422 P.3d 347
Or. Ct. App.2018Background
- Tenant rented a dwelling for $850/month; tenant paid $202 and received $648 subsidy; tenant failed to pay February 2015 rent and landlord gave a termination notice, then filed a forcible entry and detainer (FED) action.
- Tenant stayed in possession and asserted counterclaims for unlawful landlord entry on multiple occasions.
- No party requested and the trial court did not order rent to be paid into court under ORS 90.370(1)(b); no rent was paid into court.
- Trial court found tenant owed $606 in unpaid rent but awarded tenant $2,550 on counterclaims for unlawful entry.
- Despite the counterclaim award exceeding rent due, trial court awarded possession to landlord because tenant had not paid rent into court.
- Court of Appeals reversed, holding that ORS 90.370(1)(b) does not require payment into court for a tenant to obtain possession when counterclaim recovery fully offsets rent due.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether a tenant must pay rent into court under ORS 90.370(1)(b) to obtain possession when counterclaims offset rent | Landlord: tenant must either pay rent to landlord or into court; absent payment into court, tenant cannot obtain possession | Tenant: payment into court is not required; if counterclaim damages eliminate rent due, judgment for possession must follow ORS 90.370(1)(b) | Court: Held for tenant — ORS 90.370(1)(b) requires offsetting and entry of judgment for tenant if no rent remains due; payment into court is discretionary and not a prerequisite to possession when counterclaims fully offset rent |
Key Cases Cited
- L & M Investment Co. v. Morrison, 286 Or. 397, 594 P.2d 1238 (Or. 1979) (Supreme Court held counterclaim damages that exceed rent allow tenant to retain possession)
- Napolski v. Champney, 295 Or. 408, 667 P.2d 1013 (Or. 1983) (Supreme Court clarified that tender of rent into court can preserve possession when counterclaim recovery is insufficient)
- Amatisto v. Paz, 82 Or. App. 341, 728 P.2d 42 (Or. Ct. App. 1986) (tenant who paid rent into court was entitled to possession despite losing counterclaims)
- Eddy v. Parazoo, 77 Or. App. 120, 711 P.2d 205 (Or. Ct. App. 1985) (court must decide and offset claims; tendering the net difference into court before judgment can preserve possession)
- Light v. Sheets, 105 Or. App. 298, 804 P.2d 1197 (Or. Ct. App. 1991) (when counterclaim damages fully offset rent due, judgment for tenant on possession is required)