Mountain Fir Lumber Co. v. Employee Benefits Insurance Co‪.‬

Plaintiff seeks damages for defendants failure to comply with an alleged agreement for the rebate of workers compensation insurance premiums. Plaintiff appeals following the dismissal of its first and second amended complaints on the ground that plaintiff failed to state facts sufficient to constitute a claim. ORCP 21 A. Plaintiff alleged claims for breach of contract, fraud (deceit), reformation and breach of the contract as reformed. Defendant argues that there can be no contract action, because the rebate agreement is an illegal contract under ORS 746.035 and ORS 746.045, and that there can be no fraud action, because there is no right to rely on an illegal promise. We find that plaintiffs amended complaint states viable claims, and we reverse.