Port of Astoria’s failure to comply with its lease could undermine confidence of the business and the public
Findings and Recommendations released yesterday by the US District Court for the District of Oregon ruled in favor of Oregon LNG in its lawsuit against the Port of Astoria and its commissioners.
In short, Judge John Jelderks, US Magistrate Judge, recommended that the Port of Astoria sign the lease extension as supported by Judge Mosman’s Opinion and Order of Jan. 28, 2010. The Findings and Recommendations will be referred to a district judge. The Port has until Feb. 22 to file an appeal.
The business aspects of this case are significant. First, the port has been spending money hand-over-fist on attorney fees for what has been a losing proposition from the beginning. Three rulings in Oregon LNG’s favor later, port commissioner Holcom has been quoted as saying the port is considering yet another appeal. Where is this money coming from for all of the legal fees? An injunction against the port for the millions in losses and legal fees incurred by Oregon LNG in the case will cripple the port – perhaps requiring the State of Oregon to take it over. Is this a good use of taxpayer money?
The Findings and Recommendations also support a contention I’ve been spouting about to friends and business associates for the last month or so: By trying to wriggle out of a lease concluded in good faith by a prior port administration, the current port commission is setting the stage for business mistrust in dealing with public entities. Because if political winds and a commission shift, a business deal you thought you had might go bust. The message to business is: Don’t do business with a municipal body, ‘cause politics change. NOT a message public entities should want floating around.
The Port of Astoria should back away from this path to self-destruction.
To read the entire Feb. 3 ruling, click here.
/Assets/dept_1/PM/pdf/LNG-Findings and Recommendation 2 3 10.pdf 