Creditors obtain judgment against Columbia Pulp

DAYTON–Columbia Pulp I, LLC, which announced February 11 that operations at its innovative straw-pulp plant near Lyons Ferry would go "idle" on February 18, was handed a $758,849 default judgment in Columbia County Superior Court on December 16, 2021. The company also leases property from the Port of Garfield.

According to court records, construction contractor DKB, Inc. of Pasco, and electrical contractor Power City Electric, Inc. of Spokane, filed a lawsuit in December, 2020, seeking a lien foreclosure, and alleging breach of contract and unjust enrichment, seeking unpaid compensation for DKB and Power City. A third company was named in the suit, however, its lien documentation was not "perfected" in the required time and its claim was dismissed.

Columbia Pulp I, LLC failed to appear, plead or otherwise respond to DKB Inc.'s complaint and Power City's crossclaim, court documents indicate. At an October 21, 2021 hearing on the matter, the judgment debtor did not appear in person or by counsel.

Superior Court Judge Brooke J. Burns ordered the sale of Columbia Pulp I, LLC's real property at 1351 Highway 261, Dayton, Wash., through a Sheriff's Sale. The legal notice pertaining to the ordered Sheriff's Sale is published this week in the Dayton Chronicle.

From the proceeds of the sale, DKB, Inc. is to receive $660,200.21 in the principal judgement amount, $8,010 in attorney's fees, $1,995.84 for costs, for a total of $670,206.05. Post-judgment interest was ordered to be 12% on the Principal Judgment and a like percentage on Attorney's Fees and Costs. DKB, Inc., is represented by Spokane attorney John H. Guin.

Power City Electric, Inc., is to receive $70,193.30 in principal judgment, $13,760.18 in interest to the date of judgment, $3,964.50 in attorney's fees and $366.94 in costs, for a total of $88,284.92. Richard D. Campbell of Campbell & Bissell, PLLC of Spokane represented Power City Electric.

DKB, Inc., recorded a Claim of Lien on April 24, 2020, the last day services, labor, materials and supplies were furnished to Columbia Pulp I, LLC. In its suit filed later in December, DKB, Inc. asserted that Columbia Pulp I, LLC (CPI) breached its contractual obligations by failing to pay for work performed, and that CPI was allegedly unjustly enriched by the "fruits of DKB's services, labor and materials without fully compensating" DKB, Inc.

Pacific Civil & Infrastructure, Inc., of Tacoma was also named in court documents as recording a lien against CPI, LLC on November 23, 2020, but Pacific Civil & Infrastructure did not perfect its claim in the required time and its lien no longer bound the property.

Proceeds of the Sheriff's Sale shall be distributed on a pro rata basis to DKB and Power City until Power City's total judgment is satisfied, the court ordered. After that, remaining proceeds shall be remitted to DKB until its total judgment is satisfied. Any deficiency in remittances shall remain as a judgment against CP I, LLC, the court document indicated.

Power City and Pacific Civil were both listed as defendants in initial court filings. Power City filed a cross claim.

The court document also named John Does 1-10 as defendants.

Columbia Pulp's public-relations firm responded to requests for information, but company officials were unable to respond prior to the East Washingtonian's deadline.