Attorney missed filing deadline for lawsuit regarding cost overruns during LOHS construction

The Lake Oswego School District has filed an $8.4 million malpractice lawsuit against its lawyer, Davis Wright Tremaine, for failing to file a lawsuit in a timely manner and to advise the school district of its contracted architect’s lack of liability insurance. Named individually in the suit is attorney Dean Phillips, who previously worked for Davis Wright Tremaine.

The suit is the latest piece in a five-year string of lawsuits related to construction of Lake Oswego High School, which was completed in 2005.

In 2001, the school district agreed to a $2 million liability limit for LSW Architects for the design of Lake Oswego High School and the remodel of Lakeridge High School, taking the advice of Phillips. The limit later hurt the district because its 2008 lawsuit against LSW for breach of contract reached $6 million.

The school district’s September 2008 lawsuit claimed that LSW had provided faulty architectural drawings causing cost overruns, which in combination with other unanticipated facility issues, forced projects at the elementary schools and junior highs to be curtailed or eliminated.

The district had already taken the heat for LSW in three prior lawsuits from its construction contractors and, by 2009, it had paid out a total of $1.375 million to settle those claims. As early as 2004, the district had intended to pass on its losses to LSW.

However, Phillips did not file the lawsuit until 2008 — three years after the completion of LOHS.

Architectural firms enjoy a two-year statute of limitations in which property owners must bring forward a claim, so the deadline for filing was in August 2007.

“The client wasn’t aware of the deadline because it is the lawyer’s obligation,” said Mike Greene, the district’s new attorney from the Rosenthal Greene and Devlin law firm.

Because of the late filing date, LSW asked that the case be dismissed. When the court dismissed it, the LOSD appealed it and eventually, after three years in court, the district settled with LSW for only $400,000. It also received $200,000 from other contractors involved in the claim.

The district alleges that Phillips’ negligence caused it to lose $7.8 million plus attorney fees and interest.

The school district faced round two of lawsuits beginning in 2010 when it discovered water infiltration in LOHS. As the scope of damages has grown, a whole new set of disputes have arisen. Last fall, the district received a $6.7 million settlement from Robinson Construction for the faulty application of materials during construction.

However, the contractor the district hired to repair the damages, Charter Construction, sued it last fall as well, claiming late payments caused cost overruns.