ORS 183.497
Awarding costs and attorney fees when finding for petitioner


Mentioned in

Agency Policy Challenges: A Different Way to Fight an Assessment

American Bar Association, March 8, 2018

“Interestingly, tax cases do not often take advantage of these administrative challenges. This is surprising when ambiguities in tax statutes are generally construed against the state, giving taxpayers an advantage…”
 
Bibliographic info

(1)

In a judicial proceeding designated under subsection (2) of this section the court:

(a)

May, in its discretion, allow a petitioner reasonable attorney fees and costs if the court finds in favor of the petitioner.

(b)

Shall allow a petitioner reasonable attorney fees and costs if the court finds in favor of the petitioner and determines that the state agency acted without a reasonable basis in fact or in law; but the court may withhold all or part of the attorney fees from any allowance to a petitioner if the court finds that the state agency has proved that its action was substantially justified or that special circumstances exist that make the allowance of all or part of the attorney fees unjust.

(2)

The provisions of subsection (1) of this section apply to an administrative or judicial proceeding brought by a petitioner against a state agency, as defined in ORS 291.002 (Definitions), for:

(a)

Judicial review of a final order as provided in ORS 183.480 (Judicial review of agency orders) to 183.484 (Jurisdiction for review of orders other than contested cases);

(b)

Judicial review of a declaratory ruling provided in ORS 183.410 (Agency determination of applicability of rule or statute to petitioner); or

(c)

A judicial determination of the validity of a rule as provided in ORS 183.400 (Judicial determination of validity of rule).

(3)

Amounts allowed under this section for reasonable attorney fees and costs shall be paid from funds available to the state agency whose final order, declaratory ruling or rule was reviewed by the court. [1981 c.871 §1; 1985 c.757 §5]
Note: 183.497 (Awarding costs and attorney fees when finding for petitioner) was enacted into law by the Legislative Assembly but was not added to or made a part of ORS chapter 183 or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation.

Source: Section 183.497 — Awarding costs and attorney fees when finding for petitioner, https://www.­oregonlegislature.­gov/bills_laws/ors/ors183.­html.

Notes of Decisions

Under former similar statute (ORS 183.495)

Where agency acts as disinterested adjudicatory tribunal, reversal of agency decision does not entitle prevailing party to attorney fees. Wasco County v. AFSCME, 31 Or App 765, 571 P2d 549 (1977), Sup Ct review denied

Attorney fees will generally be awarded if agency order is not supported by substantial evidence or if agency has erroneously interpreted unambiguous statute, interpreted ambiguous statute in unreasonable manner, or exceeded the scope of agency discretion due to unreasonable interpretation of statute or ignorance of limits on agency discretion. Van Gordon v. Board of Dental Examiners, 63 Or App 561, 666 P2d 276 (1983)

Attorney fees will generally not be awarded if agency interpretation of statute or rule was incorrect but reasonable, or where agency made procedural mistake that was not willful or of constitutional magnitude. Van Gordon v. Board of Dental Examiners, 63 Or App 561, 666 P2d 276 (1983)

No authorization is provided for award of fees for court proceedings ancillary to administrative action under review, or fees generated by administrative actions themselves, but only fees incurred in appealing the decision. Van Gordon v. Board of Dental Examiners, 63 Or App 561, 666 P2d 276 (1983)

Where agency action on remand is discretionary, attorney fees will not be awarded. Oregon Education Association v. Eugene School District 4J, 63 Or App 575, 666 P2d 272 (1983)

Where agency reconsiders and reverses order while judicial review is pending and petition is dismissed, petitioner is not entitled to recover costs. Nichols v. AFSD, 71 Or App 201, 691 P2d 518 (1984)

In general

Where pivotal issue on the merits was whether petitioner, who had gone through marriage ceremony that was subsequently determined to be invalid, was nonetheless “ceremonially married” for purposed of AFS rule, it was obvious that reasonable minds could differ as to the answer and thus the division’s adoption of that view was reasonable although legally incorrect and petitioner was not entitled to attorney fees under this statute. Baptist v. Adult and Family Services Div., 64 Or App 265, 668 P2d 428 (1983)

For petitioner to qualify for award of attorney fees and expenses, agency must have actively opposed petitioner and relief granted must substantially alter or invalidate significant portion of agency order in manner that is expected to benefit petitioner. Johnson v. Employment Div., 64 Or App 276, 668 P2d 416 (1983), Sup Ct review denied; Kusyk v. Water Resources Dept., 164 Or App 738, 994 P2d 798 (2000)

In contested case context if final order is deficient in either fact or law attorney fees may be awarded under this section. Douglass v. AFSD, 64 Or App 439, 668 P2d 1232 (1983)

Petition for attorney fees was denied where legal issues presented by underlying case were relatively novel, precedent was not dispositive and there were salutary purposes to be served by act Commissioner was enforcing so that Commissioner’s actions were reasonable although wrong. Civil Service Bd of Portland v. Bureau of Labor, 67 Or App 729, 680 P2d 16 (1984)

When agency’s function in case has been solely that of disinterested adjudicator, no award of attorney fees is appropriate. Pierce v. Douglas School Dist. No. 4, 68 Or App 1, 680 P2d 654 (1984)

Where agency reconsiders and reverses order while judicial review is pending and petition is dismissed, petitioner is not entitled to recover costs. Nichols v. AFSD, 71 Or App 201, 691 P2d 518 (1984)

Judicial review proceeding is “against a state agency” if agency was “real protagonist” either before or on review. Hoard v. Employment Division, 82 Or App 718, 729 P2d 593 (1986)

Where agency did not participate in making, and did not attempt to defend, decision leading to review, petitioner is not entitled to attorney fees under this section because agency not “real protagonist.” Hoard v. Employment Division, 82 Or App 718, 729 P2d 593 (1986)

Costs in workers’ compensation cases are not controlled by this section because judicial review of those cases is as provided in workers’ compensation statutes, not administrative procedures act. Compton v. Weyerhaeuser Co., 302 Or 366, 730 P2d 540 (1986)

Subject matter jurisdiction over award of costs blocked collateral attack or prior erroneous judgment. Callahan v. Employment Division, 97 Or App 234, 776 P2d 21 (1989)

Where reasonable minds could differ as to scope of law, Employment Division’s action did not lack reasonable basis in law or fact and petitioner was not entitled to attorney fees. North Pacific Supply Co., Inc. v. Emp. Div., 100 Or App 553, 787 P2d 495 (1990), Sup Ct review denied

Court decision rendered on procedural grounds without addressing ultimate merits of claim may be decision “in favor of” petitioner. Kaib’s Roving R.Ph. Agency, Inc. v. Employment Department, 338 Or 433, 111 P3d 739 (2005)

Court finds in favor of petitioner if significant portion of order petitioner challenges is altered or invalidated to benefit or apparent benefit of petitioner, regardless of whether petitioner is prevailing party. G.A.S.P. v. Environmental Quality Commission, 222 Or App 527, 195 P3d 66 (2008)

Objective reasonableness of agency action does not preclude discretionary award of attorney fees where totality of criteria under ORS 20.075 supports award. G.A.S.P. v. Environmental Quality Commission, 222 Or App 527, 195 P3d 66 (2008)

183.310
Definitions for chapter
183.315
Application of provisions of chapter to certain agencies
183.325
Delegation of rulemaking authority to named officer or employee
183.330
Description of organization
183.332
Policy statement
183.333
Policy statement
183.335
Notice
183.336
Cost of compliance effect on small businesses
183.337
Procedure for agency adoption of federal rules
183.341
Model rules of procedure
183.355
Filing and taking effect of rules
183.360
Publication of rules and orders
183.365
Publication of administrative rules in electronic form
183.370
Distribution of published rules
183.390
Petitions requesting adoption of rules
183.400
Judicial determination of validity of rule
183.403
Agency report to Legislative Assembly regarding temporary rules
183.405
Agency review of rules
183.407
Small Business Rules Advisory Committee
183.410
Agency determination of applicability of rule or statute to petitioner
183.411
Delegation of final order authority
183.413
Notice to parties before hearing of rights and procedure
183.415
Notice of right to hearing
183.417
Procedure in contested case hearing
183.425
Depositions or subpoena of material witness
183.430
Hearing on refusal to renew license
183.435
Period allowed to request hearing for license refusal on grounds other than test or inspection results
183.440
Subpoenas in contested cases
183.445
Subpoena by agency or attorney of record of party when agency not subject to ORS 183.440
183.450
Evidence in contested cases
183.452
Representation of agencies at contested case hearings
183.453
Representation of Oregon Health Authority and Department of Human Services at contested case hearings
183.457
Representation of persons other than agencies participating in contested case hearings
183.458
Nonattorney and out-of-state attorney representation of parties in certain contested case hearings
183.459
Representation of home care worker by labor union representative
183.460
Examination of evidence by agency
183.462
Agency statement of ex parte communications
183.464
Proposed order by hearing officer
183.470
Orders in contested cases
183.471
Preservation of orders in electronic format
183.480
Judicial review of agency orders
183.482
Jurisdiction for review of contested cases
183.484
Jurisdiction for review of orders other than contested cases
183.485
Decision of court on review of contested case
183.486
Form and scope of decision of reviewing court
183.490
Agency may be compelled to act
183.497
Awarding costs and attorney fees when finding for petitioner
183.500
Appeals
183.502
Authority of agencies to use alternative means of dispute resolution
183.530
Housing cost impact statement required for certain proposed rules
183.534
Housing cost impact statement described
183.538
Effect of failure to prepare housing cost impact statement
183.540
Reduction of economic impact on small business
183.605
Office of Administrative Hearings
183.610
Chief administrative law judge
183.615
Administrative law judges
183.620
Contract administrative law judges
183.625
Assignment of administrative law judges
183.630
Model rules of procedure
183.635
Agencies required to use administrative law judges from Office of Administrative Hearings
183.640
Use of Office of Administrative Hearings by exempt agencies and by political subdivisions
183.645
Request for change of administrative law judge
183.650
Form of order
183.655
Fees
183.660
Office of Administrative Hearings Operating Account
183.665
Estimates of office expenses
183.670
Rules
183.675
Alternative dispute resolution
183.680
Standards and training program
183.685
Ex parte communications
183.690
Office of Administrative Hearings Oversight Committee
183.700
Permits subject to ORS 183.702
183.702
Statement of criteria and procedures for evaluating permit application
183.705
Extended term for renewed licenses
183.710
Definitions for ORS 183.710 to 183.730
183.715
Submission of adopted rule to Legislative Counsel required
183.720
Procedure for review of agency rule
183.722
Required agency response to Legislative Counsel determination
183.724
Designation of interim committees for purposes of considering rule reports
183.730
Review of rule by Oregon Sunshine Committee
183.745
Civil penalty procedures
183.750
State agency required to prepare public writings in readable form
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