State ex rel. Kashmir Corp. v. Schmidt

619 P.2d 918, 49 Or. App. 271, 1980 Ore. App. LEXIS 3704
CourtCourt of Appeals of Oregon
DecidedNovember 17, 1980
DocketNo. 112,305, CA 17380
StatusPublished
Cited by1 cases

This text of 619 P.2d 918 (State ex rel. Kashmir Corp. v. Schmidt) is published on Counsel Stack Legal Research, covering Court of Appeals of Oregon 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, 619 P.2d 918, 49 Or. App. 271, 1980 Ore. App. LEXIS 3704 (Or. Ct. App. 1980).

Opinion

GILLETTE, P. J.

Petitioner appeals from an order of the trial court denying the petitioner’s request for damages after it had been granted a peremptory writ of mandamus against the defendants. We affirm.

Kashmir, the petitioner herein, is a corporation engaged in land development and subdivision construction. On October 24,1978, the City of Salem approved Kashmir’s plans for street and storm drain construction for a subdivision. Construction began thereafter, as soon as Kashmir deposited the required construction bond and received the necessary permit. On April 13, 1979, the city sent the petitioner a "stop work order,” requiring it to stop construction operations on the property in question as of April 6, 1979. Kashmir halted work in compliance with the city’s order. Thereafter, on April 20, Kashmir petitioned the circuit court for an alternative writ of mandamus requiring defendants to withdraw the stop work order, and for damages arising out of the wrongful issuance of the order. On May 14, the court issued a peremptory writ of mandamus, commanding the defendants1 to rescind their stop work order and allow the petitioner to resume construction on the subdivision.2 The issue of damages was deferred until later.

In its supplemental pleading on damages, petitioner claims that the stop work order caused a delay in the completion of the subdivision. Petitioner seeks damages for expenses, such as the cost of maintenance and an increase in the price of asphalt, incurred as a result of the delay, and lost profits due to an inability to sell the homes in the subdivision on the date planned. Petitioner alleges:

'That no City ordinance or regulation permitted a City Engineer or Construction Manager to direct that the work [274]*274under a previously approved construction permit be stopped, [and]
"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 interfer with the economic relations and contracts of plaintiff with [certain] named third parties * * *

On March 27, 1980, the court issued an order affirming the peremptory writ of mandamus, but denying petitioner damages. The court found, as a matter of that fact, that:

"(1) Defendants’ decision to issue the 'stop work’ order [which was the] subject of the Alternative Writ and Supplemental Pleading was, for purposes of ORS 30.265, in the performance of a discretionary function requiring the exercise of judgment.
"(2) Defendants acted in good faith for what they felt to be a legitimate public interest.
"(3) Defendants had the legal authority to issue both the permit and the stop work order.”

On that basis, the court entered the following conclusions:

"(1) Defendants were engaged in the performance of a discretionary act, and thus immune from liability pursuant to ORS 30.265(3)(c).
"(2) Defendants are entitled to a qualified privilege in connection with the action taken.
"(3) Defendants would have had factual and legal authority to issue the ’stop work’ order except for the ’vested right’ of the plaintiff, which as a matter of equity required the issuance of the writ.”

ORS 34.210 provides that:

[275]*275Relying on this statute, petitioner contends that, once an alternative writ of mandamus becomes peremptory, a plaintiff is entitled to damages as a matter of course, subject to proof of actual damage and the amount. We accept this proposition for the purposes of this appeal. Petitioner argues further that the court’s conclusion that the defendants were engaged in the performance of a discretionary act is inconsistent with the issuance of the peremptory writ of mandamus, because such a writ is issued only to compel the performance of non-discretionary acts.3 As the following analysis demonstrates, we need not consider this second contention.

[274]*274"If judgment [granting a peremptory writ] 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.”

[275]*275ORS 34.210 was enacted at a time when state and local governing bodies were immune from liability for torts arising out of governmental functions.4 See Hillman v. North Wasco Co. PUD, 213 Or 264, 323 P2d 664 (1958). In 1967, the Tort Claims Act was passed, abrogating this immunity subject to certain exceptions:

"Subject to the limitations of ORS 30.260 to 30.300, every public body is liable for its torts and those of its officers, employes and agents acting within the scope of their employment or duties, whether arising out of a governmental or proprietary function.” ORS 30.265(1).

One such exception arises when the tort arises out of the performance of a discretionary act:

"Every public body and its officers, employes and agents acting within the scope of their employment or duties are immune from liability for:
* * * *
"(c) Any claim based upon the performance of or the failure to exercise or perform a discretionary function or [276]*276duty, whether or not the discretion is abused.” ORS 30.265(3)(c).

A mandamus action which includes a request for damages based on the commission of a tort by a public body is in some respects similar to an action brought pursuant to the Tort Claims Act. The trial court’s order in this case is based upon the assumption that the Act governs the case before us.5 Because this action is like any other tort action brought against a public body, damages can be recovered only if the plaintiff establishes the necessary elements of its case, subject to any applicable defenses the defendant might have. ORS 34.210

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Related

STATE EX REL. KASHMIR CORP. v. Schmidt
633 P.2d 791 (Oregon Supreme Court, 1981)

Cite This Page — Counsel Stack

Bluebook (online)
619 P.2d 918, 49 Or. App. 271, 1980 Ore. App. LEXIS 3704, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-kashmir-corp-v-schmidt-orctapp-1980.