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ARTISIAN LABORATORIES, INC. v. SAIF

0204-03429; A120681.

106 P.3d 677 (2005)

197 Or. App. 580

ARTISAN LABORATORIES, INC., an Oregon corporation; The Adobe Motel, Inc., an Oregon corporation; Red Inc., an Oregon corporation; and Cross-D-Ranches, Inc., an Oregon corporation; and all other corporations, entities or individuals similarly situated, Appellants, v. SAIF CORPORATION, an Oregon public corporation, Respondent.

Court of Appeals of Oregon.

Decided February 16, 2005.

Attorney(s) appearing for the Case

John A. DiLorenzo, Jr., Portland, argued the cause for appellants. With him on the opening brief were John F. McGrory, Jr., Aaron K. Stuckey, and Davis Wright Tremaine LLP and Michael E. Farnell and Parsons Farnell & Grein LLP. On the reply brief was Jeffrey T. Lindberg.

Daniel J. Casey, Assistant Attorney General, argued the cause for respondent. With him on the brief were Hardy Myers, Attorney General, and Mary H. Williams, Solicitor General.

Before EDMONDS, Presiding Judge, and WOLLHEIM and SCHUMAN, Judges.

SCHUMAN, J.

Plaintiffs are Oregon employers who bought workers' compensation insurance from defendant, the State Accident Insurance Fund Corporation (SAIF). They assert that SAIF, in failing to distribute its surplus reserves in the form of dividends, violated a state law; that the law was incorporated into SAIF's contracts with policyholders; and that therefore SAIF breached those contracts. According to plaintiffs, although the law (and hence the contracts) provided...

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