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Hale v. Port of Portland
783 P.2d 506
Or.
1989
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*1 7, 1988, Argued September Appeals and submitted the decision of Court judgment 30, 1989, of the circuit court affirmed November reconsideration denied 11, 1990 January

HALE, Review, Petitioner on OF al, PORT PORTLAND et on Respondents Review.

(TC A8104-02187; A35081; S35062) CA SC

783 P2d 506 *2 argued Parisi, Portland, the cause on behalf of Frank M. petition petitioner were Robin B. him on the on review. With Lubersky, Young Spears, Anderson, & Hill- Parisi, Bledsoe, Herbold, Herbold, P.C., & Port- iard, and Barrie J. Markowitz land. argued Burén, Portland, P. the cause on behalf of

William respondent on With him on the review Port Portland. Lindsay, Weigler, response Hart, & Portland. Neil was Foley, argued Ridgway behalf Jr., Portland, K. the cause on respondent With him on the review of Portland. on Wyatt, response Schwabe, & Portland. Williamson Eugene, a on of ami- Johnson, filed brief behalf Arthur C. Bolin, & P.C. him Johnson, Clifton, Larson With cus curiae Phillips Douglas Schaller, G. on the brief were Michael V. Eugene. on of amicus Gernant, Portland, filed a brief behalf

David Lawyers Oregon Trial Association. curiae Portland, a brief on behalf Westwood, filed James N. Oregon amicus curiae Association of Defense Counsel. With him on the brief were Miller, Nash, William H. Walters and Hager Wiener, Carlsen, & Portland. Attorney Lidz,

Jerome General, Salem, Assistant filed Oregon. brief on behalf amicus curiae State of With him on Frohnmayer, Attorney the brief were Dave General, and Vir- ginia Linder, L. General, Solicitor Salem. County Judd,

Michael E. Counsel, Chief Assistant County Oregon City, Clackamas Counsel, filed a brief on Oregon behalf of amici curiae Association Counties and Oregon School Boards Association. With him on the brief Springfield, Harms, Jr., were Edward C. Legal Snider, and Paul Counsel, Association of Counties, Salem. Timothy Eugene, Sercombe, filed brief on behalf of ami- League Oregon cus curiae Harrang, Long, Cities. With him on the brief was Eugene. Arnold, P.C.,

Watkinson & Campbell,** Peterson, Justice, Before Linde, Chief Carson, Jones, Gillette, Justices.

GILLETTE, J. *3 ** J., 31,1988. Campbell, retired December

GILLETTE, J. damage limita case is whether Thе issue this (OTCA)1 are constitu Act Tort Claims tions in The Court of port to cities and districts. applied as tional Portland, v. Port the limitations. Hale Appeals upheld affirm. We App in a injuries November Plaintiff suffered severe he the vehicle which occurring when accident Plaintiff s an in a road. obstacle embedded collided with riding $600,000. Through his exceed reportedly bills alone medical litem, several defen- ad he this action filed guardian City Port- municipal corporations, dants, two including Port). (the He Portland (the City) land and the Port of for City responsible were main- Port charged respects several with negligent the road and were taining granted The circuit court motions respect to the obstacle. damages in City plaintiffs claim for the Port and the to strike 20.270(1) (b). $100,000 damage limitation in ORS excess of the for judgment Port then each confessed City The and the Appeals $100,000. appealed, Plaintiff and the Cоurt important issues allowed review to address the affirmed. We * involved. “public Port are each bodies” sub- 30.265(1), provides: ject to ORS which 30.300, every “Subject to the limitations of ORS 30.260 body public subject action or suit its torts and those of officers, scope employees agents acting its within duties, arising govern- out of employment or whether their * * proprietary function mental or public 30.270(1) liability of bodies potential ORS limits the follows: officers, any public body employees

“Liability of scope employment their or duties agents acting within *4 scope 30.260 to 30.300 shall not on within the of ORS claims exceed:

“(a) $50,000 any claims any to for number of claimant 1 ORS 30.260-30.300. damage property,

for or including to destruction of conse- quential damages, arising single out of a accident occur- rence.

“(b) $100,000 any to all claimant for other arising claims single out of accident or occurrence.

“(c) $300,000 any arising numbеr of claims out of a single accident or occurrence.” (b)

The trial applied 30.270(1) court ORS in limiting the lia- bility of City and the Port. challenges Plaintiff the con- stitutionality of that statute.

Absent a constitutional provision contrary, legislature plenary lawmaking authority, has including the authority to immunize partially public bodies like the See, e.g., Ct., Port. Brown v. County Multnomah Dist. 95, 100, (1977); 570 P2d 52 Myers, Deras v. 52 n (1975); 535 P2d 541 Linde, see also Without “Due Process”: Oregon, 125,147 (1970). Unconstitutional Law in LOr Rev however, argues, Plaintiff that the OTCA damage limitations are contrary to three provisions Constitution. IV, Plaintiff first claims that Article section of the Oregon requires complete Constitution of immunity waiver to suit for any public body, state other public to the extent body partakes of the sovereign immunity. state’s Plaintiff fur that, event, ther argues in the damage limitations ‍​​‌‌‌​​​​‌​‌‌‌‌​‌‌‌​​‌​‌‌‌‌​‌‌‌​‌​‌​‌​​‌‌‌‌​‌​​​‍violate Article sections of the Oregon Constitution. Plaintiff also claims that the damage limitations violate his rights Equal under the Due Process and Protection Clauses of the Fourteenth Amendment the United States Constitu tion. begin by examining argument We under Article 24, because, if plaintiffs interpretation of that section i.e., correct, were if the required immunity waive the entirety for the state and any other bodies, public we proceed would not need to further.2 IV,

I. ARTICLE SECTION 24 IV, the Oregon Constitution provides: broadly encompass immunity phrase We so the issue order to both state’s any immunity municipal sovereign corporations from suit as the as well as have as post (discussing, II, immunity

agencies part, of the state. See Section rules of applying municipal corporations).

513 law, bringing suit by general for be made “Provision after, State, or exist- originating as to all liabilities against the Constitution; no adoption but of this ing the time of the brought, mak- authorizeing to be such suit special act [sic] any person claiming damages against compensation ing State, passed.” be shall ever to both applicable constitutional text treats this

Plaintiff City. As we shall against the Port and his claim (if immunity later, City’s for the the actual basis demonstrate However, sovereign. from that of the any) only part in derives portion of the discus- to this important distinction is not this sion. 24, is not IV, permissive,

Textually, Article “may” indicates mandatory. of the word Use an authority immunity, obliga- not to waive legislature has review, plaintiff for nonetheless petition so. In his tion to do to sov- that, constitutional status argues granting rather than its waiver. IV, requires immunity, Article ereign point in some of this imprecision as to this Because of the for cases, begin by explaining the basis we will prior court’s determine the immunity in will then Oregon. We sovereign IV, 24. effect of Article originated in the rule

Sovereign immunity 1See Pol not be sued in his own courts. English King could (2d 1898); see Maitland, History English of Law 518 ed lock & Hall, 410, 414, 1182, 59 L Ed 2d 440 99 S Ct Nevada v. US also sovereign (1979) (“The immunity truly independent aof 416 of as a matter enjoyed its own courts has been from suit in Jaffe, Suits centuries”); generally see right absolute Immunity, Sovereign 77 Against Governments Officers: (1963) sovereign evolution of (discussing Harv L Rev States). Although argua and the United immunity England in democracy,3 immunity sovereign in a bly not justified universally See Noonan accepted. the American states (1939); see also Portland, 213, 220, City of Hall, at 415-16. supra, Nevada v. 440 US adopted English common Oregon Territory The first, provided: in acts. The enacted law two Maintenance, See, Dept, e.g., Hoffman, Connecticut Income Trustee v. 2818, 106 (1989). Massey, Sovereignty US_, See also L 2d State Ct Ed 109 S Amendments, (1989). U L Rev 61 56 Chi and the Tenth and Eleventh territory “The laws of the Iowa shall be the law this civil, military, territory, cases; and criminal where oth- not for, provided erwise and where no territory statute of Iowa applies, principles equity common law and shall govern.” 5, 1843, Act of July Ireprinted History the Oregon Harris, Code, L 129, 135 second, Or Rev enacted in provided: England common principles equity, not “[T]he

modified the statutes of Iowa or of government, this incompatible principles, part with its shall constitute a the law of this land.” *6 27, of 1844, 100,

Act June L 98, III, Or 1843-49 at Art 1.§ Neither Iowa nor Oregon had modified sovereign common-law Soule, Co., immunity Kretsinger 1844. Metz v. in & 40 Iowa Cf. 236, (1875) 239-40 (using sovereign doctrines of immunity as applied England, modification). in without Between 1844 and 1859, Oregon Territory the apparently modify did not the Thus, common law rule. sovereign immunity of part was this state’s law at the of time statehood.4 XVIII,

Statehood did not the change law. Article sec- 7, tion the Oregon in adopted 1859, provides:

“All in Territory laws force in the Oregon when this effect, therewith, constitution takes and consistent shall con- repealed.” tinue in force until altered or The effect of provision this was to incorporate territory’s the which, prе-existing shown, as incorporated we have English common law. Consistent with the foregoing, this court since statehood has asserted may the state not be sued without its consent.5 In light provi- constitutional 4 analyzing adoption English For Oregon, other cases of the common-law Roth, 670, 683, 652 (1982); Hulen, Lytle 483, 510, see Koos v. Or 293 P2d 1255 128 Or 275 P 45 5 See, e.g., Espinosa Trans., v. Southern Or 291 635 P2d 638 Pacific (state’s (1981) immunity districts); Shinkle, from suit extends to school State v. 528, 529-30, (1962) (“We begin Or P2d with the established doctrine that the Oregon subject except legislature pro State is not to suit has otherwise vided”); al, 263, 278, 360 (1961) Vendrell v. School District No. et P2d 26C (“it apparent immunity state”); sovereign that the doctrine of exists in this & James Edu., 598, 601, 340 (1959) (“under Higher Oregon Yost v. Board 216 Or P2d 577 people by legislative immunity Constitution act waive the state’s from suit”); (1958) Rogers al, 687, 692, 332 (“That sovereign v. Holmes et previous adoption cases, sion, court’s and of the universal this sovereign immunity elsewhere, that, we conclude absent specific provision contrary, some ereign constitutional sov-

immunity part Oregon’s became law with statehood. background mind,

With this historical we must parties IV, determine the role of Article advance section 24. The opposing theories as to the effect of that section. argue sovereign immunity Defendants that it as a established provision constitutional doctrine. Plaintiff claims that the actually require legislature meant to to waive sovereign immunity. state’s Neither view is correct.

Although pre- IV, Article assumes sovereign immunity, nothing language existence of in its immunity. light Indeed, establishes of the effect of immunity incorporating prior XVIII, Article from explicit immunity incorporation law, an was unnec- essary. Plaintiff, however, have Arti- would us determine that immunity, sovereign IV, cle intended a waiver of contemplating against that the would allowactions generally pass special the state but could nоt act to com- pensate any one individual. addressing plaintiffs theory, begin

In we with the face, IV, constitutional text. On its section makes immunity permissive: waiver of the state’s it states that “[provision may be made” for actions the state. added.) (Emphasis provision It does not mandate that must be *7 legislative permission, and, made for such actions absent later cognizable Oregon such actions would not have been in courts. nothing history Moreover, in the of the constitutional — Oregon conventions of or of Indiana the state from whose — justifies IV, constitution Article 24 was taken a section contrary reading. delegates There is no evidence that the to Oregon publicly the convention ever debated the section that principle state cannot be sued without a cardinal of law so well estab its consent is Contracting Duby, 1, 7-8, 292 citation”); v. require United Co. P lished as to no (1930) (“the rule, jurisdictiоn 309 well in that the state cannot be established this [is] Smith, 525, 526, 75 consent”); v. Keene 44 P 1065 sued its own courts without its Or (1904) (“such or is the condition of the that no suit or action can be instituted Lord, consent”); Salem Mills Co. v. against except 42 maintained with its [the state] 82, 88, 69 (1902) (“The point without Or P 1033 is conceded that a state is not suable consent”). 516 IV, 24;

became plaintiffs Article section arguments based on the Carey, Oregon debates in the and Constitution Proceed- ings and Debates the Constitutional Convention of 1857 (1926), concern different section adopted that was not and therefore helpful. are not

Plaintiff s reliance on record of the Indiana con stitutional convention is equally misplaced. Those debates are, best, the question, inconclusive on that state’s highest would court later hold “that the framers of the Constitution that assumed at common law the State [Indiana] was immune from suit and authorized the legislature mod ify liаbility such State, to the it extent see fit.” Perkins v. 549, 551, 30, (1969).6 252 Ind 251 NE2d

It IV, remains to be determined purpose what Article 24, section Oregon was intended to serve. The Constitution power. County Ct., allocates See Brown v. Multnomah Dist. supra; Myers, Linde, supra; supra, Deras v. 49 Or L Rev at 147. IV, 24, Article the power allocates to waive that sov- ereign immunity to legislature, not to the ‍​​‌‌‌​​​​‌​‌‌‌‌​‌‌‌​​‌​‌‌‌‌​‌‌‌​‌​‌​‌​​‌‌‌‌​‌​​​‍courts. See al, Vendrell v. School District No. 26C et Or (1961) P2d (“[o]ur is on premise Constitution framed that the state is suit immune from if immunity is lifted it shall done by legislature”); be so see also Cole u. and, Supreme later, We note advanced the idea the Indiana Court Perkins State, Campbell (1972), 259 Ind 284 NE2d 733 the court could itself change sovereign immunity. position analogous. or abolish Our is not Under our IV, power sovereign immunity allocates to abolish event, legislature. any sovereign In abolition this court of common-law immunity would have no effect on the outcome of this case becаuse the OTCA partial immunity by 347, 759 Harper, establishes statute. See Heino v. plaintiffs arguments easily XV, Another of dismissed. He cites Article expected of the Constitution to show that the constitutional convention against provides: claims to be filed the state. That section officers, Legislative Assembly, directly “No State or members of shall fee, indirectly counsel, engaged agent, Attorney pros- receive or be in the against ecution of claim the State.” Certainly, anticipated delegates to the constitutional convention that claims is, against permitted. however, be state would There no to think that such reason anticipation immunity. sovereign probably with an correlated intent to waive It more that, political reality effect, recognition reflected a of the once the constitution took general allowing might against enact laws some the state. Article claims XV, designed when if section was to ensure that claims the state were permitted, profit position no would be from or use his state official allowed *8 influence those claims. (1982) (“immunity Rev., 188, 191, 655 P2d 294 Or Dept. of 24”). IV, section in article implicit the state of [is] the specifies the form in which The section also statehood, to suits may waived, if all. Prior immunity be at sometimes allowed government were the territorial See, the Heirs e.g., for the Relief of act. Act special legislative Deceased, January 31,1855, Laws Young, Special of Ewing Territory Oregon Assembly of the Legislative Passed the to IV, procedure modifies this Article section and that immunity apply generally that waiver of require recovery act. by special for longer no allow legislature the permits It permissive directory: and The section both immunity; directs the form such sovereign it waiver made, waiver, take. if must bar the summarize, IV,

Tо Article section does not It not bar from itself immune from suit. also does holding state law, immunity partially by general from waiving the state addition, says it has done in the OTCA. In the section which restrict to extend nothing prohibit legislature’s power to munici partial immunity legislatively created authorized IV, Thus, the Port. pal corporations like ORS prohibit did not the enactment 30.270(1)(b). provision some Whether other constitutional immunity prohibits extending from the state’s port to cities and districts is an issue to which we now turn.

II. ARTICLE SECTION public body damage that argues Plaintiff the OTCA limitations “remedy by him his due course of law deny injury person” done him in his in violation Article Arti- Defendants respond Constitution. immu- sovereign the state’s cle is subordinate to analysis complex The is somewhat than that. nity. more Immunity 1. The Port and by of Portland was established Port district, “a known as The Port of separate

Laws 791 as to be (Section 1), was, things, among which other Portland” and Columbia “havе full control of Willamette Rivers] [the said cities Albina], East between [Portland, Portland sea, so extent this State can and the far and to full 3). (Section have been the same” its functions grant While expanded to reflect the changed commercial focus Pacific Northwest due passage nearly century, promote, alia, Port continues to inter ship- maritime and *9 interests of ping greater 778.015; area. Portland ORS see generally ORS ch 778 Port (establishing of Portland and describing functions, its organization, and duties); see also Portland, Cook v. The (1891) Port 20 Or 27 P 263 of constitutional). (declaring organic the Port’s cities, act Unlike port districts, but like other generally, see ch ORS is an instrumentality Port of government, the state perform- ing state functions.

Other instrumentalities, state including some of municipal corporations, form partake fully of the state’s See, immunity from e.g., suit. v. Vendrell School District No. al, supra 26C et (reсognizing application of sovereign immu nity districts); school Templeton to Linn County, 22 Or (1892) (counties 29 P 795 likewise immune unless action by legislature); County, authorized 390, Gearin v. Or Marion 110 (1924) (same). P Port, 929 of being part The government, state’s therefore is from immune suit to the same that, extent the state as contrary such immune. It follows to here, 30.270(1)(b) the contention plaintiff of ORS does deny plaintiff any he has Port right virtue guarantee in Oregon Constitution Article because there never such a right. was City Immunity 2. The (if

We turn plaintiffs to consideration of the rights any) against the City. Oregon, In cities have never full enjoyed immunity equivalent sovereign immunity. state’s At law, immunity common municipal the state’s from suit extended they

corporations when were in so- engaged “governmental” Portland, City called functions. Noonan v. supra, Immunity 161 Or at 221. did not extend torts munici pal corporations performing “proprietary” committed while acts, or employees. Id.; City also municipal see Blue v. Union, 5, 11-12, (1938) (“it 159 Or 75 P2d 977 is established law that when a [municipal] corporation purely exercises a * * * corporate proprietary private subject it is function statutory authority, to suit without same as individual similarly engaged”).7 The of roads and streets maintenance following discussion, will be shown 30.265 distinc- As ORS eschews this tion. second, “proprie as this arbitrarily somewhat classified was Portland, activity. City supra, Noonan v. tary” type contrast, city park of a By negligent operation Or at 237. immunity concomitant from “governmental,” treated as with 68, 71, 69 P2d 1061 City Eugene, suit. See Etter v. exception “governmental” The of streets from the as this in Noonan v. illogical, recognized umbrella was court Portland, “proprietary” but the City supra, 161 Or label stuck.8 dichotomy has “governmental”/“proprietary” withering

received criticism. See Northwest sustained Portland, 297-301, Natural Gas Co. v. (1985) texts). various mention the dichot- (citing We endorsement, an omy descrip- here not as an but as historical tion. *10 on, early

From let cities avoid that functions, liability, proprietary through legislatively- even for See, provisions liability. enacted charter the cities of absolving e.g., Astoria, (1901). Through Mattson v. 39 Or 65 P 1066 court, a convoluted series of decisions this the rule evolved that provisions these charter did not violate 10, so as long they wholly party’s did not eliminate the injured For example, provisions remedies. charter both the absolving municipality liability invalidated, its officers from were while those that did not eliminate the injured party’s right to 8 Or, backing filling. opinions, it stuck after some In at least two this court maintaining “governmental” function. See Platt v. declared that the streets was a Newberg, Portland, Humphrey 148, 158-59, 205 (1922); 430, 446, P 296 79 Or cases, acknowledging 154 P 897 While later these this court dismissed their apparent holdings ground holdings “only on the that those were one of the [alternati City Portlаnd, supra, 10,161 decision.” Noonan v. bases of n Or at 242. ve] Nonetheless, [each] (and day, it was true then would remain true to this if the matter were of moment) any give “Article was not intended to § that common; anyone statutory right in it intended a vested the law either nor was date, could, Id. render the law static.” at 249. This court even at this conclude that treating “proprietary” longer maintenance of streets as should no be earlier decisions alia, because, assumptions concerning inter the nature of that enter followed factual See, e.g., Harper, supra prise longer (discussing Heino v. n are no accurate. meth decisions). reconsidering capacity odology in common-law And this to review the i.e., particular way, be cut either this court could labels to attached to functions could readily virtually city today “governmental” it conclude that all activities are as “proprietary.” could conclude that the same activities are municipal recover from the corporation’s officers were upheld.9 struggle

Our sovereign immunity with the issue of (it and cities might came an end be too to call a much it Portland, City conclusion) supra. Noonan v. case, In that plaintiff had injured been when the high heel her shoe in an became stuck defective that allegedly angle iron formed the outer of the of a edge curb Portland street. The trial court granted an involuntary nonsuit at plaintiffs the end of the case. appealed. Plaintiff relied a principally Portland on section of providing person charter injured by a defective street persons or sidewalk could sue “on those whom the law may * * * imposed

have such obligation repair defect and also through the officer or officers official negligence whosе such unrepaired,” defect remains city but could not sue the itself. Id. at 216 (citing City Charter). 281 of Section the Portland Plaintiff contrary claimed that the charter section was to Arti- cle section 10. court, an

This after exhaustive examination here, authorities which we need not repeat affirmed the trial synthesized previous court. We jurisprudence our as follows: previous “We believe that all of our decisions were cor- rectly sound, their decided reasons were with the exception those that deemed the streets maintenance of ** * governmental function.

* * * * plaintiff 10, Oregon “But the contends that Art. Con- § stitution, prevents abolishing the lawmakers from com- ‍​​‌‌‌​​​​‌​‌‌‌‌​‌‌‌​​‌​‌‌‌‌​‌‌‌​‌​‌​‌​​‌‌‌‌​‌​​​‍rights, exemption mon law and that since the charter clause deprives injured, through negligent those failure of cities *11 streets, right to maintain their of their common law action cities, against the the clause is invalid. Plaintiff seems tо point escaped believe that that view in the attention con- * * * previous sideration of our cases. has that said it [It been] unnecessary was to ‘elaborate the rule that the Constitution 9 Astoria, Compare, e.g., (1901) 577, (charter provision Mattson v. 39 Or 65 P 1066 officers, city thereby denying plaintiff any invalid where it immunized both the and its Portland, supra, remedy), (charter with v. provision Noonan 161 Or at 248 10, 1, purport city’s satisfied Article where it did not to immunize the officers liability). from rights, or the abolition of creation of new

does not forbid the law, permissi- by the common attain a recognized ones old We held to similar legislative object.’ ble omitted.] [Citation validity which was sustaining of a statute effect 10, Perozzi v. Oregon Constitution: under Art. § attacked 10, Ganiere, 330, [(1935)]. P2d § Constitution, give anyone a intended to was not common; statutory was it right in law either nor vested Notwithstanding similar the law static. intended render states, sus- provisions the courts hаve constitutional other husband’s common tained statutes which eliminated the placed wife liability for of his and which the torts wife They husband. have likewise upon an economic level with her which have actions for alienation sustained statutes abolished affections, promise, legisla- actions for breach of etc. cannot, however, remedy and at time ture abolish a the same Houk, v. 127 Or recognize right: of a Stewart existence 893, We, [(1928)]. there- 271 P P 61 ALR 1236 fore, infirmity in reveals no conclude that this contention exemption charter clause.”

Id. at 248-250. court not mentioned

Although it was even Noonan, court, said, it when I, 10, Oregon “Article was intended to § * * * anyone give right in nor it intended a vested this law * * * static[;]

to render the law limitation on the] [the * * * remedy at the cannot abolish a [is it] right,” recognize time the existence of a same State Acc. have cited Industrial id. could Evanhoff Com., (1915), point. P 106 of its illustrative constitu- to this cоurt the issue of the brought Evanhoff tionality, then two- Oregon’s under Article scheme, By scheme. year-old compensation workers’ haphazard system had Oregon legislature eliminated injuries liability employees to some for some employers circumstances, occurring under a limited number for the employers liable replaced system it with a that made regard expenses injured of their workers without medical — camps members of both penalized fault. The scheme some of their plaintiffs prove negligence could actionable those who beyond medical their employers, damages and so obtain liability employers who could defeat expenses, those they because they negligent because had not either been *12 could show guilty contributory the worker was negligence or assumption of the A risk. recent law review article describes the outcome of Evanhoff: court for the first time had deal with a that “[T]he — a denied well-established cause a of action tort action for —

personal injury negligence uncomplicated by based on a immunity. side-stepped traditional common-law The court by noting the compensation issue that the law allowed both employer the worker and the to elect not to be covered. There- fore, themselves, law, parties it was the away not the that took remedy the as in a Again, mutual waiver. at the [Id. 518.] analytical by, for, rationale was if pretext bolstered not mere public policy balancing. In an uncharacteristic burst enthu- siasm, the court noted:

“ ‘Upon opinion the whole case we are the that the prescription act no violates of the Constitution of this States, state or of the properly United and that it was * * * passed respect in every and is a vаlid law. Before its enactment large one workman out of three received a com- pensation law, injuries by his an action at the while remaining got nothing. every two were defeated and Now provisions accepting compen- workman receives some and, whole, if injured; sation taken as a it will be found that money way compensation by more is received body injured inadequate whole workmen than remedies afforded It courts. has been a boon to the employers, employed, community, and the which latter formerly only injured could offer to the laborer the [sic] charity of the almshouse just compensation instead which he now receive without the humiliation of pauperism self-respect.’ loss of Surprisingly, issue “[Id. never resurfaced 523-24.] courts, Oregon although other states had some have to amend compensation their constitutions to acсommodate schemes. [Footnote omitted.] have, however,

“The legislatively courts confronted other non-judicial created schemes substitute remedies for tra- * * * ditionally judicial prevailed. ones. The same rationale Co., [See, Rueda v. Union Railroad e.g.,] [180 Pacific (1946) (Article I, P2d notwithstanding, parties negotiate agreements are free to that have the effect conferring immunity on one of them from action the other — many agree- to hold otherwise would invalidate arbitration ments)].” Section

Schuman, Remedy Guarantee: Oregon’s 35, 51-52 65 Or L Rev that Article held Noonan Evanhoff (or even abol- alters when the is not violated not left action, injured is ishes) long party so as the a cause of cases, remedy remedy. Under those entirely without extent; enough it is type of the same precisely need not be *13 See, City v. e.g., one. Noonan remedy that the is a substantial Pоrtland, (torts cities); v. State Industrial of supra Evanhoff of Ganiere, (workers’ Com., compensation); Perozzi v. supra Acc. Rogers, 281 Or passenger); Davidson v. supra (guest (1978) (defamation); Schuman, supra. see also P2d 624 30.265(1) of itself language

It is clear from the ORS fully requirements meet the of legislature that the intended to statute I, it enacted the statute. The Article section when identifies the new balance it strikes between specifically certain of those municipal corporations and those to whom circumstances, formerly could, limited corporations under have been liable: 30.300,every

“Subject 30.260to to the limitations of ORS body public subject to action or suit for its torts and those of officers, employees acting scope of agents within the duties, arising govern- employment whether out their of * * added.) proprietary *.”(Emphasis mental or function has been widened the plaintiffs The class of that the requirement injured party the that an show removing was a corporation’s activity injury led to the municipal however, time, a limit has been proprietary one. At the same may be recovered. A placed on the size of the award that conferred, has counterbalancing has but a burden benefit been some, disadvantage imposed. may been This work to But all who had a advantage while it will work to the of others. plaintiff may to have one. This not be what remedy continue court, if it were in the wants. It not even be what this subject, on this would making business of substantive legislature’s authority to choose to enact. But it is within Constitution, Arti- Oregon spite enact in of the limitations Portland, See, e.g., supra. v. I, cle section 10. Noonan 30.270(1) (b) do limitations of ORS hold that the We deny plaintiff any right not of action against City guaran- teed by Oregon Constitution, I, Article section 10. See David- son Rogers, supra, at 222. turn nеxt to plaintiffs We arguments under Oregon Constitution, I, Article section 20. I,

III. ARTICLE SECTION 20 Constitution, Oregon pro Article of the granting hibits the privileges class of citizens which are not available on the same equally terms to all citizens.10 provision prohibits This grants of types: “priv two distinct ileges” and However, spite “immunities.” of the fact that the specific issue in permissible this case is the extent of governmental immunity, prohibition in Article grant against does play “immunities” a role in this case because cities instrumentalities of the state are not “citizens” for the purposes

I, section 380, 387, 20. See Eckles v. Oregon, State hand, ability

On the other to recover in court government damages tort is a “privilege” type contemplated by Article 20. us brings This the question whether the law allows other citizens or classes of citizens a “privilege” plaintiff. it denies The law *14 does not do that. Plaintiff claims to be a member of two (1) torts; (2) “classes”: victims of governmentally inflicted tort $100,000. victims suffering damages in excess Plaintiff contends that the different treatment of such persons’ claims lacks a rational basis light purpose drawing of the for distinction. This is a test drawn from federal equal protection (and doctrine “balancing”) akin to for purposes of Article I, 20, superseded by section has been our more recent deci sions. Neither these is cognizable I, classes under Article section 20. original target prohibition of this constitutional of governmental authority special the abuse to provide 20, provides: of the Constitution passed any granting privileges, “No law be or shall to citizen class of citizens which, immunities, terms, upon equally belong or the same shall not all cit- to

izens.” damage Plaintiff does not contend that the OTCA’s limitations were directed individually. argue him He also does not or of citizens was citizen class grantеd equally immunity which an was not made available to all citizens. classes, or individuals immunities favored or privileges for Savage, v. See State against disfavored ones. discrimination (Article (1920) is “antith- 184 P 567 Or clause). equal protection Amendment’s esis” Fourteenth of what interpretation bears on section’s perspective This A who is denied person the section. a favored “class” under equal to demand standing has a class receives what favored to down issue whether strike treatment, though this leaves an beyond it the favored class. or to extend special privilege SAIF, P2d See Hewitt v. happen who population

Those of the total members con- dangerous a created injured negligently be as result of they for negligence which ditions on a road other kinds “class” fully hold liable are not an identifiable can someone privileges by given special are who under Article or soci- social characteristics personal virtue of antecedent i.e., already singled out from the status, they could not be etal As we wrote before their various accidents. general population rights children who lose involving in another case different by by a death or total disablement: parent children, parent two either lose a to disable- “As between other, ‍​​‌‌‌​​​​‌​‌‌‌‌​‌‌‌​​‌​‌‌‌‌​‌‌‌​‌​‌​‌​​‌‌‌‌​‌​​​‍death, as ment or to or first one followed family parents leave the for other indeed children lose who damages provided reasons. for for When action, distinguish wrongful in a death it did not child’s loss hominem, by personal or social charac- between children ad teristics, discriminating against laws children as illustrated deny equal born out of wedlock that have been found to them among but protection. The is not kinds of children distinction liability scope causing fatal between the of dеfendants’ immediate injuries victims of distinct from nonfatal negligence.” their Presbyterian Intercommunity Hosp., 293

Norwest (footnote omitted). (1982) 567-68, torts” exists as governmental The class of “victims of private torts separate a class from that of victims of which, system inherent because such classification is *15 immunity. The OTCA, partial sovereign the like continues personal or social characteristics classification is not based on of Article the There is no violation asserted “class.” theory. on this damages Neither are “victims whose exceed $100,000” a true class purposes scrutiny under Arti cle section 20. Those who damages suffer as a result of “class,” tortious conduct are not a social specific whatever the repay amount that would them damages. for the See Norwest Presbyterian Intercommunity Hosp., supra. The distinction made not OTCA is between victims with lesser or greater damages; it is between those who are the victims of governmental torts, opposed to those who are the victims of private tortious This separation conduct. occurs not because of any discrimination between various of the larger members tort, group of victims of but because of the classification inherent of partial scheme governmental immunity. 30.270(1)(b) The damage limitations of ORS are therefore permissible under Article section 20.

IV. DUE EQUAL PROCESS AND PROTECTION challenges

Plaintiff under Due OTCA Process and Equal Protection Clauses the Fourteenth Amendment to the In United States Constitution.11 Duke Power Co. v. Study Gp., Carolina Env. 438 US 98 S Ct 57 L Ed 2d (1978), however, Supreme the United States Court rejected process equal challenge a due protection to a federal imposing damage power statute limitations on nuclear liability accidents. The Court found that “limiting is an acceptable Congress method for in encouraging to utilize private development energy by power.” of electric atomic Similarly, limiting liability US at 86. the tort governmental acceptable way entities is an protect state municipalities. The could have con reasonably cluded necessary it is local protect governmental liability down, entities from taxes keep unlimited order services, ensure of vital public keep the continuation damage insurance under limitations of costs control. ORS 30.270(1) (b) do not States Constitution. violate United Study Gp., supra. Co. v. Env. Duke Power Carolina foregoing, plain- we conclude that none of From tiff’s challenges damage limitations ORS 30.265(1) (b) are well taken. The statute constitutional. process separately argued petition Plaintiffs due claim is not in the for review. reason, separately will For this we discuss it. *16 judg- and the Appeals Court of

The decision of the are affirmed. the circuit court ment of LINDE, J., conсurring. 10, of the Article surprising is not

It any court more than perplexed has this Oregon Constitution Rights. Most constitu- Oregon’s Bill guarantee other telling officials what negatives, are stated as guarantees tional may not they they may procedures not enact and what laws omit, to retain or alter the leaving otherwise decisions but on to lawmakers. Article substance of the laws guaran- hand, negative affirmative with the other combines that, ours, like treats its constitution legal system tees. In a action create a law, government assurances of affirmative requires. the constitution puzzle what affirmative laws 10, provides: administered, secret, justice be court shall be but shall “No delay, completely openly purchase, and without and without remedy every by due course of law for man shall have person, property, reputation.” injury him in his or done clause, statute, declares that сontrary opening When secret, the court may be conducted in procedures some court and cannot be fol- hold that the statute is invalid need O’Leary, 303 Or Oregonian Publishing Co. v. lowed. by (1987). The can be administered second clause themselves, necessary, if statutes disregarding, courts “purchase” impose other officials that would actions Burks, Or Haynes v. improper “delay.” an See justice or (1980). a “rem- But the assurance of 87 n 619 P2d 632 promise appears interests edy” “injury” specified delay procedural and other protection more than obstructions. long have held court’s decisions

Yet this to lock meant reasonably have been “remedy” clause could law, and stat- equitable, the common into the constitution 1859, although Judge Matthew utory remedies that existed conven- of the constitutional a leader Deady, who had been Com- position. close to that tiоn, something had maintained (1892), 313, 29 P 795 with Co., 22 Or Linn Templeton v. pare (D 1887); see Clackamas, 32 F County Eastman v. Guarantee, 35, 43-46 Or L Rev Remedy Schuman, Oregon’s permissive The more change 50-year- view of led to the from Noonan v. passage quoted by old the majority Portland, 213, 249-50, (1939): 88 P2d 808 I, 10, “Article give § not intended to anyone right in statutory common; a vested the law either nor was it intended to render the Notwithstanding law static. provisions states, similar constitutional in other the courts have sustained statutes which eliminated the husband’s com liability placed mon for the torts of his wife and which upon They wife an economic level with her husband. have likewise sustained statutes which have abolished actions for affections, promise, alienation of actions for breach of etc. cannot, however, remedy abolish a and at the *17 Houk, Stewart v. recognize same time right: the existence of a 589, 998, 272 P 893, 61 ALR 1236. We, therefore, 127 Or P infirmity conсlude that this contention in reveals no the char exemption ter clause.” passage is no more authoritative than others that can be

quoted issue; fact, on the opposite side of the in it pretends to no analysis. renewed There is nothing intrinsically absurd in statutory the idea that although and common law remedies changed, they comparable be must maintain some degree protection 10, for those interests to which Article Noonan, refers. In the passage preceded by quotation is a from Silver, Silver v. (1929), 280 US 50 S Ct 74 L Ed 221 the effect that “the Constitution does not forbid the creation of new or the rights, by abolition of old ones the recognized law, permissible legislative common to attain a 161 Or object,” Noonan quotation suggests 249. The that court con- fused Article with the federal which “remedy” contains no clause. Houk, Noonan,

Stewart v. cited in the passage from in because Stewart followed the fact helps present plaintiff, of Eastman to invalidate a statute reasoning denying recovery guest passenger against on of a the owner or behalf legislature adopted driver of the host vehicle. Thereafter a such a requiring guest passenger prove new statute that guest’s operator’s were caused inten- injuries owner’s tional, reckless, grossly negligent conduct or intoxication. Ganiere, Or in Perozzi statute was sustained

That (1935), also cited Noonan.1 which 40 P2d 1009 in Professor noted point illustrates a Noonan under Article decisions review of Schuman’s individually tenable but many written This court has 10. remedy clause; but with one opinions about the inconsistent about exceptions, propositions the court’s broad or two little attention given remedies have changes existing What offers three verbal handholds: itself.2 The text clause “injury,” is an what protected interests harm to onе “in remedy available due qualifies “remedy,” as a and is this Thus, making general damages course of law”?3 statute contingent the defen by a media defendant on defamation on a might refusal to a retraction be sustained publish dant’s provide an alternate theory optional that the retraction would “remedy,” theory or a virtue the retraction harmed, legal no The court plaintiff, though injury. suffered Broadcasting Co., theory the first in Holden v. Pioneer chose (1961), Rogers, 291 365 P2d 845 and Davidson v. P2d case, do present argüe, In the defendants not it maintain, plaintiff has suffered is difficult to harm might distinguish A deal legal “injury.” statute damages” for differently “general with economic loss from harm, like psychic or other noneconomic the retraction stat- Holden, has not done that. The ute but deny Act that all the harm Oregon Tort Claims does not *18 1 others) by v. swept by difficulty (among posed The Perozzi court Batdorff City, Oregon 402, (1909), city limiting P a charter 53 100 937 which invalidated by duty, declaring liability gross neglect or that Article to or wilful misconduct police “clearly process left it “is a ‘due of law’ clause” which within growing attempt power a to correct what it considered of the state for the to 342-43, evil.” 149 Or at 350. 2 Smith, approach in Smith v. 205 Or that the initial Professor Schuman observed remedy against (1955), inter- in which a invoked the clause 287 P2d 572 wife spousal immunity, “analytical” but stated the court’s conclusion thereafter Remedy Guarantee, Schuman, Oregon’s “public policy.” L Rev 65 Or terms of inability (1986). judicial a a to formulate He concluded cases “indicate mandate,” applying as have those other states. rule for the constitutional consistent 56, citing Id. sources. action, necessarily harm, every every law cause of is an even old common Not or debatable, simple, perhaps injury “person,” “property,” “reputation”; or a a or to to ordinary example is an of contract. breach by plaintiff suffered is of a kind that qualifies legal as a injury. This plaintiffs financial expenses alone far exceed the stat utory limit. Nor say does the statute that harm which is com pensable when persons caused some legal is not a injury when caused other persons, as for instance in the case of parental See liability. Gilroy, Winn v. 296 Or 681 P2d 776 (1984). Rather, a puts it cap dollar on the liability public 30.260(8).4 bodies for recognized injuries. tort ORS This is easier defend respect with Port Portland than Portland. The court notes that the is agency partakes Port a state immunity the state’s suits, from premise unconsented a that cannot be avoided overruling long Therefore, without a of prior line decisions. can say court that the Oregon Tort Claims Act a provides new, though limited, remedy against the Port rather than away takes an old one.

The City is in a position. different Its for nonliability past what cases have termed “governmental” as distinct from “proprietary” functions is not derived “sovereign from the immunity” IV, involved in Article section 24. And the court legislative has allowed immunization cities from tort lia- bility on condition that person- the individuals who are ally responsible for harm a qualifying legal injury remain Oregon City, (1909); liable. 53 Or 100 P 937 Batdorff Astoria, Mattson v. P is This analo- gous altering limiting or scope of respondeat superior wholly rather than a depriving plaintiff remedy in due course of law for harm that one has no declared not to abe legal injury by public private when caused rather than negli- gence. presents this Because case ‍​​‌‌‌​​​​‌​‌‌‌‌​‌‌‌​​‌​‌‌‌‌​‌‌‌​‌​‌​‌​​‌‌‌‌​‌​​​‍no claim individual public “officers employees, agents,” 30.265,1 or or ORS con- cur with the court. 30.260(8) provides: ORS “ duty legal by law, imposed ‘Tort’ means the breach of a other than duty quasi-contract, arising injury from contract or the breach of which results specific person persons provides right

to a which a civil of action for damages protective remedy.” for a

Case Details

Case Name: Hale v. Port of Portland
Court Name: Oregon Supreme Court
Date Published: Nov 30, 1989
Citation: 783 P.2d 506
Docket Number: TC A8104-02187; CA A35081; SC S35062
Court Abbreviation: Or.
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