Mathis v. St. Helens Auto Center, Inc.

Under the reasoning of Powers v. Quigley, the “reasonable” attorney fee required by ORS 652.200(2) cannot be categorically limited through ORCP 54 E(3). 345 Or 432, 438, 198 P3d 919 (2008).

After Employer terminated Employee’s employment, Employee filed an action alleging that Employer had failed to pay wages that were due at termination. Employer made an offer of judgment under ORCP 54 E, which Employee rejected. The arbitrator found that Employer failed to pay some of the wages Employee claimed and, because that failure was willful, Employee was entitled to attorney fees under ORS 652.200(2). The arbitrator applied ORCP 54 E(3) to limit Employee’s award to fees and costs incurred before Employer’s offer of judgment. The circuit court and the court of appeals affirmed. On appeal, Employee argued that “the legislative intent underlying the mandatory fee award described in ORS 652.200(2) makes that statute inconsistent with the post-filing opportunity that ORCP 54 E(3) offers.” Employer argued that “the two provisions both serve the purpose of encouraging employers to resolve wage claims more promptly.” To determine legislative intent, courts look primarily to the text and context of the statute because “there is no more persuasive evidence of the intent of the legislature than the words by which the legislature undertook to give expression to its wishes.” State v. Gaines, 346 Or 160, 171, 206 P3d 1042 (2009). “[I]f the court can give full effect to both statutes, it will do so, and if not, it will treat the specific statute as an exception to the general.” Powers, 345 Or at 438. The Court found that ORS 652.200(2), which applies to a specific category of claim, “is more particular than, and is paramount to, ORCP 54 E(3).” Thus, the Court concluded “that in the context of a claim governed by ORS 652.200(2), allowing Employer to limit its fee obligation under ORCP 54 E(3) conflicts with the legislative intent underlying the statutory fee obligation.” Reversed and remanded to the circuit court for further proceedings.