Burke v. Oxford House of Oregon Chapter V

137 P.3d 1278, 341 Or. 82, 2006 Ore. LEXIS 591
Oregon Supreme Court·Decided June 22, 2006·No. CC 0105-05394; CA A119933; SC S52226·Published·Cited by 3 cases

Opinion

*85 CARSON, J.

This case requires us to decide whether defendants were subject to the requirements of the Residential Landlord and Tenant Act (RLTA), ORS chapter 90. Plaintiff brought an action against defendants, Oxford House, Inc.; Oxford House of Oregon, Chapter V; and Oxford House-Ramona, because they evicted her from her residence without following the requirements of the RLTA. Defendants moved for summary judgment, claiming, among other things, that the nature of their relationship with plaintiff exempted them from the RLTA. The trial court, in denying defendants’ motion for summary judgment, rejected that argument and granted plaintiffs cross-motion for summary judgment, concluding that the RLTA applied to defendants’ arrangement with plaintiff. Defendants appealed, and the Court of Appeals reversed the judgment of the trial court, concluding that defendants’ arrangement with plaintiff fit within two separate exemptions from the RLTA’s requirements. Burke v. Oxford House of Oregon Chapter V, 196 Or App 726, 744, 103 P3d 1184 (2004). We allowed plaintiffs petition for review and now reverse the decision of the Court of Appeals and affirm the judgment of the trial court.

The following facts are undisputed. Defendant Oxford House, Inc., is a nonprofit corporation established “to allow recovering alcoholics and drug addicts to support each other on the road to independent living.” To farther that mission, Oxford House, Inc., grants charters to Oxford House chapters, and those chapters establish and maintain individual Oxford House residences. Those residences are unsupervised, and Oxford House provides no professional services to members living at its residences. The essential purpose of the Oxford House structure is to allow recovering alcoholics and drug addicts to live together in a common drug-and-alcohol-free residence. Oxford House, Inc., also provides support services to assist Oxford House chapters and individual Oxford Houses in establishing common residences for Oxford House members. Oxford House, Inc., requires, as a condition of being granted a charter and of maintaining that charter, that each Oxford House chapter, and the houses run by that chapter, comply with three rules: (1) each Oxford House must *86 be run democratically, with most decisions made by a majority vote of members living in the house; (2) each Oxford House must be financially self-supporting; and (3) any member who relapses and begins using drugs or alcohol must be expelled from the house immediately. 1

Defendant Oxford House of Oregon, Chapter V (Oxford House Chapter V) is an unincorporated association of recovering alcoholics and drug addicts. Oxford House, Inc., has granted a charter to Oxford House Chapter V and has authorized Oxford House Chapter V to establish and maintain individual Oxford House residences.

Defendant Oxford House-Ramona is an individual Oxford House residence, established under the Oxford House Chapter V charter. Oxford House-Ramona provides housing for three to six recovering alcoholics or drug addicts in a single house leased in the name of Oxford House Chapter V. Oxford House members living in Oxford House-Ramona are assigned their own bedrooms but share all other living spaces *87 in the house. Members pay a monthly membership fee, the majority of which goes toward paying the rent for the house. The monthly fee also covers shared expenses such as electricity and cable television, and part of the fee is sent to Oxford House, Inc., as a “contribution.”

Plaintiff lived at Oxford House-Ramona. In February 2001, following a dispute with a fellow member, a majority of the members of Oxford House-Ramona found that plaintiff had violated a rule prohibiting disruptive behavior. Consequently, they evicted plaintiff from Oxford House-Ramona and gave her 15 minutes’ notice to remove her belongings. Plaintiff was unable to remove all her belongings, and other Oxford House members moved the remaining belongings to the garage. Some of plaintiffs belongings were lost or stolen before she could retrieve them. Plaintiff sued defendants, seeking a declaratory judgment that defendants were subject to the requirements of the RLTA and seeking damages for her lost property and statutory damages 2 for what she asserted was am unlawful eviction.

Defendants filed a motion for summary judgment, asserting that (1) they were not subject to the requirements of the RLTA because their arrangement with plaintiff was exempt from that act’s coverage; (2) they had formed no landlord-tenant relationship with plaintiff; and (3) the RLTA was preempted by federal law. Plaintiff filed a cross-motion for summary judgment, opposing each of defendants’ legal arguments and asserting that she was entitled to prevail on her claims as a matter of law. More specifically, plaintiff argued, both in the trial court and before the Court of Appeals, that defendants could not qualify as exempt from the RLTA because they had structured their relationship with plaintiff to avoid application of the RLTA, in violation of ORS 90.110. In response to those motions, the trial court concluded that *88 (1) defendants and plaintiff had a landlord-tenant relationship covered by the RLTA; (2) defendants were not exempt from the requirements of the RLTA; (3) the RLTA was not preempted by federal law; and (4) plaintiff was entitled to her requested relief. 3

Defendants appealed, and the Court of Appeals concluded that defendants’ relationship with plaintiff fit within two exemptions from the RLTA’s coverage. Id. Based upon that conclusion, the Court of Appeals reversed the judgment of the trial court and remanded the case for entry of a judgment in defendants’ favor. Id. Plaintiff sought and we allowed review of the Court of Appeals decision.

Before this court, defendants assert only that (1) they were not subject to the requirements of the RLTA because their relationship with plaintiff was exempt from that act’s coverage and (2) they had formed no landlord-tenant relationship with plaintiff. Defendants concede that the RLTA was not preempted by federal law.

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Burke v. Oxford House of Oregon Chapter V, 137 P.3d 1278, 341 Or. 82, 2006 Ore. LEXIS 591 (Or. 2006).

137 P.3d 1278 (Burke v. Oxford House of Oregon Chapter V) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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