Freightliner staying put?
Portland Business Journal - by Matthew Kish Business Journal staff writer
Freightliner Chief Executive Chris Patterson put local officials at ease late Wednesday, saying the company has no plans to move its headquarters out of Portland.
"They are not considering moving their headquarters now," said Multnomah County Commissioner Jeff Cogen. "That is not something they are actively considering."
The company did not immediately return a call seeking confirmation.
Mayor Tom Potter, Multnomah County Chair Ted Wheeler and Cogen scheduled the Wednesday afternoon meeting with Freightliner months ago in order to discuss persistent rumors the company might leave town.
The three elected officials met with Patterson, Freightliner Chief Operating Officer Roger Nielsen and the company's legal counsel, Paul Hurd.
The meeting took on a more somber tone after the company announced two weeks ago it might relocate "several corporate functions" to an Eastern location.
Freightliner employs 2,700 white-collar workers here and another 1,000 in its Swan Island manufacturing operations, making it one of the area's largest employers.
The Portland Business Journal reported last week that plans are in the works to move an initial wave of 200 to 800 of the front-office jobs to Charlotte, N.C. According to a story in last week's Charlotte Business Journal, the North Carolina Department of Commerce is also looking for sites that could eventually house all of Freightliner's administrative employees.
Potter, Wheeler and Cogen went to bat for the truck manufacturer before the meeting, sending a letter to Oregon Attorney General Hardy Myers on Monday asking him to forgo collection of a $210 million judgment against Freightliner.
The judgment was part of an $850 million lawsuit Portland-based Freightliner lost to the German truck manufacturer Man AG in Multnomah County in December 2006. The judgment included roughly $500 in economic damages as well as $350 million in punitive damages.
It was the largest jury award in the country last year, according to Bloomberg.
Under Oregon law, the state is entitled to 60 percent of the punitive damages in any lawsuit, or $210 million of the judgment against Freightliner. The money is earmarked to benefit crime victims.
Before the state could collect the money, however, Freightliner settled the case with Man outside of court. The settlement included dropping the punitive damages portion of the jury award.
Because the state did not consent to the deal, Myers claims Freightliner owes Oregon $210 million. He filed suit in Marion County in August seeking that amount.
In the letter sent to Myers, Potter, Wheeler and Cogen asked the attorney general to drop the case.
They argue the dispute originated in Europe and did not harm any Oregonians, therefore, the state's not entitled to the cash.
Perhaps most importantly, they said the lawsuit could be a pivotal factor in the company's decision to remain here.
"I became convinced that [the attorney general's office] is inadvertently, or without considering it ... going to contribute to the largest employer in my district leaving," Cogen said before meeting with Freightliner executives. "It's my view we should be creating a climate where they feel welcome."
The attorney general was at a conference in Nashville, Tenn., earlier this week and unavailable for comment. Myers could settle with Freightliner outside of court, pursue the litigation or drop the case.
Attorneys for Freightliner and Man AG did not immediately respond to calls for comment.
Crime victim advocates say the cash is critical to serving injured Oregonians. The state provides as much as $20,000 to victims of violent crime through the Oregon Crime Victim's Compensation Program, a program that is plagued by underfunding.
The program collected $1 million from punitive damage awards in the 2005-2007 biennium, but has only collected $10,000 since the new fiscal year began in July.
The money is used to pay for expenses such as funerals, counseling and medical care.
If collected, the $210 million would be a groundswell for the state program.
"It would allow us to stabilize the funding for crime victims compensation," said Stephanie Soden, a spokeswoman for Myers.
Cogen said the effort isn't meant to deprive crime victims of just compensation.
"Punitive damages are about punishing somebody for an act that has caused damages to your community," he said. "This case does not seem like that."
Wheeler and Cogen plan to schedule meetings with 100 of Portland's largest businesses in the next 18 months.
"For a lot of corporate leaders, there' s a sense that elected officials don't get it," Wheeler said before Wednesday's meeting. "Freightliner is a linchpin in our economy. To lose Freightliner would be tragic."
mkish@bizjournals.com | 503-219-3414
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