2007 ORS 87.058¹
Stay of foreclosure proceedings
  • requirements
  • procedure
  • duration of stay

(1) As used in this section:

(a) Notwithstanding ORS 87.005 (Definitions for ORS 87.001 to 87.060 and 87.075 to 87.093), "contractor" has the meaning given that term in ORS 701.005 (Definitions).

(b) "Board" means the Construction Contractors Board established in ORS 701.205 (Construction Contractors Board).

(2) If a person files a suit to enforce a lien perfected under ORS 87.035 (Perfecting lien) and the owner of the structure subject to that lien files a complaint that is being processed by the board under ORS 701.145 (Resolution of complaints involving work on residential structures or certain small commercial structures) against a contractor who performed work on the structure, the owner may obtain a stay of proceedings on the suit to enforce the lien if:

(a) The owner already has paid the contractor for that contractor’s work that is subject to this chapter on the structure;

(b) The person suing to enforce the lien perfected under ORS 87.035 (Perfecting lien):

(A) Performed work that is subject to ORS chapter 701 on the structure for the contractor who has been paid by the owner;

(B) Furnished labor, services or materials or rented or supplied equipment used on the structure to the contractor who has been paid by the owner; or

(C) Otherwise acquired the lien as a result of a contribution toward completion of the structure for which the contractor has been paid by the owner; and

(c) The continued existence of the lien on which the suit is pending is attributable to the failure of the contractor who has been paid by the owner to pay the person suing for that person’s contribution toward completion of the structure.

(3) The owner may petition for the stay of proceedings described in subsection (2) of this section by filing the following papers in the circuit court in which the suit on the lien is pending:

(a) A certified copy of the complaint filed for processing by the board under ORS 701.145 (Resolution of complaints involving work on residential structures or certain small commercial structures); and

(b) An affidavit signed by the owner that contains:

(A) A description of the structure;

(B) The street address of the structure;

(C) A statement that the structure is the structure upon which the suit to enforce the lien is pending; and

(D) A statement that the petitioner is the owner of the structure.

(4) Upon receipt of a complete petition described in subsection (3) of this section, the circuit court shall stay proceedings on the suit to enforce the lien.

(5) After the board order on the complaint becomes final and the board issues any required notice for payment against the contractor’s bond or deposit, the circuit court shall dissolve the stay ordered under subsection (4) of this section. [1981 c.618 §16; 1987 c.662 §12; 1991 c.181 §15; 2001 c.197 §8; 2007 c.793 §2]

Notes of Decisions

In absence of express waiver by contractor of right to file construc­tion lien, agree­ment to arbitrate disputes did not prevent filing of lien and thereafter foreclosing to recover unpaid amounts and costs and attorney fees incurred in prepara­tion, filing and foreclosure of lien claim. Harris v. Dyer, 50 Or App 223, 623 P2d 662 (1981), as modified by 292 Or 233, 637 P2d 918 (1981)

1 Legislative Counsel Committee, CHAPTER 87—Statutory Liens, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­087.­html (2007) (last ac­cessed Feb. 12, 2009).
 
2 Legislative Counsel Committee, Annotations to the Oregon Revised Stat­utes, Cumulative Supplement - 2007, Chapter 87, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­087ano.­htm (2007) (last ac­cessed Feb. 12, 2009).
 
3 OregonLaws.org assembles these lists by analyzing references between Sections. Each listed item refers back to the current Section in its own text. The result reveals relationships in the code that may not have otherwise been apparent.