701.131
License required to perfect lien or obtain judicial or administrative remedy;
exception. (1)
Except as provided in subsection (2) of this section, a contractor may not
perfect a construction lien, file a complaint with the Construction Contractors
Board or commence an arbitration or a claim in a court of this state for
compensation for the performance of any work or for the breach of any contract
for work that is subject to this chapter, unless the contractor had a valid
license issued by the board and properly endorsed for the work performed:
(a) At the time
the contractor bid or entered into the contract for performance of the work;
and
(b) Continuously
while performing the work for which compensation is sought.
(2) The board,
arbitrator or court may not apply the provisions of subsection (1) of this
section to a contractor if the board, arbitrator or court determines that:
(a) The
contractor either did not have a valid license with a proper endorsement at any
time required under subsection (1) of this section, or had an initial issuance
of a valid license, and:
(A) The
contractor was not aware of the requirement that the contractor be licensed or
properly endorsed for the work performed, and the contractor submitted a
completed application for a license within a number of days established by the
board, but not more than 90 days, of the date the contractor became aware of
the requirement;
(B) At the time
the contractor perfected a construction lien or commenced any claim subject to
the provisions of subsection (1) of this section, the contractor was licensed
by the board and properly endorsed for the work performed; and
(C) Enforcement
of the provisions of subsection (1) of this section would result in substantial
injustice to the contractor;
(b) The
contractor was licensed by the board for some but not all of the times required
under subsection (1) of this section and had a lapse in the license and:
(A) The
contractor was not aware of the lapse in the license for more than a number of
days established by the board, but not to exceed 90 days, before submitting a
completed application for license renewal with the board;
(B) Except for
perfection of a construction lien and a court action to foreclose the lien, at
the time the contractor commenced any claim subject to the provisions of
subsection (1) of this section the contractor’s license was renewed under ORS
701.063 to include the entire time period for which a license was required
under subsection (1) of this section; and
(C) For
perfection of a construction lien and a court action to foreclose the lien, the
contractor’s license was renewed under ORS 701.063 for the entire time period
for which a license was required under subsection (1) of this section, but not
later than 90 days following perfection of the lien; or
(c) The
proceeding:
(A) Is directed
against a person or entity that:
(i) Is subject to
this chapter or ORS chapter 671 or 672;
(ii) Provides
construction or design labor or services of any kind; or
(iii)
Manufactures, distributes, rents or otherwise provides materials, supplies,
equipment, systems or products; and
(B) Arises out of
defects, deficiencies or inadequate performance in the construction, design,
labor, services, materials, supplies, equipment, systems or products provided.
(3) A contractor
that falsely swears to information submitted to the board under ORS 701.046 or
submitted in a registration of securities described in ORS 701.046 (2), or that
knowingly violates the provisions of ORS 656.029, 670.600 or 701.046, may not
perfect a construction lien, file a complaint with the board or commence an
arbitration or a claim in a court of this state for compensation for the
performance of any work on a residential structure or for the breach of any
contract for work on a residential structure that is subject to this chapter. [Formerly
701.065; 2009 c.226 §§8,9; 2013 c.251 §5]
Notes of Decisions
Cited in
5
cases, 2010–2018 · leading case:
Pincetich v. Nolan, 285 P.3d 759 (Or. Ct. App. 2012).
Pincetich v. Nolan, 285 P.3d 759 (Or. Ct. App. 2012).
· cites it 32× “ORS 701.131 provides, as relevant: “(1) Except as provided in subsection (2) of this section, a contractor may not * * * commence an arbitration or a court action for compensation for the performance of any work or for the breach of any contract for work that is subject to this…”
Snider v. Dickinson Elks Bldg., LLC, 2018 ND 55 (N.D. 2018).
“§ 32-1153 (requiring valid license at entry into contract and when cause of action arose); Utah Code § 58-55-604 (same); Or. Rev. Stat. § 701.131 (1) (requiring valid license at time of contracting and “[c]ontinuously while performing the work for which compensation is sought”).”
Mayfly Grp., Inc. v. Ruiz, 250 P.3d 360 (Or. Ct. App. 2011).
“See Tape Recording, House Appropriations Committee “B,” HB 2282, July 9, 1993, Tape 129, Side B (statement of John Booten, Ombudsman for Small Businesses) (discussing possible penalties for violations, including refusal to license or criminal prosecution for fraud).”
Stellar J Corp. v. Smith & Loveless, Inc. (9th Cir. 2014).
· cites it 23× “Before this Court, Smith contends that an unlicensed contractor can file a counterclaim and recover damages pursuant to Or. Rev. Stat. § 701.131 (1) (2008), even though that statute barred unlicensed contractors from filing a complaint for breach of contract.”
Stellar J Corp. v. Smith & Loveless, Inc., 749 F. Supp. 2d 1137 (D. Or. 2010).
· cites it 19× “Their assertion of this “unlicensed contractor defense” is based upon Or. Rev. Stat. § 701.131 . This statute provides, in relevant part, that: (1) Except as provided in subsection (2) of this section, a contractor may not perfect a construction lien, file a complaint with the…”
— Or. Rev. Stat. § 701.131(1) — 3 cases
Pincetich v. Nolan, 285 P.3d 759 (Or. Ct. App. 2012).
“ORS 701.131 provides, as relevant: “(1) Except as provided in subsection (2) of this section, a contractor may not * * * commence an arbitration or a court action for compensation for the performance of any work or for the breach of any contract for work that is subject to this…”
Mayfly Grp., Inc. v. Ruiz, 250 P.3d 360 (Or. Ct. App. 2011).
“See Tape Recording, House Appropriations Committee “B,” HB 2282, July 9, 1993, Tape 129, Side B (statement of John Booten, Ombudsman for Small Businesses) (discussing possible penalties for violations, including refusal to license or criminal prosecution for fraud).”
Stellar J Corp. v. Smith & Loveless, Inc., 749 F. Supp. 2d 1137 (D. Or. 2010).
“Their assertion of this “unlicensed contractor defense” is based upon Or. Rev. Stat. § 701.131 . This statute provides, in relevant part, that: (1) Except as provided in subsection (2) of this section, a contractor may not perfect a construction lien, file a complaint with the…”
— Or. Rev. Stat. § 701.131(1)(b) — 1 case
Pincetich v. Nolan, 285 P.3d 759 (Or. Ct. App. 2012).
“ORS 701.131 provides, as relevant: “(1) Except as provided in subsection (2) of this section, a contractor may not * * * commence an arbitration or a court action for compensation for the performance of any work or for the breach of any contract for work that is subject to this…”
— Or. Rev. Stat. § 701.131(2) — 1 case
Stellar J Corp. v. Smith & Loveless, Inc., 749 F. Supp. 2d 1137 (D. Or. 2010).
“Their assertion of this “unlicensed contractor defense” is based upon Or. Rev. Stat. § 701.131 . This statute provides, in relevant part, that: (1) Except as provided in subsection (2) of this section, a contractor may not perfect a construction lien, file a complaint with the…”
— Or. Rev. Stat. § 701.131(2)(a) — 1 case
Stellar J Corp. v. Smith & Loveless, Inc., 749 F. Supp. 2d 1137 (D. Or. 2010).
“Their assertion of this “unlicensed contractor defense” is based upon Or. Rev. Stat. § 701.131 . This statute provides, in relevant part, that: (1) Except as provided in subsection (2) of this section, a contractor may not perfect a construction lien, file a complaint with the…”
— Or. Rev. Stat. § 701.131(2)(c) — 1 case
Pincetich v. Nolan, 285 P.3d 759 (Or. Ct. App. 2012).
“ORS 701.131 provides, as relevant: “(1) Except as provided in subsection (2) of this section, a contractor may not * * * commence an arbitration or a court action for compensation for the performance of any work or for the breach of any contract for work that is subject to this…”
— Or. Rev. Stat. § 701.131(2)(c)(B) — 1 case
Pincetich v. Nolan, 285 P.3d 759 (Or. Ct. App. 2012).
“ORS 701.131 provides, as relevant: “(1) Except as provided in subsection (2) of this section, a contractor may not * * * commence an arbitration or a court action for compensation for the performance of any work or for the breach of any contract for work that is subject to this…”
— Or. Rev. Stat. § 701.131(2)(d) — 1 case
Stellar J Corp. v. Smith & Loveless, Inc., 749 F. Supp. 2d 1137 (D. Or. 2010).
“Their assertion of this “unlicensed contractor defense” is based upon Or. Rev. Stat. § 701.131 . This statute provides, in relevant part, that: (1) Except as provided in subsection (2) of this section, a contractor may not perfect a construction lien, file a complaint with the…”
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