Kohring v. Ballard

325 P.3d 717, 355 Or. 297, 2014 WL 1641418, 2014 Ore. LEXIS 306
Oregon Supreme Court·Decided April 24, 2014·No. CC1111-14966; SC S060533·Published·Cited by 39 cases

Opinion

*299 LANDAU, J.

The issue in this mandamus proceeding is whether the trial court correctly denied defendants’ motion to change venue. ORS 14.080(2) provides that venue is proper wherever a defendant engages in “regular, sustained business activity.” In this case, plaintiffs, a husband and wife, initiated a medical malpractice action against defendants in Multnomah County. Defendants argue that venue lies in Clackamas County, because that is where the clinic is located, where the doctor who provided the husband’s medical services resides, and where the husband received treatment. Plaintiffs argue that venue is proper in Multnomah County, because defendants solicit patients who live in that county, refer patients to imaging facilities in that county, use medical education programs in that county, and “identify” the clinic’s location in its website as the “Portland area.” The trial court denied defendants’ motion, explaining that defendants, by soliciting patients in Multnomah County, “purposely availed themselves of the court’s jurisdiction” in that county. We conclude that the trial court mistakenly conflated personal jurisdiction considerations with the statutory requirements for venue and erred in denying defendants’ motion. We therefore issue a peremptory writ of mandamus ordering the trial court to grant defendants’ motion to change venue.

I. BACKGROUND

The relevant facts are few and undisputed. Plaintiff Richard Kohring sustained injuries following hip replacement surgery at a medical facility in Clackamas County. Plaintiff and his wife initiated a medical malpractice action in Multnomah County for those injuries and for loss of consortium. Plaintiffs named as defendants Ballard, the surgeon who performed the hip replacement operation, and the clinic that employs him, Oregon Orthopedic & Sports Medicine Clinic, LLP (“Oregon Orthopedic” or “clinic”).

Defendants moved to change venue to Clackamas County. In support of that motion, they argued that the medical care that gave rise to the action occurred in Clackamas *300 County; that defendant Ballard lives in Clackamas County; that both of Oregon Orthopedic’s two clinics are located in Clackamas County; that all of the clinic’s physicians provide medical care in Clackamas County; that neither the clinic nor Ballard reside in Multnomah County; that no authorized agent to receive service for either defendant resides in Multnomah County; that, in fact, plaintiffs served defendants in Clackamas County; and that neither the clinic nor Ballard conduct “regular sustained business activity” within the meaning of ORS 14.080(2) in Multnomah County.

Plaintiffs opposed the motion, arguing that defendants do conduct regular, sustained business activity in Multnomah County. In support of that assertion, they offered evidence that, among other things, approximately 600 of the clinic’s 24,000 patients reside in Multnomah County; that Oregon Orthopedic uses “pdxortho.com” as its website; that Oregon Orthopedic refers to its clinics as being located “just outside Portland, Oregon”; that, over a two-year period, its physicians met with attorneys who practice in Multnomah County; that, over a five-year period, clinic employees have attended more than 100 educational seminars conducted in Multnomah County; that Oregon Orthopedic advertises in a newspaper and a telephone book that are distributed in Multnomah County; that the clinic refers some of its patients to imaging centers located in Multnomah County; and that defendants send chocolates to medical clinics located in Multnomah County, and have provided lunches to another Multnomah County clinic.

At the hearing on defendants’ motion to change venue, the trial court noted the lack of Oregon case law discussing the meaning of “regular, sustained business activity” under ORS 14.080(2). It explained that it found guidance, though, in certain federal and Washington state cases concerning what constitutes “transacting business.” In particular, the court mentioned a Washington Supreme Court decision, State ex rel. Verd v. Superior Court for King County, 31 Wash 2d 625, 198 P2d 663 (1948), which the court read to hold that “solicitation can constitute the regular, continuous and sustained course of business.” In light of that case law, the court concluded that “a necessary part of the *301 business of providing medical care is soliciting patients,” and that Oregon Orthopedic did just that in advertising in Multnomah County. The court explained that defendants “purposefully availed themselves of the court’s jurisdiction” and are therefore “conducting regular sustained business activity in Multnomah County by marketing Multnomah County patients.” The trial court denied defendants’ motion to change venue.

Defendants petitioned for a writ of mandamus, challenging the trial court’s denial of their motion to change venue. This court issued an alternative writ ordering a stay of the trial proceedings until the trial court either granted defendants’ motion to change venue or showed cause for not doing so. The trial court did not grant defendants’ motion to change venue, and the parties filed their briefs before this court.

II. ANALYSIS

ORS 14.110 provides:

“(1) The court or judge thereof may change the place of trial, on the motion of either party to an action or suit, when it appears from the affidavit of such party that the motion is not made for the purpose of delay and:
“(a) That the action or suit has not been commenced in the proper county[.]”

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Kohring v. Ballard, 325 P.3d 717, 355 Or. 297, 2014 WL 1641418, 2014 Ore. LEXIS 306 (Or. 2014).

325 P.3d 717 (Kohring v. Ballard) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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