Oregon bakers refuse to pay damages in wedding cake discrimination case

Oregon bakery damages

Melissa and Aaron Klein, the owners of Sweet Cakes by Melissa, argued their religious beliefs conflicted with a request to bake a wedding cake for same-sex couple Laurel and Rachel Bowman-Cryer in Oregon in 2013. Although same-sex marriage wasn’t legalized in Oregon until 2014, state law has protected the LGBT rights since 2007. Oregon law prevents businesses from discriminating against or refusing to provide service based on sexual orientation.

The plaintiffs were awarded $135,000 in damages for emotional suffering by the Oregon Bureau of Labor and Industries (BOLI). BOLI is a state business regulatory agency, not a court of law, but the ruling is backed by Oregon law and the agency has the authority to award damages. Labor Commissioner Brad Avakian set the final amount of damages after BOLI determined the women’s civil rights had been violated when they were discriminated against based on sexual orientation.

BOLI awarded $60,000 in damages to Bowman-Cryer and $75,000 in damages to Bowman-Cryer. The agency announced in a press release that “the amounts are damages related to the harm suffered by the Complainants, not fines or civil penalties which are punitive in nature.”

The Kleins filed an appeal and are defying the order to pay damages, citing financial hardship. Crowdfunding has reportedly raised $500,000 on their behalf. Labor Bureau spokesperson Charlie Burr said “it’s difficult to understand the Kleins’ unwillingness to pay the debt when they have, very publicly, raised nearly a half-million dollars”.

GoFundMe reports that the bakery owners would be able to collect donations they received on the site before the campaign was shut down, nearly $110,000. GoFundMe recently added “discriminatory” campaigns to the list of causes for which they will not support crowd funding. Samaritans Purse has since begun raising funds for the Kleins.

Anna Harmon, an attorney for the Kleins, said the order was unconstitutional because “the right to speak freely, to think uniquely, and to live according to our faith is the bedrock of this country”.

Reuters reports that state officials are working to collect the damage by placing a property lien or attaching assets belonging to the Kleins.

 

Relevant Reading:

You can read the final order from BOLI on this matter here.

In a similar case, Jack Phillips of Masterpiece Cakeshop in Denver, was sued for discrimination for refusing to bake a wedding cake for a gay couple, and then sought crowdfunding support.

Some states are passing laws that may open the door to discrimination. Read about one in ‘What Makes Indiana’s Religious-Freedom Law Different?‘ by Garrett Epps for The Atlantic.

Distinct from non-economic damages above, are economic damages, which also can play a central role in discrimination suits. You can learn more about the calculation of these damages from economic experts such as Dwight Steward, Ph.D. or NERA.

J.R. Randall

J.R. Randall is an economist who resides in the Bay Area. He focuses his interest on range of economic topics. He has interest in deep sea fishing and art.