Blunier v. Staggs

In 2004, Bernard D. and Jean Marie Blunier (plaintiffs) sold a house to Richard Staggs (defendant). The house was sold with a promissory note secured by a trust deed. The trust deed provided that Staggs was required to preserve and maintain the property and to not commit waste. The trust deed also provided that Staggs was responsible for paying all attorney’s fees related to the enforcement of the trust deed. In 2006, Staggs assigned his interest to Walter Scott Zwingli (defendant). Zwingli renovated the property to increase its value. While the renovations were ongoing, Zwingli left construction debris and garbage outside of the property. Upon observing the debris and garbage, the Bluniers sent letters to Staggs and Zwingli instructing them to clean up the property. Staggs and Zwingli declined to accept the letter and the Bluniers involved an attorney in the matter. The attorney informed Staggs and Zwingli that if the property was not cleaned up, then the Bluniers would begin foreclosure proceedings. Staggs and Zwingli cleaned up the property. The attorney then informed Staggs and Zwingli that they owed $460 in attorney’s fees pursuant to the trust deed. Staggs and Zwingli refused to pay the attorney’s fees. The attorney continued to demand the fees which eventually increased the amount owed to over $2,000. By 2009, the promissory note had been paid off, but Staggs and Zwingli had not paid the attorney’s fees. In response, the Bluniers initiated foreclosure proceedings in Oregon state court on the ground that Staggs and Zwingli had committed waste in violation of the trust deed and had not paid their obligation in attorney’s fees. The trial court returned a verdict in favor of the Bluniers. The matter was appealed.