August 21, 2019
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Lawsuit accusing developer of fraud in major Portland project dismissed

Troy R. Bennett | BDN
Troy R. Bennett | BDN
The sun sets over Portland’s Bayside neighborhood in this May 2018 BDN file photo. A federal lawsuit by a Vermont construction firm claiming that the developers of the proposed Midtown complex in Bayside have broken contracts has been dismissed.

A lawsuit alleging fraud against the developer behind an ambitious mixed-use project, once expected to transform a troubled Portland neighborhood, has been dismissed.

On Monday, a Vermont construction company that sued the developer of the proposed Midtown project submitted paperwork to dismiss its federal case.

A representative of the developer, know as the Federated Cos., said that case was dismissed following discussions with PC Construction Co.

During these talks, “it quickly became apparent the defendants’ actions were in no way malicious or unlawful, and the matter has now been fully resolved without payment or admission of wrongdoing by either party,” said Patrick Venne, a Portland lawyer who works for Federated Cos. but did not handle the case.

[Developers behind massive Portland project accused of ‘shell game,’ fraud]

Since 2013, PC Construction Co. has held a series of contracts to do preliminary work for the Midtown developers, who initially proposed putting hundreds of apartments, commercial space and a parking garage on 3.25 acres of vacant industrial land in the Bayside neighborhood. The project has been stalled for years.

In May, the construction company sued claiming, among other things, that the Federated Cos. had broken contracts and been playing a corporate “shell game” to avoid paying for more than $235,000 worth of work on the $85 million project that’s been held up for years.

Venne said that the agreements for pre-construction work between the two companies were terminated. The suit was dismissed with prejudice.

Follow Jake Bleiberg at @JZBleiberg.

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Correction: This story previously misstated the nature of the suit’s dismissal. It was dismissed with prejudice.


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