ARMSTRONG, P.J.
Plaintiff Springville Corporation brought an action for legal malpractice against defendants Stoel Rives LLP and attorney James N. Westwood,
Springville contracted with Interstate Roofing, Inc., to remove and replace siding, exterior decks, stairs, and stair landings and repair dry rot on five of eight separate buildings in a 128-unit condominium complex owned by Springville, specifically buildings A, B, C, D, and F. At some point, Springville stopped making payments under the contract due to alleged defects in the work.
Springville submitted a written demand for a jury trial. In pretrial proceedings, the court acknowledged that Interstate's lien-foreclosure claim on Building F was a matter for the court, but that all of the other claims — namely, Interstate's breach-of-contract and quantum meruit claims, as well as Springville's counterclaims for breach of contract and negligence — were jury-trial claims, and the parties and the court discussed at length how best to try the case given those circumstances.
At a pretrial hearing on July 18, 2006, the court suggested that the best course of action would be to try all of the claims at the same time, and counsel for Interstate agreed:
Springville's counsel, however, argued for bifurcation:
The court and trial counsel for Springville then discussed what would happen if — whether tried together or separately — the process yielded inconsistent results:
The discussion continued the next day. Springville's counsel continued to argue for bifurcation, while counsel for Interstate was in favor of trying the whole case simultaneously, with the court deciding the lien claim and the jury deciding the other claims. The court ultimately decided that the trial would proceed initially only to the court, with any remaining jury questions to be litigated in the future. Because Interstate's lien claim concerned only one of the buildings — Building F — and it had made its own request for a jury trial on Springville's counterclaims with regard to Buildings A, B, C, and D as well, Interstate's counsel sought to clarify the scope of the proposed court trial:
Springville's counsel disagreed with that proposition, and indicated his understanding that the court was also going to rule on Springville's counterclaims as to Buildings A, B, C, and D, stating, "That's the way it works, Your Honor. The entire case gets tried." However, counsel also indicated that he understood that there would also be a jury trial on the counterclaims, that it was just a matter of the "timing" of that jury trial. Counsel reiterated that his understanding of ORS 87.060
The trial court ultimately accepted Springville's proposed method of proceeding, explaining to Interstate that it would still get a jury trial on the counterclaims, "but it's not going to be in the Court trial that we do that will include the same information. It will be the one that occurs after that. So that's my reading of it." Interstate's counsel reasserted its position that, because its lien claim related only to Building F, if the court was going to bifurcate and try the lien case first, under ORS 87.060, "this lien foreclosure action and the counterclaim should be limited to the issues raised with regard to Building F." Springville's counsel again disagreed, arguing:
(Emphasis added.) The court ultimately agreed, over Interstate's objection, that Springville was entitled to proceed with all of its counterclaims in the court trial.
In the court trial that followed, Springville introduced evidence and argued in support of an award of damages on all of its counterclaims. During closing argument, Springville argued, among other things, that
The court announced its rulings from the bench after hearing closing arguments. First, as to Interstate's lien claim, the court held that it "will not uphold the lien, based solely on the fact that I believe the lien — the lien was overstated." Second, regarding Springville's negligence counterclaim, the court stated, "I do find as a matter of law that negligence per se and negligence as a theory does not apply and that there is no tort remedy available to Springville." Finally, as to Springville's breach-of-contract counterclaim, the court ruled as follows:
The court also acknowledged that "[t]here are still rights to have a jury trial. I don't assume anything about what you might want to do about that."
Both parties submitted proposed forms of a limited judgment. As pertinent to this appeal, Springville's proposed limited judgment recited that a bench trial was held "of
(Emphasis added.) The judgment also provided:
Springville collected the amount awarded on its breach-of-contract counterclaim, plus interest, and filed a satisfaction of the money award.
After the trial court entered the limited judgment, Springville's trial counsel retained Stoel Rives for advice on whether to file a notice of appeal from the limited judgment. Stoel Rives advised Springville that the limited judgment was not an appealable judgment and, therefore, Springville did not need to file a notice of appeal. Several months later, Interstate moved to voluntarily dismiss its remaining claims for breach of contract and quantum meruit and objected to Springville's request for a jury trial on its counterclaims. Interstate contended that, under the limited judgment, the parties' only "remaining claims" that were "not otherwise resolved" by the court trial were Interstate's breach-of-contract and quantum meruit claims and, therefore, Springville was not entitled to a second trial on its counterclaims. The trial court agreed with Interstate, concluding that Springville's counterclaims were resolved by the limited judgment and that Springville had no further claims outstanding. Accordingly, the court entered a general judgment of dismissal and a supplemental judgment awarding attorney fees.
Stoel Rives, on behalf of Springville, filed a single notice of appeal of all three judgments — that is, the limited judgment, the general judgment, and the supplemental judgment. The Supreme Court ultimately determined that, because "the limited judgment finally resolved all three of the claims that it addressed" — specifically, Interstate's lien claim and Springville's breach-of-contract and negligence counterclaims — and Springville had not timely appealed the limited judgment, Interstate's motion to dismiss the appeal as to those claims should have been granted. Interstate Roofing, Inc., 347 Or. at 163, 218 P.3d 113.
Springville subsequently filed this legal malpractice action against Stoel Rives based on Stoel Rives's erroneous legal advice about the appealability of the limited judgment in the underlying case. Stoel Rives conceded that it should have advised Springville to
In opposition to the motion, Springville responded that
The trial court entered an order granting summary judgment in favor of Stoel Rives, stating, in part:
Springville appeals the resulting general judgment of dismissal.
The elements of a claim for legal malpractice are essentially the same as for an ordinary negligence claim, and the plaintiff bears the burden of pleading and proving the facts necessary to establish those elements. See, e.g., Harding v. Bell, 265 Or. 202, 204, 508 P.2d 216 (1973). That is, a plaintiff who alleges legal malpractice must prove "(1) a duty that runs from the defendant to the plaintiff; (2) a breach of that duty; (3) a resulting harm to the plaintiff measurable in damages; and (4) causation, i.e., a causal link between the breach of duty and the harm." Stevens v. Bispham, 316 Or. 221, 227, 851 P.2d 556 (1993) (emphasis omitted).
As noted, the disputed element on summary judgment in this case is causation. To establish that element in a legal malpractice action, the plaintiff must show that the plaintiff "would have obtained a more favorable result in the earlier action if the attorney had not been negligent." Jeffries v. Mills, 165 Or.App. 103, 122, 995 P.2d 1180 (2000); see also Hoekstre v. Golden B. Products, 77 Or.App. 104, 106, 712 P.2d 149 (1985), rev. den., 300 Or. 563, 715 P.2d 94 (1986) ("When a defendant attorney is negligent in the conduct of an appeal, the plaintiff in the malpractice case must prove that the result of the appeal would likely have been favorable in order to prove that the defendant's negligence caused the plaintiff's damages."). In Jeffries, we explained:
Jeffries, 165 Or.App. at 122, 995 P.2d 1180 (emphasis added).
In this case, as the parties acknowledge, because the alleged attorney negligence involves the failure to timely prosecute an appeal, it presents a legal question. Chocktoot, 280 Or. at 573, 571 P.2d 1255 ("The legal consequences of an attorney's failure, in the earlier case, to present a timely pleading or motion or to take an appeal are matters for argument, not proof."); id. at 575, 571 P.2d 1255
As discussed above, the trial court resolved that question on summary judgment, concluding that Springville had failed to establish that it would have prevailed in an appeal of the limited judgment on any of the three grounds that it asserted and, consequently, that Stoel Rives was entitled to judgment as a matter of law. On appeal, we review that ruling according to the standard set out in Jones v. General Motors Corp., 325 Or. 404, 420, 939 P.2d 608 (1997) (construing ORCP 47 C) — that is, we review the summary judgment record in the light most favorable to Springville, the nonmoving party, to determine if a genuine issue of material fact exists and if Stoel Rives is entitled to judgment as matter of law. "No genuine issue as to a material fact exists if, based upon the record before the court viewed in a manner most favorable to the adverse party, no objectively reasonable juror could return a verdict for the adverse party on the matter that is the subject of the motion for summary judgment." ORCP 47 C. "[T]he party opposing summary judgment has the burden of producing evidence on any issue `raised in the motion' as to which the adverse party would have the burden of persuasion at trial." Two Two v. Fujitec America, Inc., 355 Or. 319, 324, 325 P.3d 707 (2014) (quoting ORCP 47 C).
We begin with Springville's assertion that it would have obtained a reversal of the limited judgment in the underlying case based on the underlying trial court's "denial of Springville's right to a jury trial" on its counterclaims. The trial court rejected that argument, concluding that Springville had "waived its right to a jury trial by [its] conduct." Springville contends that the court erred because Springville had insisted throughout the underlying proceedings that it was entitled to a jury trial on its counterclaims in a second, bifurcated trial, and, therefore, it did not waive its jury-trial rights.
Whatever the merits of that argument, we perceive a more fundamental problem with Springville's ability to establish causation on that ground. As discussed above, Springville must show that it would have prevailed on appeal but for the negligence of Stoel Rives. Springville has failed to do that because it has not identified a ruling by the underlying trial court that it could have successfully challenged in a timely appeal of the limited judgment. See Magno-Humphries, Inc. v. Apex Label & Systems, Inc., 269 Or.App. 561, 566, 344 P.3d 1139, rev. den., 358 Or. 145, 363 P.3d 1287 (2015) (issue not properly presented for appellate review where plaintiff did not identify court rulings that would have raised issue that plaintiff sought to have decided on appeal); Benjamin v. Wal-Mart Stores, Inc., 185 Or.App. 444, 464, 61 P.3d 257 (2002), rev. den., 335 Or. 479, 72 P.3d 76 (2003) ("If a party does not identify a specific legal, procedural, factual, or other ruling by the trial court, ORAP 5.45(3), there is nothing for [the appellate] court to review."); ORAP 5.45(3) (appellant must "identify precisely the legal, procedural, factual, or other ruling that is being challenged").
Here, Springville has not identified, either below or on appeal, a ruling of the trial court that, if challenged, would have properly raised the jury-trial issue in an appeal of the limited judgment. Rather, before the trial court, Springville broadly asserted that the limited judgment in the underlying case would have been reversed and remanded because the trial court in the underlying case
As far as we can imagine from Springville's argument, there are three possible rulings of the trial court that Springville might have sought to challenge on appeal in the underlying case; however, none of those would have led to a reversal of the limited judgment.
First, Springville might have challenged the court's decision to bifurcate the trial. However, Springville indisputably invited any error in that regard. State v. Kammeyer, 226 Or.App. 210, 214, 203 P.3d 274, rev. den., 346 Or. 590, 214 P.3d 822 (2009) (under doctrine of invited error, "a party who was actively instrumental in bringing about an alleged error cannot be heard to complain, and the case ought not to be reversed because of it" (internal quotation marks omitted)). Second, Springville might have assigned error to the limited judgment as being inconsistent with the court's earlier ruling on bifurcation. However, Springville did not preserve that claim of error and, indeed, as noted, apparently concedes on appeal that the judgment was not inconsistent in that regard. Finally, Springville might have pointed to the trial court's entry of judgment on Springville's breach-of-contract and negligence counterclaims as the ruling that it wished to challenge on appeal; however, as our recitation of the record demonstrates, Springville asked the court to enter judgment on those claims.
We acknowledge that the difficulty arises, in part, because of the way in which the underlying case was litigated — in particular, the trial court in the underlying case did not explicitly rule that Springville was not entitled to a second, jury trial on its counterclaims until after the limited judgment was entered. See 276 Or.App. at 734, 372 P.3d at 20. However, to the extent that Springville is now contending that the limited judgment had the effect of extinguishing Springville's jury-trial right, again, Springville seems to have invited any error in that regard. Springville asked the underlying court to rule on its counterclaims; that Springville did so based on an erroneous understanding that it would nonetheless also get a jury trial on those claims does not mean that Springville did not invite the error about which Springville complains.
In sum, Springville has not identified a ruling of the underlying trial court that would have resulted in reversal of the limited judgment on appeal on the ground that Springville was erroneously denied a jury trial on its counterclaims. Accordingly, the trial court in this case did not err in concluding that Springville had failed to demonstrate a genuine issue of material fact as to the causation element of its claim — an issue raised by Stoel Rives's motion for summary judgment for which Springville bore the burden of persuasion at trial — on the theory that the underlying trial court had "denied Springville the right to trial by jury."
Springville also claims that the underlying trial court erred in failing to award full damages on Springville's contract counterclaim, and an appellate court would have reversed the limited judgment on that basis. As noted, the limited judgment awarded Springville $346,872.22 on its breach-of-contract counterclaim; Springville contends that its full compensatory damages were "in excess of $1,000,000." Pointing to the trial court's oral comments that, "had the lien been not invalidated, I would have made that more," Springville contends that the court erred because it based its award of damages on a legally erroneous premise — that it could
As it did below, Stoel Rives presents two arguments in response. First, Stoel Rives contends that, as the trial court correctly concluded on summary judgment, the underlying court's award of damages was supported by evidence in the record and, therefore, not subject to reversal on appeal. See Eden Gate, Inc. v. D & L Excavating & Trucking, Inc., 178 Or.App. 610, 619, 37 P.3d 233 (2002) ("We will affirm a trial court's decision on compensatory damages if any evidence supports it."). Second, Stoel Rives contends that Springville failed to preserve its claim of error in the underlying case, and an appeal would have failed for that reason. As explained below, we agree with Stoel Rives that Springville's argument fails for lack of preservation.
As touched on earlier, 276 Or.App. at 738 n. 8, 372 P.3d at 22, to obtain appellate review of a trial court's ruling, the appellant generally must demonstrate that the issue presented on appeal was raised and preserved in the lower court.
Here, Springville does not address the threshold issue of preservation at all. That is, Springville does not explain why, in an appeal of the limited judgment, the appellate court would not have rejected on preservation grounds Springville's challenge to the underlying trial court's determination of contract damages.
Nor can we envision such a scenario. The error (if any) that Springville now identifies was made when the trial court in the underlying case issued its oral ruling — that is, before judgment was entered — and Springville did not object. The court stated that it was going to "order damages in the amount of * * * [$]346,872.22. And had the lien been not invalidated, I would have made that more." Thus, Springville had an opportunity to challenge the court's reasoning at that time, and it did not do that. Accordingly, it failed to preserve the error.
Springville's third proffered theory of causation is that the limited judgment would have been reversed on appeal based on the underlying court's error in deciding as a matter of law that Springville could not sue Interstate for negligence. As recited earlier, the limited judgment stated in that regard:
(Emphasis added.)
In response, Stoel Rives contends, among other things, that the trial court correctly concluded that, even if the underlying court erred in ruling against Springville on its negligence counterclaim, the error was harmless, and thus would not have resulted in reversal of the limited judgment on appeal. We agree with Stoel Rives that any error in that regard was harmless.
"No judgment shall be reversed or modified except for error substantially affecting the rights of a party." ORS 19.415(2). "[T]o require reversal under the statute, an error must — in an important or essential manner — have materially or detrimentally influenced a party's rights; it is insufficient to speculate that the error might have changed the outcome in the case." Purdy v. Deere and Company, 355 Or. 204, 225, 324 P.3d 455 (2014). Moreover, the party asserting the error has the burden "to demonstrate that the error had the required prejudicial effect." Id. Springville failed to do that here.
As Stoel Rives points out (and the trial court agreed), "both as pleaded and as presented to the trial court, Springville's negligence and breach of contract counterclaims were indistinguishable." Springville's operative pleading asserted exactly the same underlying facts, allegations, and specifications in support of its breach-of-contract counterclaim
Springville contends nonetheless that the error was not harmless because Springville's negligence counterclaim was based on "Interstate's failure to comply with applicable building codes" and "[c]ompliance with building codes is separate and independent from the requirements of the contract." However, one of the allegations of breach asserted in Springville's breach-of-contract counterclaim alleged that "Interstate failed to comply with applicable laws, building codes, and failed to comply with the standard of care that applies to reasonable and competent contractors." Springville repeated and realleged that allegation in its negligence counterclaim. Thus, the two theories were not separate and independent.
Indeed, in closing argument, Springville expressly acknowledged that it made no difference which legal theory the underlying court relied on; it could simply make an award of damages without regard to whether it was based on Springville's negligence or breach-of-contract counterclaims:
(Emphasis added.)
In short, we agree with the trial court that any error in the underlying trial court's dismissal of Springville's negligence counterclaim was harmless "because the damages were identical, * * * the allegations were the same, the proof was the same, [and] no evidence was excluded because the Court wasn't considering the negligence issue." Accordingly, the error would not have resulted in reversal of the limited judgment on appeal, and Springville's final theory as to causation thus fails.
In summary, the trial court correctly concluded that there was no merit to an appeal of the limited judgment in the underlying case on any of the three grounds asserted by Springville. Accordingly, the trial court did not err in granting summary judgment to Stoel Rives.
Affirmed.
(Emphasis added.)
Moreover, it appears that the trial court sought to accomplish by its ruling the result that Springville's lawyer had suggested could result from the court's decision on the lien claim, viz., a conclusion to the litigation. See 276 Or.App. at 741, 372 P.3d at 23-24. As the court implied in its oral ruling, its invalidation of the lien did not mean that Interstate was not entitled to be paid for its work, only that it was not entitled to foreclose its lien because it had overstated it. Although Interstate had not sought relief on its contract and quantum meruit claims in the court-tried portion of the case, it nonetheless intended to seek that relief in the ensuing jury trial. In light of that, the court appears to have signaled that it had reached a net award that reflected its judgment on the merits of all the claims, thereby producing a judgment that the parties could accept as a reasonable approximation of the result that would be reached if the parties' claims were tried to a jury.