Judge Dismisses Eugene Bank Theft Case Over Hospital Limits
A Lane County judge tossed the charge against Justin James Peterson after a federal order restricted state hospital admissions for pretrial detainees.
Updated on Nov. 3, 2026 in Criminal Justice
Lane County Circuit Judge Michelle Bassi dismissed a bank theft case against Justin James Peterson, 37, on October 28. Bassi cited a June federal court order by Judge Adrienne Nelson that restricted Oregon State Hospital admissions for certain pretrial detainees.
Why it matters
Peterson had been found unfit to proceed on October 15, and the federal order prevented his admission for treatment and restoration to fitness. The dismissal shows how limits on state hospital capacity can end criminal cases for defendants with untreated mental health conditions.
Peterson, 37, was held in Lane County Jail after a December 29 arrest on a charge of theft valued at $1,000 or more. The case was dismissed October 28, and the source does not report any pending refiling.
The players
Michelle Bassi
Lane County Circuit Judge who dismissed the bank theft case against Justin James Peterson on October 28.
Adrienne Nelson
Federal district court judge whose June order restricted Oregon State Hospital admissions for certain pretrial detainees.
The details
Eugene police arrested Peterson on suspicion of theft at the Key Bank on Coburg Road. Peterson stopped taking medication, according to a defense attorney's April report, and declined to communicate with his attorney or meet with a psychologist. Waitlists for secure residential treatment facilities outside Oregon State Hospital are closed.
Timeline
- December 29: Eugene police arrested Peterson on suspicion of bank theft.
- June: Federal judge Adrienne Nelson issued an order restricting Oregon State Hospital admissions.
- October 15: Bassi ordered Peterson unfit to proceed.
- October 28: Bassi dismissed the bank theft case.
Legal Context
The dismissal follows Judge Adrienne Nelson's June federal order restricting Oregon State Hospital admissions for pretrial detainees facing charges not involving crimes against a person. After the order, the state came into compliance with the federal requirement, which shows how federal court limits on state psychiatric capacity can reshape outcomes in local criminal cases.
Residents of Eugene and Lane County may see criminal cases dismissed when state psychiatric capacity is limited by court order. Defendants found unfit to proceed can remain in custody or go untreated while waitlists for secure residential treatment remain closed.
The takeaway
Limits on state hospital beds can change how courts handle defendants with untreated mental illness. Families and advocates who want to track these changes can follow Lane County Circuit Court rulings and Oregon State Hospital admission policy updates.
Further reading
Explore more Criminal Justice coverage from Eugene and across Lane County.
Source note: This article includes information reported by Lookout Eugene-Springfield.
