Narrative Opinion Summary
In this case, the plaintiffs, a husband and wife, initiated a suit in equity to foreclose a trust deed serving as a purchase-money mortgage on real property sold to the defendants. The defendants counterclaimed and raised several defenses, including a plea in abatement, challenging the plaintiffs' standing to sue on the basis that plaintiff Harold E. Wills was not registered with the Builders Board as required by ORS 701.065(1). The trial court denied the plea and ruled in favor of the plaintiffs. On appeal, the defendants contended that Wills was barred from maintaining the suit under the statute, which restricts unregistered builders from seeking compensation for construction-related work. However, the appellate court held that the statute did not apply to the foreclosure of a trust deed used as a purchase-money mortgage, as it was not a claim for compensation related to a construction contract. Consequently, the appellate court affirmed the trial court's decision, concluding that the plaintiffs' foreclosure action was outside the statute's scope. The defendants' appeal was unsuccessful, and the plaintiffs' right to foreclose was upheld.
Legal Issues Addressed
Foreclosure of Trust Deed as Purchase-Money Mortgagesubscribe to see similar legal issues
Application: The court determined that the foreclosure of a trust deed used as a purchase-money mortgage was not subject to restrictions under ORS 701.065(1) regarding unregistered builders.
Reasoning: The court determined that the statute specifically restricts builders from seeking compensation related to construction work or contracts that fall under its purview, but does not prevent foreclosure of a trust deed used as a purchase-money mortgage.
Plea in Abatement as Affirmative Defensesubscribe to see similar legal issues
Application: The trial court treated the defendants' plea in abatement as an affirmative defense because the plea in abatement is no longer recognized in Oregon.
Reasoning: Additionally, while the plea in abatement is no longer recognized in Oregon, the trial court treated it as an affirmative defense.
Registration Requirement under ORS 701.065(1)subscribe to see similar legal issues
Application: The court found that ORS 701.065(1) did not apply because the plaintiffs' action was not seeking compensation for construction work but was a foreclosure of a trust deed.
Reasoning: The statute in question prohibits unregistered builders from filing liens or maintaining lawsuits for compensation related to work or contracts covered by the statute.