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410 P.3d 336
Or. Ct. App.
2018
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Background

  • Kevin Rains suffered catastrophic injuries (paraplegia) when a defective board broke; jury awarded Kevin economic damages $5,237,700 and noneconomic $3,125,000; wife Mitzi awarded noneconomic $1,012,500. Jury found Weyerhaeuser 45%, Stayton 30%, Kevin 25% at fault.
  • Defendant Weyerhaeuser moved to reduce noneconomic awards to $500,000 under ORS 31.710(1); trial court denied, relying on Article I, §17 of the Oregon Constitution and entered limited judgment for plaintiffs.
  • On appeal the Court of Appeals (and later the Oregon Supreme Court) grappled with whether Article I, §17 or Article I, §10 (the remedy clause) preclude applying the statutory $500,000 noneconomic cap.
  • The Supreme Court’s decision in Horton v. OHSU changed the analytical framework by: (1) rejecting Smothers’s 1857-common-law test for the remedy clause and (2) holding §17 does not independently forbid statutory damage caps; remanded to consider Article I, §10 under the Horton framework.
  • On remand the Court of Appeals considered waiver/law-of-the-case arguments, whether a spousal loss-of-consortium claim is an "injury to person, property, or reputation," and whether applying ORS 31.710(1) would leave plaintiffs without a "substantial" remedy under Article I, §10.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether Article I, §17 bars application of ORS 31.710(1) Rains: §17 prevents limiting noneconomic damages Weyerhaeuser: §17 does not bar cap (statute applies) Not reached on remand—Horton foreclosed §17 challenge
Whether plaintiffs waived remedy-clause challenge by not raising it earlier Rains: Horton changed law; remedy argument properly presented on remand Weyerhaeuser: Plaintiffs forfeited issue by not urging it on initial appeal No waiver; court exercised discretion to consider the remedy-clause argument
Whether a spousal loss-of-consortium claim is protected by Article I, §10 (injury to person/property/reputation) Mitzi: Modern consortium is emotional injury to person, thus protected Weyerhaeuser/AOI: Consortium is a "relational" or non-property interest not covered by §10 Held: Loss of consortium here is an injury to person and falls within Article I, §10
Whether applying ORS 31.710(1) to these awards violates Article I, §10 (substantial remedy) — as-applied challenge Rains: Cap would leave grievously injured plaintiffs with only a paltry fraction of recovery; no quid pro quo; unconstitutional as applied Weyerhaeuser: Cap provides substantial remedy (plaintiffs still recover significant amount); remedy clause inapplicable or satisfied Held: Applying the $500,000 cap would leave Kevin and Mitzi without a "substantial" remedy under Article I, §10 and thus violates the remedy clause; limited judgment for plaintiffs affirmed

Key Cases Cited

  • Horton v. OHSU, 359 Or. 168 (2016) (reframed remedy-clause analysis; rejected Smothers; held §17 does not independently forbid statutory damage caps)
  • Smothers v. Gresham Transfer, Inc., 332 Or. 83 (2001) (prior remedy-clause framework overruled by Horton)
  • Juarez v. Windsor Rock Products, Inc., 341 Or. 160 (2006) (analyzed whether relational/wrongful-death claims allege injury to person or property under §10)
  • Lakin v. Senco Prods., Inc., 329 Or. 62 (1999) (overruled in part by Horton on §17/§10 analysis)
  • Vasquez v. Double Press Mfg., Inc., 288 Or.App. 503 (2017) (applied Horton to conclude ORS 31.710(1) can be unconstitutional as applied; guided substantial-remedy analysis)
  • Greist v. Phillips, 322 Or. 281 (1995) (discussed in comparing statutory caps; different statutory context)
  • Klutschkowski v. PeaceHealth, 354 Or. 150 (2013) (earlier precedent about historical/common-law approach under §17)
  • Philibert v. Kluser, 360 Or. 698 (2016) (recognized negligently inflicted emotional distress as an injury to person)
  • Kennedy v. Wheeler, 356 Or. 518 (2014) (explains law-of-the-case doctrine)
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Case Details

Case Name: Rains v. Stayton Builders Mart, Inc.
Court Name: Court of Appeals of Oregon
Date Published: Jan 4, 2018
Citations: 410 P.3d 336; 289 Or. App. 672; A145916
Docket Number: A145916
Court Abbreviation: Or. Ct. App.
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    Rains v. Stayton Builders Mart, Inc., 410 P.3d 336