The dispute originated over a historic brick advertising wall situated on West Burnside Street in downtown Portland that required state permitting after the corridor became a state highway. When Atwood terminated the parties' lease agreement in 2019, Lamar refused to transfer the sole permit it held back to the building owner. Instead, Lamar dismantled its hardware and surrendered the authorization to the Oregon Department of Transportation in exchange for a relocation credit. Because modern size restrictions prevent obtaining a replacement permit for the oversized wall, the surrender permanently eliminated the site's commercial advertising value.
Key points
Commercial property owners can recover substantial damages when outdoor advertising tenan…: Commercial property owners can recover substantial damages when outdoor advertising tenants deliberately extinguish irreplaceable building permits upon lease termination.
Surrendering grandfathered regulatory permits breaches implied contractual duties of good…: Surrendering grandfathered regulatory permits breaches implied contractual duties of good faith and fair dealing between billboard operators and property owners.
The appellate decision permanently penalizes sign firms that sacrifice a landlord's adver…: The appellate decision permanently penalizes sign firms that sacrifice a landlord's advertising viability to secure private relocation credits from the state.
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A Portland building owner has kept a $1,237,191.92 jury award against an outdoor advertising company after an appeals court found that the company acted unfairly. The company gave up a state sign permit instead of returning it when its lease ended. In a ruling issued on November 12, 2026, the Oregon Court of Appeals upheld the trial court's decision in favour of building owner Jim A. Atwood, his trust, and J.A. Atwood Corporation against Lamar Obie Company, LLC. In an opinion written by Presiding Judge Darleen Ortega, the appeals court found that a jury could reasonably decide that Lamar had broken its duty to act fairly and honestly under the lease agreement. The company had removed the legal approval needed to display commercial advertisements on Atwood's property.
The dispute involved a large brick wall on the west-facing side of Atwood's building on West Burnside Street in downtown Portland. The wall faced a parking lot at street level and could be seen by traffic heading east. According to Oregon Court of Appeals records, the wall had displayed commercial advertisements for decades.…
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