Dudley, Stubblefield settle dispute involving island estate


Bank seeking foreclosure on home

A Clackamas County judge has dismissed a $1 million lawsuit involving Lake Oswego residents Chris Dudley, a former Portland Trail Blazer and 2010 gubernatorial candidate, Jerry Stubblefield, a former University of Oregon discus champion and founder of shoe company Avia, and Stubblefield's exclusive estate on a private island in Oswego Lake.

Court records show the case was dismissed in May 'without costs to any party' after the two reached a settlement. Attorney Martin Jaqua, who represented Dudley, said the terms of the agreement are confidential and declined to comment. Stubblefield's attorneys didn't respond to a request for comment.

The dispute stemmed from a $3.75 million loan from Dudley and his company, Tesoros de Oswego, to Stubblefield, who put up his property as collateral.

Developed in the late 1920s, the estate includes a 9,600-square-foot Tudor-style mansion and a separate 3,000-square-foot guesthouse that doubles as Stubblefield's workshop, plus a private boat house and a swimming pool. On an island, it is accessible by boat or via a private bridge.

The home, which Stubblefield bought in 1987, had been on the market for a couple of years, with the asking price dropping from $20 million to $15 million over that time. When he found he could no longer leverage his property's equity while working on product development, Stubblefield needed a nonconventional lender, according to court records. That's where Dudley came in.

Stubblefield filed a lawsuit in May 2011, alleging that when he tried to pay off the 18-month loan in December 2010, Dudley tried to collect an extra $1 million. According to the suit, Dudley refused to accept the payment without the disputed $1 million, putting Stubblefield in default and reportedly scaring away an investor who had agreed to help refinance his estate so he could pay off his debt.

Dudley's attorneys contended the refinancing plan was set up to 'circumvent' paying money Stubblefield would have owed Dudley had he sold the property, and Dudley moved to foreclose on the property in March 2011. A judge blocked that attempt, allowing Stubblefield to keep his estate for the time being.

However, the future of that estate, which was taken off the market early this year, is once again in question.

Both Tesoros and Stubblefield, along with the Lake Oswego Corporation, are named in a complaint filed in Clackamas County Circuit Court in May. The claim alleges Stubblefield took out a loan in 2004 and quit making monthly payments around October 2010. HSBC Bank USA is seeking foreclosure and almost $1.5 million plus interest, costs and fees.