Justia Oregon Supreme Court Opinion Summaries

A plaintiff, Robert Trebelhorn, suffered a serious knee injury at his apartment complex when a section of an elevated walkway collapsed due to deterioration. The defendants, Prime Wimbledon SPE, LLC, and Prime Administration, LLC, who owned and managed the apartment complex, were aware of the deteriorated condition of the walkway but chose not to repair it. Trebelhorn sued the defendants for negligence and violation of Oregon's Residential Landlord-Tenant Act and won. The jury awarded him just under $300,000 in damages and also imposed punitive damages of $10 million against each defendant. On post-verdict review, the trial court concluded that although the evidence supported some amount of punitive damages, the amount of $10 million would violate the defendants' due process rights. The trial court reduced the punitive damages to just under $2.7 million against each defendant. On cross-appeals, the Court of Appeals agreed with the trial court and affirmed. The Supreme Court of the State of Oregon also agreed with the trial court that $10 million in punitive damages would violate the defendants' due process rights and affirmed the judgment of the trial court and the decision of the Court of Appeals. View "Trebelhorn v. Prime Wimbledon SPE, LLC" on Justia Law

In a forceable entry and detainer (FED) action, the Oregon Supreme Court was asked to determine the proper calculation of damages that could be awarded to a tenant, following multiple instances of landlord noncompliance with certain utility billing requirements that repeated each month, over a series of months. After plaintiff (landlord) brought an FED action against defendant (tenant) to recover possession of the landlord’s premises, tenant alleged a counterclaim that landlord had failed to comply with certain utility billing requirements found in ORS 90.315(4)(b). The trial court agreed with tenant, concluding that landlord had committed 12 separate violations—one per month over the 12 months within the one-year statute of limitations that governed Oregon Residential Landlord and Tenant Act (ORLTA) actions, and awarded tenant statutory damages in an amount equal to 12 months of rent. On landlord’s appeal, the Court of Appeals reversed, concluding that the plain text of ORS 90.315(4)(f) showed that the legislature had not intended for each landlord billing violation to be subject to a separate sanction. The Oregon Supreme Court concurred with the appellate court and affirmed. View "Shepard Investment Group LLC v. Ormandy" on Justia Law

In October 2019, defendants rented an apartment from plaintiff pursuant to a month-to-month tenancy rental agreement. The parties’ agreement required defendants to pay a $1,500 security deposit and $850 a month in rent. When defendants moved in, they personally paid $525 toward their October rent, and, a short time later, the Siletz Tribal Housing Department (STHD) paid plaintiff $1,500 on defendants’ behalf. No further payments were made. On December 17, 2019, plaintiff issued to defendants a written notice for nonpayment of rent and intent to terminate (“termination notice”). The notice stated that defendants owed $1,700 in unpaid rent: $850 for rent in October, and $850 for rent in November. Further, the notice advised defendants that the rental agreement would be terminated if not received by December 27, 2019, at 11:59 p.m. Defendants did not pay any amount, and plaintiff filed an FED action on December 30, 2019. At trial, defendants moved to dismiss the complaint, arguing that the overpayment by SHTD, coupled with the amount they personally paid at the start of the lease, still left defendants owing and unpaid. Furthermore, defendants argued plaintiff did not properly account for the amounts of money he received, and was not specific as to the actual amounts due in the notice. The trial court ultimately ruled in favor of plaintiff. The Oregon Supreme Court reversed, finding that ORS 90.394(3) required that a notice of termination for nonpayment of rent had to specify the correct amount due to cure the default. When the notice states an incorrect amount that is greater than the amount actually due, the notice is invalid, and any subsequent FED action relying on that notice is likewise invalid and requires dismissal. The Court reversed the contrary decisions of both the trial and appellate courts. View "Hickey v. Scott" on Justia Law

Plaintiffs were landlords that rented property in the City of Portland. Plaintiffs filed a declaratory judgment and injunction action against the city contending, as relevant here, that ORS 91.225 preempted an ordinance passed requiring landlords to pay relocation assistance to displaced tenants in certain circumstances. Plaintiffs argued the ordinance impermissibly created a private cause of action that a tenant could bring against a landlord that violates the ordinance. On review, the Oregon Supreme Court concluded ORS 91.225 did not prevent municipalities from enacting other measures that could affect the amount of rent that a landlord charged or could discourage a landlord from raising its rents. The Court further held that ORS 91.225 did not preempt the city’s ordinance. The Supreme Court also rejected plaintiffs’ contention that the ordinance impermissibly created a private cause of action. View "Owen v. City of Portland" on Justia Law

In this forcible entry and detainer (FED) action to recover possession of a residential dwelling unit, the issue presented for the Oregon Supreme Court's consideration was whether the trial court erred in allowing landlord’s motion to amend its complaint, pursuant to ORCP 23, after the parties attended a first-appearance hearing and tenant filed her answer. In its original complaint, landlord alleged that it was entitled to possession based on a 72-hour notice - which, under ORS 90.394, could be given for nonpayment of rent - and attached that notice to its complaint. Two days before trial, landlord sought leave to amend its complaint to attach a different notice, a 30-day notice, which, under ORS 90.392, could be given “for cause,” including a material violation of the rental agreement. The Supreme Court determined the proposed amendment substantially changed landlord’s claim for relief and prejudiced tenant, and that the trial court abused its discretion in allowing it. It therefore reversed both the contrary decisions of the Court of Appeals and the trial court. View "C.O. Homes, LLC v. Cleveland" on Justia Law

In this case, after defendants (tenants) were sued for collection of unpaid rent, they alleged a counterclaim for damages under ORS 90.360(2) on the ground that plaintiffs (landlords) had not maintained the premises in a habitable condition. The trial court dismissed that counterclaim, reasoning that tenants had failed to provide landlords with written notice of the alleged violation and had acted with “unclean hands.” The Court of Appeals affirmed on somewhat different grounds, concluding that, in light of the trial court’s findings, tenants had failed to act in good faith for purposes of ORS 90.130 and that their counterclaim was therefore barred. The Oregon Supreme Court reversed, finding that neither ORS 90.360(2) nor ORS 90.370 required written notice as a prerequisite for a tenant’s counterclaim under ORS 90.360(2). The trial court’s contrary view was erroneous. Moreover, the Supreme Court found the record from the hearing demonstrated that the trial court relied heavily on its erroneous understanding that written notice was required when it determined that tenants had not acted in good faith for purposes of ORS 90.130. Because it could not conclude that the trial court would have reached the same conclusion as to good faith even if it had correctly applied ORS 90.360(2), the matter was remanded to the trial court for further proceedings. View "Eddy v. Anderson" on Justia Law

Leonard and Judith Peverieri and Peverieri Investments, LLC (landlords) appealed a trial court’s judgment confirming an arbitration award in favor of Couch Investments, LLC (tenant). Landlords argued that the arbitrator exceeded his powers when he found not only that landlords were liable for the cost of storm water drainage improvements required by the Department of Environmental Quality (DEQ), but also ordered remedies. Landlords argued on appeal that the trial court erred in denying their petition to vacate the arbitration award, and that the Court of Appeals erred in affirming the trial court’s judgment. After review, the Supreme Court affirmed the outcome, but on different grounds from the Court of Appeals. View "Couch Investments, LLC v. Peverieri" on Justia Law

This case concerned a month-to-month tenancy pursuant to a written rental agreement. After the landlord gave the tenants a 30-day no-cause notice of termination of tenancy and the tenants failed to vacate the premises, the landlord filed an action for possession. The tenants filed an answer denying that the landlord was entitled to possession and alleging that the landlord had given notice of termination because of the tenants' legitimate complaints. The trial court rejected the tenants' defense and made written Findings of Fact and Conclusions of Law. On appeal, the Supreme Court concluded that to prove retaliation under ORS 90.385, a tenant must establish that the landlord served the notice of termination because of the tenant's complaint. The tenant need not prove, in addition, that the complaint caused the landlord actual or perceived injury or that the landlord intended to cause the tenant equivalent injury in return. The Court reversed the appellate court's decision and the judgment of the circuit court, and remanded the case to the circuit court for further proceedings.View "Elk Creek Management Co. v. Gilbert" on Justia Law

ORS 105.135(3) requires a plaintiff in an action for forcible entry and detainer (FED) to serve the summons and complaint "by the end of the judicial day next following the payment of filing fees." The issue in this case was whether failure to serve a summons and amended complaint within one day of the payment of filing fees required dismissal of the FED action. Both the trial court and the Court of Appeals concluded that such a failure did not require dismissal. Plaintiff Balboa Apartments filed an FED complaint against Defendant Lisa Patrick for nonpayment of residential rent. Plaintiff paid the requisite filing fee at the same time. The summons and complaint erroneously listed Defendant's apartment as unit "#20," when, in fact, defendant occupied unit "#28." A process server attempted service on the wrong apartment, ultimately posting a copy of the summons and complaint on the door of unit 20. Plaintiff learned of the mistake and filed an amended complaint that listed the correct unit number. Plaintiff did not pay an additional filing fee, because none was required. The clerk reset the first appearance date. A process server posted the amended complaint and summons at Defendant's apartment. Defendant petitioned for review, and the Supreme Court accepted review to determine whether the Court of Appeals accurately interpreted ORS 105.135. Upon review, the Supreme Court agreed with the trial and appellate courts which held dismissal of the case due to the gap in filing and payment of the filing fee was not warranted. View "Balboa Apartments v. Patrick" on Justia Law