In an Oregon residential landlord-tenant dispute, ORS 90.255 attorney fees go to whichever side wins: the prevailing party can recover a reasonable attorney fee, court costs, and necessary disbursements from the losing party, and a lease clause saying otherwise does not hold up. The rule runs both directions. A tenant who wins can collect from the landlord, and a landlord who wins can collect from the tenant.
Which Disputes the Statute Covers
ORS 90.255 reaches “any action on a rental agreement or arising under this chapter,” which pulls in nearly every residential landlord-tenant case in Oregon. Evictions, habitability claims, security deposit fights under ORS 90.300, illegal lockouts, and improper fee charges all qualify.1Oregon State Legislature. Oregon Revised Statutes 90.300 – Security Deposits Fees incurred on appeal are also recoverable, not just fees from the trial court.
The statute applies “notwithstanding any agreement to the contrary.”2Oregon State Legislature. Oregon Revised Statutes 90.255 – Attorney Fees If your lease waives attorney fees or says each party pays their own, that language is unenforceable. The protection runs whether the rental agreement is written or oral.
Who Counts as the Prevailing Party
ORS 90.255 defines the prevailing party as “the party in whose favor final judgment is rendered.”2Oregon State Legislature. Oregon Revised Statutes 90.255 – Attorney Fees Winning a motion along the way does not qualify. There has to be a final judgment. If the case is dismissed with prejudice, the defendant usually prevails because the plaintiff never obtained a favorable judgment.
Mixed outcomes get more complicated. Under ORS 20.077, the court identifies each party that prevailed on a claim where fees are authorized and then decides whether and how much to award on each claim.3Oregon State Legislature. Oregon Revised Statutes 20.077 – Determination of Prevailing Party A tenant who wins a small security deposit claim but loses a larger counterclaim may not be the overall prevailing party. The court looks at the net result. On appeal, the appellate court can designate a prevailing party who obtains a substantial modification of the judgment below.
Is a Fee Award Automatic?
The statute says the court “may” award fees, which technically makes it discretionary. In practice, Oregon courts treat the award as nearly automatic for the prevailing party. The Oregon Court of Appeals held in Tanner v. Grissom that attorney fees “shall be awarded to prevailing party absent unusual circumstances.” A trial court that denies fees to a clear winner without identifying unusual circumstances risks reversal. In Whittle v. Marion County District Court, the Court of Appeals reversed a trial court that failed to award fees where the petitioner prevailed on the sole claim and no unusual circumstances existed.4Oregon Public Law. ORS 90.255 – Attorney Fees
In deciding whether to award fees, the court weighs the factors in ORS 20.075, including the conduct of the parties, whether the claims and defenses were objectively reasonable, whether an award would deter meritless litigation, and whether the parties made reasonable efforts to settle.5Oregon State Legislature. Oregon Revised Statutes 20.075 – Factors to Be Considered by Court in Awarding Attorney Fees
How the Dollar Amount Gets Set
Winning does not mean the court approves every line on your lawyer’s invoice. ORS 90.255 caps any award at a reasonable attorney fee, and the court works through a second set of ORS 20.075 factors to arrive at a number: the time and labor involved, customary local rates, the difficulty and novelty of the issues, the results obtained, the experience and reputation of the attorney, and the fee arrangement with the client.5Oregon State Legislature. Oregon Revised Statutes 20.075 – Factors to Be Considered by Court in Awarding Attorney Fees A straightforward eviction that generates a petition for hundreds of hours will get cut. Appellate courts review these decisions only for abuse of discretion, so trial judges have real latitude.
Costs and Disbursements You Can Recover
Alongside attorney fees, ORS 90.255 allows recovery of “costs and necessary disbursements.” Under ORCP 68, these are reasonable and necessary expenses of pursuing or defending the case, separate from legal advice itself.6Oregon Public Law. ORCP 68 – Pleading, Allowance, and Taxation of Attorney Fees and Costs and Disbursements Recoverable items include witness and officer fees, service and publication costs, postage for service by mail, copying charges for public records or exhibits admitted at trial, and reasonable interpreter expenses at the court’s discretion.
One exclusion catches people off guard: deposition costs are generally not recoverable, even if the depositions were used at trial, unless a specific rule or statute says otherwise. Depositions can be expensive, and the loser usually will not pay for them.
How a Settlement Offer Can Flip the Outcome
Oregon’s offer-of-judgment rule under ORCP 54 E can rewrite the fee math entirely. A party defending against a claim can serve a formal written offer to allow judgment up to 14 days before trial. If the claimant rejects it and then fails to obtain a judgment more favorable than the offer, the claimant loses the right to recover costs, disbursements, and attorney fees incurred after the offer date, and must pay the other side’s post-offer costs and disbursements.7Oregon Public Law. ORCP 54 – Dismissal of Actions; Offer to Allow Judgment
This is where landlord-tenant cases go sideways. A tenant who turns down a reasonable offer and recovers less at trial not only loses the fee-shifting benefit for the back half of the case but may owe the landlord’s post-offer expenses. The same works against a landlord who ignores a tenant’s offer. Treating an ORCP 54 E offer casually is one of the costlier mistakes in these disputes.
Deadlines for Collecting Your Fees
Winning the case is only half the job. To actually collect, the prevailing party has to follow ORCP 68. Miss the deadlines and you forfeit the award, regardless of how strong the case was.
You must file a signed, detailed statement of attorney fees and costs within 14 days after entry of judgment, and serve it on all parties who are not in default.6Oregon Public Law. ORCP 68 – Pleading, Allowance, and Taxation of Attorney Fees and Costs and Disbursements “Detailed” means itemized: the services performed, the time spent, and the rates charged. Courts have denied fee petitions that lacked adequate detail.
The opposing party then has 14 days from service to file written objections pointing to specific charges that should be reduced or eliminated. If the objections raise factual disputes, either side can request a hearing by noting it in the caption of their filing. Without a hearing request, the court may rule on the papers alone.
What If You Represent Yourself
ORS 90.255 authorizes recovery of “attorney fees,” and that word choice matters if you handle your own case. Oregon case law has recognized that an attorney who represents themselves in litigation can recover the reasonable value of their own legal services. A non-attorney representing themselves generally cannot, because the statute refers to fees paid to an attorney. If you are weighing whether to handle a landlord-tenant dispute on your own, factor that in: even a complete win likely will not reimburse you for your own time.