Zweizig v. Rote

486 P.3d 763, 368 Or. 79
CourtOregon Supreme Court
DecidedMay 6, 2021
DocketS067820
StatusPublished
Cited by8 cases

This text of 486 P.3d 763 (Zweizig v. Rote) 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
Zweizig v. Rote, 486 P.3d 763, 368 Or. 79 (Or. 2021).

Opinion

Submitted on briefs December 23, 2020, certified question answered May 6, 2021

Max ZWEIZIG, Plaintiff-Appellant, v. Timothy C. ROTE, Defendant-Appellee, and NORTHWEST DIRECT TELESERVICES, INC.; Northwest Direct Marketing of Oregon, Inc.; Northwest Direct Marketing, Inc.; Northwest Direct of Iowa, Inc.; Rote Enterprises, LLC; and Does 1 through 5, Defendants. (United States Court of Appeals for the Ninth Circuit No. 18-36060) (SC S067820) 486 P3d 763

Plaintiff filed suit in the United States District Court for the District of Oregon against defendant, alleging that defendant aided and abetted in retal- iating against plaintiff in violation of ORS 659A.030. Plaintiff did not suffer any physical injury. The jury found for plaintiff and awarded him $1,000,000 in noneconomic damages. On defendant’s motion, the district court applied the $500,000 cap on noneconomic damages set forth in ORS 31.710(1). Defendant appealed, and plaintiff cross-appealed, challenging the reduction of the jury award. The United States Court of Appeals for the Ninth Circuit certified the question whether ORS 31.710(1) caps the noneconomic damages awarded on an unlawful employment practice claim under ORS 659A.030. Held: The cap in ORS 31.710(1) applies to noneconomic damages awarded on claims seeking damages that arise out of (1) bodily injury, such as damages for emotional injury or dis- tress suffered in connection with bodily injury; (2) death; or (3) property damage. The cap does not apply to noneconomic damages awarded on an unlawful employ- ment practice claim brought under ORS 659A.030 that seeks damages for purely emotional injury. The certified question is answered.

En Banc On certified question from the United States Court of Appeals for the Ninth Circuit; certified order dated June 16, 2020, certification accepted July 30, 2020. 80 Zweizig v. Rote

Shenoa Payne, Shenoa Payne Attorney at Law PC, Portland, filed the briefs for plaintiff-appellant. Also on the briefs was Joel Christiansen. Timothy C. Rote, West Linn, filed the brief pro se. James S. Coon, Thomas, Coon, Newton & Frost, Portland, filed the brief for amicus curiae Oregon Trial Lawyers Association. NAKAMOTO, J. The certified question is answered. Cite as 368 Or 79 (2021) 81

NAKAMOTO, J. We address a certified question from the United States Court of Appeals for the Ninth Circuit concerning whether a statutory damages cap applies to an award of noneconomic damages in an unlawful employment prac- tice action. Plaintiff Max Zweizig brought this action in the federal district court in Oregon, alleging that corporate defendants had retaliated against him and that defendant Timothy C. Rote had aided and abetted the corporations in violation of Oregon statutes. The jury found for plain- tiff and awarded him $1,000,000 in noneconomic damages. Over plaintiff’s objection, the district court entered a judg- ment for only half that amount after applying the non- economic damages cap set out in ORS 31.710(1) (“[I]n any civil action seeking damages arising out of bodily injury, including emotional injury or distress, death or property damage of any one person including claims for loss of care, comfort, companionship and society and loss of consortium, the amount awarded for noneconomic damages shall not exceed $500,000.”). Defendant appealed, and plaintiff cross- appealed, challenging the reduction of the noneconomic damage award. The Ninth Circuit certified the following question of state law to this court: “Does Oregon Revised Statutes § 31.710(1) cap the noneconomic damages awarded on an employment discrimination claim under Oregon Revised Statutes § 659A.030?” We accepted the question under ORS 28.200. Zweizig v. Rote, 366 Or 762, 468 P3d 948 (2020). The answer, in short, is no. The damages cap in ORS 31.710(1) does not apply to an award of noneconomic damages for an unlawful employment practice claim under ORS 659A.030 in which the plaintiff does not seek damages that arise out of bodily injury and instead seeks damages for emotional injury. I. FACTS AND PROCEDURAL POSTURE We take the facts, which are mainly procedural, from the Ninth Circuit’s certification order. Plaintiff, a former employee of Northwest Direct Teleservices, Inc., brought an unlawful employment practice action against defendant in 82 Zweizig v. Rote

the United States District Court for the District of Oregon.1 Plaintiff alleged that, in violation of ORS 659A.030(1)(g),2 defendant aided and abetted retaliation against plaintiff for whistleblowing on his former employer, a practice prohibited by ORS 659A.030(1)(f).3 It is undisputed that plaintiff did not suffer any physical injury. A jury returned a verdict in favor of plaintiff, and it awarded him $1,000,000 in noneco- nomic damages. Defendant sought a reduction in the amount of the award to be included in the judgment, arguing that the award was subject to the noneconomic damages cap in ORS 31.710(1). That statute provides that noneconomic damages may not exceed $500,000 “in any civil action seeking dam- ages arising out of bodily injury, including emotional injury or distress, death or property damage * * *.” ORS 31.710(1). The district court applied the $500,000 damages cap to the jury’s award. Zweizig v. Northwest Direct Teleservices, Inc., 331 F Supp 3d 1173 (D Or 2018). Examining the text of ORS 31.710(1) and focusing on the phrase “in any civil action seeking damages arising out of bodily injury,” the court was persuaded that the legislature had intended emotional injury and distress to serve as examples of bodily injury. Id. at 1184. That reading, the court concluded, was consis- tent with the holding of the Oregon Court of Appeals that some claims for emotional distress can be considered as an injury to one’s person. Id. (citing Rains v. Stayton Builders Mart, Inc., 289 Or App 672, 687-88, 410 P3d 336 (2018) (hold- ing that a wife’s loss of consortium claim stemming from her husband’s physical injuries was considered an injury to the wife’s person that was protected under the remedy clause of the Oregon Constitution)). 1 Plaintiff also sued his former employer and its successors. The corporate defendants, however, defaulted before trial and are not parties to this appeal. 2 ORS 659A.030

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Max Zweizig v. Timothy Rote
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Cite This Page — Counsel Stack

Bluebook (online)
486 P.3d 763, 368 Or. 79, Counsel Stack Legal Research, https://law.counselstack.com/opinion/zweizig-v-rote-or-2021.