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McDonald v. United States National Bank

Citations: 113 Or. App. 113; 830 P.2d 618; 1992 Ore. App. LEXIS 924Docket: A8811-06347; CA A66109

Court: Court of Appeals of Oregon; May 13, 1992; Oregon; State Appellate Court

Narrative Opinion Summary

In this case, plaintiffs, beneficiaries of a trust, appealed the trial court's directed verdict which dismissed their negligence claim against the defendant trustee. The plaintiffs alleged negligence after their inherited property was down-zoned, a change the trustee allegedly failed to disclose, impacting the property's value. They claimed the statute of limitations began in 1988 upon discovering the defendant's role in their injury. However, the court found that evidence showed one plaintiff was aware of the devaluation by 1985, affirming the directed verdict based on the statute of limitations. Concurrently, the defendant cross-appealed the denial of attorney fee reimbursement under ORS chapter 128. The appellate court reversed this denial, emphasizing that trustees are entitled to reasonable expense reimbursement incurred in defending actions related to their duties. The case was remanded for the trial court to reconsider the attorney fee issue. Thus, the court affirmed the dismissal of the negligence claim and required further consideration of the fee reimbursement claim, underscoring the applicability of statutory provisions governing trustee conduct.

Legal Issues Addressed

Directed Verdict in Negligence Claims

Application: The court found that a directed verdict was appropriate due to insufficient evidence supporting the plaintiffs' negligence claim.

Reasoning: The court clarified that a directed verdict is appropriate when there is insufficient evidence for a claim as a matter of law.

Reimbursement of Attorney Fees for Trustees

Application: The appellate court reversed the trial court's denial of attorney fee reimbursement, holding that trustees are entitled to reimbursement under ORS chapter 128 for defending actions related to their duties.

Reasoning: The court found that the chapter applies to the trustee's defense of actions related to its duties.

Statute of Limitations for Negligence Claims

Application: The court determined that the statute of limitations began when the plaintiffs were aware of the property's devaluation in 1985, rejecting their argument that it started in 1988.

Reasoning: The court noted that one plaintiff, Tom McDonald, was aware of the property’s devaluation by 1985, which triggered the statute of limitations.