Garrett Andrews//August 17, 2016//
A Portland construction attorney was recently fined for developing a project without a license.
Ball Janik LLP partner is bonded, insured and licensed with the Oregon Construction Contractors Board 鈥 as is Bridge City Construction, the contractor Joseph hired to build a row house development in Portland. The problem: the single-purpose entity Joseph created to sell the project 鈥 14th Place LLC 鈥 was not.
The latest CCB penalties report shows 14th Place LLC was hit with a $5,000 fine 鈥 the highest amount levied by the civil administrative agency.
Joseph said he assumed that because he鈥檚 the managing principal and sole member of 14th Place LLC, and he鈥檚 CCB-licensed, it was unnecessary for the LLC to be licensed as well.
The fine was triggered when, earlier this year, the row house鈥檚 current owner filed a breach of contract claim with the CCB to force repairs on her residence. But the CCB can only investigate CCB-licensed entities.
Joseph called the rule 鈥渟illy.鈥
鈥淚鈥檓 not arguing with it,鈥 he told the 91视频. 鈥淎ll I will say is that there was no intention of violating the CCB鈥檚 rules.鈥
14th Place LLC is now licensed, bonded and insured, and the fine was reduced to $500. The breach of contract claim that triggered the initial fine was resolved in mediation, with Bridge City Construction agreeing to complete repairs by the end of this month.
The owner who filed the breach of contract claim did so because she was concerned repairs were proceeding too slow, and her one-year warranty with the contractor was about to run out.
鈥淚t was an oversight,鈥 Joseph said. 鈥淚t was dealt with immediately and to everyone鈥檚 satisfaction.鈥
Stan Jessup, head of the CCB鈥檚 enforcement division, said homeowners by law need to have a direct contractual relationship in order to file a claim with the CCB for damages or breach of contract.
鈥淚t鈥檚 been law for years,鈥 Jessup said. 鈥淗e could have avoided all this with a phone call.鈥