PORTLAND, Ore. — A lawsuit alleges that Alpenrose Dairy is on the brink of being sold to buyers who could potentially shut down the historic, family-run Portland business.
The lawsuit, filed Monday in Multnomah County court by three members of the Cadonau family, says two other family members “intend to destroy legacy, community and an historical family business for their own material benefit.” The Cadonau family has overseen the dairy’s operations since they began in Multnomah County in 1891.
Alpenrose Dairy has been a popular destination for Portland families for decades.
Thousands of parents and children have gone to their annual Easter Egg hunt.
The Little League Softball World Series is held at its immaculately groomed fields, which are also used for boys baseball. Also on site is a velodrome and a competition go-kart track.
"We were all very surprised and it just kind of feels like being punched in the stomach a little bit," said Jen Featheringill, with the Oregon Bicycle Racing Association. She directs the world class races at Alpenrose's concrete bike velodrome every May.
The goal of the plaintiffs, Carl Cadonau III, Tracey Cadonau McKinnon and Cary Cadonau, is to “stop the destruction of Alpenrose Dairy and the land upon which Alpenrose sits.” Alpenrose sits on 52 acres in Southwest Portland.
The plaintiffs say Barbara Deeming and Anita Cadonau-Huseby are going against a family legacy plan, which the lawsuit says was enacted to prevent the liquidation of Alpenrose.
“In short, Deeming and Huseby desire to liquidate Alpenrose in a fashion that immediately terminates Alpenrose’s Lease of the Dairy Community Land so that they are able to sell the Dairy Community Land without restriction from Alpenrose’s continued operations,” the lawsuit says.
According to the lawsuit, Deeming and Huseby are co-trustees and have exercised majority control over the Cadonau Family Management Trust. The lawsuit says Deeming and Huseby plan to sell to a buyer not affiliated with the Cadonau family. The buyer intends to operate Alpenrose for one or two more years, putting 150 employees at risk of losing their jobs, the lawsuit alleges. The lawsuit says the sale is set to close “in a matter of weeks” and the sale “will not allow public access for community events to take place on the Dairy Community Land.”
In addition to the family management trust, family members make up a partnership. While Deeming and Huseby have exercised majority control over the family trust, the plaintiffs contend they don’t have the required support of the partnership to follow through with the sale.
Deeming and Huseby issued the following statement in response to the lawsuit.
“This is a private family dispute, and we are saddened that it has entered the public sphere. The allegations are also false and seem intended on creating confusion. Our family founded Alpenrose Dairy, and has stewarded its legacy for over 100 years, through changes in our industry and community. A family-based leadership structure remains responsible for guiding the dairy. We are focused on a resolution to this dispute.”