Village at Main Street Phase II, LLC II v. Dept. of Rev. , 360 Or. 738 ( 2016 )


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  • 738	              December 30, 2016	       No. 81
    IN THE SUPREME COURT OF THE
    STATE OF OREGON
    VILLAGE AT MAIN STREET PHASE II, LLC,
    Plaintiff-Respondent,
    v.
    DEPARTMENT OF REVENUE,
    State of Oregon,
    Defendant-Appellant,
    and
    CLACKAMAS COUNTY ASSESSOR,
    Intervenor-Appellant.
    (TC 5054; SC S063163 (Control))
    VILLAGE AT MAIN STREET PHASE III, LLC,
    Plaintiff-Respondent,
    v.
    DEPARTMENT OF REVENUE,
    State of Oregon,
    Defendant-Appellant,
    and
    CLACKAMAS COUNTY ASSESSOR,
    Intervenor-Appellant.
    (TC 5055; SC S063164)
    VILLAGE RESIDENTIAL, LLC,
    Plaintiff-Respondent,
    v.
    DEPARTMENT OF REVENUE,
    State of Oregon,
    Defendant-Appellant,
    and
    CLACKAMAS COUNTY ASSESSOR,
    Intervenor-Appellant.
    (TC 5056; SC S063165)
    VILLAGE RESIDENTIAL, LLC,
    Plaintiff-Respondent,
    Cite as 360 Or 738 (2016)	739
    v.
    DEPARTMENT OF REVENUE,
    State of Oregon,
    Defendant-Appellant,
    and
    CLACKAMAS COUNTY ASSESSOR,
    Intervenor-Appellant.
    (TC 5057; SC S063174)
    En Banc
    On appeal from Oregon Tax Court.*
    Henry C. Breithaupt, Judge.
    Argued and submitted May 10, 2016.
    Jona J. Maukonen, Assistant Attorney General, Salem,
    argued the cause and filed the briefs for appellant
    Department of Revenue. Also on the briefs were Ellen F.
    Rosenblum, Attorney General, and Paul L. Smith, Deputy
    Solicitor General.
    Kathleen J. Rastetter, Assistant County Counsel, Oregon
    City, argued the cause and filed the briefs for appellant
    Clackamas County Assessor. Also on the briefs was Stephen
    L. Madkour, Clackamas County Counsel.
    Donald H. Grim, Greene & Markley, PC, Portland,
    argued the cause and filed the brief for respondents. Also on
    the brief was Ridgway K. Foley, Jr.
    NAKAMOTO, J.
    The order of the Tax Court in Village at Main Street Phase
    II, LLC II v. Dept. of Rev., 
    22 Or. Tax 52
    (2015), is vacated. The
    general judgment of the Tax Court dismissing the cases is
    reversed. The cases are remanded to the Tax Court to enter
    the assessor’s amended answers and for further proceedings.
    ______________
    *  
    22 Or. Tax 52
    (2015).
    740	     Village at Main Street Phase II, LLC II v. Dept. of Rev.
    Case Summary: Taxpayers filed four property tax appeals challenging the
    real market value of the improvements to their property. When the assessor
    sought to add counterclaims under ORS 305.287 addressing the real market value
    of the associated land, the Tax Court concluded that the statute did not apply. On
    appeal, the Oregon Supreme Court disagreed, explaining that application of ORS
    305.287 to these cases was permissible. The Supreme Court reversed the Tax
    Court’s judgments and remanded for further proceedings. Immediately after, tax-
    payers filed a notice of voluntary dismissal under Tax Court Rule 54 A(1). Over
    the assessor’s objections, the Tax Court entered the notice and a judgment dis-
    missing these appeals. Defendants sought relief from the judgment, arguing that
    the Supreme Court’s remand required the Tax Court to allow the counterclaims
    before considering taxpayers’ notice of dismissal or, in the alternative, that the
    assessor’s original answers contained counterclaims barring the dismissal. The
    Tax Court denied defendants’ requests for relief. Held: A trial court’s discretion to
    determine how to accomplish the directed outcome on remand is constrained by
    the scope of remand in a particular case. When an appellate court remands, it is
    implicit that the trial court will carry out both express and implied directions in
    the appellate decision. The Supreme Court’s earlier decision contained an implied
    direction to the Tax Court to enter the amended answers, and it should have done
    that before turning to taxpayers’ subsequently filed notices of dismissal.
    The order of the Tax Court is vacated. The general judgment of the Tax Court
    dismissing the cases is reversed. The cases are remanded to the Tax Court to
    enter the assessor’s amended answers and for further proceedings.
    Cite as 360 Or 738 (2016)	741
    NAKAMOTO, J.
    These four consolidated property tax appeals return
    following remand to the Oregon Tax Court in Village at Main
    Street Phase II v. Dept. of Rev., 356 Or 164, 339 P3d 428
    (2014) (Village I). In Village I, this court addressed whether
    the Tax Court had erred by denying defendant-intervenor
    Clackamas County Assessor’s (assessor) motion for leave to
    file amended answers on the ground that the answers con-
    tained impermissible counterclaims challenging the value
    of taxpayers’ land. This court determined that the assessor
    should have been allowed to challenge the land valuations,
    and it reversed and remanded the cases to the Tax Court. 
    Id. at 166,
    185. Before the assessor filed amended answers, tax-
    payers served notices of voluntary dismissal of their cases
    pursuant to Tax Court Rule (TCR) 54 A(1).1 The Tax Court
    then entered a judgment of dismissal, over the assessor’s
    objection. The court denied the subsequent motions for relief
    from the judgment by defendant Department of Revenue
    (department) and the assessor.
    Under TCR 54 A(1), a plaintiff may, without order of
    the court or consent of the other party, dismiss its appeal “if
    no counterclaim has been pleaded.” The Tax Court concluded
    that Village I did not prohibit dismissal of the cases under
    TCR 54 A(1), because neither the assessor nor the depart-
    ment had filed counterclaims with the Tax Court. Village
    at Main Street Phase II, LLC II v. Dept. of Rev., 
    22 Or. Tax 52
    ,
    60-62, 
    2015 WL 1810580
    (2015) (Village II). On appeal, we
    address whether, as defendants argue, the Tax Court erred
    by giving effect to taxpayers’ notices of voluntary dismissal
    rather than to the decision in Village I concerning the asses-
    sor’s counterclaims pending in the motions for leave to file
    amended answers. As explained below, we conclude that the
    Tax Court erred in dismissing the appeals given the deci-
    sion and remand in Village I. Accordingly, we vacate the Tax
    Court’s order denying defendants relief from the judgment,
    reverse the general judgment of dismissal, and remand for
    further proceedings.
    1
    All references to the Tax Court Rules, the Oregon Rules of Civil Procedure,
    and the Uniform Trial Court Rules are to the versions in effect in 2015.
    742	     Village at Main Street Phase II, LLC II v. Dept. of Rev.
    I. BACKGROUND
    To provide context for the discussion of these
    appeals, we first briefly review the property tax appeals
    process before the Tax Court before laying out the facts
    relevant to these appeals. Finally, we summarize the Tax
    Court’s most recent ruling in these cases.2
    A.  Property Tax Appeals Before the Tax Court
    Under Oregon law, a taxpayer may challenge the
    assessor’s valuation of its property by filing an appeal before
    the local board of property tax appeals (BOPTA). ORS
    309.100(1). If either party is unhappy with the outcome
    of the BOPTA proceedings, an appeal is permitted to the
    Magistrate Division of the Tax Court. ORS 305.275; ORS
    309.110(7). Within 60 days after the entry of a magistrate’s
    written decision, either party may file an appeal with the
    Regular Division. ORS 305.501(5)(a).
    Although characterized as an “appeal,” the review
    by the Regular Division is de novo, with proceedings there
    conducted as “original” and “independent.” ORS 305.425(1);
    see also Reed v. Dept. of Rev., 310 Or 260, 265, 798 P2d 235
    (1990) (stating that the court must “consider all properly
    admitted evidence and reach its own independent conclu-
    sions”). Unlike the Magistrate Division, the Regular Division
    is a court of record and follows formal rules of evidence. ORS
    305.405(1); TCR Preface. The Regular Division has the pow-
    ers and, generally speaking, follows the procedures of a cir-
    cuit court. ORS 305.405(2) - (3); ORS 305.425(3).
    The Tax Court Rules guide litigants before the
    Regular Division. Although the Oregon Rules of Civil
    Procedure (ORCP) do not apply to Tax Court proceedings,
    many of the TCRs mirror their ORCP counterparts. See
    ORS 305.425(3) (“hearings and proceedings” in the Regular
    Division “shall be in accordance with the rules of practice and
    procedure promulgated by the court, which shall conform,
    2
    Although we refer to the last appeal as Village I, the parties were before
    this court two other times in these cases. See Clackamas Cty Assessor v. Village
    at Main St. Phase II, 349 Or 330, 245 P3d 81 (2010) (determining additional
    value added to rolls was undervaluation, not omitted property); Clackamas Cty.
    Assessor v. Village at Main Street, 352 Or 144, 282 P3d 814 (2012) (attorney fees).
    Cite as 360 Or 738 (2016)	743
    as far as practical to the rules of equity practice and proce-
    dure in this state”); see also TCR Preface (so stating).
    B.  Factual and Procedural History
    The relevant facts are primarily procedural and
    are undisputed. Taxpayers are three limited liability
    companies—Village at Main Street Phase II, LLC, Village
    at Main Street Phase III, LLC, and Village Residential,
    LLC—that own real property located in Clackamas
    County. By filing appeals with BOPTA, taxpayers chal-
    lenged the real market value of only the improvements
    on their real property, not the land, for tax years 2006-07
    through 2008-09.
    After BOPTA affirmed the values of the improve-
    ments set by the assessor, taxpayers appealed first to the
    Magistrate Division and then to the Regular Division, where
    their appeals were consolidated. In the Regular Division, the
    department responded by filing answers, and, after success-
    fully moving to intervene in all four cases, the assessor also
    filed answers. The department denied the allegations form-
    ing taxpayers’ claims and asked the Tax Court to uphold the
    assessments. However, in three of the four answers filed by
    the assessor, the prayer for relief contained a request for an
    increase in the values of the improvements over those deter-
    mined by BOPTA or by the magistrate.
    Intending to seek a determination of the values of
    the related land components, which the assessor also believed
    were undervalued, the assessor sought a preliminary rul-
    ing from the Tax Court as to whether a then-newly enacted
    statute, ORS 305.287, would permit amended answers put-
    ting the land values at issue in the taxpayers’ appeals.3 In
    part, ORS 305.287 provides that, when one party appeals
    “the real market value of one or more components of a prop-
    erty tax account,” then “any other party to the appeal may
    seek a determination” of “the real market value of any or
    all of the other components of the [tax] account.” Taxpayers
    responded with their own motion for a preliminary ruling
    on whether ORS 305.287 applied.
    3
    All references to ORS 305.287 are to the 2011 version in effect when the
    parties sought a preliminary ruling before the Tax Court.
    744	   Village at Main Street Phase II, LLC II v. Dept. of Rev.
    The Tax Court obliged and addressed the issue. It
    concluded that ORS 305.287 applied only to appeals to the
    Magistrate Division and, therefore, that defendants could
    not use that statute to place the land values at issue for the
    first time before the Regular Division.
    Nevertheless, within a few weeks, the assessor
    filed a motion for leave to amend its original answers, with
    appended proposed amended answers, and again asserted
    that ORS 305.287 applied to taxpayers’ appeals. Those pro-
    posed answers contained counterclaims requesting deter-
    minations of the real market value of the entire property
    tax accounts, including the land components. The Tax
    Court denied the assessor’s motion for leave to file amended
    answers and entered limited judgments stating that ORS
    305.287 did not apply to the proceedings.
    Defendants appealed the Tax Court’s limited judg-
    ments, and this court reversed. The only issue before this
    court was “whether the Tax Court correctly concluded that
    ORS 305.287 does not apply to appeals to the Regular
    Division of the Tax Court.” Village I, 356 Or at 166. We dis-
    agreed with the Tax Court, concluding that ORS 305.287
    applies to appeals to the Regular Division and, more specif-
    ically, to these cases. 
    Id. at 185.
    We stated the following in
    the final paragraphs of Village I:
    “[W]e conclude that ORS 305.287 applies to appeals filed
    after that statute’s effective date. Because we have already
    determined that ORS 305.287 applies to appeals to the
    Regular Division, and because taxpayers appealed to the
    Regular Division after that statute became effective, ORS
    305.287 applies to these appeals. The Tax Court erred in
    concluding otherwise.
    “The limited judgments of the Tax Court are reversed,
    and the cases are remanded to the Tax Court for further
    proceedings.”
    
    Id. at 185.
    Thus, this court reversed the Tax Court’s denial
    of the assessor’s motion for leave to amend its answers on
    the only basis that the Tax Court had for its denial.
    On the same day that this court issued its opinion in
    Village I, and in anticipation of the remand permitting the
    Cite as 360 Or 738 (2016)	745
    assessor to pursue its counterclaims concerning the value
    of the land components, taxpayers filed in the Tax Court’s
    Regular Division a notice of voluntary dismissal of their
    property tax appeals pursuant to TCR 54 A(1). Although the
    assessor opposed the notice by filing an objection, once the
    appellate judgment in Village I was issued, the Tax Court
    entered a general judgment dismissing taxpayers’ consoli-
    dated appeals.
    Defendants promptly moved for relief from the gen-
    eral judgment, arguing that, at the time taxpayers had filed
    their notices of voluntary dismissal, counterclaims existed
    that would bar dismissal of the cases in their entirety.
    Defendants justified the requested relief with two separate
    theories: First, the assessor’s original answers, which did
    not contain anything labeled a counterclaim, did in fact
    contain counterclaims. In the alternative, the assessor’s
    motion for leave to file amended answers, coupled with this
    court’s decision and remand in Village I, produced, in effect,
    “pleaded” counterclaims.
    The Tax Court denied defendants’ motions for relief
    from the judgment by order in Village II. The Tax Court
    addressed both of defendants’ theories that counterclaims
    barred dismissal of the tax appeals. But because we resolve
    the appeal based only on defendants’ argument that Village I
    required the Tax Court to give effect to the counterclaims
    within the amended answers that the assessor had sought
    leave to file, we describe the Tax Court’s ruling addressing
    that argument in detail.4
    The Tax Court first acknowledged that relief
    requested through ORS 305.287 “can be thought of as a
    4
    One reason that the Tax Court rejected defendants’ first argument—
    concerning the assessor’s original answers—was the court’s conclusion that
    defendants could and should have challenged the magistrate’s decision concern-
    ing the values of the improvements by filing their own complaints in the Regular
    Division in accordance with ORS 305.501(5)(a) (a party may appeal a magis-
    trate’s decision “by filing a complaint in the regular division of the tax court
    within 60 days after the date of entry of the written decision”). Village 
    II, 22 Or. Tax at 57
    . Because our decision rests on other grounds and we vacate the Tax
    Court’s order in Village II, we need not and do not accept defendants’ invitation
    to address the Tax Court’s interpretation of that statute as set out in that order.
    If the matter of ORS 305.501(5)(a) should arise on remand, the parties will have
    an opportunity to litigate that issue fully.
    746	   Village at Main Street Phase II, LLC II v. Dept. of Rev.
    counterclaim.” Village 
    II, 22 Or. Tax at 60
    . In addition, the
    court agreed that, if correctly and timely pleaded, a coun-
    terclaim under that statute would “most probably” bar a dis-
    missal under TCR 54 A(1). 
    Id. The Tax
    Court then reviewed TCR 23 and TCR 15
    concerning amended pleadings. Village 
    II, 22 Or. Tax at 60
    -61.
    Under TCR 23, a party in the assessor’s position must first
    seek and then receive leave to file an amended answer. See
    TCR 23 A (“a party may amend the pleading only by leave of
    court or by written consent of the adverse party, and leave
    shall be freely given when justice so requires”); see also TCR
    23 D(2)(a) (“whenever a motion for leave to amend a plead-
    ing is submitted to the court, it must include, as an attached
    exhibit to the affidavit, the entire text of the proposed
    amended pleading”). After obtaining leave, the party then
    must actually file the amended pleading. See TCR 23 D(1)
    (a pleading is amended “by filing a new pleading”). That
    ordinarily must be accomplished within 10 days after an
    order granting leave. See TCR 15 B(2) (“If the court grants
    a motion and an amended pleading is allowed or required,
    such pleading shall be filed within 10 days after service of
    the order, unless the order otherwise directs.”).
    Based on that review, the Tax Court concluded that
    a plaintiff’s notice of dismissal under TCR 54 A(1) is barred
    if, and only if, a defendant has actually filed an amended
    answer containing counterclaims. Village 
    II, 22 Or. Tax at 60
    -62. And because the assessor had not actually filed
    amended answers, the court ruled that no “pleaded” coun-
    terclaims precluded taxpayers from serving effective notices
    of dismissal under TCR 54 A(1). 
    Id. To conclude
    otherwise,
    the court reasoned, “would effectively render the provisions
    of TCR 15 B(2) meaningless.” 
    Id. The Tax
    Court also considered this court’s decision
    in Village I, but the court concluded that it “did not purport
    to address, much less override or set aside, the rules of [the
    Tax Court] as to procedure on motions for leave to amend.”
    
    Id. The Tax
    Court therefore concluded that it had no choice
    but to dismiss the cases under settled law. 
    Id. at 61-62
    (citing
    Maxwell v. Stebbins (A108022), 180 Or App 48, 42 P3d 336
    (2002), and Sohn v. Thi, 262 Or App 313, 325 P3d 57 (2014)).
    Cite as 360 Or 738 (2016)	747
    Defendants now appeal the order denying them relief from
    the judgment and the general judgment of dismissal.
    II. ANALYSIS
    On appeal, the issue is whether, in light of this
    court’s decision in Village I, filed amended answers con-
    taining counterclaims were required to abrogate taxpayers’
    right to dismiss their property tax appeals under TCR 54
    A(1). We review the Tax Court’s dismissal of the appeals for
    legal error. See ORS 305.445 (Supreme Court will review for
    “errors or questions of law or lack of substantial evidence in
    the record”); Hewlett-Packard Co. v. Benton County Assessor,
    357 Or 598, 609, 356 P3d 70 (2015) (stating that the inter-
    pretation of relevant statutes and rules is a legal issue).
    Many of the Tax Court rules are modeled on por-
    tions of the Oregon Rules of Civil Procedure (ORCP), and,
    to “the extent that the wording of a TCR is the same as that
    of an ORCP, cases interpreting the ORCP may be looked to
    as authority for interpreting the TCR.” TCR Preface. The
    rule at issue here, TCR 54 A(1), is identical in all relevant
    respects to ORCP 54 A(1):
    “Subject to the provisions of TCR 32 D and of any stat-
    ute of this state, a plaintiff may dismiss an action in its
    entirety or as to one or more defendants without order of
    court: (a) by filing a notice of dismissal with the court and
    serving such notice on all other parties not in default not
    less than five days prior to the day of trial if no counter-
    claim has been pleaded * * *. * * * Upon notice of dismissal
    * * *, a party shall submit a form of judgment and the court
    shall enter a judgment of dismissal.”
    TCR 54 A(1) (emphasis added).5
    In construing the emphasized phrase in TCR 54
    A(1), taxpayers and the Tax Court understand the term
    5
    ORCP 54 A(1) provides:
    “Subject to the provisions of Rule 32 D and of any statute of this state, a
    plaintiff may dismiss an action in its entirety or as to one or more defendants
    without order of court: (a) by filing a notice of dismissal with the court and
    serving such notice on all other parties not in default not less than five days
    prior to the day of trial if no counterclaim has been pleaded * * *. * * * Upon
    notice of dismissal * * *, a party shall submit a form of judgment and the court
    shall enter a judgment of dismissal.”
    748	     Village at Main Street Phase II, LLC II v. Dept. of Rev.
    “pleaded” to require the filing and service of an amended
    answer before the counterclaim in that answer may be
    deemed “pleaded.” It is undisputed that the assessor had not
    actually filed amended answers containing counterclaims
    when this court issued its decision in Village I and when
    taxpayers served their notices of dismissal under TCR 54
    A(1). Instead, as noted above, the assessor had only sought
    leave of the Tax Court to file amended answers and attached
    the proposed amended answers to its motions for leave to
    file them. TCR 23 D(2)(a).6 Defendants, on the other hand,
    argue that the Tax Court’s dismissal was inconsistent with
    this court’s decision in Village I and that the Tax Court was
    obliged by the reversal and remand in Village I to allow the
    assessor’s pending counterclaims to prevent dismissal. We
    conclude that the Tax Court should have given effect to our
    decision in Village I.
    When an appellate court directs action on remand,
    the tribunal typically may determine how to accomplish the
    directed outcome if it does so within the boundaries set by
    the remand. See Gearhart v. PUC, 356 Or 216, 234-36, 356
    P3d 216 (2014) (discussing the effect and scope of a general
    remand to an agency). That flexibility is constrained not
    only by the express order of the appellate court’s remand,
    but also by its implied directive when considered in the con-
    text of the court’s entire opinion. See State v. Bowen, 352 Or
    109, 115, 282 P3d 807 (2012) (acknowledging ambiguity in
    express remand, but concluding that “[w]hen the relevant
    parts of the opinion are considered in their entirety * * *
    [the] court’s intention in ordering remand * * * is clear”);
    Ross v. Robinson, 174 Or 25, 42, 45-46, 147 P2d 204 (1944)
    (explaining that the court’s prior decision, which sustained
    a demurrer to the complaint and remanded for further pro-
    ceedings not inconsistent with the decision, implied that
    the complaint had substance and that the trial court had
    authority to permit an amended complaint); see also Sprague
    v. Ticonic Bank, 
    307 U.S. 161
    , 169, 
    59 S. Ct. 777
    , 
    83 L. Ed. 1184
    	6
    Although TCR 23 is substantially the same as ORCP 23, defendants cor-
    rectly note that the Tax Court requirement to submit the proposed amended
    pleading with a motion for leave to amend is not present in ORCP 23. See TCR
    23 D(2). However, UTCR 5.070, which applies to proceedings in Oregon circuit
    courts, similarly obligates litigants to attach the entire text of the proposed
    amended pleading to a motion for leave to amend. See UTCR 5.070.
    Cite as 360 Or 738 (2016)	749
    (1939) (examining whether outcome was impliedly addressed
    by appellate court’s decision and subsequent remand). The
    scope of remand is established by the appellate court’s opin-
    ion in a particular case. See Bowen, 352 Or at 115-16 (exam-
    ining the court’s intention in ordering remand).
    Although the Tax Court correctly observed that
    Village I made no statement about TCR 54 A(1) or the appli-
    cation of procedural rules on remand—which were not issues
    on appeal—the Tax Court’s dismissal of the cases failed to
    implement this court’s decision in Village I. In Village I, this
    court reversed the Tax Court’s limited judgments denying
    the assessor leave to file amended answers and counter-
    claims. 356 Or at 173, 185. The court also remanded to the
    Tax Court for “further proceedings.” 
    Id. at 185.
    That general
    remand included an implied directive to enter the assessor’s
    amended answers, because the court’s opinion reversed the
    Tax Court’s only basis for denying entry of the amended
    answers. In fact, the Tax Court noted in its order that,
    but for taxpayers’ subsequent notice of dismissal, it would
    have allowed the amended answers upon return receipt of
    jurisdiction. Village 
    II, 22 Or. Tax at 61
    . Thus, we hold that
    our remand required the Tax Court to allow the pending
    amended answers to be entered before turning to taxpayers’
    subsequently filed notices of dismissal.
    The case law concerning any application of TCR
    54 A(1) is sparse, and no prior Oregon case addresses how
    that rule or ORCP 54 A(1) operates when, after this court
    reverses the denial of a party’s motion for leave to amend
    its pleading to include a counterclaim and remands the
    case, the other party seeks to avoid the effect of the appeal
    and remand by preemptively filing a notice of voluntary
    dismissal. However, we note that a plaintiff’s right to vol-
    untarily dismiss an action is subject to judicially created
    limitations. See Garrison v. Cook, 280 Or 205, 570 P2d 646
    (1977).
    In Garrison, the plaintiff, to avoid litigating the
    issue of attorney fees, sought to terminate his action after
    he had lost a summary judgment motion. 280 Or at 208,
    211. He filed a motion as provided in former ORS 18.230 (a
    predecessor to ORCP 54 A(1)), which allowed such a motion
    750	     Village at Main Street Phase II, LLC II v. Dept. of Rev.
    “not less than five days prior to the day of trial if no coun-
    terclaim has been pleaded.” This court held that, in those
    circumstances, the plaintiff could not avail himself of a
    judgment of nonsuit as “a matter of right” as provided in the
    statute. 280 Or at 211. The court reasoned that to conclude
    otherwise would allow the plaintiff to “avoid the effect of
    an adverse summary judgment.” 
    Id. Similarly, our
    holding
    in these cases prevents taxpayers from litigating through a
    decision on appeal whether defendants were entitled to file
    counterclaims putting the land values at issue in the cases,
    and then avoiding that decision by claiming that the very
    counterclaims at issue on appeal had not yet been pleaded.
    In sum, applying principles concerning the effect
    and scope of remands, we conclude that the Tax Court was
    obliged to give effect to this court’s decision in Village I that
    the assessor had a statutory right to pursue the counter-
    claims alleged in its proposed amended answers—which the
    Tax Court had prevented the assessor from filing through
    its rulings that were the subject of Village I—upon remand
    of the cases to the Tax Court for further proceedings.7
    Simply put, when this court has remanded to a lower court
    to apply our decision, it is implicit in that remand that the
    court, upon regaining jurisdiction over the case, will carry
    out both express and implied directions. Accordingly, we
    reverse and remand to the Tax Court to permit the filing of
    the assessor’s amended answers.
    The order of the Tax Court in Village at Main
    Street Phase II, LLC II v. Dept. of Rev., 
    22 Or. Tax 52
    (2015), is
    vacated. The general judgment of the Tax Court dismissing
    the cases is reversed. The cases are remanded to the Tax
    Court to enter the assessor’s amended answers and for fur-
    ther proceedings.
    7
    Thus, our decision does not affect established case law concerning motions
    pending before a trial court, when no remand is at issue. For example, the Court
    of Appeals has determined that a plaintiff may file a notice of voluntary dismissal
    even in the face of a pending motion for summary judgment. See, e.g., Ramirez
    v. Northwest Renal Clinic, 262 Or App 317, 321, 324 P3d 581 (2014) (a pending
    motion or anticipated order for summary judgment will not prevent a notice of
    voluntary dismissal); see also Sohn v. Thi, 262 Or App 313, 315, 325 P3d 57 (2014)
    (stating the same). Nothing in this decision changes that case law.
    

Document Info

Docket Number: S063163

Citation Numbers: 360 Or. 738, 387 P.3d 374

Filed Date: 12/30/2016

Precedential Status: Precedential

Modified Date: 1/13/2023