Opinion ID: 835212
Heading Depth: 2
Heading Rank: 3

Heading: The Claim for Attorney Fees

Text: ORS 20.105 authorizes an award of attorney fees in favor of a prevailing party. The tax court granted an award of attorney fees to the department, because it concluded that the department had prevailed on its damages claim against taxpayers under ORS 305.437. For reasons already discussed, the department was not entitled to an award of damages, and the tax court's contrary determination was erroneous. Taxpayers were the prevailing party regarding the department's damages claim; the tax court should have dismissed that claim. Because the department does not satisfy the prevailing party requirement in ORS 20.105, that statute does not authorize the tax court to award attorney fees to the department. The judgment of the Oregon Tax Court is reversed, and the case is remanded to that court for further proceedings.