122nd Group, LLC v. Department of Consumer & Business Services

380 P.3d 1110, 280 Or. App. 209, 2016 Ore. App. LEXIS 984
CourtCourt of Appeals of Oregon
DecidedAugust 10, 2016
Docket130020; A156276
StatusPublished

This text of 380 P.3d 1110 (122nd Group, LLC v. Department of Consumer & Business Services) is published on Counsel Stack Legal Research, covering Court of Appeals of Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
122nd Group, LLC v. Department of Consumer & Business Services, 380 P.3d 1110, 280 Or. App. 209, 2016 Ore. App. LEXIS 984 (Or. Ct. App. 2016).

Opinion

TOOKEY, J.

Petitioner, 122nd Group, LLC (122nd), seeks judicial review of a final order of the Department of Consumer and Business Services (DCBS). In that order, DCBS held that 122nd had violated ORS 646A.620(l)(c)1 when it hired a cleaning company that threw out boxes containing its previous tenant’s customers’ Social Security numbers in its dumpster, and assessed a $5,000 civil penalty against 122nd. Because it is dispositive, we address only the first of 122nd’s three assignments of error. In that assignment, 122nd argues that DCBS’s and the administrative law judge’s (ALJ) interpretation of the phrase “otherwise make available to the public” in ORS 646A.620(l)(c) “greatly expands the breadth” of the statute. 122nd contends that the statutory prohibition on publicly posting or displaying Social Security numbers under ORS 646A.620(l)(c) does not extend to placing an evicted commercial tenant’s belongings in a private dumpster. We agree with 122nd and reverse.

122nd does not challenge the findings of historical fact made by the ALJ and adopted by DCBS. Jefferson County School Dist. No. 509-J v. FDAB, 311 Or 389, 393 n 7, 812 P2d 1384 (1991) (unchallenged findings of fact are the facts for purposes of judicial review of an administrative agency’s final order). Those findings include the following:

“[122nd] is a commercial landlord, and David Mclnnis is the managing member of the LLC.
“Agape Home Mortgage, Inc. (‘Agape’), formerly an Oregon licensed mortgage lender, was a tenant of [122nd] at 12143 NE Halsey Street in Portland. Bill Mclnerny was the president and owner of Agape, and George Elliott was the general manager. [122nd] was aware that Agape was a mortgage company.
“Agape was having financial problems in the summer of 2011. As of August 2011, it had not paid its rent to [122nd] in several months. During that period of time, Mclnerny told Elliott to box up all of the mortgage records in the [211]*211office. Elliott removed the records from the filing cabinets and put them in boxes. He filled over 30 boxes with mortgage records and placed them in the room where Mclnerny had told him to put the records.
“Late in the summer of 2011, [122nd] came into possession of the Agape mortgage records when [122nd] evicted Agape and locked out its employees. [122nd] would not allow Elliott to retrieve the boxed mortgage records or his own personal effects from the offices.
“After locking Agape out, [122nd] hired a ‘cleaning company’ to clean out the property and did not give the ‘cleaning company’ any direction regarding disposal of the personal property in the office. No instructions were given to the ‘cleaning company’ other than to clean out the premises and to make it ready for the next renter.
“[122nd’s] ‘cleaning company’ placed the 30 boxes of mortgage records into an unlocked ‘dumpster’ garbage receptacle on [122nd’s] premises. The dumpster was in a parking lot, close to the street and to a neighboring restaurant.”

(Internal citations omitted.)

Elliot retrieved six of the boxes from the dumpster and turned them over to an investigator for the Division of Finance and Corporate Securities (the enforcement division) of DCBS. After reviewing the files and determining that they contained unredacted Social Security numbers, the enforcement division cited 122nd with violating ORS 646A.620(l)(c). The enforcement division issued a proposed order concluding that 122nd had “violated ORS 646A.620(l)(c) by publicly posting, displaying or otherwise making available to the public the unredacted Social Security numbers of consumers when the Agape mortgage records were discarded” and assessing a $5,000 civil penalty.

122nd requested an administrative hearing to challenge the proposed order. Both parties moved for summary determination before the ALJ. The enforcement division argued that 122nd made the Social Security numbers available to the public and pointed to a dictionary definition of “available” as “that is accessible or may be obtained.” Webster’s Third New Int’l Dictionary 150 (unabridged ed 2002). The [212]*212enforcement division also submitted several exhibits to demonstrate that rummaging through other peoples garbage, i.e., dumpster diving, in Portland is a popular activity. Those exhibits included, among other things, instructions on how to properly dumpster dive and copies of several posts on the internet to local dumpster diving blogs. 122nd responded that it did not make the Social Security numbers available by placing them in its dumpster because, given the context of ORS 646A.620(l)(c), a more appropriate definition of “available” is “present or ready for use.” Merriam-Webster Dictionary, http://www.merriam-webster. com/dictionary/available. The ALJ agreed with the enforcement division’s interpretation of the phrase “otherwise make available” in ORS 646A.620(l)(c), granted the enforcement division’s motion for summary determination, and issued a proposed order concluding that 122nd had violated ORS 646A.620(l)(c) and proposing that 122nd be required to pay a $5,000 civil penalty.

122nd filed exceptions to the ALJ’s proposed order with DCBS. 122nd contended that the ALJ’s interpretation of “otherwise make available” expanded the breadth of the statute and, as a result, “[t]he proposed order should be amended to state that the placement of documents in the dumpster does not fall within the scope of ORS 646A.620 and that no violation of that statute occurred.” DCBS agreed with the ALJ’s interpretation of ORS 646A.620 and concluded that “placing the unredacted records in an unlocked dumpster constitutes making the records available to the public” because “[disposing of the records in such a manner resulted in the records being insecurely discarded, and * * * accessible to persons in the trash removal and disposal chain, as well as those who may engage in dumpster diving.” DCBS issued a final order concluding that 122nd had violated ORS 646A.620(l)(c) and assessing a $5,000 civil penalty for 122nd’s violation.

On judicial review, 122nd argues that, by including the phrase “otherwise make available to the public” in ORS 646A.620

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Cite This Page — Counsel Stack

Bluebook (online)
380 P.3d 1110, 280 Or. App. 209, 2016 Ore. App. LEXIS 984, Counsel Stack Legal Research, https://law.counselstack.com/opinion/122nd-group-llc-v-department-of-consumer-business-services-orctapp-2016.