Appeals court backs Eagle Air decision

The Oregon Court of Appeals, on Wednesday, March 16, upheld a Deschutes County Circuit Court decision in favor of the Eagle Air Estates Homeowners Association in a long-running battle with homeowner plaintiffs Michael and Janet Morgan and Cydnie Harp over "reversionary interest" in the adjacent Sisters Airport.

However, the appeals court rejected the lower court's ruling awarding attorney's fees to the homeowners association for assistance to Vernon and Sandra Goodsell in defending themselves against claims.

The Morgans and Harp went to court against Vernon and Sandra Goodsell and Eagle Air Estates Homeowners Association in April 2003.

They claimed they could lose access to the Sisters Airport runway if the owner stops operating the runway.

If airport owners decide to close the airport, portions of the land "revert" to previous owners of the land (or others to whom the original owners sold their "reversionary interest").

Eagle Air Estates developer Goodsell had a "reversionary interest" that would return ownership of one-third of the airport runway to him if the airport was no longer in operation.

Morgan and Harp argued in court that Goodsell would benefit from the airport closing.

Judge Alta Brady ruled against the plaintiffs in July 2003.

The appeals court affirmed without opinion the circuit court decision on the bulk of the court decision. However, the court vacated and remanded a portion of the decision awarding some attorney's fees to the homeowners association "that reflected time and effort in assisting the Goodsells in defending the claims that plaintiffs brought against them."

The court's opinion was that the trial court should have apportioned the fees in a more limited manner in claims brought directly against the defendants. The remand will likely force re-litigation of attorney's fees.