Legal Question in Civil Litigation in Oregon

In Oregon, can an unlicensed contractor sue the homeowner for payment?

We made a verbal agreement with an acquaintance (to do some work on our home, specifically replacing some skylights and doing the associated roofing, etc. We paid for the materials ourselves and were only going to pay him about $1000 in labor. Before the job was done we paid him $500 in cash. My husband ending up firing him before the job was done due to very substandard work and poor work habits. Turns out he is an unlicensed contractor that has been disciplined by the contractors board for doing contractors work without a license.

We know we made a lot of mistakes (not checking his license, not having a written contract and paying in cash), but figured we'd eat the money we were out and put it behind us. We have hired a licensed contractor to totally re-do everything that was done. But turns out the first guy is suing us in small claims court for what he thinks he is owed. We are going to ask the judge to throw it out due to him not being licensed. Is that correct? Is there any other advice you have for us? We certainly will always check the license in the future!


Asked on 9/22/09, 6:02 pm

1 Answer from Attorneys
Susan Burns Law Office of Susan Ford Burns

No he cannot.

ORS 701.131 License required to perfect lien or obtain judicial or administrative remedy; exception. (1) Except as provided in subsection (2) of this section, a contractor may not perfect a construction lien, file a complaint with the Construction Contractors Board or commence an arbitration or a court action for compensation for the performance of any work or for the breach of any contract for work that is subject to this chapter, unless the contractor had a valid license issued by the board:

(a) At the time the contractor bid or entered into the contract for performance of the work; and

(b) Continuously while performing the work for which compensation is sought.

(2) The board, arbitrator or court may not apply the provisions of subsection (1) of this section to a contractor if the board, arbitrator or court determines that:

(a) The contractor either did not have a valid license at any time required under subsection (1) of this section, or had an initial issuance of a valid license, and:

(A) The contractor was not aware of the requirement that the contractor be licensed, and the contractor submitted a completed application for a license within a number of days established by the board, but not more than 90 days, of the date the contractor became aware of the requirement;

(B) At the time the contractor perfected a construction lien or commenced any proceeding subject to the provisions of subsection (1) of this section, the contractor was licensed by the board; and

(C) Enforcement of the provisions of subsection (1) of this section would result in substantial injustice to the contractor;

(b) The contractor was licensed by the board for some but not all of the times required under subsection (1) of this section and had a lapse in the license and:

(A) The contractor was not aware of the lapse in the license for more than a number of days established by the board, but not to exceed 90 days, before submitting a completed application for license renewal with the board;

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Answered on 9/28/09, 1:49 pm


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