(1)(a) In an action for possession based upon nonpayment of the rent or in an action for rent when the tenant is in possession, the tenant may counterclaim for any amount, not in excess of the jurisdictional limits of the court in which the action is brought, that the tenant may recover under the rental agreement or this chapter, provided that the tenant must prove that prior to the filing of the landlord‘s action the landlord reasonably had or should have had knowledge or had received actual notice of the facts that constitute the tenant’s counterclaim.

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Terms Used In Oregon Statutes 90.370

  • Action: includes recoupment, counterclaim, setoff, suit in equity and any other proceeding in which rights are determined, including an action for possession. See Oregon Statutes 90.100
  • Attorney: includes an associate member of the Oregon State Bar practicing law within the member's approved scope of practice. See Oregon Statutes 90.100
  • Continuance: Putting off of a hearing ot trial until a later time.
  • Counterclaim: A claim that a defendant makes against a plaintiff.
  • Landlord: includes a person who is authorized by the owner, lessor or sublessor to manage the premises or to enter into a rental agreement. See Oregon Statutes 90.100
  • Rent: means any payment to be made to the landlord under the rental agreement, periodic or otherwise, in exchange for the right of a tenant and any permitted pet to occupy a dwelling unit to the exclusion of others and to use the premises. See Oregon Statutes 90.100
  • Rental agreement: includes a lease. See Oregon Statutes 90.100
  • Trial: A hearing that takes place when the defendant pleads "not guilty" and witnesses are required to come to court to give evidence.

(b) In the event the tenant counterclaims, the court at the landlord’s or tenant’s request may order the tenant to pay into court all or part of the rent accrued and thereafter accruing, and shall determine the amount due to each party. The party to whom a net amount is owed shall be paid first from the money paid into court, and shall be paid the balance by the other party. The court may at any time release money paid into court to either party if the parties agree or if the court finds such party to be entitled to the sum so released. If no rent remains due after application of this section and unless otherwise agreed between the parties, a judgment shall be entered for the tenant in the action for possession.

(2) In an action for rent when the tenant is not in possession, the tenant may counterclaim as provided in subsection (1) of this section but is not required to pay any rent into court.

(3) If the tenant does not comply with an order to pay rent into the court as provided in subsection (1) of this section, the tenant shall not be permitted to assert a counterclaim in the action for possession.

(4) If the total amount found due to the tenant on any counterclaims is less than any rent found due to the landlord, and the tenant retains possession solely because the tenant paid rent into court under subsection (1) of this section, no attorney fees shall be awarded to the tenant unless the tenant paid at least the balance found due to the landlord into court no later than the commencement of the trial.

(5) When a tenant is granted a continuance for a longer period than two days, and has not been ordered to pay rent into court under subsection (1) of this section, the tenant shall be ordered to pay rent into court under ORS § 105.140 (2). [Formerly 91.810; 1993 c.369 § 9; 1995 c.559 § 22]