Portland Public Schools has stopped fighting a $1 million jury verdict in a racial harassment case. The school board voted Tuesday to settle the case for $1.4 million.

The district lost big at trial last May. Maintenance workers Charles Morgan and Jason Williams said they faced racial harassment that included having a noose hung in their workplace and being called the n-word.



The settlement is a discount when compared to what Portland Public Schools was on the hook for had it lost an appeal of the jury verdict. On top of the $1 million verdict it would have owed more than $500,000 in attorneys' fees and accrued interest. Each of the employees will get $400,000.

The board's decision to settle came after it took longtime district law firm Miller Nash Graham & Dunn off the case. Miller Nash tried multiple times to get a court to undo the verdict on the district's behalf, The Portland Tribune reported.

Board Chair Julia Brim-Edwards said in a statement to The Oregonian/OregonLive she and others on the board wanted to settle the case. It's a relatively new board, as three members took office last July.

The new school board and its new general counsel, Liz Large, have said repeatedly that getting a better handle on the district's many legal entanglements is a high priority. After they began applying that greater scrutiny, Miller Nash lost a large chunk of the district's business.

"The board concluded that the best course was to reach closure with Mr. Morgan and Mr. Williams's claims so that every one of our employees can show up and do their best every day for our students. The settlement of this case is one more step toward achieving that goal," Brim-Edwards said. "Treating our employees fairly and support for an inclusive work environment are key values for the new board."

After the trial, the district's in-house legal counsel changed twice. Not long after the verdict, the district brought on James Harris as top lawyer. Harris left in November and is under investigation by the state bar for allegedly practicing law in Oregon without being licensed to do so. Harris' defense to the State Bar is that much of his work as general counsel for Oregon's largest school district was not legal in nature.

Morgan and Williams said their experiences were downplayed as "microaggressions" and responses to their complaints were intentionally stalled. That did not match the stated priorities of a district that has spent millions on racial equity training and touted diversity as a core value.

"Mr. Morgan and Mr. Williams are happy to have achieved long-awaited resolution to the litigation and hope for positive changes to the workforce going forward," said Morgan and Williams' attorney Diane Sykes.

In addition to a better handle on its legal affairs, the school board has stressed the need for a new district complaint process and work is underway toward that aim. The new process has already gone before the board and is open for public input.

— Bethany Barnes

Got a tip about Portland Public Schools? Email Bethany: bbarnes@oregonian.com