Justia Oregon Supreme Court Opinion Summaries

Articles Posted in Real Estate & Property 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

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The City of Milwaukie used highly pressurized water to clean sewer lines adjacent to plaintiff's house, causing sewage to back up through toilets and bathroom fixtures. Plaintiff sued the city seeking compensation for the damage to her home on two theories, negligence and inverse condemnation. The trial court dismissed the negligence claim before trial as barred by the statute of limitations. The inverse condemnation claim went to trial before a jury. At the close of plaintiff's case, the city moved for a directed verdict, arguing that the evidence did not establish a compensable taking of property under the Oregon Constitution. The trial court denied the city's motion, and the jury found for plaintiff, awarding $58,333 in damages. On appeal, the Court of Appeals affirmed. On the facts before it, the Supreme Court concluded that the city's actions did not give rise to a compensable taking. The Court therefore reversed the decision of the Court of Appeals. View "Dunn v. City of Milwaukie" on Justia Law

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Four certified questions of law from the United States District Court for the District of Oregon went before the Oregon Supreme Court. All centered on the mortgage finance industry's practice of naming the Mortgage Electronic Recording System, Inc. (MERS) rather than the lender, as a security instrument's mortgagee or beneficiary and the Oregon Trust Deed Act (OTDA). The Oregon Supreme Court concluded that under Oregon Law, an entity like MERS cannot be a trust deed's beneficiary; ORS 86.735(1) does not require recordation of "assignments" of a trust deed by operation of law that results from the transfer of the secured property; MERS cannot hold or transfer legal title to the trust deed; and MERS' authority to foreclose must derive from the original beneficiary and successors in interest.View "Brandrup v. ReconTrust Co." on Justia Law

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The issue before the Supreme Court in this case centered on nonjudicial foreclosure of trust deeds under the Oregon Trust Deed Act (OTDA) and the mortgage finance industry's practice of naming the Mortgage Electronic Recording System, Inc., (MERS), rather than the lender, as a trust deed's "beneficiary." Plaintiff argued that, although the trust deed identified MERS as the beneficiary of the trust deed, neither MERS nor any of the other entities involved in the foreclosure had any legal or beneficial interest in the trust deed that would allow them to foreclose. The trial court granted summary judgment to defendants, but the Court of Appeals reversed, holding that a genuine issue of material fact existed as to whether all of the requirements for nonjudicial foreclosure set out in the OTDA had been satisfied. The Supreme Court, after its review, also concluded that a genuine issue of material fact existed, but for a different reason than the one the Court of Appeals identified.View "Niday v. GMAC Mortgage, LLC" on Justia Law

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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

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The issue on appeal before the Supreme Court in this case was whether a local church or the national church from which it sought to separate owned certain church property. Hope Presbyterian Church of Rogue River (Hope Presbyterian) had been affiliated with the national Presbyterian Church organization since its founding in 1901, most recently affiliating with the Presbyterian Church (U.S.A.) (PCUSA), and its regional presbytery, the Presbytery of the Cascades. In 2007, the congregation voted to disaffiliate from PCUSA. The corporation then initiated this lawsuit, seeking to quiet title to certain church property and to obtain a declaration that PCUSA and the Presbytery of the Cascades had no claim or interest in any of the real and personal property in Hope Presbyterian's possession. On cross-motions for summary judgment, the trial court quieted title in favor of Hope Presbyterian and declared that PCUSA and the Presbytery of the Cascades had no beneficial interest in any of Hope Presbyterian's property. The Court of Appeals reversed, holding that Hope Presbyterian held the property in trust for PCUSA. Upon review, the Supreme Court agreed with the appellate court and affirmed its decision. View "Hope Presbyerian v. Presbyterian Church" on Justia Law

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At issue in this case was the lawfulness of a portion of the City of Portland's Willamette River Greenway Plan that regulates uses of industrial and other urban land along a portion of the Willamette River known as the "North Reach." Specifically, the issue was whether the City of Portland (city) had authority to regulate development within the North Reach. Petitioners represented various industrial interests within the affected area of the city's plan. They contended that the law permitted the city to regulate only "intensification" or "changes" to existing uses and otherwise does not permit the regulation of existing industrial or other urban uses or other changes to such uses within the North Reach. The Land Use Board of Appeals rejected that argument, and the Court of Appeals affirmed. Upon review, the Supreme Court likewise rejected petitioners' argument and affirmed the decision of the Court of Appeals. View "Gunderson, LLC v. City of Portland" on Justia Law