LOC News
Oregon Supreme Court Rules Favorably in Takings/Contracts Case
On May 23, the Oregon Supreme Court affirmed lower court decisions in Walton v. Neskowin Regional Sanitary Authority, 372 Or 331 (2024) (case found here). The court took up the narrow issue of when a claim for inverse condemnation accrues.
In 2017, the plaintiff, a property owner, brought an inverse-condemnation action against the defendant, Neskowin Regional Sanitary Authority, for the physical occupation of a main sewer line installed on the plaintiff’s property.
The court affirmed the following three holdings: (1) the plaintiff’s claim is subject to the six-year limitations period established by ORS 12.080(3); (2) given the facts of this case, the plaintiffs’ claim accrued when the defendant installed the sewer lines in 1995; and (3) because the plaintiffs did not initiate their claim within the six-year limitations period after 1995, it is barred.
The importance for cities was emphasized in the LOC amici curiae brief, which supported the sanitary authority, along with other government entities — the Association of Oregon Counties and the Special Districts Association of Oregon. Many public entities have acquired property rights based on similar facts presented in this case. The LOC argued this was not a takings case, but rather, a breach of contract case and requested the court to rule in favor of the sanitary authority, otherwise the result would have far-reaching consequences for landowners, public entities and utilities, and the public itself.
The LOC would like to thank Nicole Swift of Cable Huston LLP for her excellent work on this matter.
Contact: Jayme Pierce, General Counsel - jpierce@orcities.org
Last Updated 5/31/24