STATE EX REL. KASHMIR CORP. v. Schmidt

633 P.2d 791, 291 Or. 603, 1981 Ore. LEXIS 1088
CourtOregon Supreme Court
DecidedSeptember 22, 1981
DocketCA 17380, SC 27510
StatusPublished
Cited by6 cases

This text of 633 P.2d 791 (STATE EX REL. KASHMIR CORP. v. Schmidt) 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
STATE EX REL. KASHMIR CORP. v. Schmidt, 633 P.2d 791, 291 Or. 603, 1981 Ore. LEXIS 1088 (Or. 1981).

Opinion

*605 LENT, J.

In this proceeding in mandamus, we are concerned with interpretation of ORS 34.210, which provides:

“If judgment is given for the plaintiff, he shall recover damages which he has sustained by reason of the premises, to be ascertained in the same manner as in an action, together with costs and disbursements, and a peremptory mandamus shall be awarded without delay.”

Plaintiff takes the position that the statute creates a cause of action upon which a plaintiff in mandamus may recover whatever damages flow from a defendant’s action which plaintiff seeks to correct in mandamus. Defendant contends that the statute has procedural effect only and merely allows a plaintiff in mandamus to include any separate cause of action for damages a plaintiff might have arising from the acts of a defendant asserted to give rise to the plaintiffs right to a peremptory writ. We conclude that neither party is correct, and that the answer as to the meaning of the statute is given by history of mandamus.

FACTS

Plaintiff is a corporation engaged in the development of subdivision housing projects. The defendant City of Salem is a municipal corporation, and the individual defendants are, respectively, the Street Inspector and the Construction Manager for the defendant City.

In the fall of 1978, plaintiff started construction of a subdivision, operating under plans previously approved by the defendant City of Salem. On April 13, 1979, the individual defendants, acting in their official capacities as agents of and on behalf of the City of Salem, issued a stop work order. Plaintiff halted construction. Plaintiff then petitioned the circuit court of Marion County for an alternative writ of mandamus, demanding that the City issue a resume work order and permit plaintiff to proceed with construction. In its petition, plaintiff also asked for judgment for damages pursuant to ORS 34.210. The alternative writ issued, commanding the defendants to issue the resume work order or show cause for their omission to do so. The alternative writ did not mention the question of *606 damages. 1 On return to the writ, the circuit court ruled that the City’s prior approval of plaintiffs plans gave plaintiff a “vested right” to proceed with construction under those plans. The court issued a peremptory writ of mandamus, which commanded the defendants to permit plaintiff to resume work. The peremptory writ made no mention of damages. 2 The circuit court continued the trial on this issue until a later date.

By a supplemental pleading of August 10, 1979, plaintiff alleged that its work was delayed for 39 days by issuance of the stop order and set forth its specific claim for damages resulting from the delay and alleged:

“That the actions of the named defendants were arbitrary, capricious and without authority of law, by statute, ordinance or otherwise, and were intended to stop the plaintiffs project and to cause the plaintiff the damages as indicated above and that said actions did intentionally interfere with the economic interests .of the plaintiff and did intentionally inter [sic] with the economic relations and contracts of plaintiff * *

Defendants demurred to this supplemental pleading, contending that their actions were based upon the exercise of judgment and discretion, and that defendants were therefore immune under ORS 30.265(3)(c) of the Oregon Tort Claims Act. The circuit court overruled the demurrer.

Defendants, by affirmative answer, asserted immunity under ORS 30.265(3) (c), and the question of damages came on for trial on December 17, 1980. The parties waived trial by jury. 3 The circuit court found that defendants were protected by governmental immunity under *607 ORS 30.265(3) (c) and that they had acted in good faith. On March 27, 1980, the court entered a judgment, affirming the peremptory writ of mandamus but denying plaintiff damages and granting defendants judgment against plaintiff for costs.

Plaintiff appealed to the Court of Appeals, arguing that the circuit court’s ruling misapplied ORS 34.210. The Court of Appeals affirmed, State ex rel Kashmir Corp. v. Schmidt, 49 Or App 271, 619 P2d 918 (1980). Finding that plaintiffs case rested on a claim of intentional interference with an economic relationship, the court reasoned that to make out such a claim, plaintiff had to show that the defendants acted with an improper motive or used improper means. The court held that, upon the findings of fact of the circuit court, plaintiff had failed to establish its case. We allowed plaintiffs petition for review. ORS 2.520; 290 Or 652 (1981).

Before this court, plaintiff bases its case solely on ORS 34.210. At oral argument, plaintiff conceded that the claim for damages rests solely on that statute and declared the reference in its Supplemental Pleading to intentional interference was surplusage to its claim for damages.

Plaintiff argues that ORS 34.210 creates a substantive basis for the recovery of damages, independent of any other cause of action plaintiff may have. It contends that by deciding that a peremptory writ of mandamus should issue, the trial court had concluded that plaintiff had established its right to recover damages for the delay. Plaintiffs position, accordingly, is that the trial court then faced only the question of determining the amount of damages, since the issuance of the writ overruled all defenses to liability, and the only question remaining was the specific proof and computation of damages. Plaintiffs reading of ORS 34.210 stresses the mandatory language “if judgment is given for plaintiff, he shall recover damages.” Plaintiff contends the language “to be ascertained in the same manner as in an action” means only that the amount of damages is calculated as in an action.

Defendants, by contrast, argue that the statutory provision is merely procedural, allowing the trial court to combine the trial on the mandamus question with the trial *608

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Cite This Page — Counsel Stack

Bluebook (online)
633 P.2d 791, 291 Or. 603, 1981 Ore. LEXIS 1088, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-kashmir-corp-v-schmidt-or-1981.