Comcast of Oregon II, Inc. v. City of Eugene

209 P.3d 800, 346 Or. 238, 2009 Ore. LEXIS 23
CourtOregon Supreme Court
DecidedJune 11, 2009
DocketCC 16-03-07308; CA A126445; SC S054884
StatusPublished
Cited by11 cases

This text of 209 P.3d 800 (Comcast of Oregon II, Inc. v. City of Eugene) 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
Comcast of Oregon II, Inc. v. City of Eugene, 209 P.3d 800, 346 Or. 238, 2009 Ore. LEXIS 23 (Or. 2009).

Opinion

*240 DURHAM, J.

In this action, Comcast of Oregon II, Inc. (Comcast) challenges the validity of two administrative orders that the city manager of the City of Eugene (city) adopted. The trial court granted summary judgment for the city. On appeal, the Court of Appeals reversed and remanded. Comcast of Oregon II, Inc. v. City of Eugene, 211 Or App 573, 155 P3d 99 (2007). The Court of Appeals determined, among other things, that ORS 30.275, which we quote below, did not obligate Comcast to give a timely notice of its claims to the city before filing this action. This court granted review to address that question. Although we rely on different reasoning, we affirm the Court of Appeals.

The facts are largely undisputed. The city regulates “work affecting a public way” by, among other things, requiring parties doing such work to obtain a permit. See Eugene Code (EC) § 7.290(2) (so providing). The city charges a fee for a permit. 1 Two provisions of the Eugene Code address how the city sets the fees. First, EC § 7.300 provides, in part:

“(1) The fee for a permit required by section 7.290 shall be set by the city manager pursuant to section 2.020 of this code in an amount sufficient to fully recover all of the [cjity’s costs related to processing the application for the permit and inspecting the work during and after completion of the work.”

The second provision, incorporated in EC § 7.300 by reference is EC § 2.020 (1999), 2 which provided, in part:

“(2) In determining the amount of any such fee the city manager shall consider:
«H: * Hj # *
“(d) The amounts charged by other comparable providers * * *[.]”

*241 Before January 2002, the city charged permit fees for utility work that affected a public way (such as street paving) on a per-foot basis for the first 1,000 feet; the city charged no additional fee for a project extending beyond that length. As a result, the fee charged for a utility permit for a 10.000- foot project was the same as the fee charged for a 1.000- foot project.

Comcast has a franchise from the city to provide cable services. In late June 2001, Comcast entered into a written agreement with the city to upgrade Comcast’s cable facilities by June 30, 2003. The city required Comcast to obtain a permit to perform the upgrade work. The majority of the upgrade work involved aerial installations (as opposed to underground installations). The agreement provided that, if Comcast did not complete the upgrade on time, Comcast was liable for a $25,000 financial penalty and, potentially, termination of its franchise.

In fall 2001, the city staff determined that the existing permit fees were not high enough to recover the city’s costs. They developed a new fee schedule, which (among other things) removed the 1,000-foot project cap on permit fees. In developing the new fee schedule, the city staff did not obtain information about the amounts charged for permit fees for utility work by other jurisdictions, as required by EC § 2.020(2)(d). The staff concluded that, because EC § 7.300(1) required the permit fees to compensate the city for its costs, the amounts charged by other jurisdictions were irrelevant. After a period for public comment, the city manager adopted the new fee schedule effective on January 30, 2002, as Administrative Order No. 58-01-18-F (2002 order). 3

The 2002 order significantly increased the fees that Comcast would have to pay for the permits that it needed for its upgrade project. Comcast previously had estimated the total permit fees for the upgrade to be about $15,000. Comcast estimated its fees under the 2002 order to be *242 approximately $360,000. In June 2002, Comcast protested the increased fees, asserting, among other things, that charging permit fees for aerial installations violated EC § 7.300.

In response to complaints, the city prepared an amended fee schedule for permits, for which it gave public notice in October 2002. Comcast provided written comments criticizing the proposed amendments to the fee schedule. The city manager adopted the amended fee schedule as Administrative Order No. 58-02-29-F (2003 order), effective February 18, 2003. The 2003 order applied only to installations that were primarily aerial installations. It provided that the city would charge a permit fee for the first five miles of a primarily aerial installation at the rates set by the 2002 order, but would reduce the rate charged per foot for distances beyond five miles. Under protest, Comcast paid the permit fees under the 2002 and 2003 orders, totaling approximately $375,000. 4

In April 2003, Comcast filed this action against the city in circuit court. The complaint identified three separate claims: a petition for writ of review, a claim for declaratory judgment, and a claim for money had and received. The trial court later dismissed the petition for writ of review, and the parties present no issues to this court regarding that dismissal. The claim for declaratory judgment sought a declaration that the city adopted the 2002 and 2003 orders in violation of EC § 7.300(1). In the claim for money had and received, Comcast contended that the city had collected fees in excess of those permitted by EC § 7.300(1) and that Comcast was entitled to a refund of those excessive fees.

Both the city and Comcast moved for summary judgment. For its part, the city contended (among other things) that the declaratory judgment action qualified as a tort claim under the Oregon Tort Claims Act (OTCA), ORS 30.260 to *243 30.300, and that Comcast had failed to prove that it had given the notice required by ORS 30.275(2)(b). 5 The city did not assert that argument against Comcast’s claim for money had and received, however. Instead, the city argued that Comcast could not recover under the “money had and received” claim because Comcast had paid the permit fees voluntarily. Finally, the city contended that it validly had adopted the disputed orders.

Comcast argued that it was entitled to summary judgment on its declaratory judgment action because the city had adopted the 2002 and 2003 orders in violation of EC § 7.300 and the section that it incorporated, EC § 2.020. Among other things, Comcast argued that the city’s failure to obtain information about the fees charged for comparable permits in other jurisdictions meant that the city had adopted both orders in violation of EC § 2.020(2)(d).

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Cite This Page — Counsel Stack

Bluebook (online)
209 P.3d 800, 346 Or. 238, 2009 Ore. LEXIS 23, Counsel Stack Legal Research, https://law.counselstack.com/opinion/comcast-of-oregon-ii-inc-v-city-of-eugene-or-2009.