The Oregon Court of Appeals last week drew a hard line in enforcing the procedures for recovering attorney fees. In Anderson v. Dry Cleaning To-Your-Door, Inc., the Court reversed a trial court award of more than $100,000 in attorney fees to plaintiffs who successfully defeated contempt sanctions, on the ground that plaintiffs failed to allege the right to fees in a pleading or motion as required by ORCP 68C(2).
In Anderson, plaintiffs in a breach of contract case obtained a judgment against defendant which included a non-competition provision. Defendant later claimed that plaintiffs violated the non-competition portion of the judgment, and initiated contempt proceedings against plaintiffs under ORS 33.055. The trial court found plaintiffs were not in contempt, and requested that the parties prepare a proposed judgment.
The trial court entered plaintiffs' proposed form of judgment, in which plaintiffs asserted for the first time an entitlement to recover their fees in the contempt proceeding. Defendant objected that plaintiffs did not allege a right to attorney fees in a pleading or motion as required by ORCP 68C(2), but the trial court nonetheless awarded the requested fees in the amount of $115,980.
On appeal, the Court of Appeals held that plaintiffs could not avoid the obligation to state in a pleading or motion the facts, statute or rule that entitled them to recover fees. That obligation exists even though plaintiffs did not initiate the contempt proceedings. Because plaintiffs did not comply with ORCP 68C(2), the Court reversed the award of fees.