School District No. 5 v. James Lundgren, D/B/A Pacific Construction Company

James Lundgren, doing business as Pacific Construction Company, brought this action against School District No. 5, Baker, Oregon, and three architects. Jurisdiction was based on diversity of citizenship. Orders and a judgment adverse to the school district were entered, from which the district appeals.

Two causes of action were stated in the complaint, the first directed against the school district, and the second against the architects. The first cause of action alleged that there remained an unpaid balance in the sum of $65,610.36, due the contractor under two contracts for the construction of a high school building, swimming pool, and bath houses. It was also alleged that the school district insisted upon the contractor performing work not called for by the contracts, for which he was entitled to recover the sum of $167,000. Judgment in the sum of $232,610.36 was therefore sought against the school district.

In the second cause of action, the same recovery was sought against the architects. Judgment in the additional sums of $150,000 for damage to reputation, and $50,000 as punitive damages, was also sought against the architects. The school district answered with a general…