Articles Posted in Civil Procedure

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The United States Court of Appeals for the Ninth Circuit certified a certified question of Oregon law to the Oregon Supreme Court. The question related to claims under ORS 124.110 for financial abuse of “vulnerable persons” (here, elderly persons) who purchased long-term care insurance from defendant Bankers Life & Casualty Co. (Bankers) and sought to receive insurance benefits under their policies. Specifically, the Ninth Circuit asked whether a plaintiff states a claim under ORS 124.110(1)(b) for wrongful withholding of money or property where it is alleged that an insurance company has in bad faith delayed the processing of claims and refused to pay benefits owed under an insurance contract. Plaintiffs were elderly Oregonians or their successors who purchased long-term healthcare insurance policies sold by Bankers and its parent company. Plaintiffs alleged Bankers developed onerous procedures to delay and deny insurance claims: failing to answer phone calls, losing documents, denying claims without notifying policyholders, denying claims for reasons that did not comport with Oregon law, and paying policyholders less than what they were owed under their policies. Bankers allegedly collected premium payments and, without good cause, delayed and denied insurance benefits to which Plaintiffs were entitled. The Oregon Supreme Court answered in the negative: allegations that an insurance company, in bad faith, delayed the processing of claims and refused to pay benefits owed to vulnerable persons under an insurance contract do not state a claim under ORS 124.110(1)(b) for wrongful withholding of “money or property.” View "Bates v. Bankers Life and Casualty Co." on Justia Law

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The charging order at issue here was issued over limited partnerships’ and limited liability company’s objections that ancillary provisions included in the charging order, which required them to refrain from certain kinds of transactions and provide extensive financial information to the judgment creditor, were not authorized under the controlling statutes. On appeal, the Court of Appeals held that some, but not all, of the ancillary provisions were authorized. The Oregon Supreme Court held a trial court has either general or specific statutory authority to include, in a charging order, ancillary provisions that it finds necessary to allow a judgment creditor access to a debtor-partner’s distributional interest in a company, as long as those provisions do not unduly interfere with the company’s management. Furthermore, the Court held that in this case, the record did not establish that that standard was met and, therefore, that the trial court erred in imposing the challenged ancillary provisions. The Court reversed the Court of Appeals and vacated the circuit court order, and remanded to the circuit court for further proceedings. View "Law v. Zemp" on Justia Law

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The issue before the Oregon Supreme Court in this matter was whether the Court of Appeals correctly construed the scope of ORS 656.019 in a case arising out of plaintiff’s attempt to allege civil negligence claims against his employer, defendant NuStar GP, LLC, for harm arising out of plaintiff’s exposure to gasoline vapors at work. The trial court denied plaintiff Danny Bundy’s motion to amend his complaint to allege those claims after concluding that the claims were barred by the so-called “exclusive remedy” provision of the Workers’ Compensation Law, ORS 656.018, a provision that generally immunizes employers from civil liability for injuries to a worker arising out of the worker’s employment. Plaintiff argued his negligence claims were not barred because they were allowed by ORS 656.019, a statute that governed negligence actions for an injury “that has been determined to be not compensable [under the Workers’ Compensation Law] because the worker has failed to establish that a work-related incident was the major contributing cause of the worker’s injury.” Although plaintiff alleged that he suffered from medical conditions that were determined to be “not compensable” under that major contributing cause standard, the trial court and Court of Appeals concluded that ORS 656.019 did not apply to plaintiff’s negligence action because the conditions on which plaintiff relied were denied after defendant accepted a compensable workers’ compensation claim for plaintiff’s initial condition arising out of the same workplace incident. The Oregon Supreme Court expressly reserved the comprehensive statutory analysis needed to resolve whether the legislature intended ORS 656.019 to function as a substantive exception to the exclusive remedy provision, and resolved only the single issue of statutory construction that was raised by the petition for review and argued by the parties. Because the parties assumed that ORS 656.019 would allow plaintiff to file his Fourth Amended Complaint if the statute applied to plaintiff’s negligence claims, the Supreme Court reversed the trial court’s denial of plaintiff’s motion to amend. “That limited holding is not intended to preclude these or future parties from properly presenting an argument that the legislature did not intend ORS 656.019 to function as a substantive exception to the exclusive remedy provision.” The decision of the Court of Appeals and the circuit court was reversed, and the case was remanded to the circuit court for further proceedings. View "Bundy v. NuStar GP, LLC" on Justia Law

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In light of the fact that Mountain View Paving has ceased the activities that were identified by Rogue Advocates as the bases for its complaint, the remaining question before the Oregon Supreme Court in this matter was whether the appeal was moot. In their complaint, Rogue Advocates contested Mountain View Paving’s operation of an asphalt batch plant. Mountain View Paving was no longer operating that asphalt batch plant, stated that it has no intention to do so in the future, and did not contend that it had a legal right to do so. Thus, a decision in this case will not have a practical effect on the parties, and this case was now moot. View "Rogue Advocates v. Board of Comm. of Jackson County" on Justia Law

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Petitioners challenged the legal sufficiency of the Attorney General’s certified ballot title for Initiative Petition 21 (2018). IP 21, if enacted, would alter the Oregon tax with respect to certain tobacco products in four ways: (1) increase the tax on cigarettes by 100 mills per cigarette, or $2.00 per pack; (2) eliminate the 50-cent cap on cigar taxes; (3) require that all moneys received from the new cigarette tax be first deposited with the state treasurer and, after the payment of any refunds for overpayments, be credited to the Public Health Account, “to be used for the funding of local public health authorities in all areas of the state for public health programs;” and (4) the tax and the use of cigarette-tax revenues would apply retroactively to the distribution of cigarettes and tobacco products on or after January 1, 2018. In this case, the Oregon Supreme Court concluded that, in two respects, the Attorney General’s certified ballot title did not substantially comply with the law. Therefore, it was referred back to the Attorney General for modification. View "Wilson/Fitz v. Rosenblum" on Justia Law

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The Oregon Supreme Court dismissed this ballot title challenge without addressing the merits. The Court determined it did not have authority to consider a ballot title challenge if the underlying initiative measure had not satisfied all the statutory prerequisites for obtaining a ballot title in the first place. View "Unger v. Rosenblum" on Justia Law

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This case presented for the Oregon Supreme Court's review the question of when, if ever, the filing of a third-party complaint constitutes the “filing of a proceeding under subsection (1)” of ORS 60.952(6), such that the shareholder of a closely-held corporation who filed the proceeding could be bought out by the corporation or another shareholder. The corporation here, Graydog Internet, Inc., had only two shareholders: Douglas Westervelt, the company’s president and majority shareholder, and David Giller, an employee and minority shareholder. Graydog initiated the underlying case, at Westervelt’s direction, when it filed a declaratory judgment action against Giller raising an issue regarding his employment. As part of his response, Giller filed a third-party complaint against Westervelt. Graydog then filed an election to purchase Giller’s shares under ORS 60.952(6). Giller objected, arguing that filing a third-party complaint did not constitute the “filing of a proceeding” as that term is used in ORS 60.952(6) and that the claims in the third-party complaint were not “under [ORS 60.952(1)].” For those reasons, Giller asserted, Graydog could not elect to purchase his shares. The Oregon Supreme Court agreed that ORS 60.952(6) did not apply to Giller’s third-party complaint, and therefore reversed the decision of the Court of Appeals which held to the contrary. View "Graydog Internet, Inc. v. Giller" on Justia Law

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Petitioners sought review of the ballot title prepared for Referendum Petition (RP) 301 (2018). Among other things, that bill created a new Health System Fund, which would pay the cost of administering a new Oregon Reinsurance Program, provide additional funding for medical assistance and health services to low-income individuals and families under ORS chapter 414, and make other payments. The bill then imposed temporary, two-year assessments on insurance premiums or premium equivalents received by insurers (section 5(2)), managed care organizations (section 9(2)), and the Public Employees’ Benefit Board (section 3(2)), that would be paid into the State Treasury and credited to the fund. Petitioners contended the caption, the “yes” and “no” result statements, and the summary did not comply with requirements set out in ORS 250.035(2). The Oregon Supreme Court reviewed the ballot title to determine whether it substantially complied with those requirements. The Court agreed with some of petitioners’ contentions, but disagreed with others, concluding that each part of the ballot title required modification. View "Parrish v. Rosenblum" on Justia Law

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This case centered on a public records request made by defendant Oregonian Publishing Company, LLC (The Oregonian), a newspaper, to plaintiff Oregon Health and Sciences University (OHSU), a public health and research university that provided patient care at its hospital, conducted research, and educated health care professionals and scientists. The circuit court ordered OHSU to disclose the requested record, and OHSU appealed. The Court of Appeals reversed and remanded to the circuit court to examine the public records at issue and then determine whether state and federal exemptions permitted OHSU to withhold some of the requested information. On review, the issues narrowed to whether the requested record contained “protected health information” and student “education records” under federal and Oregon law and, if so, whether that information nonetheless had to be disclosed pursuant to ORS 192.420(1), a provision of the Oregon Public Records Law (OPRL). The Oregon Supreme Court concluded the requested record contained protected health information and that ORS 192.420(1) did not require the disclosure of that information. The Court declined to consider whether the part of the requested record consisting of tort claim notices filed by students contained “education records,” and, if so, whether those records were exempt from disclosure. The Court therefore reversed in part, and affirmed in part the decision of the Court of Appeals. View "OHSU v. Oregonian Publishing Co., LLC" on Justia Law

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The question this case presented for the Oregon Supreme Court’s review centered on fees, and whether the legislature intended to depart from the accepted practice of awarding a party entitled to recover attorney fees incurred in litigating the merits of a fee-generating claim additional fees incurred in determining the amount of the resulting fee award in condemnation actions. The trial court ruled that there was no departure, and awarded the property owner in this case the fees that she had incurred both in litigating the merits of the underlying condemnation action and in determining the amount of the fee award. The Court of Appeals affirmed. Finding no reversible error in the Court of Appeals’ decision, the Oregon Supreme Court affirmed. View "TriMet v. Aizawa" on Justia Law