Tandem Properties, LLC v. Construction Contractors Board

55 P.3d 541, 184 Or. App. 28, 2002 Ore. App. LEXIS 1549
CourtCourt of Appeals of Oregon
DecidedOctober 2, 2002
Docket81722-001; A115888
StatusPublished
Cited by1 cases

This text of 55 P.3d 541 (Tandem Properties, LLC v. Construction Contractors Board) is published on Counsel Stack Legal Research, covering Court of Appeals of Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tandem Properties, LLC v. Construction Contractors Board, 55 P.3d 541, 184 Or. App. 28, 2002 Ore. App. LEXIS 1549 (Or. Ct. App. 2002).

Opinion

EDMONDS, P. J.

Claimant Tandem Properties seeks judicial review of an order of the Construction Contractors Board (CCB) that dismissed its claim due to lack of jurisdiction. The statutes applicable to this case authorize the Board to resolve disputes involving licensed contractors.1 The CCB ruled that it was without jurisdiction to hear the claim because claimant was not a licensed contractor at the time it filed its claim. Claimant’s argument on review depends on whether an owner of property who arranges to have a residence built for purposes of selling that residence is required by statute to be licensed with the CCB in order to bring a claim before it. We conclude that a license is required and affirm.

As claimant does not challenge the agency’s findings of fact in this case, those findings are binding on judicial review. Lee v. Appraiser Certification and Licensure Board, 160 Or App 622, 624, 981 P2d 825 (1999). Claimant is a limited liability company with two members. It has never been licensed as a contractor with the CCB. Respondent Merle Trachsel is the sole proprietor of Merle Trachsel Construction and is licensed with the CCB. Claimant and respondent executed a written contract for Trachsel to construct a new residence on claimant’s land. Claimant did not supply labor, materials, or equipment for the construction. It did, however, supply the plan and design fees, a computer for use in the project, and the license, insurance, and loan costs. The contract provides that claimant intended to market and sell the residence as construction neared completion. It further specifies compensation for claimant and Trachsel that is contingent on the sale of the house. Neither of claimant’s members intended to occupy the home before a sale occurred.

After events occurred that made it clear to claimant that Trachsel would not be able to complete construction by the agreed-upon deadline, claimant filed a claim against Trachsel with the CCB. The CCB issued a proposed order dismissing the claim because it determined that the pertinent [31]*31statute “requires parties who arrange for the construction of a home with intent to sell it be licensed contractors” and that claimant was unlicensed. Accordingly, the CCB had no jurisdiction over the dispute. Claimant filed exceptions to the dismissal, but the CCB’s Appeal Committee affirmed the order of dismissal.

Claimant assigns error to the CCB’s dismissal of its claim, arguing that it does not fall within the statutory definition of the term “contractor” and, that even if it does, it is exempt from the licensing requirements of the statutes that authorize the CCB’s jurisdiction. The CCB counters that claimant falls squarely under the statutory definition of “contractor” and that the exemption does not apply. The resolution of the parties’ arguments turns on whether the CCB correctly interpreted the relevant provisions of the applicable statutes. Therefore, we review the CCB’s decision for errors of law. SAIF v. Allen, 320 Or 192, 209, 881 P2d 773 (1994).

The statutory scheme provides, in relevant part:

“ ‘Contractor’ means a person who, for compensation or with the intent to sell, arranges or undertakes or offers to undertake or submits a bid to construct, * * * for another, any building * * *. ‘Contractor’ includes general contractors, residential-only contractors and specialty contractors as defined in this section.”

Former ORS 701.005(3) (1999), renumbered as ORS 701.005(2) (2001) (emphasis added).

“ ‘Residential-only contractor’ includes, but is not limited to:
“(a) A person who purchases or owns property and constructs or for compensation arranges for the construction of one or more residential structures with the intent of selling the residential structure or structures!.]”

ORS 701.005(6)(a). Claimant focuses on the term “for another” in former ORS 701.005(3) and argues that, because it was arranging for the construction of a residence on its own property, it did not undertake construction “for another.” The CCB responds that, when the statutory sections are read in context, the word “another” means the person to whom the [32]*32person arranging for construction intends to sell. We agree with the CCB’s interpretation.

In interpreting a statute, we first examine its text and context. PGE v. Bureau of Labor and Industries, 317 Or 606, 610, 859 P2d 1143 (1993). Under PGE, “words of common usage typically should be given their plain, natural, and ordinary meaning,” and, if the intent of the legislature is clear from the examination of text and context, the court’s inquiry ends. Id. at 611. A statute is ambiguous only if it is capable of more than one reasonable interpretation. State v. Cooper, 319 Or 162, 167, 874 P2d 822 (1994). That is not the case here.

Under the general statutory scheme in ORS chapter 701, those persons who fall under the definition of “contractor,” including residential-only contractors, are required to be licensed in order to bring a claim before the CCB. ORS 701.065(1). To obtain a license, bonding and minimum levels of liability insurance are required. ORS 701.085; ORS 701.105. The definition of “contractor” in former ORS 701.005(3) incorporates by reference the definition of a “residential-only contractor” in ORS 701.005(6)(a). Therefore, those sections must be read together. The definition of a “residential-only contractor” includes property owners who own property and arrange for the construction of a residence on the property with the intent to sell the property on completion of construction. Because claimant qualifies as a “residential-only contractor” under the statute, the only reasonable interpretation of “another” in the context of the definition of a “residential-only contractor” is the prospective purchaser to whom the residential contractor intends to sell the constructed building. Here, the arrangement between claimant and respondent was for the construction of a residence to be sold upon completion. Neither the claimant nor its members intended to occupy the house. Rather, it was to be sold to and occupied by someone else. Thus, claimant is a “contractor” within the meaning of former ORS 701.005(3) because, as a “residential-only contractor,” it arranged with Trachsel to construct a building on its land for sale to another.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Marriage of Welsh v. Welsh
775 N.W.2d 364 (Court of Appeals of Minnesota, 2009)

Cite This Page — Counsel Stack

Bluebook (online)
55 P.3d 541, 184 Or. App. 28, 2002 Ore. App. LEXIS 1549, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tandem-properties-llc-v-construction-contractors-board-orctapp-2002.