Daimler Trucks North America and Oregon Attorney General Announce Settlement of Lawsuit

Daimler Trucks North America to Donate $150,000 to the Oregon Crime Victim’s Compensation Fund

PORTLAND, OR. - Daimler Trucks North America (DTNA) and Oregon Attorney General John Kroger today announced the settlement of a lawsuit in which the state was claiming a share of a prior punitive damage award against DTNA. DTNA, headquartered in Portland, is one of the state’s largest employers.

The settlement brings to a close the dispute over a 2006 punitive damage award against DTNA in favor of MAN, a German truck manufacturer, which was awarded by a Portland jury but later vacated by a Multnomah County judge after MAN and DTNA settled their dispute. No punitive damages were ever paid by DTNA to MAN.

The state had claimed that it was entitled to 60 percent of the award under an Oregon statute that gives the state judgment creditor status whenever punitive damages are awarded. DTNA maintained that since no punitive damages were ever paid, the state was not entitled to collect a share of the award.

Key settlement terms include an agreement that the state will dismiss with prejudice its case pending in the Marion County Circuit Court, and DTNA will agree to dismiss its appeal pending in the Oregon Supreme Court. DTNA has agreed to make a contribution of $150,000 to the Oregon Crime Victims Compensation Fund in 2010. The Oregon Crime Victims Compensation Fund is the beneficiary of any funds collected by the state as the result of punitive damages awards. In addition, DTNA agreed to pay additional amounts to the state in the event it relocates its corporate headquarters outside of the state of Oregon in the next 3 years.

Chris Patterson, DTNA’s president and chief executive officer, stated that “We view this action by Oregon’s new Attorney General as a significant and welcome gesture of support in our home state, and a positive step forward.”

Daimler Trucks North America LLC, headquartered in Portland, Oregon, is the leading medium- and heavy-duty truck manufacturer in North America. Daimler Trucks North America produces and markets Class 3-8 vehicles and is a Daimler company, the world's leading commercial vehicle manufacturer.

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