Legal Updates

In the recent case of RT & Associates, Inc. v. Irvington Place, LLC, 209 Or App 379 (2006), the firm obtained a complete victory for its client. The firm’s client, a general contractor, constructed improvements for a shopping center tenant. When the tenant did not pay, the contractor filed a lien against the underlying property. The Circuit Court granted summary judgment, holding that the lien was valid and issued a foreclosure decree in favor of the contractor. The Court of Appeals affirmed without opinion. The trial court ruled that the contractor constructed the project at the “instance of the owner” because the owner had knowledge of the construction, and did not post a notice of non-responsibility within three days after obtaining knowledge of the construction. The property owner claimed that it posted a notice of non-responsibility several months before construction began, but the court agreed that the statute requires a notice to be posted after construction (the act of building) begins. Even if the owner had posted a notice as it alleged, the notice was inadequate to avoid liability under Oregon’s lien laws. The Supreme Court denied review of the case. 342 Or 503.

Lawrence ("Lee") A. Wagner

Business & Commercial Litigation
Construction & Design