Oct. 11, 2013
For more information: Patrick Cooney, 503-986-3455
SALEM – Today, four months after Oregon Iron Works, Inc., signed a contract with the Oregon Department of Transportation for $ 11.8 million to mitigate the impact of the I-5 replacement bridge, ODOT received notice that OIW has filed a lawsuit in Clackamas County Circuit Court claiming a bad faith negotiation, based solely on the amounts negotiated with the other two companies who signed mitigation agreements.
ODOT and the Department of Justice will immediately file a "motion to dismiss," citing the complaint as without merit.
For more than a year, OIW, along with ODOT and Washington Department of Transportation, reviewed independent economic, land use and market studies, and OIW's own proprietary information, including past performance, business and future marketing plans. On May 22, 2013, OIW voluntarily signed a contract for a mitigation payment of $ 11.8 million. That contract provides that payment will be made when the project is fully funded, the construction permits necessary to build the bridge are in place, and the bridge construction contract has been awarded.
"We are disappointed by this action," said ODOT Director Matt Garrett. "We have a signed contract that is fair to OIW and Oregon taxpayers. We are confident that this lawsuit is frivolous and without merit and should be dismissed."