Atwood v. Dept. of Transportation

CourtCourt of Appeals of Oregon
DecidedJuly 1, 2026
DocketA184470
StatusPublished

This text of Atwood v. Dept. of Transportation (Atwood v. Dept. of Transportation) 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
Atwood v. Dept. of Transportation, (Or. Ct. App. 2026).

Opinion

No. 596 July 1, 2026 77

IN THE COURT OF APPEALS OF THE STATE OF OREGON

Jim A. ATWOOD, individually and in his capacity as Trustee of the Jim A. Atwood Trust dated August 10, 2017, and J.A. Atwood Corporation, an Oregon corporation, Plaintiffs-Appellants, v. OREGON DEPARTMENT OF TRANSPORTATION, an administrative agency; Kris Strickler, an individual; and Debbie Lund, an individual, Defendants-Respondents. Marion County Circuit Court 21CV05571; A184470

Lindsay R. Partridge, Judge. Argued and submitted October 15, 2025. Nicholas A. Kampars argued the cause and filed the briefs for appellants. Carson L. Whitehead, Assistant Attorney General, argued the cause for respondents. Also on the brief were Dan Rayfield, Attorney General, and Benjamin Gutman, Solicitor General. Before Ortega, Presiding Judge, Joyce, Judge, and Hellman, Judge. JOYCE, J. Affirmed. 78 Atwood v. Dept. of Transportation Cite as 351 Or App 77 (2026) 79

JOYCE, J. Plaintiffs appeal from the trial court’s dismissal of their first amended complaint (FAC), arguing that it erred in (1) determining that the court lacked subject matter jurisdiction to hear all six of plaintiffs’ claims, and (2) find- ing that plaintiffs failed to state claims of relief for their two tort claims. We affirm with respect to plaintiffs’ first three claims because plaintiffs did not assign error to the trial court’s alternative bases for dismissal. As for the remaining claims, we conclude that the trial court did not err in grant- ing defendants’ motions to dismiss those claims for lack of subject matter jurisdiction and affirm. I. FACTS A. Plaintiffs’ FAC Facts “We state the facts as alleged in plaintiff[s’] com- plaint, accepting as true [their] well-pleaded allegations with the benefit of all favorable factual inferences.” Wallace v. State ex rel PERB, 245 Or App 16, 18, 263 P3d 1020 (2011). Plaintiffs owned a building on West Burnside Street in Portland, Oregon, at all material times of the events at issue in this case. The building has a west-facing wall that plain- tiffs have used for commercial advertising purposes since obtaining an interest in the building (Wall Sign). Over the years, plaintiffs have both directly leased use of the Wall Sign to advertisers and entered into agreements with third parties that would broker the lease of the use of the Wall Sign to specific advertisers. In 2009, plaintiff Atwood Corporation entered into a lease agreement with OnSite Advertising Services, LLC (OnSite), where plaintiff agreed to lease “the exterior build- ing vertical wall * * * for the purpose of displaying painted mural, painted advertising sign, signage applied by way of other materials * * * or signage affixed by bolts or screws anchored into the building * * *.” OnSite was to act as both a lessee and as a broker or agent for plaintiffs, and both parties “intended for the [agreement] to provide a transitory right for OnSite and any successor in interest to manage the Wall Sign for a period of time, but never contemplated 80 Atwood v. Dept. of Transportation

the outright sale of the Wall Sign or any rights associated therewith from plaintiffs to OnSite or its successors.” In 2012, defendant Oregon Department of Transportation (ODOT) designated West Burnside Street— where plaintiffs’ building is located—as a state highway subject to the permitting requirements under the Oregon Motorist Information Act (OMIA). See ORS 377.700 - 377.877. The OMIA governs the placement of signs along Oregon highways and “prohibits all but certain pre-existing ‘out- door advertising signs,’ and restricts the placement of those signs.” Outdoor Media Dimensions Inc. v. State of Oregon, 331 Or 634, 638, 20 P3d 180 (2001) (citation omitted). Under ORS 377.712(2), “the owner of any outdoor advertising sign visible from a road or street that is designated as a state highway after May 30, 2007, is entitled to the issuance of an outdoor advertising sign permit for the sign upon applica- tion by the owner.” In early 2014, plaintiffs consented to OnSite assign- ing the Wall Sign lease to OnDisplay, who would act as the broker/lessee, and extended the lease through June 2019. The parties left all other lease provisions intact. Later that year, OnDisplay realized that the Wall Sign had been ren- dered nonconforming due to the state highway designation and thus required a preexisting sign permit to comply with the OMIA. OnDisplay subsequently applied for a permit in November 2014 without notifying plaintiffs. Upon receiving OnDisplay’s application, ODOT emailed OnDisplay noting that OnDisplay needed to show proof of “landowner consent” on the permit application for approval.1 ODOT also informed OnDisplay that no formal form was necessary, as “[s]ome- thing on letter head and signed with owner name and con- tact info will suffice.” OnDisplay subsequently approached plaintiffs for a consent letter to obtain a permit. Plaintiff Atwood provided OnDisplay with a consent letter that stated (1) that Atwood owned the building, (2) that Atwood works with OnDisplay to sell advertising on the Wall Sign, (3) that OnDisplay was authorized to apply for a permit, and (4) that “[t]his permit 1 See OAR 734-060-0000(4)(e) (“All applications must include written proof that the landowner consents to have applicant maintain the proposed sign.”). Cite as 351 Or App 77 (2026) 81

shall be in the name of: OnDisplay Advertising, J A Atwood, J A Atwood Corporation, their successors and assigns, as his or its interest may appear.” OnDisplay submitted another permit application that listed OnDisplay as the “applicant” and Atwood as the “property owner” and the consent letter to ODOT. ODOT then issued a permit for the Wall Sign (the 2015 Permit) in the name of OnDisplay only, without notify- ing plaintiffs or creating a public notice of the decision. In July 2015, OnDisplay notified Atwood that OnDisplay had sold its assets to Lamar and that the sale would result in the transfer of its lease of the Wall Sign to Lamar. OnDisplay did not notify plaintiffs that the 2015 Permit had been issued to OnDisplay alone. At the same time, OnDisplay sent ODOT a letter requesting that ODOT transfer the 2015 Permit to Lamar. After receiving a trans- fer fee from Lamar, ODOT transferred the 2015 Permit to Lamar without notice to plaintiffs. In June 2018, plaintiffs notified Lamar that it would be terminating its lease on June 30, 2019. Lamar responded that “plaintiffs would be able to use the Wall Sign for adver- tising purposes ‘in the future with a different tenant than Lamar.’ ” In February 2019, plaintiffs first learned that they were not listed as the owners of the 2015 Permit. Plaintiff Atwood contacted ODOT and spoke with Defendant Debbie Lund, a program analyst for ODOT’s Outdoor Advertising Program, requesting that ODOT either cancel the 2015 Permit or transfer it to plaintiffs. Lund denied the request, stating that the OMIA did not allow for “partial ownership of permits.” In May 2019, plaintiffs sent a letter to ODOT explaining that (1) “plaintiffs were entitled to the [2015] Permit because they owned the Wall Sign,” (2) “plaintiffs intended to own the [2015] Permit,” and (3) “plaintiffs had a right to use the Wall Sign as the landowner.” Plaintiffs also requested in the letter that the 2015 Permit be transferred to plaintiffs or cancelled so that plaintiffs could apply for a new permit. ODOT never responded to that letter. In June 2019, plaintiffs also sent a letter to Lamar, with ODOT copied, instructing Lamar to not surrender or 82 Atwood v. Dept. of Transportation

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