DAIMLER WILL PAY $150,000 TO THE OREGON CRIME VICTIMS' COMPENSATION FUND
Attorney General John Kroger today announced a settlement with truck-manufacturer Daimler Trucks North America that will help keep 2,000 jobs in Portland.
"This was a difficult case, and we are glad to see it resolved," Attorney General Kroger said. "We believe this result will be good for Daimler's employees, the Oregon economy and crime victims."
Under the settlement, the Oregon Department of Justice will drop a suit seeking a share of a 2006 punitive damage judgment against Daimler, formerly known as Freightliner. In exchange, Daimler will pay $150,000 into the Oregon Crime Victims' Compensation Fund. In addition, the agreement provides financial incentives for Daimler to keep its headquarters in Oregon. Pursuant to the settlement agreement, Daimler has agreed to pay up to $300,000 to Oregon if it moves its corporate headquarters from Oregon in the next three years.
Daimler's headquarters on Swan Island employs about 2,000 people. Daimler executives had previously indicated publicly that resolution of this case would have an impact on a decision to keep the company headquarters in Oregon.
The lawsuit hinged on ambiguities in Oregon's punitive damages law. The Department of Justice is drafting legislation to clarify the law and avoid disputes in the future. Attorney General Kroger made his decision to settle the case based in part on Daimler's importance to the state economy and on his assessment of the likely outcome of the case.
Oregon Business Association President Ryan Deckert praised the settlement.
"The Attorney General's office and Daimler Trucks North America should be commended for working together to reach this agreement. At a time when Oregon's unemployment rate is at its highest level in 25 years, this is just the news we needed to hear for an important company in Oregon. Attorney General Kroger's leadership on job retention and creation is truly appreciated by Oregon Business Association."
Attorney General John Kroger leads the Oregon Department of Justice. The Department's mission is to fight crime and fraud, protect the environment, improve child welfare, and defend the rights of all Oregonians.
Tony Green, (503) 378-6002 email@example.com