Potential clients often ask when they have to file a lawsuit in Oregon for construction defects. Unfortunately, the answer is complicated. It depends on what type of property is at issue, what kind of claims are involved, and who is the target of the anticipated claim. One approach is to start with the most common types of buildings we see in construction defect cases.
Homes and Apartments:
These are usually defined as “residential structures” at ORS 701.005, which primarily lists homes/residences, structures that contain one or more dwelling units and are four stories or less above grade, modular homes, and manufactured homes. Note that an apartment that is more than four stories above grade is not a “residential structure.”
The “Statute of Repose” at ORS 12.135 involves a 10-year outer limit for construction defects for “residential structures” such as a single-family home or an apartment (that is four stories or less above grade).
The Legal Claims:
For breach of contract claims, the limit is six years from the “breach” of the contract. For negligence, the limit is two years from “discovery” of the defects. For an unlawful trade practices act claim, the limit is one year from “discovery” of the claim.
A claim against an architect or engineer must be started before the earliest of two years after the date the injury or damage is first discovered or in the exercise of reasonable care should have been discovered, or 10 years after the construction, alteration or repair of the structure if it is a residential structure.
Hotels or Motels:
A hotel or motel is not considered a “residential structure,” and neither is an apartment more than four stories above grade. A hotel or motel is either a “small commercial structure” or a “large commercial structure.”
A “small commercial structure” is defined as a nonresidential structure with a ground area of 10,000 square feet or less, including exterior walls, and a height of not more than 20 feet from the top surface of the lowest flooring to the highest interior overhead finish of the structure, a nonresidential rental unit part of a larger structure, or a nonresidential structure of any size for which the contract price of all construction contractor work to be performed on the structure as a construction project does not total more than $250,000.
A “large commercial structure” is any structure that does not fit in the “small construction structure” definition.
The Statute of Repose provides for a 10-year outer limit for construction defect cases for “small commercial structures” but only six years for “large commercial structures.”
The Legal Claims:
For breach of contract claims, the limit is six years from the “breach” of the contract. For negligence, the limit is two years from “discovery” of the defects.
A claim against an architect or engineer must be started before the earliest of two years after the date the injury or damage is first discovered or in the exercise of reasonable care should have been discovered, or 10 years after the construction, alteration or repair of the structure if it is residential, or small commercial. If the building is large commercial, then the statute of repose for architects and engineers is only six years.
Nursing Homes and Similar Facilities:
Nursing homes are not “residential structures” and so fall under either the “small commercial structure” or “large commercial structure” definition.
The Statute of Repose provides for a 10-year outer limit for construction defect cases for “small commercial structures” but only six years for “large commercial structures.”
The Legal Claims:
For breach of contract claims, the limit is six years from the “breach” of the contract. For negligence, the limit is two years from “discovery” of the defects.
A claim against an architect or engineer must be started before the earliest of two years after the date the injury or damage is first discovered or in the exercise of reasonable care should have been discovered, or 10 years after the construction, alteration or repair of the structure if it is small commercial. If the building is large commercial, then the statute of repose for architects and engineers is only six years.
Public Bodies including Schools and other Government Buildings:
The “Statute of Repose” at ORS 12.135 provides for a 10-year outer limit for construction defects for claims brought by a public body such as a school district, city, or county.
The Legal Claims:
A claim against an architect or engineer must be started before the earliest of two years after the date the injury or damage is first discovered or in the exercise of reasonable care should have been discovered, or 10 years after the construction, alteration or repair of the structure if it is small commercial. If the building is large commercial, then the statute of repose for architects and engineers is only six years.
Condominiums and Townhomes:
The “Statute of Repose” at ORS 12.135 provides for a 10-year outer limit for construction defects for condominiums and townhomes.
The Legal Claims:
For breach of contract claims, the limit is six years from the “breach” of the contract. For negligence, the limit is two years from “discovery” of the defects.
An action against an architect or engineer, however, must be started before the earliest of two years after the date the injury or damage is first discovered or should have been discovered, or 10 years after the construction, alteration or repair of the structure.
This posting does not constitute legal advice to anyone, regarding any matter. The statute of limitations and repose analysis on any given matter is complicated and requires analysis from a retained attorney.