Justia Oregon Supreme Court Opinion Summaries

Articles Posted in Contracts
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Plaintiff Sunset Presbyterian Church contracted with defendant Brockamp & Jaeger to act as its general contractor and build a new church facility. Defendant then subcontracted with Anderson Roofing Company and other subcontractors to perform various specialized construction tasks. Plaintiff did not enter into a contractual relationship with any of the subcontractors. In early 2009, plaintiff allegedly discovered extensive water damage in the church, and filed an action asserting tort claims against defendants. Defendant general contractor filed an affirmative defense alleging that, by the terms of the parties' contract, plaintiff's claims accrued on the "date of substantial completion" and were time-barred. A defendant-subcontractor, which was not a party to that contract, filed an affirmative defense alleging that plaintiff's claims were barred by the statute of ultimate repose. Both defendants moved for summary judgment. The trial court granted their motions and dismissed the case. The Court of Appeals reversed. Defendants then petitioned for review. The Supreme Court concluded that defendants were not entitled to summary judgment, affirmed the decision of the Court of Appeals, reversed the decision of the trial court, and remanded the case to the trial court for further proceedings. View "Sunset Presbyterian Church v. Brockamp & Jaeger" on Justia Law

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Plaintiff, a seller seeking damages from a buyer that breached contracts to purchase goods, argued at trial that it was entitled to recover its market price damages. The trial court determined that plaintiff was entitled to the lesser of its market price damages or its resale price damages, and the court ultimately awarded plaintiff its resale price damages. The Court of Appeals reversed and remanded, because the it determined that plaintiff could recover its market price damages, even though it had resold some of the goods at issue. Upon review of the matter, the Supreme Court agreed that plaintiff was entitled to recover its market price damages, even if those damages exceeded plaintiff's resale price damages. View "Peace River Seed Co-Op v. Proseeds Marketing" on Justia Law

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Plaintiff was injured when one negligent driver and (shortly thereafter) another negligent driver collided with the truck in which plaintiff was a passenger. The underinsured motorist benefits available to plaintiff under the terms of the insurance policy that she purchased from turned on the meaning of the term "accident" as that term was used in that policy and is used in corresponding Oregon financial responsibility statutes. After its review, the Supreme Court concluded that the legislature intended that the term "accident" have its ordinary meaning, and that plaintiff presented evidence from which a jury could find that her injuries had been incurred in more than one "accident." Under the facts of this case, the Court reversed the Court of Appeals and remanded the case back to the trial court for further proceedings. View "Wright v. Turner" on Justia Law

Posted in: Contracts, Injury Law
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The issue before the Supreme Court in this case centered on alternative legal and equitable claims for damages and a constructive trust on real property that arose from the same breach of fiduciary duty. The primary issue on review was whether plaintiff's election of the equitable constructive trust remedy was foreclosed by a jury determination that plaintiff's damages for the breach of fiduciary duty were $1. The Court concluded that the trial court properly permitted plaintiff to elect its equitable remedy. View "Evergreen West Business Center, LLC v. Emmert" on Justia Law

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In this employment case, the issue before the Supreme Court was whether a prospective employee could bring a promissory estoppel claim or a fraudulent misrepresentation claim based on an employer's representations regarding a job that was terminable at will. Plaintiff worked as a salesperson for defendant for nearly eight years before he had a heart attack that required him to seek a less stressful job. In reliance on his manager's promise that plaintiff would be given a new "corporate" job with defendant that would meet his health needs, plaintiff turned down a job with a different employer. Ultimately, defendant did not hire plaintiff for the corporate job, and plaintiff subsequently had to take jobs that paid less than the corporate job or less than the position that he had turned down. Plaintiff sued claiming promissory estoppel, fraudulent misrepresentation, and unlawful employment practices, including discrimination. The trial court granted partial summary judgment for defendant on the promissory estoppel and fraudulent misrepresentation claims, and plaintiff dismissed the unlawful employment practices claim without prejudice. The Court of Appeals affirmed, holding that because the corporate job was terminable at will, plaintiff could not reasonably rely on the promise of employment or recover future lost wages. "[T]he at-will nature of employment does not create a conclusive presumption barring plaintiff from recovering future lost pay where the employee has been unlawfully terminated… or as in this case, where plaintiff was never hired as promised or allowed to start work." The Supreme Court concluded the appellate court erred in determining that as a latter of law, plaintiff could not reasonably rely on defendant's representations and could not recover future lost wages. Both the appellate and trial courts' decisions were reversed, and the case remanded for further proceedings. View "Cocchiara v. Lithia Motors, Inc." on Justia Law

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The issue before the Supreme Court in this case was the interpretation of a commercial general liability (CGL) policy that Defendant Farmers Insurance Exchange sold to Plaintiff Bresee Homes, Inc. The trial court granted a motion for summary judgment in favor of Farmers and denied Bresee's cross-motion for partial summary judgment. The dispute stemmed from a homeowner suit in which Bresee claimed Farmers had a duty under the CGL to defend, and to reimburse for any damages arising out of the homeowners' suit. Upon review of the subject policy, the Supreme Court concluded that the Farmers owed a duty to defend to Bresee. Accordingly, the Court concluded the trial court erred in granting Farmers' motion for summary judgment, and for denying Bresee's cross-motion on the issue of the duty to defend. The Court could not determine whether the policy afforded a basis for indemnification, and as such, neither party was entitled to summary judgment on that issue. The case was reversed and remanded to the trial court for further proceedings. View "Bresee Homes, Inc. v. Farmers Ins. Exchange" on Justia Law

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In this construction defect case, defendant moved for summary judgment, and the trial court granted the motion. Plaintiff then filed a "motion for reconsideration" of the summary judgment ruling. The court meanwhile entered judgment, and plaintiff filed a notice of appeal. When the trial court later denied the motion for reconsideration, plaintiff did not file a new notice of appeal. The question in this case was whether plaintiff needed to do so. Defendant argued that, because a motion for reconsideration constitutes a motion for new trial, its filing rendered plaintiff's earlier notice of appeal premature and, as a consequence, a nullity. Plaintiff argued that the motion for reconsideration did not constitute a motion for a new trial and thus had no effect on the filing of the notice of appeal. The Court of Appeals concluded that, under "Carter v. U.S. National Bank," (747 P2d 980 (1987)), a motion for reconsideration constitutes a motion for a new trial. Nevertheless, the court held that the filing of the motion did not have the effect of rendering the appeal a nullity. Consequently, the court concluded that plaintiff was not required to file a new notice of appeal. Upon review, the Supreme Court held that "Carter" and earlier decisions declaring that a motion for reconsideration of a summary judgment constitutes a motion for a new trial were incorrectly decided. In this case, plaintiff's filing of the motion for reconsideration of the summary judgment did not render the filing of the notice of appeal premature. Accordingly, the Court affirmed the decision of the Court of Appeals on different grounds. View "Assoc. Unit Owners of Timbercrest Condo v. Warren" on Justia Law

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Plaintiffs Greenwood Products, Inc. and Jewett-Cameron Lumber Corp. obtained a jury verdict in their favor on a breach of contract claim against Defendants Forest Products, Dovenberg, and LeFors. They appealed the Court of Appeals' decision that reversed the judgment entered on that verdict. The contract in question required Defendants to sell, and Plaintiffs to buy all of Defendants' inventory, for a certain percentage over Defendants' cost for that inventory. Plaintiffs alleged that Defendants had breached the contract by erroneously accounting for their cost of inventory, causing Plaintiffs to pay $820,000 more for the inventory than they should have. Defendants moved for a directed verdict on the breach of contract claim, but the trial court denied the motion and sent the claim to the jury, which returned a verdict for Plaintiffs. The Court of Appeals held that the trial court should have granted defendants' motion for a directed verdict because the contract did not impose any obligation on defendants to accurately account for the cost of the inventory. Upon review, the Supreme Court concluded that the trial court in this case properly rejected each of the grounds that Defendants' raised at trial for granting their motion for a directed verdict. The Court also concluded that the additional argument that the Court of Appeals relied on in reversing the trial court was not preserved, and therefore reversed the appellate court's decision overturning the trial court. View "Greenwood Products v. Greenwood Forest Products" on Justia Law

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Pursuant to ORS 742.061, Plaintiffs Zidell Marine Corporation petitioned to recover attorney fees that they incurred for the preparation of appeals before both the Court of Appeals and Supreme Court. Defendant Lloyds of London contended that as a result of a 2005 amendment to the statute, Zidell could not recover fees incurred after the effective date of the amendment. In the alternative, Lloyds argued that Zidell was only entitled to fees for work it did to establish Lloyds had a duty to defend, or that the billing records Zidell submitted did not support its request for fees. Upon review of the applicable legal authority, as well as the billing records and the Lloyds insurance contract, the Supreme Court held that Zidell could recover the attorney fees in incurred to establish Lloyds' duty to defend and for the preparation of the fee petition. View "ZRZ Realty v. Beneficial Fire and Casualty Ins." on Justia Law

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Plaintiff Darrell Kasberg farmed piece of property leased from the Wheelers. The Wheelers agreed to loan Plaintiff money, using farmland he owned as collateral. When disagreements arose, the Wheelers threatened to evict Plaintiff from both his land and the leased land. On the day of the eviction trial, Plaintiff told his lawyer from Defendant firm Davis Wright Tremaine, LLP that he would be willing to give up his right to repurchase the leased farmland if the Wheelers would remove a crop lien placed on the land in time for him to meet a planting deadline. Plaintiff's lawyer met with the Wheelers' lawyer and they negotiated an oral settlement agreement. Plaintiff was not present at that meeting. The agreement required (amongst other things) that Plaintiff relinquish any interest or claim of interest in, and surrender possession of his collateral farmland. In exchange, the Wheelers agreed to dismiss their breach of contract action and to remove the lien. Plaintiff would later learn and inform his lawyer that the Wheelers had not removed the lien. This resulted in Plaintiff missing the planting deadline, and he lost an opportunity to receive both money from the sale of the crop and related government subsidies. Plaintiff wished to file an suit against the Wheelers for their handling of the crop lien, and approached his lawyer to handle the case. Though his lawyer lead Plaintiff to believe he would be successful in pursuit of the Wheelers, the lawyer had in reality given bad advice with regard to the statute of limitations that governed Plaintiff's suit. Plaintiff then initiated suit against his former lawyer and Defendant firm, alleging legal malpractice in handling the Wheeler lien dispute. The trial court decided that the facts did not present a genuine issue as to whether Plaintiff knew or should have known before he filed his action, that Defendant had negligently negotiated the oral settlement agreement. The court concluded that Plaintiff's action was thus time-barred. Upon review, the Supreme Court concluded Plaintiff proffered evidence from which a jury could reasonably find that he did not have actual knowledge that his attorney's acts or omissions were a cause of his damages. As such, the Court reversed the trial court's holding and remanded the case for further proceedings. View "Kaseberg v. Davis Wright Tremaine, LLP" on Justia Law