Schroeder v. Clackamas County Bank

ORS 20.105 provides that a court can award reasonable attorney fees only if it determines that the nonprevailing party had “no objectively reasonable bases for asserting the claim.” A party’s claim is not objectively reasonable if it “is entirely devoid of legal or factual support, either at the time it is made or in light of additional evidence or changes in the law as litigation proceeds.” Williams v. Salem Women’s Clinic, 245 Or App 476, 482, 263 P3d 1072 (2011).

Plaintiffs appealed judgment that dismissed their claims, including the declaratory judgment action and supplemental judgment awarding attorney fees to Clackamas County Bank. Plaintiffs assigned error to the trial court's granting defendants' motion for summary judgment and awarding of attorney fees to CCB under ORS 20.105. On appeal, Plaintiff's argued that requests for a declaratory judgment cannot be meritless and a basis to award attorney fees under ORS 20.105. In response, CCB argued that the purpose of ORS 20.105 is to prevent a party from bringing any objectively unreasonable claim. ORS 20.105 provides that a court can award reasonable attorney fees only if it determines that the non-prevailing party had "no objectively reasonable bases for asserting the claim." A party's claim is not objectively reasonable if it "is entirely devoid of legal or factual support, either at the time it is made or in light of additional evidence or changes in the law as litigation proceeds." Williams v. Salem Women's Clinic, 245 Or App 476, 482, 263 P3d 1072 (2011). The Court of Appeals held that the trial court did not err in awarding attorney fees and costs in favor of CCB because there was no objectively reasonable claim that Plaintiffs could assert once the second sale occurred. Vacated and remanded with instructions.