Quote Quoting Rigel
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He cited this in the answer for why they should pay the fees:

http://www.oregonlaws.org/ors/20.105
The key phrase in that statue is:

"that there was no objectively reasonable basis for asserting the claim"

You will first have to win the case and then PROVE, with EVIDENCE, that there was no "objectively reasonable basis." That doesn't automatically follow from just winning the case.

Once you have won the case, you have to petition the court to award you the legal fees so that's a whole nuther round of litigation that you'll have to pay your lawyer to handle for you with no guarantee of winning the fees.

"An award of attorney fees under ORS 20.105(1) is appropriate when the court has made the following findings: (1) the party to whom attorney fees are to be awarded is a prevailing party; (2) the claim, defense, or ground for appeal or review is without merit; and (3) the party taking the meritless position has done so with an improper purpose." Mattiza v. Foster, 803 P. 2d 723 - Or: Supreme Court 1990.

https://scholar.google.com/scholar_c...en&as_sdt=4,38

Not only does the plaintiff's claim have to be meritless, he must also have made the claim with an improper purpose.

That he was just wrong in his assertion of adverse possession isn't enough.

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Quote Quoting Bubba Jimmy
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How can you be racking up lawyer fees in small claims court? Did you get special permission from the court to have a lawyer in a small claim?

You MIGHT get reimbursed for legal expenses IF the court determines that the suit was frivolous or was intended to harass. But that is NOT going to happen with a small claim in which you were not even normally required or expected to have a lawyer.
Actually, that could happen in small claims court. OP's entitled to a lawyer with the consent of the court. Once he feels compelled to hire one (as is his right) the award of fees then does depend on the findings under 20.105 and has nothing to do with "not even normally required or expected to have a lawyer."

Frankly, I'm wondering if the OP isn't mistaken about this being in small claims court as I don't think small claims court is the place for an adverse possession action. Perhaps the OP can clarify.