In Oregon, the construction lien was created by the legislature and codified in statute. As such, construction lien rights were not recognized at common law or in equity. As statutes in derogation of the common law, Oregon’s rules of statutory construction dictate that lien statutes must be strictly construed. For example, Oregon courts will not extend lien rights to categories of claimants who are not expressly protected by the lien law or to performance that is not contemplated by it. This rule also dictates that courts must insist upon strict compliance with the statutory procedures for creation and perfection of a lien.
There is, however, a countervailing policy consideration that limits the rule of strict construction: Oregon’s lien law is remedial and should not be construed so strictly that its purpose or fairness is undermined. For that reason, Oregon courts will not insist on strict technical compliance, so long as the claimant belongs to the class intended to be protected. For example, courts will excuse a technical mistake that does not undermine the law’s policy goals or prejudice the rights of another. Oregon’s courts must balance these opposing policy considerations when construing lien statutes.