Fortis Construction — Contract Dispute

Jim McDermott and Dwain Clifford represented Fortis Construction in a dispute with a school district in Portland, Oregon about whether Fortis or the school district should pay the liability associated with a construction project under Oregon’s new Corporate Activity Tax.

Fortis alleged that its construction contract with the District obligated the District to pay this tax, which was enacted after the contract was formed, and that the school district’s agents represented to Fortis that this tax would be paid as part of the Guaranteed Maximum Price Amendment to the contract.

After conducting discovery, the parties settled this matter.