Brian v. OREGON GOVERNMENT ETHICS COM'N

891 P.2d 649, 320 Or. 676, 1995 Ore. LEXIS 17
CourtOregon Supreme Court
DecidedMarch 30, 1995
DocketCC C920337CV; CA A77344; SC S41348
StatusPublished
Cited by10 cases

This text of 891 P.2d 649 (Brian v. OREGON GOVERNMENT ETHICS COM'N) is published on Counsel Stack Legal Research, covering Oregon Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Brian v. OREGON GOVERNMENT ETHICS COM'N, 891 P.2d 649, 320 Or. 676, 1995 Ore. LEXIS 17 (Or. 1995).

Opinion

*678 DURHAM, J.

The issue in this case is whether the trial court properly enjoined the Oregon Government Ethics Commission 1 (Commission) from investigating petitioner, a state representative, for an alleged violation of the “Code of Ethics,” set forth in ORS 244.040. The Court of Appeals held that the trial court improperly enjoined the investigation, because the trial court applied the wrong standard in determining whether the Commission had authority to conduct the investigation and improperly assessed the weight of the evidence before the Commission at the pre-investigation stage. Brian v. Oregon Government Ethics Commission, 126 Or App 358, 868 P2d 1359 (1994). We affirm the decision of the Court of Appeals.

The Commission is responsible for enforcing prohibitions on the conduct of certain public officials, as provided in ORS chapter 244. 2 Petitioner is subject to the Commission’s authority because he is a “legislative official” 3 and a “public official,” 4 as those terms are defined by the statute.

ORS 244.260 divides the Commission’s investigation process into various “phases.” The first phase, called the “preliminary review phase,” begins either on the filing of a written complaint by any person or at the Commission’s own instigation. ORS 244.260(1). 5 The purpose of the “preliminary review phase,” which may not last more than 90 days,

*679 ORS 244.260(6), 6 is to determine whether sufficient evidence exists to warrant an investigation. Before the Commission may proceed to the second phase, the investigation, ORS 244.260(1) requires that the Commission “make a finding that there is cause to undertake an investigation.” The term “cause” is defined in ORS 244.260(9):

“As used in this section, ‘cause’ means that there is a substantial, objective basis for believing that an offense or violation may have been committed and the person to be investigated may have committed the offense or violation.”

On February 25,1992, the Commission found that it had “cause,” within the meaning of ÓRS 244.260(9), to investigate petitioner for an alleged violation of ORS 244.040(1) and (2). 7 That finding was based on evidence that *680 petitioner had received a $10,000 check from Seiyu International Corporation (Seiyu) and that Seiyu had given petitioner the choice of how to allocate the funds “between his reelection campaign and compensation to him for future services to be rendered.” The source of the evidence was a sworn statement by petitioner in a separate proceeding.

Petitioner responded to the allegation at the Commission’s meeting on April 9,1992. Petitioner explained that he had allocated $2,500 of the $10,000 check toward his reelection campaign and that the remaining $7,500 was compensation for his efforts, undertaken after receiving the check, in assisting Seiyu to obtain refinancing for real estate that it had purchased earlier. Petitioner did not submit any documentation, such as a fee agreement or consulting contract, to support his contention that the $7,500 was compensation. He denied that any portion of the $10,000 was a gift. At the end of the meeting, a motion to dismiss the investigation failed on a tie vote, and the Commission voted to postpone the matter for one month.

On April 15,1992, petitioner filed in the circuit court a petition for judicial review of the Commission’s February 25,1992, order finding “cause” to investigate him. Petitioner sought, among other things, a prefiminary injunction barring the Commission from continuing the investigation, on the ground that the Commission was “proceeding without probable cause,” under ORS 183.480(3), when it found “cause” to investigate him, on February 25, 1992. The circuit court orally granted the prefiminary injunction on May 7,1992, and entered an injunction order on May 29,1992, stating that the Commission lacked a “reasonable suspicion” that the funds *681 were anything other than a campaign contribution and compensation for services rendered.

The Commission held a telephonic meeting on May 26, 1992, to discuss the issuance of the preliminary injunction. The Commission understood the trial court’s order to allow the Commission to continue with the “preliminary review phase” of its investigation. Although it lacked additional evidence that petitioner had violated ORS 244.040, the Commission nevertheless passed a second motion, finding “cause” to investigate petitioner, and also passed a motion to move from an investigation to a contested case proceeding, charging petitioner with a violation of ORS 244.040(1).

The trial court issued a second preliminary injunction on June 15, 1992, and a permanent injunction on October 6, 1992, barring the Commission from investigating petitioner any further. The court found that, on May 26, 1992, the Commission continued to lack a “reasonable suspicion” to believe that petitioner had violated ORS 244.040(1) or (2). The court also concluded that, even if the Commission did have “cause” to investigate petitioner on May 26, 1992, its action was untimely under ORS 244.260(6). 8

The Commission’s finding of “cause” to investigate petitioner is an agency “order,” as the term is defined by the Administrative Procedures Act (APA). 9 Petitioner acknowledges, however, that the finding is not a “final order,” within the meaning of ORS 183.310(5)(b). 10

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Bluebook (online)
891 P.2d 649, 320 Or. 676, 1995 Ore. LEXIS 17, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brian-v-oregon-government-ethics-comn-or-1995.