Moro v. State of Oregon

320 P.3d 539, 354 Or. 657
CourtOregon Supreme Court
DecidedJanuary 16, 2014
DocketS061452; S061431; S061454; S061475; S061860
StatusPublished
Cited by14 cases

This text of 320 P.3d 539 (Moro v. State of Oregon) 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
Moro v. State of Oregon, 320 P.3d 539, 354 Or. 657 (Or. 2014).

Opinion

*661 BALMER, C. J.

These cases challenge the constitutionality of Senate Bill (SB) 822, passed by the 2013 Legislative Assembly during its regular session, and SB 861, passed during a special session in October 2013, both of which change certain statutory provisions of the Public Employees Retirement System (PERS) and, in doing so, affect the retirement benefits of some current and former public employees. Central Oregon Irrigation District (the District), a public employer and an intervenor in these proceedings, filed a motion to disqualify the sitting judges of the Oregon Supreme Court from hearing these cases. The District also filed a separate motion to disqualify the circuit court judge appointed by this court to serve as a special master for purposes of conducting evi-dentiary proceedings and preparing recommended findings of fact. For the reasons that follow, we deny both motions.

The District’s arguments in support of its motions to disqualify are based on statutory provisions, the Oregon Code of Judicial Conduct (Code), and constitutional principles. The District contends that participation by the judges of this court and the special master would violate ORS 14.210 and former Judicial Rule (JR) 2-106(A)(3) (2002) of the Code. 1 ORS 14.275 provides in part that a party “may move to disqualify a judge of the Supreme Court * * * for one or more of the grounds specified in ORS 14.210, or upon the ground that the judge’s participation in the cause would violate the Oregon Code of Judicial Conduct.” ORS 14.210(l)(a) in turn provides in part that a “judge shall not act as judge if the judge is a party to or directly interested in the action, suit or proceeding.” The substance of former JR 2-106(A)(3) (2002) now appears in Rule 3.10(A)(2)(c) and Rule 3.10(A)(3). That rule requires a judge to “disqualify himself or herself in any proceeding in which a reasonable person would question the judge’s impartiality, including [when the judge] * * * has an interest that could be substantially affected by the proceeding; * * * [or when] [t]he judge knows that he or *662 she *** has an economic interest in the subject matter in controversy * * The District argues that the members of the court have a direct and substantial economic interest in the outcome of these consolidated cases because they currently are members of the PERS system and their future retirement benefits may be affected by the outcome of this litigation. 2 The District further asserts that it would violate the Due Process Clause of the Fourteenth Amendment to the United States Constitution forjudges who have such an interest to decide these cases.

The District argues that the special master shares the disqualifying characteristic of the members of this court because, as a judge, he is a member of PERS and, once appointed special master, he “in fact becomes a ‘member’ of this court, albeit temporarily.” Although we do not necessarily agree with the District’s assertion that the special master “becomes” a member of this court, we acknowledge that the circuit court judge appointed as a special master is a member of PERS, and we will assume for purposes of this opinion that the same analysis regarding disqualification applies to him as to members of this court.

Other parties have responded to the District’s motions, arguing variously that any economic interest of the members of this court in the outcome of this case is speculative and perhaps de minimis; that the legislature’s decision to confer jurisdiction on this court to decide challenges to SB 822 and SB 861 trumps any conflicting statutes or rules; that the “rule of necessity” permits this court to decide these cases, notwithstanding any potential disqualification; and *663 that this court’s adjudication of the challenges to SB 822 does not violate any due process right of the District.

Before turning to the substance of the District’s motions, we note that the initial petitions filed in these cases challenged SB 822, a bill passed during the 2013 legislative session that modifies the cost-of-living adjustment provisions of the PERS statutes and changes a provision that relates to taxes paid by out-of-state PERS retirees. During a special session in October 2013, the legislature passed two additional bills that make changes to PERS. One of the new bills, SB 861, further modifies the cost-of-living adjustment provisions that had been addressed in SB 822. The other bill, SB 862, makes several changes to the PERS statutes, including: limiting one component of the “final average salary” that is used to calculate retirement benefits for some PERS retirees; allowing certain creditors to execute on certain PERS benefits of convicted felons; and modifying the PERS options available to legislators. Both SB 861 and SB 862 contain judicial review provisions identical to those included in SB 822. More specifically, they provide for legal challenges to the measures to be filed directly with this court, for public employers to intervene, and for this court to appoint a special master to take evidence and prepare recommended findings of fact. SB 861, § 11; SB 862, § 15. One petitioner filed a new petition and the other petitioners filed amended petitions raising the same challenges to SB 861 that they had raised to SB 822. This court issued an order consolidating those petitions with the pending challenges to SB 822 for purposes of decision. No party challenges SB 862, and we do not discuss that law further.

Because the potential grounds for disqualification that the District raises as to SB 822 also arise under SB 861, we will treat the District’s motion as applying to this court’s adjudication of challenges to that law as well. We will refer to the two laws, collectively, as “the 2013 PERS legislation,” except when separately discussing one or the other.

As noted, certain parties that have responded to the District’s motions argue that any interest that judges on this court have in the outcome of these cases is speculative and de minimis. They point out that the provisions of SB 822 *664 relate to cost-of-living adjustments and out-of-state taxes for persons who are PERS retirees and that the members of this court are not now PERS retirees and, for a variety of reasons, might never become PERS retirees. Additionally, they note that the cost of living in the future may fall, rather than rise, rendering the prospect of future cost-of-living increases for PERS beneficiaries — and the effect of the 2013 PERS legislation on those possible increases — speculative. On the other hand, as the District argues, the value of the potential

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Flying W v. City of Colo Springs
Colorado Court of Appeals, 2025
State v. Lee
568 P.3d 139 (Oregon Supreme Court, 2025)
T-Mobile USA, Inc. v. Dept. of Rev.
24 Or. Tax 22 (Oregon Tax Court, 2020)
State ex rel City of Happy Valley v. Dept. of Rev.
23 Or. Tax 193 (Oregon Tax Court, 2018)
Barrier v. Beaman
Oregon Supreme Court, 2017
Barrier v. Douglas Beaman MD, PC
390 P.3d 1048 (Oregon Supreme Court, 2017)
Moro v. State of Oregon
351 P.3d 1 (Oregon Supreme Court, 2015)
State v. Dickerson
345 P.3d 447 (Oregon Supreme Court, 2015)

Cite This Page — Counsel Stack

Bluebook (online)
320 P.3d 539, 354 Or. 657, Counsel Stack Legal Research, https://law.counselstack.com/opinion/moro-v-state-of-oregon-or-2014.