Bob Godfrey Pontiac, Inc. (Godfrey Pontiac) (plaintiff) had previously sued a used-car buyer. That buyer was represented by Larry Roloff and Douglas Melevin (defendants). After Godfrey Pontiac lost in the initial trial, it brought suit against Roloff and Melevin, claiming Roloff and Melevin violated their statutory duty not to mislead the court and jury by false statements of fact. Godfrey Pontiac sought to recover for damage to its reputation and attorney’s fees from the previous action. The attorneys filed a demurrer, and the trial court sustained the demurrer. Godfrey Pontiac appealed to the Oregon Court of Appeals, arguing that the violation of a statutory duty should give rise to a claim for relief by the damaged party. The court of appeals affirmed the trial court’s ruling.