Owen v. City of Portland

236 F. Supp. 3d 1288, 2017 WL 607447, 2017 U.S. Dist. LEXIS 21129
CourtDistrict Court, D. Oregon
DecidedFebruary 15, 2017
DocketCase No. 3:17-cv-221-SI
StatusPublished

This text of 236 F. Supp. 3d 1288 (Owen v. City of Portland) is published on Counsel Stack Legal Research, covering District Court, D. Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Owen v. City of Portland, 236 F. Supp. 3d 1288, 2017 WL 607447, 2017 U.S. Dist. LEXIS 21129 (D. Or. 2017).

Opinion

OPINION AND ORDER

Michael H. Simon, District Judge.

On February 2, 2017, the Portland City Council (“City Council”) unanimously adopted Ordinance No. 188219 (“Ordinance”). The Ordinance amends Portland City Code (“PCC”) § 30.01.085 (Portland Renter Additional Protections) to add a temporary requirement for the provision of relocation assistance to involuntarily displaced residential tenants during the current Portland housing emergency. In adopting the Ordinance, the City Council declared that an emergency exists, sufficient to prevent delays in implementing the. Ordinance. Thus, the Ordinance became effective immediately upon adoption. [1291]*1291The Ordinance provides that its substantive provisions shall remain in effect during the duration of the housing emergency, which was first declared by the City Council on October 7, 2015, and extended in the Ordinance through October 6, 2017.

Plaintiffs are landlords who own and manage a mix of multi-family and single-family dwellings in Portland. On February 6,2017, Plaintiffs sued the City of Portland (“City”) in state court, seeking declaratory and injunctive relief based on a variety of legal claims, including alleged violations of the United States Constitution. Invoking federal question jurisdiction, the City removed the lawsuit to federal court on February 9, 2017. The next day, February 10, 2017, Plaintiffs moved for a temporary restraining order, seeking to enjoin the City from allowing the Ordinance “to take effect.” After receiving legal memoranda from all parties, the Court held a hearing on February 15, 2017. Based on the arguments of the parties and the evidence submitted, the Court issues this decision.

STANDARDS

In deciding whether to grant a motion for temporary restraining order (“TRO”), courts look to substantially the same factors that apply to a court’s decision on whether to issue a preliminary injunction. See Stuhlbarg Int’l Sales Co. v. John D. Brush & Co., 240 F.3d 832, 839 n.7 (9th Cir. 2001). A preliminary injunction is an “extraordinary remedy that may only be awarded upon a clear showing that the plaintiff is entitled to such relief.” Winter v. Natural Res. Def. Council, 555 U.S. 7, 22, 129 S.Ct. 365, 172 L.Ed.2d 249 (2008). A plaintiff seeking a preliminary injunction generally must show that: (1) the plaintiff is likely to succeed on the merits; (2) the plaintiff is likely to suffer irreparable harm in the. absence of preliminary relief; (3) the balance of equities tips in favor of the plaintiff; and (4) an injunction is in the public interest. Winter, 555 U.S. at 20, 129 S.Ct. 365 (rejecting the Ninth Circuit’s earlier rule that the. mere “possibility” of irreparable harm, as opposed to its likelihood, was sufficient, in some circumstances, to justify a preliminary injunction).

The Supreme Court’s decision in Winter, however, did not disturb the Ninth Circuit’s alternative “serious questions” test. Alliance for the Wild Rockies v. Cottrell, 632 F.3d 1127, 1131-32 (9th Cir. 2011). Under this test, “ ‘serious questions going to the merits’ and a hardship balance that tips sharply toward the plaintiff can support issuance of an injunction, assuming the other two elements of the Winter test are also met.” Id. at 1132. Thus, a preliminary injunction may be granted “if there is a likelihood of irreparable injury to plaintiff; there are serious questions going to the merits; the balance of hardships tips sharply in favor of the plaintiff; and the injunction is in the public interest.” M.R. v. Dreyfus, 697 F.3d 706, 725 (9th Cir. 2012) (citing Cottrell).

Finally, a TRO is necessarily of a shorter and more limited duration than a preliminary injunction.1 Thus, the appliea[1292]*1292tion of the relevant factors may differ, depending on whether the court is considering a TRO or a preliminary injunction.2 Indeed, the two factors most likely to be affected by whether the motion at issue- is for a TRO or a preliminary injunction are the “balancing of the’equities among the parties” and “the public interest.”

BACKGROUD

A. The Ordinance

In the. Ordinance, the City Council made certain findings of fact, including the following:

• This is the fourth consecutive year that Portland has seen an annual rent increase in excess of five percent, with the average rent increasing nearly 30 percent since 2012.

• Significant increases in rent raise’ serious concerns over potential involuntary economic displacement.

• Due to the severe shortage of rental housing and shelter space arising from human-made events and circumstances, the Portland City Council declared a housing. emergency on October 7, 2015, which the Ordinance extends until October 6, 2017.

• At least 45 percent of the-population of Portland are tenants,

• More than 52 percent of tenants in Portland are considered “cost-burdened,” meaning that they pay more than 30 percent of their gross monthly income on rent.

• The average Portland tenant pays between 45 percent and 49 percent of his or her income on rent, which- puts that tenant at significant risk of becoming “severely cost-burdened” (i.e., paying more than 50 percent of gross monthly income on rent).

• Rent increases of 10 percent or more have the effect of constructively evicting tenants, resulting in involuntary displacement.

• Involuntary displacement also occurs due to “no cause” evictions.

• Involuntary displacements have contributed to a significant increase in homelessness.

• Relocation expenses associated with involuntary displacement present a significant financial burden to an average Portland tenant.

• Relocation assistance is essential to allow tenants to manage the unexpected relocation expenses that result from involuntary displacements.

• Relocation assistance amounts required under the Ordinance were, determined by the City Council by averaging the range of rental rates of similarly-sized units across the city.

The Ordinance amends the PCC § 30.01.085 in two substantive respects relevant to this lawsuit. The Court refers to the first substantive respect as the “No-Cause Eviction Provision.” The Court refers to the second substantive respect as the “Ten Percent Rent Increase Provision.”

Under the No Cause Eviction Provision, the Ordinance provides that a landlord who terminates a dwelling unit rental agreement without cause (i.e., for “no [1293]*1293cause”) must pay the affected tenant a “Relocation Assistance” payment not less than 45 days before the termination date provided in the notice of termination. The amount of the required Relocation Assistance payment varies depending on the size of the dwelling unit.

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Nevada v. United States Department of Labor
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Alliance for Wild Rockies v. Cottrell
632 F.3d 1127 (Ninth Circuit, 2011)

Cite This Page — Counsel Stack

Bluebook (online)
236 F. Supp. 3d 1288, 2017 WL 607447, 2017 U.S. Dist. LEXIS 21129, Counsel Stack Legal Research, https://law.counselstack.com/opinion/owen-v-city-of-portland-ord-2017.