Moro v. State of Oregon

320 P.3d 539, 354 Or. 657
Oregon Supreme Court·Decided January 16, 2014·No. S061452; S061431; S061454; S061475; S061860·Published·Cited by 14 cases

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.

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

320 P.3d 539 (Moro v. State of Oregon) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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