A Portland construction attorney penalized for developing a project without a developer’s license is now being sued by the project’s owner to rescind the sale.

Ball Janik LLP partner Phillip Joseph is accused of performing shoddy construction work and misrepresenting key building specifications for a duplex project he developed at 5404 N.E. 15th Place in Portland. The owner, Ann N. Mitchell, is seeking to recover $615,000 she paid to cover the sale and associated costs.

According to the suit filed Sept. 1 in Multnomah Circuit Court, Mitchell bought the townhouse development in March 2015, with the sale closing the next month. The contract included a one-year warranty with the builder, Bridge City Construction. Several months later, Mitchell claims she started noticing numerous issues with the interior and exterior finishes. After notifying Joseph and Bridge City, she says eight months passed with only minimal steps taken to remedy the defects.

The complaint states a inspection by a forensic architect turned up additional issues, including an improperly installed fireplace, insufficient ventilation in the attic and difficulty closing and latching doors – including the front door.

Mitchell filed a breach of contract complaint with the Oregon Construction Contractors Board to force repairs. But the CCB can only investigate CCB-licensed entities. Though Joseph himself is CCB-licensed, and so is Bridge City Construction, the sole-purpose entity he created to sell the property – 14th Place LLC – was not. So in July, Joseph was fined by the CCB for not having the appropriate licenses when he developed the project.

Joseph told the 91��Ƶ last month that he didn’t know his LLC also needed a CCB license. He called the rule redundant and “silly.”

A CCB enforcement manager said the rule has been on the books for years.

Joseph, through his attorney, Jim McDermott of Ball Janik, issued the following statement: “We believe that there is no factual or legal basis for Ms. Mitchell’s premature and unfounded lawsuit.”

Mitchell’s attorney, W. Cory Haller of Stoel Rives LLP, declined to comment.

The post Construction attorney sued by project owner appeared first on Daily Journal of Commerce.