Homes Assoc. of Cedar Hills v. Craig

If “a contract is ambiguous, and there is relevant competing extrinsic evidence to resolve the ambiguity, ascertaining the meaning of the contract involves a question of fact and the dispute over the contract’s meaning cannot be resolved on summary judgment.” Adair Homes, Inc. v. Dunn Carney, 262 Or App 273, 278 (2014). If there is no relevant competing extrinsic evidence, the court applies “established maxims of construction to determine the meaning of the disputed provisions.” Cryo-Tech, Inc. v. JKC Bend, LLC, 313 Or App 413, 423-24 (2021).

In a dispute arising from the Restated Declaration of Restrictions of Homes Association of Cedar Hills (Declaration), defendants’ motion for summary judgment was granted and a supplemental judgment awarded defendants’ attorney fees. Homes Association of Cedar Hills (HACH) assigns error to the trial court’s grant of summary judgment and award of additional attorney fees without a hearing as required under ORCP 68. If “a contract is ambiguous, and there is relevant competing extrinsic evidence to resolve the ambiguity, ascertaining the meaning of the contract involves a question of fact and the dispute over the contract’s meaning cannot be resolved on summary judgment.” Adair Homes, Inc. v. Dunn Carney, 262 Or App 273, 278 (2014). If there is no relevant competing extrinsic evidence, the court applies “established maxims of construction to determine the meaning of the disputed provisions.” Cryo-Tech, Inc. v. JKC Bend, LLC, 313 Or App 413, 423-24 (2021). Because both parties’ interpretations of the Declaration are plausible, the Declaration is ambiguous and requires the legal maxim of construction, construing the Declaration against the drafting party (HACH). Applying that maxim, HACH’s attorney fees are not covered by the Declaration; therefore, the trial court did not err in granting defendants’ motion for summary judgment. However, the judgment awarding attorney fees was erroneous because the trial court did not hold a hearing after HACH objected to additional attorney fees sought by defendants. General judgment affirmed; portion of supplemental judgment awarding attorney fees vacated and remanded; otherwise affirmed.