Iron Triangle awarded $600,000-plus in suit against Prairie Wood

Published 5:00 am Monday, September 23, 2024

A coalition of businesses, including the Prairie Wood Products sawmill, logging contractors and ranchers, have filed an antitrust lawsuit in U.S. District Court against John Day-based logging company Iron Triangle.

CANYON CITY — A judge has ordered Prairie Wood Products to pay Iron Triangle more than $600,000 for sawlogs delivered months ago, tossing out the Prairie City sawmill’s counterclaims against the John Day-based logging company.

Prairie Wood suspended operations and laid off most of its employees on March 1, citing a dispute with the U.S. Forest Service over grant payments for transporting logs to the mill.

On March 21, Iron Triangle filed suit in Grant County Circuit Court, claiming Prairie Wood had failed to pay for 1.68 million board feet worth of timber supplied to the mill under contract during the first two months of the year.

The suit asked for $652,107 for the logs, plus interest and attorneys’ fees.

Prairie Wood responded on May 1, arguing Iron Triangle had influenced the Forest Service’s decision to limit grant payments to Prairie Wood, hindering its ability to pay for the logs.

Judge Robert Raschio rejected that argument, saying Prairie Wood had presented no evidence to support those allegations.

Raschio on Sept. 17 issued a final order dismissing Prairie Wood’s counterclaims and directing the mill to pay Iron Triangle $682,236.56 in principal and interest, plus a prevailing party fee and any additional interest that might accrue until the debt is paid.

The judge also ruled Iron Triangle is entitled to “reasonable attorney fees and costs” associated with the case.

Trent Middlebrooks, chief financial officer for Prairie Wood Products, said the company wasn’t yet sure if it would appeal the ruling.

In the meantime, he added, the focus is on making repairs needed to restart the mill. The company had hoped to resume at least some operations this month but ran into difficulties obtaining replacement parts for some of its equipment.

“We continue to pursue all available avenues for success in Prairie City,” he said.

Timothy Snider of Stoel Rives LLP in Portland, an attorney for Iron Triangle, said the company “is pleased with the judgment and outcome of this lawsuit, but it is unfortunate that it was forced to turn to the courts in the first place.”

Snider noted Iron Triangle had repeatedly requested payment for the sawlogs it delivered to Prairie Wood Products before filing suit.

“Now that the court has ruled,” Snider said, “we hope that Prairie Wood will pay what it owes and everyone can get back to business for the benefits of their employees, the industry, the businesses that depend on them and the broader community.”

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