ORS 87.060
Foreclosure

  • right to jury trial
  • distribution of proceeds of foreclosure sale

(1)

A suit to enforce a lien perfected under ORS 87.035 (Perfecting lien) shall be brought in circuit court, and the pleadings, process, practice and other proceedings shall be the same as in other cases.

(2)

In a suit to enforce a lien perfected under ORS 87.035 (Perfecting lien), evidence of the actual costs of the labor, equipment, services and material provided by the lien claimant establishes a rebuttable presumption that those costs are the reasonable value of that labor, equipment, services and material.

(3)

In a suit to enforce a lien perfected under ORS 87.035 (Perfecting lien), the court shall allow or disallow the lien. If the lien is allowed, the court shall proceed with the foreclosure of the lien and resolve all other pleaded issues. If the lien is disallowed, and a party has made a demand for a jury trial as provided for in subsection (4) of this section, the court shall impanel a jury to decide any issues triable of right by a jury. All other issues in the suit shall be tried by the court.

(4)

A party may demand a trial by jury of any issue triable of right by a jury after the lien is disallowed, if that party serves a demand therefor in writing upon the other parties at any time prior to commencement of the trial to foreclose the lien. The demand shall be filed with the court. The failure of a party to serve a demand as required by this subsection shall constitute a waiver by the party of trial by jury. A demand for trial by jury made as provided in this subsection may not be withdrawn without the consent of the parties.

(5)

When notice of intent to foreclose the lien has been given, pleaded and proven as provided for in ORS 87.057 (Notice of intent to foreclose), the court, upon entering judgment for the lien claimant, shall allow as part of the costs all moneys paid for the filing or recording of the lien and all moneys paid for title reports required for preparing and foreclosing the lien. In a suit to enforce a lien perfected under ORS 87.035 (Perfecting lien) the court shall allow a reasonable amount as attorney fees at trial and on appeal to the party who prevails on the issues of the validity and foreclosure of the lien.

(6)

In case the proceeds of any sale under ORS 87.001 (Short title) to 87.060 (Foreclosure) and 87.075 (Exemption of building materials from attachment by third persons) to 87.093 (Information Notice to Owner) are insufficient to pay all lienholders claiming under such statutes, the liens of all persons shall be paid pro rata. Each claimant is entitled to execution for any balance due the claimant after the distribution of the proceeds, and that execution shall be issued by the clerk of the court, upon demand, after the return of the sheriff or other officer making the sale showing the balance due.

(7)

All suits to enforce any lien perfected under ORS 87.035 (Perfecting lien) shall have preference on the calendar of the court over every civil suit, except suits to which the state is a party, and shall be tried by the court without unnecessary delay. In such a suit, all persons personally liable, and all lienholders whose claims have been filed for record pursuant to ORS 87.035 (Perfecting lien), shall, and all other persons interested in the matter in controversy, or in the property sought to be charged with the lien, may be made parties; but persons not made parties are not bound by the proceedings. The proceedings upon the foreclosure of the liens perfected under ORS 87.035 (Perfecting lien) shall, as nearly as possible, conform to the proceedings of a foreclosure of a mortgage lien upon real property. [Amended by 1975 c.466 §16; 1981 c.897 §20; 1981 c.898 §44; 1983 c.517 §2; 1987 c.662 §13]

Source: Section 87.060 — Foreclosure; right to jury trial; distribution of proceeds of foreclosure sale, https://www.­oregonlegislature.­gov/bills_laws/ors/ors087.­html.

Notes of Decisions

In general

This section did not apply where the case was filed prior to the effective date of this section. Harder Mechanical Contractors, Inc. v. Fairfield Erectors, Inc., 278 Or 613, 564 P2d 1356 (1977)

Failure to serve notice does not waive right to have action proceed with court sitting as trier of fact in place of jury. B & D Investment Corp. v. Petticord, 48 Or App 345, 617 P2d 276 (1980), Sup Ct review denied

Where this section required claims to be tried to two different factfinders, res judicata and law of case did not preclude judge and jury from making different findings concerning same fact on different claims in one action. Westwood Corp. v. Bowen, 108 Or App 310, 815 P2d 1282 (1991)

Where overstatement of lien amount is not result of fraud or gross negligence, lien remains enforceable to extent of proper amount. Stricker v. Taylor, 158 Or App 608, 975 P2d 930 (1999)

Surety on release of lien bond need not be made party to underlying action to foreclose lien against bond. Valencich v. TMT Homes of Oregon, Inc., 193 Or App 47, 88 P3d 300 (2004)

Attorney fees

In suit to foreclose mechanic’s lien where trial court denied foreclosure of lien but awarded plaintiff $200 and also awarded $1000 in attorney fees to defendant as “prevailing party” and on day of trial defendant paid into court sum of $200 for “extra” work, defendant was prevailing party entitled to recover costs under ORS 20.180, including attorney fees as provided by this section. Cloyd v. McPherson, 283 Or 137, 582 P2d 423 (1978)

Where third-party defendant stipulated that it was responsible for any damages defendant might be awarded for unmerchantable pipe, attorney fees awarded to defendant under lien foreclosure statute were properly transferred to third-party defendant when it failed to object to award of attorney fees on counterclaim and conceded its primary liability for defect which gave rise to counterclaim. Davison v. Parker, 50 Or App 129, 622 P2d 1113 (1981), Sup Ct review denied

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)

Where notice of filing of lien was given by regular mail instead of by registered or certified mail and defendant admitted receipt of notice, there was substantial compliance with statutory notice requirements and denial of attorney fees and costs was improper. Laro Lumber Company v. Patrick, 52 Or App 1035, 630 P2d 400 (1981)

Where plaintiffs recovered $180 more than total of defendant’s tender and successful counterclaim, plaintiff was prevailing party, but since plaintiffs’ foreclosure suit failed they were not entitled to attorney fees under this section. King v. Suniga, 54 Or App 267, 634 P2d 812 (1981)

Where plaintiff voluntarily dismissed construction lien foreclosure action pursuant to ORCP 54A as to some defendants, those defendants could recover costs and attorney fees pursuant to this section. Precision Roof Trusses, Inc. v. Devitt, 59 Or App 4, 650 P2d 152 (1982)

Where defendants did not object to plaintiff’s failure to give notice required by ORS 87.039, they could not complain of failure to give statutory notice. Minter-Wilson Drilling Co. v. Richins, 60 Or App 702, 655 P2d 1060 (1982), Sup Ct review denied

Bank that successfully moved to dismiss claim by construction lienor to foreclose its lien was not entitled to attorney fees where court found that bank’s trust deed was prior to construction lien and not that construction lien was invalid. Bones Construction Co. v. En Stone I, Ltd., 89 Or App 530, 749 P2d 1217 (1988)

Where arbitrator refused to award attorney fees and reservation of rights clause made arbitration nonexclusive remedy, court could award attorney fees incurred in arbitration. ASB Construction v. Bateman, 124 Or App 638, 863 P2d 516 (1993)

Where contract provides that contractual remedies are in addition to remedies at law, court may include attorney fees incurred through contractual remedies as part of reasonable amount of attorney fees at trial. Westwood Construction Company v. Hallmark Inns & Resorts, Inc., 182 Or App 624, 50 P3d 238 (2002), Sup Ct review denied

Law Review Citations

9 WLJ 361 (1973)

87.001
Short title
87.005
Definitions for ORS 87.001 to 87.060 and 87.075 to 87.093
87.007
Protection from construction liens perfected after sale of residential property completed
87.010
Construction liens
87.015
Land and interests therein subject to lien
87.018
Delivery of notices
87.021
Notice to owners
87.023
Notice of right to lien
87.025
Priority of perfected liens
87.027
Right of owner to demand list of services, materials, equipment and labor
87.030
Effect of owner’s knowledge of improvement
87.035
Perfecting lien
87.036
Subcontractor’s perfection of claim of lien
87.037
Prohibition against claim of lien
87.039
Notice of filing claim of lien
87.045
Completion date of improvement
87.050
Recording
87.055
Duration of lien
87.057
Notice of intent to foreclose
87.060
Foreclosure
87.070
Amount of recovery by contractor
87.075
Exemption of building materials from attachment by third persons
87.076
Bond or deposit of money
87.078
Notice of filing bond or depositing money
87.081
Filing affidavit with county officer
87.083
Foreclosure after filing of bond or deposit of money
87.086
Determination of adequacy of bond
87.088
Release of lien or return of money
87.089
Limitations on actions
87.093
Information Notice to Owner
87.142
Definitions for ORS 87.142 to 87.490 and 87.910
87.146
Priorities of liens
87.152
Possessory lien for labor or material expended on chattel
87.156
Innkeeper’s lien
87.159
Lien for care of impounded animal
87.162
Landlord’s lien
87.166
Attachment of liens
87.172
Time period before foreclosure allowed
87.176
Fees for storage of chattel
87.177
Bond or deposit of money for lien for storage of chattel
87.178
Foreclosure after filing of bond or deposit of money
87.179
Determination of adequacy of bond
87.181
Release of lien or return of money
87.182
Effect of prior security interest on method of foreclosure
87.186
Location of foreclosure sale
87.192
Notice of foreclosure sale to lien debtor
87.196
Notice of foreclosure sale to secured parties
87.202
Statement of account of foreclosure sale
87.206
Disposition of proceeds of foreclosure sale
87.212
Liability for improper sale of fungible chattels
87.214
Disposal of property left with launderer or dry cleaner
87.216
Nonpossessory lien for labor or material expended on chattel
87.222
Logger’s, woodworker’s and timberland owner’s lien
87.226
Agricultural services lien
87.228
Effect on agricultural services lien when payment for produce is made prior to filing of lien claim
87.232
Fishing lien and fish worker’s lien
87.236
Attachment of liens
87.242
Filing notice of claim of lien
87.246
Recording
87.252
Notice to owner and holders of security interests
87.256
Limitation on extent of liens
87.262
Foreclosure
87.266
Duration of liens
87.272
Petition for foreclosure without suit
87.276
Evidence admissible
87.282
Waiver of right to hearing before filing of petition
87.288
Show cause order
87.296
Waiver of right to hearing after issuance of show cause order
87.302
Authority of court on sustaining validity of lien claim
87.306
Foreclosure by sale without suit
87.312
Effect of notice of foreclosure sale to secured parties
87.316
Disposition of proceeds of foreclosure sale
87.322
Effect of prior security interest on foreclosure of nonpossessory lien for labor or material expended on chattel
87.326
Protection from theft and damage of chattel subject to lien
87.332
Injury or removal of chattel subject to lien
87.336
Costs and attorney fees in foreclosure by suit
87.342
Bond, letter of credit or deposit of money to discharge lien on chattel
87.346
Filing certificate of lien satisfaction upon payment of claim
87.352
Mining labor and material lien
87.356
Lien for preparing land for irrigation or cultivation
87.358
Nurseryman’s lien
87.362
Irrigation power lien
87.364
Attachment of liens
87.366
Filing notice of claim of lien
87.372
Recording
87.376
Duration of liens
87.382
Foreclosure
87.386
Costs and attorney fees in foreclosure
87.392
Priorities of liens
87.430
Attorney’s possessory lien
87.435
Bond, letter of credit or deposit of money to discharge attorney’s possessory lien
87.440
Determination of adequacy of bond or letter of credit
87.445
Attorney’s lien upon actions and judgments
87.450
Filing notice of claim of lien on judgment for sum of money
87.455
Filing notice of claim of lien on judgment for possession of personal property
87.460
Filing of notice of claim of lien on judgment for possession of real property
87.465
Effect of failure to file notice of claim of lien
87.470
Contents of notice of claim of lien
87.475
Effect of settlement on attorney’s lien
87.480
Attorney’s right and power over actions and judgments
87.485
Attorney fees
87.490
Priority of attorney’s lien upon actions and judgments
87.501
Definitions for ORS 87.501 to 87.542
87.503
Lien for long term care
87.507
Perfecting lien
87.512
Contents of notice of lien
87.517
Recording notice of lien
87.522
Foreclosure of lien
87.527
Limitations on property subject to lien
87.533
Assets and income that are exempt from lien
87.537
Duration of lien
87.539
Discharge or release of lien claim
87.542
Priority of lien
87.555
Hospitals, physicians, physician assistants and nurse practitioners as lien claimants
87.560
Limitations on extent of lien
87.565
Notice of lien required
87.570
Form of notice
87.575
Lien docket
87.581
Liability of person or insurer to hospital, physician, physician assistant or nurse practitioner
87.585
Foreclosure
87.603
Definitions for ORS 87.603 to 87.633
87.607
Ambulance services lien
87.613
Notice of lien required
87.617
Form of notice
87.623
Notices recorded in lien docket
87.627
Payment after notice of lien
87.633
Foreclosure
87.685
Definitions for ORS 87.685 to 87.695
87.686
Rental agreement
87.687
Self-service storage facility owner’s possessory lien
87.689
Notice of foreclosure and sale
87.691
Sale of property subject to lien
87.693
ORS 87.687 as exclusive law for creating lien
87.694
Late fee
87.695
Short title
87.700
Definitions for ORS 87.228 and 87.700 to 87.736
87.705
Agricultural produce lien
87.710
Filing notice of lien
87.715
Priority
87.725
Foreclosure
87.730
Expiration of lien for failure to bring timely foreclosure suit
87.735
Filing certificate of lien satisfaction upon payment for produce
87.736
Form of notices filed under ORS 87.710 and certificates filed under ORS 87.735
87.750
Definitions for ORS 87.750 to 87.777
87.755
Grain producer’s lien
87.762
Filing notice of lien
87.767
Form of notice
87.772
Expiration of lien for failure to bring timely foreclosure action
87.777
Filing certificate of lien satisfaction upon payment for grain
87.806
Filing of federal tax liens
87.811
Certification of tax lien notices
87.816
Keeping of index and files with respect to tax liens
87.821
Filing and indexing fee
87.826
Construction
87.831
Short title
87.855
Lien for contributions to employee benefit plan
87.860
Filing of claim of lien
87.865
Foreclosure
87.870
Definitions for ORS 87.870 to 87.876
87.872
Lien for mold created or work performed with mold
87.876
Sale of mold
87.910
Cost of preparing lien notice
87.920
Recording of document not to create lien, affect title or constitute notice except as authorized by law
87.930
Secretary of State to furnish list of persons who have filed financing statement
Green check means up to date. Up to date