Penland v. Redwood Sanitary Sewer Service District

956 P.2d 964, 327 Or. 1, 1998 Ore. LEXIS 280
CourtOregon Supreme Court
DecidedApril 9, 1998
DocketCC 94-CV-0209; CA A90247; SC S44152
StatusPublished
Cited by7 cases

This text of 956 P.2d 964 (Penland v. Redwood Sanitary Sewer Service District) 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
Penland v. Redwood Sanitary Sewer Service District, 956 P.2d 964, 327 Or. 1, 1998 Ore. LEXIS 280 (Or. 1998).

Opinion

*4 GILLETTE, J.

This is an action by plaintiffs, property owners in Josephine County, to enjoin defendant, Redwood Sanitary Sewer Service District (the District), a municipal corporation, from composting sewage material at its neighboring sewage treatment plant. The only issue before the court concerns the validity of the District’s “discretionary function” immunity defense to the action, which the District asserts under the Oregon Tort Claims Act (OTCA), ORS 30.265.(3)(c). 1 The trial court rejected that defense and, having found that the composting operation constitutes a nuisance, issued an injunction.

On the District’s appeal, the Court of Appeals reversed, holding that the District was entitled to prevail on a “discretionary function” immunity defense under the OTCA. Penland v. Redwood Sanitary Sewer Service Dist., 146 Or App 225, 934 P2d 434 (1997). We allowed plaintiffs’ petition for review, and conclude that the “discretionary function” immunity provision of the OTCA is inapplicable in actions for injunctions. We therefore reverse the decision of the Court of Appeals and remand the case to that court for consideration of the District’s other assignments of error.

The facts of the case that are pertinent to the issue before the court are not in dispute and are taken in large part from the opinion of the Court of Appeals. In 1990, the District began a relatively large scale operation at its sewage treatment plant to transform sewage sludge, a condensed form of sewage that is the ordinary by-product of a sewage treatment plant, into compost. The compost ultimately is sold to the public as a soil amendment called Jo-Gro. 2

The process of turning sludge into compost generates hydrogen sulfide, which can cause headaches, nausea, *5 and throat problems. Beginning in late 1991, plaintiffs began to notice excessive noise, odor, and dust, which they associated with the composting operation. In February 1992, they began to complain to the District about the problems and, in response, the District undertook several remediation measures. The neighboring property owners, however, found those measures to be inadequate.

The complaints continued and, in early 1994, the District’s board of directors appointed a nine-member ad hoc citizen’s committee to recommend further mitigation measures. The committee made various recommendations, which were then reviewed by the District’s manager at the board’s request. The manager, in turn, sent the District a report based on the committee’s recommendations in which he accepted some of the committee’s recommendations and rejected others in an effort to balance the need to reduce the impact of the operation on the neighborhood with the need to minimize capital and operating costs. The District’s board of directors voted to approve the manager’s report and the mitigation measures recommended therein were implemented.

Plaintiffs remained unsatisfied. They filed the present action to enjoin the composting operation at the sewage treatment plant. Their complaint alleged that the operation created a nuisance by generating excessive odor, noise, and dust, thereby interfering with the reasonable use and enjoyment of their properties. The District denied that the operation created a nuisance and argued that, even if it did, the balance of the equities favored allowing the operation to continue. Alternatively, the District asserted that plaintiffs’ claims are based on the District’s performance of a “discretionary function” and, therefore, that the District is immune from a claim under the OTCA.

As noted, the trial court found that the composting operation does create a nuisance and that it substantially and unreasonably interferes with the property owners’ use and enjoyment of their land. .The trial court rejected the District’s immunity defense, finding that the board merely rubber-stamped the manager’s decision to adopt various mitigation measures and never made an independent decision of its own. Based on its finding that plaintiffs were entitled to *6 prevail on the nuisance claim, the trial court issued an injunction.

In its appeal to the Court of Appeals, the District assigned error to the trial court’s finding of nuisance, to its failure to find that the balance of the equities favored the continued operation of the composting operation, and to its failure to accept the District’s OTCA discretionary function immunity defense. The Court of Appeals considered only the latter argument, holding that the OTCA controls. 146 Or App at 233.

In making its ruling, the Court of Appeals first rejected plaintiffs’ argument that the OTCA cannot be read to confer immunity in nuisance actions, because there was no governmental immunity for nuisance actions before the enactment of the OTCA. Ibid. It then reviewed the elements of a discretionary function immunity defense as set out in this court’s case law and concluded that the District’s choice to adopt certain mitigation measures and reject others, rather than to move the compost operation elsewhere, was “the essence of immunized discretion.” 146 Or App at 235. Because of its ruling on the immunity defense, the Court of Appeals did not address the District’s assignments of error relatin'g to the trial court’s nuisance finding.

ORS 30.265 provides, in part:

“(1) Subject to the limitations of ORS 30.260 to 30.300, every public body is subject to action or suit for its torts and ■those of its officers, employees and agents acting within the scope of their employment or duties, whether arising out of a governmental or proprietary function or while operating a motor vehicle in a ridesharing arrangement authorized under ORS 276.598.
“* * * * *
“(3) Every public body ánd its officers, employees and agents acting within the scope of their employment or duties, or while operating a motor vehicle in a ridesharing arrangement authorized under ORS 276.598, are immune from liability for:
*7 «* * * * *
“(c) Any claim based upon the performance of or the failure to exercise or perform a discretionary function or duty, whether or not the discretion is abused.”

(Emphasis supplied.) Not surprisingly, the parties disagree whether the District met the prerequisites for immunity under ORS 30.265(3)(c).

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Related

State v. Shaw
113 P.3d 898 (Oregon Supreme Court, 2005)
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84 P.3d 155 (Court of Appeals of Oregon, 2004)
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52 P.3d 1094 (Court of Appeals of Oregon, 2002)
Mark v. STATE, DEPT. OF FISH AND WILDLIFE
974 P.2d 716 (Court of Appeals of Oregon, 1999)
Penland v. Redwood Sanitary Sewer Service District
965 P.2d 433 (Court of Appeals of Oregon, 1998)

Cite This Page — Counsel Stack

Bluebook (online)
956 P.2d 964, 327 Or. 1, 1998 Ore. LEXIS 280, Counsel Stack Legal Research, https://law.counselstack.com/opinion/penland-v-redwood-sanitary-sewer-service-district-or-1998.