De Young v. Brown
Annotate this CasePlaintiff James De Young was a city councilor and resident of the City of Damascus, Oregon. Defendants were Kate Brown, in her official capacity as Governor, and the State of Oregon. In De Young I, the Court of Appeals considered the validity of an effort to disincorporate the City of Damascus: in a 2013 election, the residents of the city had voted on a referral from the city council to disincorporate the city. Although a majority of those participating in the election voted in favor of disincorporating, the number fell short of the absolute majority for disincorporation required by law. In 2015, the Oregon legislature passed House Bill (HB) 3085, which referred to the decision whether to disincorporate, and specifically provided that a majority of those voting, rather than an absolute majority of the city’s electors, would be sufficient to disincorporate. Prior to the 2016 election, plaintiff sought to enjoin the scheduled disincorporation vote, alleging HB 3085 violated the city charter, state statutes, and the Oregon Constitution. The trial court denied plaintiff’s request to enjoin the election, and the city residents voted to disincorporate. Following the election, the city paid its debts, transferred its assets to Clackamas County, surrendered its charter, terminated or transferred its employees, and, essentially, ceased to exist. Plaintiff continued his lawsuit, seeking a declaration that the vote had violated various statutory and constitutional requirements and, therefore, the city had not been validly disincorporated. The trial court granted summary judgment in favor of the State, declaring “Measure 93” valid. The Court of Appeals ultimately agreed with plaintiff on his statutory argument, holding that ORS 221.610 and ORS 221.621 (2013) provided the only means by which a city could disincorporate and that, because Measure 93 had not complied with those statutes, it was invalid. Shortly after the Court of Appeals decision was issued, the legislature passed Senate Bill (SB) 226 (2019) “to cure any defect in the procedures, and to ratify the results” of the 2016 disincorporation vote. Following the Court of Appeals’ decision in De Young I but prior to the issuance of the Oregon Supreme Court’s decision in City of Damascus, plaintiff petitioned for an award of attorney fees and costs in De Young I. Applying the “substantial benefit” theory, the Court of Appeals allowed plaintiff’s petition for attorney fees, and remanded for a determination of fees and costs incurred in the circuit court. The State appealed. The Oregon Supreme Court concluded the Court of Appeals did not err in awarding plaintiff fees under the substantial benefit theory.
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