Justia Oregon Supreme Court Opinion Summaries

Articles Posted in Real Estate & Property Law
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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

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As part of a highway improvement project, plaintiff Oregon Department of Transportation (ODOT or the state), brought a condemnation action against defendant Alderwoods (Oregon), Inc., seeking to acquire "[a]ll abutter’s rights of access, if any," between defendant’s property and Highway 99W. The improvement project involved rebuilding the sidewalk along Highway 99W and eliminating two driveways that previously had allowed direct vehicular access from defendant’s property to the highway. Defendant’s property retained access to the highway, however, by means of two driveways onto a city street that ran perpendicular to and intersected the highway. Before trial, the state moved in limine to exclude as irrelevant evidence of any diminution in value of defendant’s property as a result of the loss of the two driveways. The trial court concluded that the elimination of those driveways had not effected a taking of defendant’s right of access to the highway and granted the state’s motion. The Court of Appeals affirmed. The Supreme Court agreed with the appellate court that there was no taking in this case, and affirmed. View "ODOT v. Alderwoods" on Justia Law

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A condominium homeowners association sued a contractor for negligence. The contractor’s insurer refused to defend the contractor against the action, and the contractor and the homeowners association thereafter entered into a settlement that included a stipulated judgment against the contractor, a covenant by the homeowners association not to execute that judgment, and an assignment to the homeowners association of the contractor’s claims against its insurer. When the homeowners association then initiated a garnishment action against the insurer, however, the trial court dismissed the action on the ground that, under “Stubblefield v. St. Paul Fire & Marine,” (517 P2d 262 (1973)), the covenant not to execute had released the contractor from any obligation to pay the homeowners association and, in the process, necessarily released the insurer too. The homeowners association appealed, arguing that “Stubblefield” either was distinguishable on its facts or had been superseded by statute. In the alternative, it argued that Stubblefield should have been overruled. The Court of Appeals affirmed. After its review, the Supreme Court concluded that, although Stubblefield was not distinguishable and had not been superseded by statute, it was wrongly decided. The Court reversed and remanded for further proceedings. View "Brownstone Homes Condo. Assn. v. Brownstone Forest Hts." on Justia Law

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Defendant Capitol Specialty Insurance Co. moved to dismiss this appeal on mootness grounds. According to Capitol, the issues to be decided in the appeal pertained to the terms of an agreement settling an underlying construction defect case, but those terms were superseded by amendments to the agreement adopted during the pendency of the appeal. The Oregon Supreme Court concluded that, because the amendments to the settlement agreement did not have the effect of superseding the terms of the original agreement, a judicial decision about that original agreement will have a practical effect on the rights of the parties. Consequently, the appeal was not moot, and the motion to dismiss was denied. View "Brownstone Homes Condo. Assn. v. Brownstone Forest Hts." on Justia Law

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Plaintiff sought damages for damage to its real property. As an affirmative defense, Jefferson County, one of the defendants in this case, alleged that plaintiff was negligent and was itself responsible for the damages that it had suffered. The county also filed a cross-claim against a codefendant (the contractor) seeking common-law indemnity. Plaintiff’s negligence claim was tried to a jury, which found that plaintiff was more than 50 percent at fault. Therefore, under ORS 31.600, neither the county nor the contractor were liable to plaintiff. Nevertheless, the county had incurred costs in defending against plaintiff’s claim, and it pursued its cross-claim for indemnity to collect those costs from the contractor. The trial court denied the county’s indemnity claim, the county appealed, and the Court of Appeals affirmed. Finding no reversible error, the Oregon Supreme Court affirmed. View "Eclectic Investment, LLC v. Patterson" on Justia Law

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Defendant was convicted of second-degree criminal mischief after aiding and abetting his son to shoot two state-owned deer decoys that they believed to be deer. Oregon’s criminal mischief statute prohibits persons from intentionally damaging “property of another.” The issue in this case was whether wild deer were “property of another” for purposes of that statute. Defendant appealed his criminal mischief conviction, arguing that the trial court had erred in denying his motion for judgment of acquittal because wild deer do not become property until reduced to physical possession. The Court of Appeals affirmed defendant’s conviction. The Oregon Supreme Court affirmed: because the state, as a trustee, holds a legal interest in wildlife, the Court concluded that the state has a “legal * * * interest” in wildlife, as that phrase is used in ORS 164.305(2). Therefore, wild deer are “property of another,” for purposes of ORS 164.354 (1)(b) and ORS 164.305(2), and that the trial court did not err in denying defendant’s motion for judgment of acquittal on the second-degree criminal mischief count. View "Oregon v. Dickerson" on Justia Law

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In consolidated property tax appeals, taxpayers challenged the valuation of their real property by the Clackamas County Assessor. In their appeals to the Magistrate Division of the Tax Court, they challenged only the valuation of the improvements on their land, not the valuation of the land itself. The Magistrate Division affirmed. Taxpayers then appealed to the Regular Division of the Tax Court, again challenging only the valuation of their improvements. In the pendency of that appeal, the legislature had enacted ORS 305.287. Under that new statute, even if a taxpayer challenged only one aspect of a property tax assessment, any other party to an “appeal” may challenge other aspects of the assessment as well. Relying on that statute, the county asserted for the first time before the Regular Division of the Tax Court that it had erroneously undervalued taxpayers’ land. The Tax Court concluded, however, that challenges before the Regular Division were not “appeals” for the purposes of that statute. As a result, the court ruled that the county could not challenge the valuation of taxpayers’ land. The issue before the Supreme Court was whether the Tax Court correctly concluded that ORS 305.287 did not apply to appeals to the Regular Division of the Tax Court. After review, the Supreme Court concluded that the Tax Court erred in ruling that the statute did not apply and that the county could not challenge its own land valuations. View "Village at Main Street Phase II v. Dept. of Rev." on Justia Law

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Plaintiff Sea River Properties, LLC and defendant Loren Parks owned adjoining parcels of land on the central Oregon coast. After the United States government built two jetties to contain the Nehalem River, the ocean and wind deposited sand and silt onto the upland, creating approximately 40 acres of land west of those lots and south of the Nehalem River’s southern jetty. The primary issue in this case was who owned those 40 acres. Plaintiff filed this action to quiet title to the property, arguing that it owned the property on the basis of its record title, through the law of accretion, or by adverse possession. Defendant counterclaimed, contending that those same legal theories led to the conclusion that he held title to the property. After a two week bench trial, the trial court found that plaintiff’s predecessors in interest took title to the disputed property through the law of accretion. The trial court also ruled, that defendant later acquired title to the property through adverse possession. The trial court accordingly entered judgment giving defendant title to the disputed property. Plaintiff appealed, challenging the trial court’s ruling on adverse possession. Defendant also appealed, challenging the trial court’s ruling on accretion. The Court of Appeals affirmed the judgment, concluding that defendant’s predecessors in interest had acquired title to the disputed property through the law of accretion. Upon review of the matter, the Supreme Court reversed the Court of Appeals and the trial court’s judgment and remanded the case for further proceedings. View "Sea River Properties, LLC v. Parks" on Justia Law

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Plaintiffs, the owners of real property in Linn County, brought an inverse condemnation action against the Oregon Department of Transportation (ODOT). Plaintiffs alleged that ODOT, by repeatedly making representations to others about its intention to landlock their property and initiate a condemnation action, created a nuisance that "blighted" plaintiffs' property, resulting in a compensable taking of the property under Article I, section 18, of the Oregon Constitution. A jury agreed and awarded plaintiffs more than $3,000,000 in damages. ODOT appealed, and the Court of Appeals reversed, holding that no taking had occurred. The Supreme Court allowed plaintiffs’ petition for review, and agreed with the Court of Appeals decision. Therefore the Court affirmed the appellate court, reversed the trial court and remanded the case for further proceedings. View "Hall v. Oregon" on Justia Law

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The Court of Appeals rejected petitioners' contention that Oregon Department of Fish and Wildlife's (ODFW) approval of "channel-spanning fishways" associated with two small, privately maintained dams downstream from their property violated state law, including ODFW's own rules, pertaining to fish passage for native migratory fish. Petitioners argued that the approvals were inconsistent with administrative rules and statutes that, in their view, required that fish passage be provided whenever water is flowing past the dams, whether over the tops of the dams or through outlet pipes required by the state Water Resources Department (WRD). The Court of Appeals held that ODFW had plausibly construed its own rules as requiring passage only when water is flowing over the dams, and that the rules, as interpreted, were not inconsistent with the controlling statutes. Petitioners sought review and the Supreme Court granted their petition. The Supreme Court concluded that ODFW's interpretation of the rules was implausible. The case was remanded to the agency for further action under a correct interpretation. View "Noble v. Dept. of Fish & Wildlife" on Justia Law