SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
July 21, 1995
------------------------------------------------
Date of Report (Date of earliest event reported)
NORTHWEST NATURAL GAS COMPANY
-----------------------------------------------------
(Exact name of registrant as specified in its charter)
Oregon 0-994 93-025-6722
------------- ----------- ------------------
(State of (Commission (IRS Employer
incorporation) File Number) Identification No.)
220 NW Second Avenue, Portland, Oregon 97209
--------------------------------------------
(Address of principal executive offices)
(503) 226-4211
--------------------------------------------------
Registrant's telephone number, including area code
Item 5. Other Events
- ------- ------------
On July 21, 1995, a jury in an Oregon state court
returned a verdict against the Company in the case of Northwest
---------
Natural Gas Company v. Chase Gardens, Inc. (Lane County Circuit
- ------------------------------------------
Court Case No. 16-91-01370). The case commenced with a crop lien
foreclosure action by the Company for recovery of past-due gas
service charges. The defendant, Chase Gardens, Inc., counter-
claimed for breach of contract and intentional interference with
its business relationship with a bank, based upon an allegation
that the filing of the crop liens caused its nursery business to
fail.
The jury returned a verdict against the Company on the
breach of contract counter-claim for actual damages of $1.9
million. Alternatively, the jury brought a verdict on the
intentional interference counter-claim for actual damages of $2.1
million, plus punitive damages of $3.0 million. The jury also
allowed the Company's offsetting claim for past-due gas service
charges in the amount of about $0.2 million.
The Company intends to ask the trial court to enter a
judgment for the Company, notwithstanding the verdict, on both of
Chase Gardens' counter-claims. If that effort is unsuccessful,
the Company intends to appeal the decision to the Oregon Court of
Appeals. It is unclear how much, if any, of the verdict for
either counter-claim would be covered by insurance.
If the Company is unsuccessful in overturning or
reducing the damage award in this case, or in recovering any
portion of the loss through insurance, the maximum amount payable
by the Company (not including legal fees, costs and post-judgment
interest) would be about $4.9 million. A payment of such amount
would reduce earnings by about $0.20 per share. After a full
review, the Company will determine what portion of this amount to
reserve as a charge against results for the quarter ending
September 30, 1995.
SIGNATURE
Pursuant to the requirements of the Securities Exchange
Act of 1934, the registrant has duly caused this report to be
signed on its behalf by the undersigned hereunto duly authorized.
NORTHWEST NATURAL GAS COMPANY
-----------------------------
Registrant
By /s/ Bruce R. DeBolt
-------------------------
Bruce R. DeBolt
Senior Vice President and
Chief Financial Officer
Date: July 24, 1995
