Multi/Tech Eng. Svcs. v. Innovative Des. & Constr.

In order to prove a perfected construction lien under ORS 87.010(5), a litigant must show that sufficient notice of the lien rights was provided to the opposing party before foreclosing on that lien.

Defendants Adler, Pfeifer, Care Medical Source, Care Medical Rehabilitation Equipment, and ACP (Defendants) appealed the trial court’s judgment in favor of Multi/Tech (Plaintiff), arguing that the trial court erred by finding (1) that the plaintiff had a valid statutory construction lien on Defendants’ real property, on which Plaintiff was entitled to foreclose; (2) that Plaintiff was entitled to recovery of damages under either a breach of contract theory; and (3) that Plaintiff was entitled to attorney fees. On review, the Court held that Plaintiff failed to provide the notice required by ORS 87.010(5), and therefore the trial court erred by finding that plaintiff had a perfected construction lien on the real property. However, the Court held that the breach-of-contract theory for recovery of damages was supported by the record. In light of the error regarding the statutory construction lien, the Court held that Plaintiff’s attorney fees were not warranted. Reversed as to claim for lien foreclosure and as to attorney fees. Otherwise affirmed.