Opinion ID: 1187223
Heading Depth: 1
Heading Rank: 1

Heading: Dispute Between Plaintiff and Canutt and His Attorneys

Text: Canutt and his attorneys urge that since the Workmen's Compensation Law itself provides a scheme for distribution, that scheme must be applied to the full $10,000 paid by Cavalier on the third-party claim without regard to the provisions of the insurance laws concerning PIP benefits. They draw particular attention to the fact that ORS 656.593(1) provides a complete plan for distribution of the total proceeds. Further, they argue that ORS 656.593(1) is entitled to priority over ORS 743.825(1), because the workmen's compensation statute had been in existence for several years prior to the enactment of the PIP benefit laws, and it must be presumed that the Legislature, in enacting one statute, takes notice of, and gives precedence to prior statutory provisions. Insofar as the quoted matter is concerned, they cite no authority. We might well reply with equal logic that if there is a conflict between the two statutes the legislature must, by enacting the conflicting provisions, have intended to amend the earlier statute by implication. We needn't resort to either such mechanical rule of construction. Our initial inquiry is to determine whether the two statutes can be read together in such a way as to avoid any conflict at all. We find they can. It is true, as contended by Canutt and his attorneys, that ORS 656.593(1) governs the distribution of the total proceeds. Those words obviously refer back to the words [t]he proceeds of any damages recovered. This requires us, then, to determine whether all of the $10,000 is damages recovered. This brings us to another part of the PIP benefit statutory scheme. ORS 743.835 provides, in pertinent part, as follows: 743.835 Payment of any [PIP] benefit    to    any insured   shall be applied in reduction of the amount of damage that the insured may be entitled to recover from any insurer under bodily liability or uninsured motorist coverage for the same accident. The three sections of Oregon Revised Statutes are in harmony. Under ORS 743.835 the amount of damage that Canutt was entitled to recover from Hammond, and therefore Cavalier, is reduced by the amount of PIP benefits paid by plaintiff. It follows that the damages recovered from Hammond and Cavalier by Canutt was $6,095.51, and that sum therefore represents the total proceeds to be distributed under ORS 656.593(1). Under ORS 743.825, the other $3,904.49 must properly be distributed to plaintiff. In the respects already discussed, therefore, the trial court's judgment is correct. Canutt and his attorneys alternatively contended below and in this court that from its $3,904.49 plaintiff should share the burden with Cavalier for attorney fees for services rendered by Canutt's attorneys. They urged alternatively that there was either an agreement by plaintiff to pay such fees or that their services were reasonable and necessary in effecting recovery of plaintiff's money, therefore entitling them to recover such fees under State Farm Mut. Auto. Ins. v. Clinton, 267 Or. 653, 518 P.2d 645 (1974), and Ridenour v. Nationwide Mutual Ins., 273 Or. 514, 541 P.2d 1377 (1975). In Clinton we held attorney fees were recoverable for securing reimbursement to the insurer of amounts paid by it under the medical-pay provisions of its policy. In that case we simply assumed that the fees were reasonably and necessarily incurred. In Ridenour we noted that, absent an agreement to the contrary, an insurer is only obligated for attorney fees if it is benefitted. It is plaintiff's position here that it was not benefitted by the services of Canutt's attorneys and that it had not agreed to their representation of plaintiff to secure reimbursement. The trial court conducted an evidentiary hearing upon this issue and concluded that there was no agreement and that the attorneys were not instrumental in effecting plaintiff's recovery. Canutt and his attorneys urge that this is a suit in equity and that this court should review this question de novo under ORS 19.125(3). A declaratory judgment proceeding may sound either at law or in equity. In this case no party actually seeks any relief of an equitable nature. Every party seeks nothing more than a judgment for money. This cause, therefore, sounds in law, and we review as in an action at law. See Ridenour v. Nationwide Mutual Ins., supra , and Lindsey v. Dairyland Insurance Co., 278 Or. 681, 565 P.2d 744 (1977). Since the trial court sat at law without a jury, his findings of fact are entitled to the same weight and effect upon review as would a jury verdict. ORS 17.435. We cannot, therefore, hold the trial court to be in error with respect to his findings unless we can affirmatively say there is no evidence to support his findings. We are precluded from weighing the evidence and must consider it in the light most favorable to the plaintiff, together with all inferences favorable to the plaintiff which could be reasonably drawn from the evidence. Oregon Constitution, Amended Article VII, Section 3, Shepler v. Weyerhaeuser Company, 279 Or. 477, 484, 569 P.2d 1040 (1977). There was evidence as follows: just over two months elapsed between the attorneys' demand upon Cavalier and the settlement of the third party claim. The adjuster engaged by Cavalier testified that within a few days after Canutt's injury he concluded that liability rested with Cavalier's insured and so advised Cavalier. He had immediately paid Canutt's property damage claim in full. There was evidence that in the two months it took to settle the personal injury claim some delay was caused by failure of the attorneys to furnish medical reports and a list of special damages as early as they might have done. There was some correspondence between the attorneys and Cavalier but, except for one contact between an attorney and Cavalier's adjuster, there was no evidence that the claim would be seriously contested. The attorneys presented a claim for over $8,000 in special damages alone for Canutt's injuries, and Cavalier's policy limits were $10,000. The above evidence clearly supports the trial court's finding, and nothing is gained by our reviewing any evidence to the contrary. Canutt and his attorneys make still a further contention  that he and they should be awarded attorney fees for the defense of this proceeding. They direct our attention to no agreement or contract which would entitle them to such fees. Rather, they urge that this is a suit in equity and that It is well established in the State of Oregon that a Court sitting in equity has broad discretion in the awarding of fees and costs. We first note that we have exercised such discretion very sparingly. See, for example, Deras v. Myers, 272 Or. 47, 535 P.2d 541 (1975). In any event, our holding that this is an action at law disposes of that contention.