School District settles malpractice lawsuit against lawyer

The Lake Oswego School District has decided to settle a multimillion-dollar malpractice lawsuit against its former law firm connected to a series of mold and water problems at Lake Oswego High School.

Two years ago, Lake Oswego High School students had no access to the school’s front entrance and library for roughly a month due to repairs stemming from water damage and mold. The School Board has approved an agreement to settle the suit for $1.5 million, bringing to a close the district’s fight to recover damages from a slew of workers involved in building the school, including the architect, the general contractor and a number of subcontractors.

Construction on the 266,000 square-foot campus began in 2002 and wrapped up three years later. School officials said in a statement released this week that they became aware of architectural deficiencies about midway through the building process.

Soon after, the district worked with their lawyer to file a suit against the firm that designed the school. But the suit was thrown out, because the law firm missed a key filing date.

Shortly after, the district cut its ties with the law firm. Then, with new legal representation, it managed to reach a $400,000 settlement from the Architects.

Once the school opened, it became apparent that the roofs in the new west gym and the main building were fraught with leaks. The moisture rotted interior portions of the roofs and walls, which had become breeding grounds for mold.

The situation forced administrators to shut down parts of the campus for repairs. They feared sections of the school could collapse under severe weather or seismic activity.

The repairs cost the district about $10 million, but attorney fees and other legal costs brought the bill up to about $13 million. Two years ago, the district settled for $6.7 million from the project’s general contractor – and a number of subcontractors.

The suit against the lawyers stemmed from the firm’s failure to meet the filing deadline in its case against the Architects. The settlement concludes all legal action related to the $85 million bond measure that financed the construction project along with remodeling and additions to Lakeridge High School.

Taking all the suits into account, the district has recovered about $8.6 million of its costs related to the repairs and legal expenses, leaving it about $5 million short of full restitution.

Thanks to Justin Runquist and The Oregonian.