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Iversen v. Kiger

Citations: 48 Or. App. 873; 617 P.2d 1386; 1980 Ore. App. LEXIS 3645Docket: No. 36066, CA 16414

Court: Court of Appeals of Oregon; October 20, 1980; Oregon; State Appellate Court

Narrative Opinion Summary

The case involves a dispute over a real estate contract between the plaintiffs, successors to the original vendor, and the defendant, a buyer. The contract, initially formed in 1971, included a 'time essence' clause, which was waived by the vendor due to acceptance of late payments. When the plaintiffs initiated a strict foreclosure action, the court ruled it was premature, as the plaintiffs failed to provide reasonable notice of default and a sufficient opportunity for the defendant to cure the alleged default. The court found the foreclosure complaint was improperly filed, referencing Stinemeyer v. Wesco Farms, Inc. for precedent on reasonable notice requirements. As a result, the defendant successfully used a plea in abatement and was permitted to rectify the default by a specified date. The court dismissed the foreclosure complaint and awarded the defendant $3,000 in attorney’s fees, supported by a post-trial affidavit. The plaintiffs contested the fees, arguing the lawsuit was necessary, but the court affirmed the award. Additional costs objected to by the plaintiffs were denied, and the defendant's failure to update his address was deemed irrelevant. Thus, the court’s decision focused on the premature nature of the foreclosure action and the lack of proper procedural adherence by the plaintiffs.

Legal Issues Addressed

Attorney's Fees Award under Contract Provisions

Application: The award of attorney’s fees to the defendant was justified under the contract provisions after the premature foreclosure filing.

Reasoning: The award of attorney’s fees was justified based on the contract provisions.

Premature Foreclosure Action

Application: The court found the foreclosure action was initiated prematurely due to insufficient notice and opportunity to cure alleged defaults.

Reasoning: The court determined that the strict foreclosure action regarding a real estate contract was initiated prematurely, resulting in the dismissal of the plaintiff's complaint and the awarding of attorney's fees and costs to defendant Kiger.

Reasonable Notice and Cure Period Requirement

Application: The plaintiffs failed to provide reasonable notice of default and a reasonable period to cure, as required by precedent.

Reasoning: The court concluded that reasonable notice of default and a reasonable cure period were not provided, referencing Stinemeyer v. Wesco Farms, Inc. for support.

Vendee’s Right to Plea in Abatement

Application: The defendant successfully raised a plea in abatement to challenge the premature foreclosure action.

Reasoning: Citing the Stinemeyer case, the court recognized that the vendee could raise this issue through a plea in abatement, which defendant Kiger successfully did.

Waiver of Time Essence Clause in Real Estate Contracts

Application: The vendor waived the 'time essence' clause by accepting late payments, impacting the enforcement of the contract terms.

Reasoning: Although the contract included a 'time essence' clause, the vendor waived this provision by accepting late payments over the years.