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359 P.3d 574
Or. Ct. App.
2015
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Background

  • The Rose City T-Girls is an informal social group that includes diverse sexual orientations and gender identities.
  • Respondents Blachana, LLC and Christopher Penner own and operate the P Club in North Portland.
  • BOLI charged Respondents with violations of ORS 659A.403, 659A.406, and 659A.409 based on Penner’s voicemails to Cassandra Lynn urging the T-Girls not to return on Fridays.
  • Eleven aggrieved T-Girls who attended Friday gatherings learned of the voicemails and did not return.
  • BOLI concluded the voicemails created a denial of equal accommodations due to sexual orientation and imposed damages and penalties.
  • The Oregon Court of Appeals affirmed, upholding BOLI’s findings and the constitutional defense as applied.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether Penner’s voicemails constituted a denial of equal accommodations under ORS 659A.403. Penner’s conduct was on account of sexual orientation. Voicemails were expressions of desire, not denials of service. Yes; BOLI’s finding that the voicemails denied service was supported by substantial evidence.
Whether leaving voicemails violated ORS 659A.409. Voicemails were not communications that deny services. Voicemails constitute prohibited communications under 659A.409. Yes; BOLI properly found a violation of 659A.409.
Whether the Article I, section 8 defense invalidates applying ORS 659A.403/659A.406/659A.409 to Respondents. Respondents argued application infringes free speech rights. Robertson framework does not bar enforcement given the as-applied facts. Unpersuasive; the statutes properly applied to the facts as found.
Whether BOLI’s findings are supported by substantial evidence and not misinterpreted. Respondents dispute factual conclusions about denial of service. BOLI’s findings are supported by the voicemails and forum interpretation. Supported by substantial evidence; agency’s factual findings stand.
Preservation/arguability of arguments not developed before BOLI. Some defenses were not adequately preserved or developed. Record supports affirmance on preserved grounds. Arguments not preserved or adequately developed were rejected.

Key Cases Cited

  • State v. Robertson, 293 Or 402 (1982) (three Robertson categories for analyzing laws under Article I, section 8)
  • State v. Babson, 355 Or 383 (2014) (as-applied challenges under Robertson category three)
  • Meltebeke v. Bureau of Labor and Industries, 322 Or 132 (1995) (scope and standard for agency factual review; deference to agency findings)
  • State v. Plowman, 314 Or 157 (1992) (distinction between content of speech and its use as evidence)
  • State v. Johnson, 345 Or 190 (2008) (constitutional limits on abusive speech doctrines)
  • State v. Ciancanelli, 339 Or 282 (2005) (limits of speech-restraining statutes under Article I, section 8)
  • State v. Stone, 84 Or App 575 (1987) (discussion of how revisions to anti-coercion statutes may pass constitutional muster)
Read the full case

Case Details

Case Name: Blachana, LLC v. Oregon Bureau of Labor & Industries
Court Name: Court of Appeals of Oregon
Date Published: Sep 23, 2015
Citations: 359 P.3d 574; 2015 Ore. App. LEXIS 1116; 273 Or. App. 806; 2513; A155228
Docket Number: 2513; A155228
Court Abbreviation: Or. Ct. App.
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