News and Opinion from Sisters, Oregon
One of the contractors that put in main sewer lines in Sisters in 2001 has settled a lawsuit with the City of Sisters for $40,000.
The original lawsuit filed in May 2002, demanded some $689,278 for alleged breach of contract.
Commercial Redi-Mix of Salem claimed that the city owed compensation for extra work required to remove volcanic rock on part of the project; for extra trench excavation; for deflecting lines to meet stubs that were off line; for relocating manholes and for delays that increased the company's overhead.
The City of Sisters did not accept those claims.
The settlement admits no fault or wrongdoing, according to City Manager Eileen Stein.
The suit was a particularly serious matter for the city because, rather than being handled by an insurance company, the suit represented an uninsured liability against the city.
According to Stein, the cost of litigation would have well exceeded the amount of the settlement. The city has already spent about $20,000 in legal fees on the case, she said.
"We saved the citizens $60,000 to $200,000 (in fees) in settling," said Mayor Dave Elliott.
Stein said the city council made the decision to settle strictly as a practical matter.
"It's frustrating to settle a lawsuit when you believe you're in the right, but they felt it was the right thing to do," she said.
Reader Comments(0)