Steel Products Co. of Oregon, Inc. v. Portland General Electric Co.

628 P.2d 1180, 291 Or. 41, 1981 Ore. LEXIS 838
CourtOregon Supreme Court
DecidedMay 27, 1981
DocketE 6045, CA 14861, SC 27256
StatusPublished
Cited by5 cases

This text of 628 P.2d 1180 (Steel Products Co. of Oregon, Inc. v. Portland General Electric Co.) is published on Counsel Stack Legal Research, covering Oregon Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Steel Products Co. of Oregon, Inc. v. Portland General Electric Co., 628 P.2d 1180, 291 Or. 41, 1981 Ore. LEXIS 838 (Or. 1981).

Opinion

*43 DENECKE, C. J.

Plaintiff brought this suit to foreclose a mechanics’ lien for steel furnished by plaintiff for use in the construction of structures at Portland General Electric’s (PGE) electrical generating plant at Boardman, Oregon. PGE had contracted with Westmont Industries to build the plant; Westmont, in turn, contracted with Rodgers Structural Steel to fabricate certain steel structures; and plaintiff furnished the steel to Rodgers. Plaintiff named all these other contracting parties as defendants.

The defendants demurred to plaintiffs complaint on the ground that it failed to state a cause of suit. The trial court sustained the demurrer and entered judgment for defendants. The Court of Appeals reversed and we granted PGE’s and Westmont’s petition for review. 47 Or App 597, 615 P2d 344 (1980).

ORS 87.010(1) provides that a supplier of materials only can have a lien if materials are supplied “at the instance of the owner of the improvement or his construction agent.” The complaint alleges the plaintiff supplied the steel at the instance of Rodgers who was not the owner. The defendants contend that Rodgers was not the owner’s “construction agent,” therefore plaintiff is not entitled to a lien.

ORS 87.005(3) defines “construction agent”:

“ ‘Construction agent’ includes a contractor, architect, builder or other person having charge of construction or preparation.”

Plaintiff did not allege Rodgers was an “architect” or “builder.” Rodgers could not be a “contractor” as “contractor” is defined in ORS 87.005(4). That statute provides:

“ ‘Contractor’ means a person who contracts on predetermined terms to be responsible for the performance of all or part of a job of preparation or construction in accordance with established specifications or plans, retaining in himself control of means, method and manner of accomplishing the desired result, and who provides:
“(a) Labor at the site; or
*44 “(b) Materials, supplies and labor at the site.” 1

Plaintiff did not allege Rodgers provided “labor at the site” which is necessary in order for one to be considered a “contractor.” Therefore, in order for Rodgers to be the owner’s “construction agent” it must be an “other person having charge of construction or preparation.” The Court of Appeals concluded plaintiff did allege it was such “other person.” 2

The complaint itself is of no assistance to plaintiff on this issue. It recites “Westmont and Rodgers entered into a contract for Rodgers to furnish labor and materials to fabricate steel structures for the use and benefit of the PGE Boardman Plant #1 improvement.” The claim for lien, however, was incorporated into and made part of the complaint and can be considered. 3 The claim, which was on a printed form, recites: “* * * [T]he claimant [plaintiff] has performed labor and furnished materials under a contract between claimant and Rodgers Structural Steel who was the [ ] original contractor, [x] subcontractor or [ ] other person (indicate which) having charge of the construction of that certain improvement * *

The claim also recites: “Said labor and materials were furnished to be used and were used in constructing said improvement and were furnished at the instance and request of the original contractor, subcontractor or other person named above who was the agent of the owner * *

The Court of Appeals reasoned:

“* * * Plaintiff checked the box next to ‘subcontractor,’ which, in nonstatutory parlance, Rodgers was. The statutory definition of ‘construction agent’ in ORS 87.005(3), however, includes only a contractor, architect, builder or other person having charge of construction; it does not *45 include the term ‘subcontractor.’ Given those circumstances, we construe the use of the term ‘subcontractor’ in the lien claim as coming under the statutory category of ‘other person in charge of construction’ and that the Complaint, then, alleges that Rodgers was such ‘other person.’ “ 47 Or App at 601, n 2.

We agree with this holding. In the claim for lien, the phrase “having charge of the work” modifies “subcontractor” and “contractor” as well as “other person.” A subcontractor can be a person “having charge of the work.”

Defendants principally attack the reasoning of the Court of Appeals on the ground that one having charge of construction “must have such authority and responsibility at the site of the improvement.” Defendants argue this is necessary because ORS 87.005(1) provides:

“ ‘Commencement of the improvement’ means the first actual preparation or construction upon the site or the first delivery to the site of materials of such substantial character as to notify interested persons that preparation or construction upon the site has begun or is about to begin.”

In our opinion, the above-quoted statute has no reference to the problem. “Commencement of the improvement” is a phrase used in ORS 87.015 and 87.025. The former provides that the land is subject to a lien if the person who caused the improvement was the owner “at the time of the commencement of the improvement.” ORS 87.025 provides that the lien is prior to other encumbrances attaching after “the time of commencement of the improvement.”

On the other hand, ORS 87.005(3), defining construction agent to include contractor or “other person having charge of construction or preparation,” is followed by subsection (4) which defines “contractor” as one who, among other things, provides “(a) Labor at the site; or (b) Materials, supplies and labor at the site.” (Emphasis added.) If the legislature intended “other person having charge of construction” to only apply to a person who supplied labor at the site or had authority or responsibility at the site, it would seem reasonable that it would have added those requirements to “other person having charge of construction” just as it did to “contractor” in the next subsection.

*46

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Related

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State v. Rounds
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Cite This Page — Counsel Stack

Bluebook (online)
628 P.2d 1180, 291 Or. 41, 1981 Ore. LEXIS 838, Counsel Stack Legal Research, https://law.counselstack.com/opinion/steel-products-co-of-oregon-inc-v-portland-general-electric-co-or-1981.