, the limited judgment stated:
“Plaintiffs Construction Lien was overstated and thus is invalid as a matter of law. As such, Defendant Springville is the Prevailing Party on that claim and is entitled to an Award of Attorney Fees and Costs to be determined by ORCP 68.”
As we have explained, a properly titled judgment need not use particular words of adjudication in the text, as long as the text expresses a concluding decision on the claim. The text of the limited judgment here indicates that the trial court resolved the lien foreclosure claim in defendant’s favor. Specifically, the judgment document declares that the lien was “invalid as a matter of law” and determines that the adverse party is the prevailing party for purposes of an attorney fee award. Although a limited judgment need not designate a prevailing party (as we determined for the breach-of-contract counterclaim), the actual designation of a prevailing party does indicate that the court made a concluding decision of the claim.
See
Regarding the negligence counterclaim, the limited judgment stated:
“The Court finds Defendant’s Claims for Negligence, including Negligence per se[,] are inapplicable to the subject case. Specifically, the Court finds that, as a matter of law, a remedy in Tort is not available.”
Fairly read, that text represents a concluding decision on the negligence counterclaim.
Three aspects of the text of the limited judgment lead us to that conclusion. First, the express text addressing that claim itself seems to foreclose any further consideration of it by the trial court: “as a matter of law, a remedy in Tort is not available.”
Second, the negligence counterclaim is numbered sequentially (“3.”) after the first two claims that the limited judgment decides. Then, immediately following the numbered declarations of the resolution of the three claims, the document, in a new, unnumbered paragraph, declares: “Notwithstanding the
Finally, and significantly, the document is titled “limited judgment.” Both legally and as a practical matter, it is a document in which a trial court, by signing it, reflected its intent to conclusively resolve some but not all of the claims in a particular action. We believe that, in general, the signifiсance of signing such a document is not lost on trial court judges. But that is especially so in a case such as this one, where both parties submitted forms of “limited judgment” to the trial court, and the trial court, rather than sign either proposed judgment, took up the task itself and drafted its own limited judgment. The document’s distinctive title, when combined with the express terms on which the negligence claim was disposed, followed by the reference to the “remaining issues and claims in the case,” leave us with no doubt that the limited judgment document reflected the trial court’s “concluding decision” on the negligence counterclaim, as well as the breach-of-contract counterclaim and the lien foreclosure claim. 16
Because the limited judgment finally resolved all three of the claims that it addressed, and because defеndant did not timely appeal the limited judgment, the Court of Appeals should have granted plaintiffs motion to dismiss the appeal as to those claims. The Court of Appeals did dismiss the appeal of the lien foreclosure claim and the breach-of-contract counterclaim, and we affirm those parts of its decision. The Court of Appeals erred, however, when it concluded that the limited judgment did not conclusively decide the negligence claim. To that extent, we reverse its decision denying plaintiffs motion to dismiss. We remand to the Court of Appeals with instructions to dismiss the appeal from the limited judgment and for further proceedings as to any remaining claims properly before the court. 17
In summary: For the reasons that we have explained, neither ORCP 67 B nor
The decision of the Court of Appeals is affirmed in part and reversed in part, and the case is remаnded to the Court of Appeals for further proceedings.
Notes
A party wishing to appeal a limited judgment must appeal within 30 days after its entry.
Defendant has never disputed that, if the document that the trial court entered as a ‘limited judgment” was final and appealable as to any of the claims in the case, dеfendant’s notice of appeal was untimely as to those claims. Defendant has disputed only whether the limited judgment signed and entered by the trial court in fact conclusively determined one or more claims.
ORCP 67 B provides, in part:
“When more than one claim for relief is presented in an action, whether as a claim, counterclaim, cross-claim, or third party claim, * * * the court may render a limited judgment as to one or more but fewer than all of the claims or parties. A judge may render a limited judgment under this section only if the judge determines that there is no just reason for delay.”
The Court of Appeals also concluded that the general judgment was appeal-able and that the notice of appeal had been timely filed as to the claims that the general judgment resolved.
Defendant’s starting point is different. Defеndant begins with what it perceives to be Oregon’s historic “aversion to” and policies disfavoring interlocutory appeals. The right to appeal, however, is wholly statutory.
See, e.g., State v. K. P.,
There are two exceptions, both of which apply only to a general judgment. A general judgment is deemed to address claims to which it does not expressly refer, either by incorporating earlier written dispositions or by dismissing the unaddressed claims with prejudice.
See
ORCP 67 B (2001) provided:
“When more than one claim for relief is presented in an action, whether as a claim, counterclaim, cross-claim, or third party claim, or when multiple parties are involved, the court may direct the entry of a final judgment as to one or more but fewer than all of the claims or parties only upon an express determination that there is no just reason for delay and upon an express direction for the entry of judgment. In the absence of such determination and direction, any order or other form of decision, however designated, which adjudicates fewer than all the claims or the rights and liabilities of fewer than all the parties shall not terminate the action as to any of the claims or parties, and the order or other form of decision is subject to revision at any time before the entry of judgment adjudicating all the claims and the rights and liabilities of all the parties.”
See, e.g., State ex rel Orbanco Real Estate Serv. v. Allen,
HB 2646 was sponsored by Representatives Lane Shetterly and Max Williams at the request of the Oregon Law Commission (OLC), which drafted the bill. The OLC is a legislatively created body “established to conduct a continuous substantive lawrevision program.”
Factually, defendant’s assertion is problematic. Although the limited judgment’s text does not use the word “adjudged,” it does use the word “judgment.” Specifically, regarding defendant’s breach-of-contract counterclaim, the limited judgment states that “Defendant is entitled to a Judgment against Plaintiff and a Money Award in the amount of $346,872.22.” (Emphasis added.) Even accepting defendant’s premise, the phrase “is entitled to a Judgment” surely would qualify as words of adjudication.
Similarly, although the limited judgment also uses the word “[ojrders,” it does so to refer to the money award, which comes immediately after the declaration that the written document is a limited judgment: “[Tjhe Court does find it in the interest of clarity and judicial economy to render said Limited Judgment and hereby Orders the following Money Awardl.T (Emphases added.) Considered as a whole, that phrase, too, would seem to qualify as words of adjudication.
Worth noting is that the distinction the legislature drew in that regard was a particularly deliberate one. See OLC Judgments Report at 9 (judgment is now “defined to have two distinct requirements. First a judgment has to be a ‘concluding decision of a court on one or more claims in one or more actions.’ Second, a ‘judgment’ must be ‘reflected in a judgment document.’ ”); id. at 10 (existing law frequently confused judgment of court with document that reflected that judgment; drafters’ goal was to correct problem by carefully delineating between decision of court in abstract and the writing that reflects that decision).
A judgment document’s failure to unambiguously manifest a concluding decision on a claim does not necessarily require automatic dismissal on appeal. As we noted previously, there are two situations in which a general judgment is deemed to have disposed of claims that it does not specifically address.
See
This court has never had occasion to determine whether its approach in Bennett of examining the record on appeal would extend to a judgment that is ambiguous for the purpose of determining its finality and appealability. The 2003 judgments legislation preempts any extension of Bennett to such a context. But nothing in our opinion in this case should be understood to prevent appellate courts from considering the record to resolve ambiguities in a judgment in other circumstances.
To clarify, plaintiffs disagreement with the Court of Appeals’ resolution of the lien foreclosure claim is not with thе court’s conclusion, but rather with the court’s view that the limited judgment was ambiguous as to that claim and that the ambiguity should be resolved by resort to the record.
We acknowledge that the limited judgment precedes its discussion of the three claims with confusing and inappropriate text — for example, describing conclusions of law as findings of fact.
See Interstate I,
The Court of Appeals determined that the appeal could proceed from the general judgment and the supplemental judgment, after giving the trial court leave under