Emerick Construction Lawsuit: $13.7M Judgment and License Suspension

Emerick Construction, a Tualatin, Oregon general contractor of more than 80 years, is facing a cascade of lawsuits headlined by a $13.7 million federal default judgment entered in June 2025 in favor of its surety, Zurich. The Emerick Construction lawsuit picture also includes a terminated public school contract, a brief state license suspension, bank and subcontractor claims, and litigation that reaches the company’s president personally.

The $13.7 Million Zurich Judgment

The largest action is a federal case filed January 30, 2025, in the U.S. District Court for the District of Oregon. Zurich American Insurance Company and Fidelity and Deposit Company of Maryland sued Emerick and several individuals for breach of a 2018 General Indemnity Agreement tied to surety bonds issued for Emerick’s projects. The named defendants are Emerick Construction Inc. (also known as Emerick Construction Company), Emerick Residential Builders LLC, Corey Lohman, Stacy Lohman, Barbara Sitz, and Lawrence Sitz.¹

Under the agreement, Emerick and the individual guarantors had to reimburse Zurich for costs from claims against the bonds and post collateral on demand. The bonds carried an aggregate value of roughly $509.7 million, and Emerick Residential Builders LLC was added by a 2023 rider.²³

On June 16, 2025, Judge Karin J. Immergut entered a default judgment of $13,723,896.20 against Emerick Construction Inc., Emerick Residential Builders LLC, Corey Lohman, and Stacy Lohman after those defendants failed to respond. The court found that their failure to indemnify Zurich or post collateral was a material breach and accepted Zurich’s itemized loss statement as the damages figure.²

The order goes further than the money. The same four defendants were ordered to post an additional $8,421,993.80 in collateral for anticipated future bond claims, and they were permanently barred from selling, transferring, or encumbering assets until that collateral is posted. Judge Immergut reasoned that the monetary judgment alone was not adequate because more bond claims were expected.²

The two other named defendants, Lawrence and Barbara Sitz, had their entry of default set aside by the same order, and the case continues against them. An amended scheduling order sets fact discovery to close August 17, 2026, and expert discovery to close October 19, 2026.¹

What Triggered the Surety Claim: Frog Pond Primary School

The surety exposure traces back to Emerick’s work on the Frog Pond Primary School in Wilsonville, Oregon. The West Linn-Wilsonville School District awarded the contract in April 2023, and construction began that June.⁴

By late 2024, the district said 33 separate subcontractors and suppliers had contacted it claiming Emerick had not paid them for work or materials on the project.⁵ The district stated that Emerick had “repeatedly failed to pay its subcontractors and suppliers” despite receiving regular payments from the district.⁶

The district declared Emerick in default and terminated the contract on December 4, 2024. As the project’s surety, Zurich took over responsibility for finishing construction and paying subcontractor claims under the payment bond, and it hired Triplett Wellman Contractors to complete the job. Many of the original subcontractors returned under that arrangement, and the district said the termination costs fell on the surety rather than taxpayers.⁶⁵

Bank Loans, Equipment Leases, and Subcontractor Suits

Since August 2024, Emerick has been the subject of at least 18 lawsuits and claims in Oregon courts, according to a report by Construction Owners.⁷ Among them:

Umpqua Bank sued in April 2025, alleging Emerick defaulted on a $5 million loan and seeking $5.3 million in damages.
U.S. Bank sued in June 2025 seeking roughly $168,000 on an unpaid equipment lease.
Aurora Landscape sued Emerick and Corey Lohman for nearly $150,000 in unpaid landscaping work performed at Lohman’s private residence. Court documents in that case state that the Lohmans directed the landscaping firm to bill Emerick, which led to a lien and a foreclosure attempt on the home.

Separately, the City of Cannon Beach replaced Emerick as the contractor on a planned City Hall and police station, citing high cost estimates.⁷

The Oregon Contractor License Suspension

The Oregon Construction Contractors Board suspended Emerick’s license from May 30 to June 16, 2025, in response to unpaid debt complaints. The suspension was lifted after Emerick made a $24,867 settlement payment.⁷ That payment resolved the specific complaint that triggered the suspension. It did not resolve the broader pattern of unpaid claims and lawsuits against the company.

Where Things Stand

The federal Zurich case remains active. The default judgment and collateral order stand against Emerick Construction Inc., Emerick Residential Builders LLC, Corey Lohman, and Stacy Lohman, while litigation continues against Lawrence and Barbara Sitz through the 2026 discovery deadlines.¹ The research does not show that Emerick Construction or its related entities have filed for bankruptcy as of mid-2026.

1
PACER Monitor. Zurich American Insurance Company et al v. Emerick Construction Inc. et al
2
GovInfo. Opinion and Order, Zurich American Insurance Company v. Emerick Construction Inc., Case No. 3:25-cv-00166-IM
3
CaseMine. Zurich American Insurance Company v. Emerick Construction Inc.
4
West Linn-Wilsonville School District. Board Memo Regarding Emerick Notice of Default
5
Wilsonville Spokesman. Frog Pond Primary Construction Back on Track in Wilsonville After Departure of Contractor
6
West Linn-Wilsonville School District. Primary School at Frog Pond – Project Updates
7
Construction Owners. Emerick Faces Lawsuits, License Suspension Over Unpaid Work