Argued and Submitted May 21, 2014
Multnomah County Circuit Court. 120911252. Jean Kerr Maurer, Judge.
Barry J. Goehler argued the cause for appellant. With him on the briefs was Law Office of Barry J. Goehler.
Gregory E. Skillman argued the cause and filed the brief for respondent.
Before Duncan, Presiding Judge, and Wollheim, Judge, and Lagesen, Judge.
[264 Or.App. 715] LAGESEN, J.
According to the complaint in this case, plaintiff Nationwide Insurance Company of America paid $2,753.73 to repair damages to its insured's Cadillac caused by defendant Tri-County Metropolitan Transportation District's (TriMet) negligently operated bus. Plaintiff then sued defendant to recover that amount, alleging that it was " subrogated to all rights of its insured" against defendant. Defendant moved to dismiss the complaint under ORCP 21 A(6) and ORCP 26, on the ground that plaintiff was not the real party in interest on the claim, and under ORCP 21 A(8), on the ground that the complaint did not state a claim for negligence because it did not allege that plaintiff itself, rather than plaintiff's insured, had been injured by TriMet's negligence. The trial court agreed with defendant and dismissed on those alternative grounds. We reverse and remand.
Our review of both bases for dismissal is the same on this record. We review a trial
court's ruling dismissing a complaint under ORCP 21 A(8) for failure to state a claim for legal error, taking " as true all well-pleaded factual allegations," and giving plaintiff " the benefit of all reasonable inferences that can be drawn from those facts." Bernards v. Summit Real Estate Management, Inc., 229 Or.App. 357, 367, 371, 213 P.3d 1 (2009). With respect to the trial court's dismissal under ORCP 21 A(6), the parties here did not submit evidence, and the trial court resolved the motion on the pleadings without making any factual findings. Consequently, because the trial court resolved the motion on the pleadings, " we liberally construe the pleadings and consider as true the facts alleged in plaintiff's complaint and all reasonable inferences that may be drawn from those facts," and review to determine whether plaintiff has adequately [264 Or.App. 716] alleged its real-party-in-interest status. Smith v. Truck Insurance Exchange, Inc., 242 Or.App. 202, 204, 207-08, 255 P.3d 615 (2011) (explaining standard of review applicable to dismissal under ORCP 21 A(6) made on the pleadings).
We first address the trial court's dismissal of the case on the ground that plaintiff was not the real party in interest. Under Oregon law, " [a]n insurer who makes an outright payment to its insured is subrogated to the insured's claims arising from the loss for which payment was made." Metropolitan Property & Casualty v. Harper, 168 Or.App. 358, 374, 7 P.3d 541 (2000). " A subrogated insurer becomes the owner of the claim and the real party in interest in any action to enforce it." Id. (emphasis added); see also Waters v. Bigelow et al, 210 Or. 317, 318-23, 310 P.2d 624 (1957) (discussing and applying rule); Furrer v. Yew Creek Logging Co., 206 Or. 382, 388-89, 292 P.2d 499 (1956) (same); Growers Refrigeration v. Pacific Electrical, 165 Or.App. 274, 276, 996 P.2d 521 (2000) (same).
In this case, the complaint alleges that defendant caused $2,753.73 in physical damage to plaintiff's insured's car, that plaintiff made an outright payment of that amount to its insured, and that plaintiff thereby became fully subrogated to its insured's claims arising out of the property damage caused by defendant. Those allegations are sufficient to establish at the pleadings stage that plaintiff is the real party in interest on the claim that it has alleged. If, as alleged, plaintiff made an outright payment to its insured and became subrogated to its insured's claim against defendant for property damage, then, as a matter of law, plaintiff is the real party in interest as to that claim.
Defendant nonetheless argues that we should conclude that the insured remains the real party in interest on the claim. In particular, defendant contends that to hold otherwise puts it at risk of having to defend a separate suit brought by the insured.
We recognize defendant's concern. We nevertheless reject defendant's argument for two reasons. First, in the posture in which this case is presented to us, our review is confined to the complaint. The allegations in the complaint, if true, establish that plaintiff is the only real party [264 Or.App. 717] in interest on the claim alleged, having ...