Lake Oswego reaches settlement in Mountain Park flooding case

The city of Lake Oswego and its insurance provider reached a settlement in April with a Mountain Park resident whose home flooded due to a water main break in late 2023.

Gary Vuchinich said he faced over $90,000 of damages due to flooding of the downstairs area of his home.

The city’s insurance provider, CIS Oregon, initially asserted that the local government was not liable because “the City had not been working on this pipe and had no expectation that the pipe might rupture.”

Vuchinich had threatened a lawsuit against the city but the two sides negotiated a settlement instead. According to the settlement, Vuchinich received $42,000 for the damages.

“We settled on the advice of our attorney. The legal expenses we would incur, had we moved forward with the lawsuit, would have been greater than any settlement we could expect from the city,” Vuchinich said.

Vuchinich said that serious negotiations didn’t begin until the story was publicized, particularly by KOIN News.

“Prior to that news coverage there were no meaningful discussions between our attorney and the city. Public pressure apparently drove them to make the settlement offer,” he said.

In response to a question about the settlement and Vuchinich’s assertion that news coverage played a role in the city settling, City Attorney Ellen Osoinach wrote in a statement: “The City is pleased the matter has been resolved. The City handles claims through an insurance carrier to ensure that decisions about whether to pay claims are made impartially, based solely on the law and the facts of each case. The City values the role of the news media in informing the public about important and often challenging situations.”