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CRANDON CAPITAL PARTNERS v. SHELK

(TC No. 0011-11691, 0011-11695; CA A123575 (Control), A123576; SC S53170).

157 P.3d 176 (2007)

342 Or. 555

CRANDON CAPITAL PARTNERS, derivatively on behalf of Willamette Industries, a nominal defendant, Petitioner on Review, v. Stuart J. SHELK, Jr.; Paul N. McCracken; Michael G. Thorne; Gerard K. Drummond; Kenneth W. Hergenhan; Robert M. Smelick; Benjamin R. Whiteley; Winslow H. Buxton; G. Joseph Prendergast; William Swindells; and Duane C. McDougall, Defendants, and Willamette Industries, Inc., Respondent on Review. Rae Ann Brown, derivatively on behalf of Willamette Industries, a nominal defendant, Petitioner on Review, v. Willamette Industries, Inc., Respondent on Review, and William Swindells; Duane C. McDougall; Gerard K. Drummond; Paul N. McCracken; Stuart J. Shelk, Jr.; Michael G. Thorne; Kenneth W. Hergenhan; Robert M. Smelick; Benjamin R. Whitely; Winslow H. Buxton; and G. Joseph Prendergast, Defendants.

Supreme Court of Oregon.

Decided April 12, 2007.

Attorney(s) appearing for the Case

Scott A. Shorr, Stoll Stoll Berne Lokting & Shlachter P.C., Portland, argued the cause and filed the brief for petitioners on review. With him on the brief were Gary M. Berne and Steve C. Berman, Stoll Stoll Berne Lokting & Shlachter, P.C.; Edwin A. Harnden, Barran Liebman LLP, Portland; and Justine Fischer, Portland.

John F. Neupert, Miller Nash, LLP, Portland argued the cause and filed the brief for respondent on review. With him on the brief was Bruce L. Campbell.

Before De MUNIZ, Chief Justice, and CARSON, GILLETTE, DURHAM, and BALMER, Justices.

BALMER, J.

This shareholder derivative action requires us to decide whether plaintiffs' claim for attorney fees remains justiciable after defendants took actions that rendered the underlying substantive claims moot. For the reasons that follow, we answer that question in the affirmative.

Plaintiffs were shareholders of Willamette Industries, Inc. They filed separate actions against certain of Willamette's officers and directors seeking to remove corporate...

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