Oregon Enacts Legislation Enhancing Protections Available under the Servicemembers Civil Relief Act

On May 8, Oregon Governor Ted Kulongoski signed into law HB 2303, an Act that supplements the rights given to members of the armed forces under the federal Servicemembers Civil Relief Act (SCRA). Among other things, the SCRA limits the interest that can be charged on debts incurred by servicemembers before they enter into active duty and restricts the rights of landlords and creditors in eviction and foreclosure proceedings against servicemembers. Oregon’s legislation enhances these protections by allowing a servicemember to enforce the SCRA without regard to arbitration or choice of law provisions. Additionally, if a servicemember makes a written demand on the opposing party for relief under the SCRA within 10 days of commencing an action or filing a counterclaim, then the court may award the servicemember attorneys fees and the greater of $1,000 or actual damages. Finally, if an opposing party willfully violates SCRA, the court can award additional damages equaling the lesser of $5,000 or treble damages. The Act was passed under emergency authority and is effective immediately.