(1) If the defendant admits the claim, the defendant may settle it by:

(a) Paying to the plaintiff the amount of the claim plus the amount of all filing fees and service expenses paid by the plaintiff and mailing proof of that payment to the court.

(b) If the claim is for recovery of specific personal property, delivering the property to the plaintiff and paying to the plaintiff the amount of all filing fees and service expenses paid by the plaintiff and mailing proof of that delivery and payment to the court.

(2) If the defendant denies the claim, the defendant:

(a) May demand a hearing in the small claims department in a written request to the clerk in the form prescribed by the court, accompanied by payment of the defendant’s fee prescribed; and

(b) When demanding a hearing, may assert a counterclaim in the form provided by the court.

(3) If the amount or value claimed exceeds $750, the defendant has a constitutional right to a jury trial and may claim that right in a written request to the clerk in the form prescribed by the court, accompanied by payment of the appearance fee required from defendants under ORS 21.160. The request shall designate a mailing address to which a summons and copy of the complaint may be served by mail. Thereafter, the plaintiff’s claim will not be limited to the amount stated in the claim, though it must involve the same controversy. [1971 c.760 §7; 1973 c.654 §1; 1973 c.812 §3a; 1977 c.875 §5; 1977 c.877 §10a; 1981 s.s. c.3 §94; 1983 c.673 §2; 1985 c.496 §13; 1991 c.111 §5; 1991 c.195 §3; 1995 c.227 §2; 1995 c.455 §4; 1995 c.658 §48; 1997 c.46 §§6,7; 2011 c.595 §49]