Horton v. Western Protector Insurance

176 P.3d 419, 217 Or. App. 443, 2008 Ore. App. LEXIS 69
Court of Appeals of Oregon·Decided January 23, 2008·No. 050707077; A132367·Published·Cited by 12 cases

Opinion

*445 EDMONDS, P. J.

Plaintiff appeals after the trial court, pursuant to ORS 31.150, granted defendant’s motion to strike plaintiffs complaint, dismissed his action for wrongful use of a civil proceeding, and awarded defendant attorney fees. On appeal, plaintiff makes three assignments of error. In his first assignment of error, he argues that ORS 31.150 is inapplicable to this action. He argues in his second assignment of error that, even if this action is subject to ORS 31.150, defendant’s motion to strike was not timely filed. In his third assignment of error, plaintiff makes an unpreserved argument that ORS 31.150 violates his right to trial by jury. Because his second assignment of error is dispositive, we reverse.

Plaintiff, a member of the Oregon State Bar, represented an elderly client who was injured in a motor vehicle accident. The client was insured by defendant. Pursuant to its policy with plaintiffs client, defendant paid $10,000 in Personal Injury Protection (PIP) benefits to plaintiff, who placed the payment in his trust account on behalf of his client. Thereafter, plaintiff filed an action on behalf of his client against the other motorist and eventually recovered a settlement for $111,675. Defendant then demanded reimbursement from the settlement proceeds for the PIP benefits it had paid. When the parties were unable to resolve whether reimbursement was proper, defendant filed an action against plaintiff, alleging that he had converted monies that belonged to defendant. That action was referred to arbitration and, after an adverse arbitration award, plaintiff appealed to the circuit court. The circuit court, on de novo review, dismissed defendant’s action for failure to state a claim, and defendant did not appeal that judgment.

Plaintiff then filed this action for wrongful use of a civil proceeding based on defendant’s conversion action. After filing its answer, defendant filed a motion to strike plaintiffs complaint under ORS 31.150, arguing that there was no probability that plaintiff could prevail. After hearing argument on the motion, the trial court, pursuant to ORS 31.150(2)(a), granted the motion and entered both a general *446 judgment that dismissed plaintiffs complaint against defendant and a supplemental judgment that awarded attorney fees to defendant. Plaintiff appeals both judgments.

Plaintiff argues in his first assignment of error that the trial court erred in concluding that ORS 31.150(2)(a) applied to his complaint. 1 ORS 31.150 authorizes the filing of a special motion to strike a claim:

“(1) A defendant may make a special motion to strike against a claim in a civil action described in subsection (2) of this section. The court shall grant the motion unless the plaintiff establishes in the manner provided by subsection (3) of this section that there is a probability that the plaintiff will prevail on the claim. The special motion to strike shall be treated as a motion to dismiss under ORCP 21 A but shall not be subject to ORCP 21 F. Upon granting the special motion to strike, the court shall enter a judgment of dismissal without prejudice.
“(2) A special motion to strike may be made under this section against any claim in a civil action that arises out of:
“(a) Any oral statement made, or written statement or other document submitted, in a legislative, executive or judicial proceeding or other proceeding authorized by law;
“(b) Any oral statement made, or written statement or other document submitted, in connection with an issue under consideration or review by a legislative, executive or judicial body or other proceeding authorized by law;
“(c) Any oral statement made, or written statement or other document presented, in a place open to the public or a public forum in connection with an issue of public interest; or
“(d) Any other conduct in furtherance of the exercise of the constitutional right of petition or the constitutional right of free speech in connection with a public issue or an issue of public interest.”

*447 Specifically, plaintiff argues that ORS 31.150(2)(a) does not apply because the gravamen of his wrongful use of a civil proceeding claim is not conduct that was in furtherance of the exercise of the constitutional rights of petition and free speech in connection with a public issue or an issue of public interest. In his complaint, plaintiff alleges that defendant filed a complaint against him alleging that he collected $10,000 from defendant “without authorization,” that he refused to return those monies to defendant, that he was liable for “conversion” of those monies, and that defendant filed the complaint for an improper purpose, i.e., “with the primary purpose of coercing, threatening, embarrassing, or otherwise harassing” plaintiff and “not for the primary purpose of the proper adjudication” of defendant’s claim. In light of those allegations, plaintiff interprets paragraph (d) of subsection (2) of the statute to add a requirement to paragraphs (a), (b), and (c). Thus, he concludes that ORS 31.150(2)(a), when considered in context with paragraph (d), should be interpreted to apply only to claims involving conduct that implicates a “public issue or an issue of public interest.” It follows, in plaintiffs view, that ORS 31.150 does not apply to his claim for wrongful use of a civil proceeding because only the private interests of plaintiff and defendant are involved.

Defendant responds that, when properly interpreted, the paragraphs in ORS 31.150(2) are independent of each other and that paragraph (d) is not part of the requirements under paragraph (a). Thus, under defendant’s view, ORS 31.150 applies because, under paragraph (2)(a) of the statute, plaintiffs civil action arises out of defendant’s filing of a written statement (defendant’s complaint for conversion) in a judicial proceeding.

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Horton v. Western Protector Insurance, 176 P.3d 419, 217 Or. App. 443, 2008 Ore. App. LEXIS 69 (Or. Ct. App. 2008).

176 P.3d 419 (Horton v. Western Protector Insurance) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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