519 P.3d 870
Or. Ct. App.2022Background
- Plaintiffs Ride PDX (indoor cycling studio) and defendants Growler Guys (growler bar) leased adjacent commercial spaces; defendants' lease included a quiet-enjoyment clause.
- After Ride PDX opened, defendants repeatedly complained to the landlord (Riva/Greystar) about bass, vibrations, and instructor voices penetrating the shared wall and said the noise harmed their business.
- Defendants’ counsel sent a demand letter threatening litigation if the landlord did not remediate; Riva then pursued eviction proceedings against Ride PDX, which Ride PDX successfully defended at bench trial.
- Ride PDX sued defendants for intentional interference with economic relations, alleging defendants used deceit/misrepresentation to induce Riva’s adverse action.
- The trial court granted summary judgment to defendants, finding no wrongful conduct because defendants were enforcing their contractual quiet-enjoyment right; Ride PDX appealed.
- The court of appeals reversed and remanded: enforcing a valid contract negates an improper-purpose theory as a matter of law, but material disputes about misrepresentations can create a triable issue on improper means.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether defendants acted for an improper purpose when they complained and threatened suit | Defendants' real purpose was to extract rent concessions and to injure Ride PDX’s relationship with the landlord | Defendants were enforcing an express contractual right (quiet enjoyment), so their purpose was legitimate | Enforcement of a valid contract is a legitimate purpose as a matter of law; plaintiffs failed to raise a fact issue on improper purpose |
| Whether defendants used improper means (misrepresentation) in enforcing the lease | Defendants made false or exaggerated statements to Riva about the nature/extent of noise and its financial effects, constituting deceit | Complaints reflected actual noise impacts (customer complaints, lost business), so statements were accurate and privileged as contract enforcement | Even when enforcing a contract, use of improper means (e.g., actionable misrepresentations) can remove the privilege; the record presented enough conflicting evidence about the truth of defendants’ statements to create a jury question |
Key Cases Cited
- Uptown Heights Associates v. Seafirst Corp., 320 Or 638 (defendant invoking express contractual remedy has a legitimate purpose; enforcement alone does not create liability)
- Top Service Body Shop v. Allstate Ins. Co., 283 Or 201 (even legitimate objectives can be unlawful if achieved by improper means; improper means includes deceit/misrepresentation)
- Northwest Natural Gas Co. v. Chase Gardens, Inc., 328 Or 487 (to show improper purpose, actor must intend to inflict injury on the plaintiff)
- Bernard v. S.B., Inc., 270 Or App 710 (enforcing a valid contract is not wrongful as a matter of law; trial issues remain if contract is void or other improper means are alleged)
- Allen v. Hall, 328 Or 276 (elements required to prove intentional interference with economic relations)
- Douglas Medical Center v. Mercy Medical Center, 203 Or App 619 (improper means must be independently wrongful and include misrepresentation; tort elements need not mirror the underlying tort fully)
