Larsen v. Selmet, Inc.

ORCP 26 A allows a court to dismiss an action brought by someone other than the real party in interest without allowing substitution of the real party in interest. However, if the plaintiff made an honest and understandable mistake, the court may allow substitution.

Plaintiff filed an employment discrimination action against her employer after recently going through bankruptcy. Plaintiff had failed to list these claims as assets in her bankruptcy schedules. The trial court dismissed plaintiff’s claims, holding that she was not the real party in interest. Plaintiff appealed the trial court’s dismissal of her action. Plaintiff assigned error to the trial court's denial of her motion to substitute the bankruptcy trustee as the plaintiff, arguing that the trial court applied the wrong legal standard. The Court determined that given the arguments presented at trial, the correct legal standard could have been ORCP 34, ORCP 26 A, or judicial estoppel. However, because the trial court relied on ORCP 26 A, the Court analyzed the appeal under this standard. ORCP 26 A allows a court to dismiss an action brought by someone other than the real party in interest without allowing substitution of the real party in interest. However, if the plaintiff made an honest and understandable mistake, the court may allow substitution. Under ORCP 26 A, the trial court dismissed Plaintiff’s action because she did not satisfy her burden of proving that bringing the action under her own name was an honest and reasonable mistake. The Court held under ORCP 26 A dismissal was not an abuse of discretion. Affirmed.