Brewer v. Erwin
600 P.2d 398, 287 Or. 435, 6 A.L.R. 4th 503 (1979)
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Rule of Law:
The Residential Landlord and Tenant Act (RLTA) permits recovery for "actual damages" that include tangible psychological or emotional harm (e.g., physical illness, inability to sleep) caused by a landlord's deliberate, willful, retaliatory, or malicious acts that breach protected interests, but not for mere annoyance or frustration from non-culpable breaches. Additionally, a landlord's conduct can constitute intentional infliction of emotional distress if it is deliberately designed to cause severe distress and goes beyond socially tolerable limits, particularly in relationships with inherent power imbalances.
Facts:
- Plaintiff Suzan Brewer rented the upper apartment of an old, deteriorating building owned by defendant Marquam Investment Corporation.
- Marquam Investment Corporation decided to demolish the building and sent Brewer an eviction notice.
- Brewer, after receiving the notice, became involved with a group trying to prevent the demolition of old houses in the neighborhood and did not move out of her apartment.
- A series of confrontations ensued between Marquam's owners/officers (Warde Erwin, Lavelle Mullennex) and their law partners (Charles Erwin, Colin Lamb) on one side, and Brewer and other persons at the apartment on the other.
- After the date Marquam's notice told Brewer to leave, utility company employees arrived to disconnect natural gas service; defendant Mullennex allegedly told the workers to disregard statements that the house was occupied, and defendant Lamb reportedly kicked in an apartment door and threatened Brewer's friends.
- Defendants Lamb, Warde Erwin, and Charles Erwin later padlocked the kicked-open door, and when Brewer questioned them, they refused to respond to her but made abusive and threatening statements to her friends.
- Warde Erwin drove up, swerving as if to hit one of Brewer's friends, and threatened the group that if they did not leave his property, he "would do something... I don’t know what I’ll do but I’ll do something."
- Warde Erwin and Lamb later entered the basement, and when Brewer tried to follow them, Warde Erwin hit or pushed her in the face; subsequently, Warde Erwin and sometimes Lamb and Mullennex allegedly behaved in an alarming manner while driving past or parking near the house, including late at night.
- While Brewer was away on vacation, Warde Erwin partially demolished the downstairs apartment, breaking windows and interior walls, removing some siding and the back steps, tearing down parts of the fence, and leaving the yard littered with wood, glass, and other debris.
Procedural Posture:
- Plaintiff Suzan Brewer filed suit, originally asking for injunctive relief against allegedly wrongful efforts by defendants to evict her by force, and subsequently adding claims for damages.
- Brewer's ninth amended complaint went to trial, stating two causes of action: intentional infliction of emotional distress and battery.
- The trial court granted involuntary nonsuits on both counts in favor of defendants Lamb and Mullennex.
- The trial court directed a verdict in favor of Warde Erwin and Marquam Investment Corporation on the intentional infliction of emotional distress count.
- On the battery count, the jury returned a verdict against Warde Erwin and Marquam Investment Corporation for $650 general damages and no punitive damages.
- The trial court struck allegations supporting claims for punitive damages for violations of the Residential Landlord and Tenant Act (RLTA) from Brewer's second amended complaint.
- The trial court struck a claim for twice the amount of actual damages from Brewer's fourth amended complaint, which alleged retaliatory damage to the building by Warde Erwin.
- The trial court sustained a demurrer to Brewer’s claim, in her sixth amended complaint, for damages for emotional and psychological injuries caused by defendants’ intentional interruption of plaintiff’s natural gas service and destruction of portions of the building.
- The trial court refused to enjoin Marquam Investment Corporation from prosecuting a separate action for possession in district court.
- Defendants appealed to the Supreme Court of Oregon, contending they were entitled to attorney fees.
- Plaintiff appealed to the Supreme Court of Oregon, challenging the trial court’s rulings on her claims for damages under the RLTA and the tort of intentional infliction of emotional distress.
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Issue:
1. Does the Residential Landlord and Tenant Act (RLTA) allow for the recovery of punitive damages or damages for emotional distress (including psychological harm) for a landlord's violations, and if so, under what circumstances? 2. Did the defendants' conduct, including actions taken to compel plaintiff's abandonment of the premises and partial demolition, provide sufficient evidence to send the claim for intentional infliction of emotional distress to a jury?
Opinions:
Majority - Linde, J.
Yes, the Residential Landlord and Tenant Act (RLTA) allows for the recovery of actual damages that can include tangible psychological or emotional harm resulting from a landlord's deliberate, willful, retaliatory, or malicious acts, but it does not permit punitive damages or emotional distress damages for non-culpable breaches. Yes, the evidence presented was sufficient to allow a jury to decide the claim of intentional infliction of emotional distress against the defendants. The court first examined the RLTA regarding damages. It noted that the Act's drafters explicitly included various forms of noncompensatory damages (e.g., three months' rent, double actual damages) for specific violations, but rejected proposals to allow general "consequential, special, or punitive damages." This detailed and differentiated scheme for statutory damages indicates that superimposing an additional, unlimited remedy of punitive damages for Act violations would be inconsistent with legislative intent. Therefore, punitive damages are not recoverable under the RLTA. Regarding "actual damages," the court found the terms "damages" and "actual damages" in the Act to be ambiguous, but concluded they refer to compensation for tangible harm resulting from a statutory violation, even if that harm is non-economic. This harm must be "of a kind within the contemplation of the protective provision that was breached." While mere annoyance, anger, or frustration from a business dispute is generally not compensable, tangible consequences such as "physical illness, medical bills, inability to sleep, to eat or work in one’s dwelling, separation of family members or similar disruptions of one’s personal life" resulting from a breach of secure occupancy or essential services are recoverable. Such impairment is not excluded simply because it is "psychological" or "emotional" rather than physical. However, this applies specifically to breaches that are "deliberate, willful, retaliatory, or malicious" (e.g., ORS 91.815, 91.865, or 91.840(4)), not to non-culpable failures to maintain habitability under ORS 91.770(1). The court concluded that retaliatory acts that decrease services (like damaging the property) can fall under ORS 91.865, entitling a tenant to "twice the actual damages," which may include these types of psychological harms. Second, the court addressed the tort of intentional infliction of emotional distress. Citing Turman v. Central Billing Bureau, the court reiterated that this tort's essence is the "deliberate purpose" to inflict actual mental suffering, where the conduct is "socially intolerable" and "beyond the outer limits of what a reasonable person... should be expected to tolerate." Reviewing the evidence, including alleged gas disconnection attempts, kicking in doors, verbal threats, property damage, and a physical altercation, the court found sufficient evidence for a jury to conclude that the defendants' conduct was "deliberately designed to frighten or otherwise distress plaintiff into abandoning the premises" and went "beyond the outer limits of what a reasonable person in plaintiff’s position should be expected to tolerate." Therefore, the trial court erred in directing a verdict on this claim.
Analysis:
This case significantly clarifies the scope of damages available to tenants under Oregon's Residential Landlord and Tenant Act and the application of intentional infliction of emotional distress in landlord-tenant disputes. By distinguishing between types of breaches (culpable vs. non-culpable) and the nature of harm ("tangible" psychological/emotional vs. mere annoyance), the court guides future litigants on when and what kind of non-economic damages are recoverable. The ruling also underscores that while a landlord-tenant relationship is often viewed as an "arm's length" business transaction, certain egregious landlord behaviors intended to cause distress can meet the high bar for intentional infliction of emotional distress, reinforcing protections for tenants against abusive tactics beyond simple contract disputes.
