Welcome to your daily briefing on legal developments in Oregon. Today we're covering 6 key stories including updates on oregon legal headlines, background & context. Let's dive in.
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Find out more about the Oregon State Bar. With more than 15,000 active members of the Oregon State Bar (OSB), approximately 2,500 reside in a state other than Oregon. The OSB has an annual operating budget of $15 million.
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3 stories
Arbitration clauses are most often struck down for procedural unconscionability — surprise placement, font that hides them, or no opportunity to negotiate — rather than substantive issues. A clause that is conspicuous, separately initialed, and accompanies a clear written notice of waiver of jury trial survives review in most jurisdictions.
A void arbitration clause means the dispute lands in court, often with discovery and jury exposure that the clause was meant to prevent. Drafting discipline at contract formation is cheap; defending the clause years later is not.
Most conflict-of-interest systems index by named party only. They miss conflicts created when the named party is a wholly-owned subsidiary, a shared parent's affiliate, or a private-equity portfolio company under common control. The model rules treat these as conflicts even though no name match exists.
A conflict that surfaces mid-matter typically requires withdrawal at the worst possible moment, plus a fee writedown for work done. Catching it at intake is a 10-minute process; catching it at month six is a six-figure problem.
Enforceability of employee non-competes varies dramatically by state and is trending toward narrower enforcement nationally. Common defects include geographic scope broader than the employer's actual market, duration longer than necessary to protect a legitimate interest, and lack of consideration beyond continued employment.
An overbroad non-compete is often unenforceable in its entirety, not just blue-penciled down — meaning the employer gets no protection at all. A narrower, defensible clause protects more than an aspirational one.
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