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497 P.3d 1216
Or.
2021
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Background:

  • Portland enacted Ordinance 188219 requiring landlords to pay "relocation assistance" ($2,900–$4,500 depending on unit size) when tenants are displaced by certain events, including a rent increase of 10%+ within 12 months or certain no‑cause evictions.
  • The ordinance conditions some rent increases on a procedural payment to departing tenants and authorizes tenants to sue landlords for damages, relocation assistance, and attorney fees.
  • Landlord plaintiffs sued, arguing the ordinance is preempted by ORS 91.225 (which forbids local laws that "control the rent that may be charged") and that the ordinance unlawfully creates a private cause of action beyond the city's home‑rule authority.
  • The trial court granted summary judgment to the city; the Court of Appeals affirmed in substance but remanded for a declaratory judgment; the Oregon Supreme Court granted review.
  • The Supreme Court held that ORS 91.225 preempts only local laws that "control" rent in the sense of regulating or directing what rents landlords may permissibly charge, and that Portland’s ordinance does not so control rents; it also held the private cause of action is a valid exercise of municipal home‑rule authority and may be adjudicated in circuit court.

Issues:

Issue Plaintiff's Argument Defendant's Argument Held
Whether ORS 91.225 preempts Portland's relocation‑assistance ordinance ORS 91.225 bars any local law that exerts influence over rents; the ordinance effectively controls rents by imposing a cost that deters increases ORS 91.225 preempts only traditional rent‑control laws that set or cap rent amounts; the ordinance leaves landlords free to set rents and merely conditions some increases on a payment ORS 91.225 preempts statutes that "control" rent (i.e., regulate or direct permissible rent amounts). Portland’s ordinance does not prescribe or prohibit rent levels and thus is not preempted; its disincentive effect is insufficient to make it an "effective" rent control here.
Whether the ordinance’s private cause of action is invalid under Article VII (Original), §9 The ordinance improperly expands state‑court jurisdiction and creates novel liabilities without state authorization Municipal law can create causes of action; Oregon circuit courts have general jurisdiction to adjudicate claims arising under municipal ordinances unless jurisdiction is expressly divested by statute Cities may create private causes of action enforceable in circuit court; the ordinance’s private‑right‑to‑sue provision does not violate the constitution.

Key Cases Cited

  • LaGrande/Astoria v. PERB, 281 Or 137 (1978) (preemption inquiry: local rule invalid only when incompatible or when legislature intended exclusive regulation)
  • Gunderson, LLC v. City of Portland, 352 Or 648 (2012) (home‑rule municipalities presumed to have authority; challenger bears heavy burden to show preemption)
  • Rogue Valley Sewer Services v. City of Phoenix, 357 Or 437 (2015) (state must unambiguously express intent to preempt home‑rule authority)
  • Eugene Water & Electric Bd. v. PERB, 365 Or 59 (2019) (statutory interpretation ordinarily looks to text and context)
  • Sims v. Besaw’s Café, 165 Or App 180 (2000) (circuit courts may adjudicate private disputes arising under municipal law)
  • Covey Garage v. Portland, 157 Or 117 (1937) (municipal ordinance may create a cause of action enforceable in state court)
  • Portland v. Western Union Tel. Co., 75 Or 37 (1915) (upholding municipal ordinance that created an action for aggrieved persons)
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Case Details

Case Name: Owen v. City of Portland
Court Name: Oregon Supreme Court
Date Published: Nov 4, 2021
Citations: 497 P.3d 1216; 368 Or. 661; S068000
Docket Number: S068000
Court Abbreviation: Or.
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