Hallberg v. City of Portland

215 P.3d 866, 230 Or. App. 355, 2009 Ore. App. LEXIS 1128
CourtCourt of Appeals of Oregon
DecidedAugust 19, 2009
Docket060100688; A134727
StatusPublished
Cited by1 cases

This text of 215 P.3d 866 (Hallberg v. City of Portland) 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
Hallberg v. City of Portland, 215 P.3d 866, 230 Or. App. 355, 2009 Ore. App. LEXIS 1128 (Or. Ct. App. 2009).

Opinion

*357 LANDAU, P. J.

Plaintiff initiated this action against his former employer, defendant City of Portland, for indemnity of expenses that plaintiff incurred in defending an action that had been brought against him in federal court. The city moved for summary judgment on a variety of grounds, including that plaintiff is estopped from seeking indemnity in this case given the position that he successfully asserted in the federal court action and that, in any event, he is not entitled to indemnity on the merits. The trial court granted the city’s motion on the latter of those two arguments and entered judgment dismissing plaintiffs claim. Plaintiff now appeals, arguing that the court erred in concluding that he is not entitled to indemnity from the city. The city responds that the trial court was correct in dismissing plaintiffs claim on that ground and that, in the alternative, the court may be affirmed on the alternative ground of judicial estoppel. We agree with the city that judicial estoppel applies and that, on that ground, the trial court correctly granted the city’s summary judgment motion. We therefore affirm.

The relevant facts are undisputed. Plaintiff worked for the city as a housing inspector. In 1996, the city received complaints from neighbors about garbage and broken gutters around a house that was owned by Hays, who was then in his 80s. Plaintiff inspected the Hays house, found various housing code violations, and cited Hays for the violations. Monthly enforcement fees were levied against the property and became a lien.

In May 1998, Hays moved into an adult foster care home because he was unable to care for himself. His relatives lived in the house until September 1998, when Hays evicted them. After the house became vacant, plaintiff “red tagged” it, which meant that no person could lawfully live in it until the violations were remedied.

In 1999, Hays became delinquent on his mortgage and was about to lose the house to foreclosure. In the meantime, Hays was hospitalized for a broken hip and was taking medication for certain mental disabilities. A sale of Hays’s home was scheduled for June 1999. Plaintiff decided to buy the home himself. He met with Hays and negotiated with *358 him to purchase the house for $1,300 cash, with plaintiff to assume the outstanding mortgage.

In 2004, Hays filed a complaint against plaintiff in federal court under 42 USC section 1983, claiming that, in forcing him out of his home and then purchasing that home for himself, plaintiff deprived him of his federally protected constitutional rights to substantive and procedural due process. In addition, Hays alleged claims of elder abuse, ORS 124.100 to 124.140, and unlawful trade practices, ORS 646.605 to 646.638.

Plaintiff requested that the city defend and indemnify him under ORS 30.287, asserting that any liability that he incurred in the Hays litigation arose out of the performance of his duties as a housing inspector. After an investigation, the city rejected plaintiffs tender, finding that Hays’s claims did not arise out of an act or omission in the performance of his duties and that any work-related conduct associated with plaintiffs purchase of Hays’s house amounted to malfeasance in office. (The city later discharged plaintiff for his misconduct in connection with his purchase of Hays’s home.) Plaintiff then asserted a cross-claim against the city for indemnity.

Plaintiff moved for summary judgment on Hays’s claims against him. In support of his motion, plaintiff asserted that the housing code violation citations that he issued to Hays were not the cause of Hays’s alleged loss and that the only conduct relevant to Hays’s claims was plaintiffs purchase of Hays’s house. That action, plaintiff asserted, was not undertaken “under color of law” or in the course of plaintiffs business, vocation, or occupation:

“Here, while [plaintiffs] actions in citing [Hays’s] house for code violations were ‘state action,’ those actions are not the issue in this case (despite the misleading claim in plaintiffs brief that the code citations ‘cut off any ability to generate income from the property and resulted in a default on the mortgage payments and a scheduled foreclosure sale’). As discussed above, both the damaged condition of the house and the unpaid mortgage were the result of the acts of [Hays’s] relatives, which occurred independently of the *359 code citations, and would have occurred regardless of whether citations had ever been issued.
“[Plaintiffs] offer to buy [Hays’s] house was not made in the course of his job, and [plaintiff] made that clear at the time: T wanted to be sure that [Hays] understood that I wasn’t there as an inspector.’ That [plaintiff] initially learned of the property in the course of his job does not make his later offer to buy it ‘state actionf.]’ ”

(Underscoring plaintiffs; emphasis added.) Thus, in federal court, plaintiff asserted that any action that he took in the course of his duties as a housing inspector did not cause Hays to lose his home and that his purchase of the house from Hays was not made in the performance of his duties.

The federal court apparently agreed with plaintiff and granted his motion, dismissing all claims against him with prejudice. Hays appealed, but the United States Court of Appeals for the Ninth Circuit affirmed, explaining that plaintiffs conduct did not cause Hays to lose his home because Hays’s home was “already in foreclosure due to the actions of some of his own relatives before [plaintiff] purchased it, and [Hays] does not raise any issues of triable fact from which a reasonable jury could find that [plaintiff] caused him to lose his home.”

Plaintiff meanwhile initiated this action against the city under ORS 30.287 for his expenses incurred in successfully defending against Hays’s claims. The city moved for summary judgment, arguing that, because plaintiffs conduct that led to the Hays litigation did not occur in the performance of his employment duties, his claim for indemnity fails. In the alternative, the city argued that plaintiffs indemnity claim also fails because it is based on an assertion (that Hays’s claims did arise out of the performance of his employment duties) that is directly contrary to the assertion on which he successfully relied (that Hays’s claims did not arise out of the performance of his employment duties) in the federal court case. Under principles of judicial estoppel, the city argued, plaintiff should be precluded from asserting that he is entitled to indemnity for conduct that occurred in the performance of his employment duties. The trial court granted the city’s motion on the ground that the actions alleged by *360

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Cite This Page — Counsel Stack

Bluebook (online)
215 P.3d 866, 230 Or. App. 355, 2009 Ore. App. LEXIS 1128, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hallberg-v-city-of-portland-orctapp-2009.