Oregon Ironworks sues state over Columbia River bridge agreement

Oregon Ironworks sues state over Columbia River bridge agreement
In this Aug. 4, 2011, file photo, taken in Portland, Ore., traffic crosses the Interstate 5 bridge spanning the Columbia River between Oregon and Washington. (AP Photo/Don Ryan, file)

SALEM, Ore. (AP) — Oregon Ironworks is suing the State of Oregon over a contract that's supposed to mitigate the negative impacts of a proposed Interstate 5 bridge across the Columbia River.

Some of the products that the company manufacturers and ships on the river would not fit under the new bridge, which would have a shorter maximum clearance than the existing one.

The state agreed in May to pay $12 million to compensate the company. But Oregon Ironworks says in a lawsuit filed Friday in Clackamas County that the state's agreements with two other companies would undermine its ability to compete.

Oregon agreed to pay $25 million to one company and $50 million to another. Oregon Ironworks argues that those amounts have nothing to do with their actual potential for lost business.

The Oregon Department of Transportation called the lawsuit "frivolous."

Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.