Chevron U.S.A. Inc. v. Dept. of Rev.

CourtOregon Tax Court
DecidedJanuary 6, 2026
DocketTC 5461
StatusUnpublished

This text of Chevron U.S.A. Inc. v. Dept. of Rev. (Chevron U.S.A. Inc. v. Dept. of Rev.) is published on Counsel Stack Legal Research, covering Oregon Tax Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chevron U.S.A. Inc. v. Dept. of Rev., (Or. Super. Ct. 2026).

Opinion

IN THE OREGON TAX COURT REGULAR DIVISION Corporation Excise Tax

CHEVRON U.S.A. INC., ) ) Plaintiff, ) TC 5461 v. ) ) DEPARTMENT OF REVENUE, ) State of Oregon, ) ORDER DENYING PLAINTIFF’S ) MOTION FOR ENTRY OF LIMITED Defendant. ) JUDGMENT

I. INTRODUCTION

In light of the court’s July 21, 2025, order granting partial summary judgment in favor of

Defendant as to the underlying apportionment issue in this case, Plaintiff asks the court to enter a

limited judgment so that it can appeal that issue, reasoning that the remaining issue--penalties--

will be moot if the Oregon Supreme Court decides the apportionment issue in Plaintiff’s favor.

Defendant objects that a limited judgment as to one issue would violate Tax Court Rule (TCR)

67 B, which, in a two-party case, requires a limited judgment to resolve at least one entire claim.

According to Defendant, as to any one tax year, the apportionment issue and the penalties are

part of a single claim.

The court agrees with Defendant. Although no Oregon Supreme Court case is squarely

on point, Oregon caselaw makes clear that this court is required to closely consider whether a

proffered form of limited judgment will resolve an entire claim, and that this court lacks

ORDER DENYING PLAINTIFF’S MOTION FOR ENTRY OF LIMITED JUDGMENT TC 5461 Page 1 of 13 discretion to weigh factors such as efficiency for the parties in doing so. The context of TCR

67 B, both in Oregon tax procedure statutes and in contemporaneous federal caselaw, shows that

a single income tax assessment encompasses all substantive tax issues and any penalty and

interest, and that an appeal from that assessment constitutes a single claim. Earlier cases that

apparently proceeded to appeal on limited judgment are not precedential on this issue because,

without objection from any party, the courts did not address the issue.

II. FACTS

On November 5, 2018, Defendant issued three notices of assessment--one for each of the

tax years 2011, 2012, and 2013--in an effort to recover tax it had previously refunded to Plaintiff.

According to an accompanying “Conference Decision Letter,” each notice addressed the same

two issues: apportionment of income (whether Plaintiff’s gross receipts from physical

commodities hedging transactions are includible in Plaintiff’s sales factor) and the substantial

understatement penalty under ORS 314.402. 1 (Def’s Decl of Paul, Exs G, H.) The penalty is

measured as “20 percent of the amount of any underpayment of tax” attributable to the

taxpayer’s understatement. ORS 314.402(1). Plaintiff appealed from the notices to the

Magistrate Division, which issued a decision granting summary judgment for Defendant. (See

Compl at 1, ¶ 1 & Exs 1, 2.)

On appeal to this division, Plaintiff initially styles its complaint as “a claim for refund” of

the total tax, penalty, and interest paid for all three tax years. (See id. at 2, ¶ 3.) Later, the

complaint asserts two “Claim[s] for Relief,” each applicable to the three tax years together. The

1 Unless otherwise noted, the court’s references to the Oregon Revised Statutes (ORS) are to the 2009 edition. The 2015 legislature amended ORS 314.402 to redefine the definition of an “understatement.” See Or Laws 2015, ch 32, § 1. However, the amendments do not affect the calculation of the penalty once an understatement has been determined; moreover, the amendments do not apply to the tax years at issue, even though Defendant issued its assessments three years later, in 2018. See id. § 2 (amendments apply to tax years beginning after 2014).

ORDER DENYING PLAINTIFF’S MOTION FOR ENTRY OF LIMITED JUDGMENT TC 5461 Page 2 of 13 first sets forth Plaintiff’s position on the apportionment issue and seeks a refund of the total tax,

penalty, and interest. (See id. at 8, ¶ 59.) The second alleges that Defendant lacked authority to

impose the penalty because, even if proved incorrect, Plaintiff’s apportionment position was

supported by substantial authority and a reasonable basis and was adequately disclosed. 2 (See id.

at 8-9, ¶¶ 61-66.)

On October 18, 2024, each party filed what purported to be a motion for full summary

judgment, but each motion discussed only the apportionment issue without mention of the

penalty. Plaintiff’s motion was properly styled as a motion for full summary judgment because

favorable resolution of Plaintiff’s “First Claim for Relief” on apportionment would have entitled

Plaintiff to a refund of all the tax it sought and thus a penalty of zero as a matter of arithmetic.

However, the court denied Plaintiff’s motion and granted that of Defendant, recharacterizing the

latter as a motion for partial summary judgment because resolution of the apportionment issue in

Defendant’s favor leaves Plaintiff’s objections to the penalty unaddressed. See Chevron U.S.A.,

Inc. v. Dept. of Rev.,___ OTR ___ (Jul 21, 2025) (slip op at 1 n 1).

III. ISSUES (TCR 67 B)

The briefing on Plaintiff’s instant Motion for Entry of Limited Judgment raises two

issues, both under TCR 67 B, which provides:

“When more than one claim for relief is presented in an action, whether as a claim, counterclaim, cross-claim, or third party claim, or when multiple parties are involved, the court may render a limited judgment as to one or more but fewer than all of the claims or parties. The judge may render a limited judgment under this section only if the judge determines that there is no just reason for delay.”

The first issue is whether the apportionment issue and the penalty issue are separate “claims,”

such that a judgment on the apportionment issue would be a judgment “as to one * * * claim[ ].”

2 Plaintiff also states that Plaintiff is entitled to a “waiver” of the penalty.

ORDER DENYING PLAINTIFF’S MOTION FOR ENTRY OF LIMITED JUDGMENT TC 5461 Page 3 of 13 The second issue is whether this court has grounds to determine that there is “no just reason for

delay.”

IV. ANALYSIS

A. Issue One: Are the apportionment issue and the penalty issue separate claims?

As to the first issue, Plaintiff argues that penalties raise a “separate substantive legal

claim” because penalties are “not required to be resolved to adjudicate” the apportionment issue.

(Ptf’s Reply at 2.) Plaintiff points to its framing of two claims in the complaint, and to language

in the July 21 order that applies that framing. Chevron U.S.A., Inc.,___ OTR ___, (Jul 21, 2025)

(slip op at 1 n 1) (“The second claim asserts various theories of relief from penalties * * *.”).

Plaintiff also points out that this court and the Supreme Court have previously proceeded on

limited judgment as to a single issue in multi-issue income tax cases, notably in Comcast

Corporation v. Dept. of Rev., 22 OTR 295 (2016) (deciding special apportionment factor issue

on partial summary judgment), aff’d on limited judgment 363 Or 537, 423 P3d 706 (2018),

further proceedings at 24 OTR 250, 253-54 (2020) (deciding additional apportionment and other

issues in subsequent proceedings consolidated with appeal of assessments for later tax years).

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Bluebook (online)
Chevron U.S.A. Inc. v. Dept. of Rev., Counsel Stack Legal Research, https://law.counselstack.com/opinion/chevron-usa-inc-v-dept-of-rev-ortc-2026.