Steidlmayer v. Salishan Properties, Inc.
Steidlmayer v. Salishan Properties, Inc.
Opinion of the Court
Plaintiff brought this action to recover damages for defendants’ alleged unreasonable delays in approving plaintiffs plans for the construction of a house on a site defendants leased to plaintiff for a 99-year term with perpetual options to renew. Plaintiff contends, inter alia, that defendants’ actions violated provisions of the lease agreement. The trial court granted defendants a summary judgment. Plaintiff appeals. His first assignment is that the trial court erred by granting the summary judgment. The assignment and supporting argument are without merit and they require no discussion.
Plaintiffs second assignment is that the court erred in awarding attorney fees to defendants. The lease provides, as material:
“In the event [Salishan Properties, Inc.] shall bring any suit or action to enforce any covenant or condition contained herein * * *, Lessees will pay to Salishan, Inc. Salishan, Inc.’s costs and expenses incurred in connection with such suit or action including reasonable attorneys’ fees.”
Plaintiff argues that this action does not come within the attorney fee provision because “Salishan has brought no suit or action and is not attempting to enforce the lease.” Defendants make two arguments in response. The first is that plaintiff sought attorney fees in his complaint and, under ORS 20.096(1),
Defendants’ second argument is that they are entitled to attorney fees under ORS 20.096(1) as the Supreme
By any reasonable estimation, defendants were the parties with the stronger bargaining position here. Their argument adds a new twist to the Jewell rationale. They do not seem to dispute that the action is not one to which the contractual attorney fee clause applies by its terms. However, they reason that, under Jewell, plaintiff would nevertheless have been entitled to recover attorney fees if he had been the prevailing party and, therefore, the reciprocity requirement of ORS 20.096(1) means that defendants, as the prevailing parties, are entitled to attorney fees. Stated somewhat differently, the effect of defendants’ argument would be to give
Whether or not the Supreme Court in Jewell intended or necessarily fostered the perplexing application of ORS 20.096(1) that defendants urge, we think that there is a simpler solution here. This is not a case, like Jewell, in which the kind of action differs from the actions described in the attorney fee provision of the contract. Here, the action plaintiff brought is, at least in part, one “to enforce any covenant or condition contained” in the lease. That is the kind of action the attorney fee provision of the lease contemplates, although the provision refers only to such actions brought by Salishan, Inc. It is clear under Jewell that reciprocal recoverabilty of attorney fees is not contingent upon which party brings the action. Although the court had no occasion so to state in Jewell, its holding necessarily meant that the plaintiff could have recovered attorney fees if he rather than the school had sued successfully to collect amounts that were due and unpaid. It is unnecessary for us to decide whether Jewell also means anything beyond that which defendants suggest. The award of attorney fees was not error.
Affirmed.
ORS 20.096(1) states:
“In any action or suit on a contract, where such contract specifically provides that attorney fees and costs incurred to enforce the provisions of the contract shall be awarded to one of the parties, the prevailing party, whether that party is the party specified in the contract or not, at trial or on appeal, shall be entitled to reasonable attorney fees in addition to costs and disbursements.”
The trial court awarded attorney fees to both defendants. Plaintiff does not argue separately that Salishan Leaseholders, Inc., was not entitled to attorney fees if Salishan Properties, Inc., was.
Reference
- Full Case Name
- STEIDLMAYER v. SALISHAN PROPERTIES, INC.
- Cited By
- 3 cases
- Status
- Published