District charged for 2000 project
CALIFORNIA – A dispute over how and when renovations to the California Area Middle School were done in 2000 has ended up costing the school district more than $105,000 over the original disputed bill. Waller Corp. of Washington filed suit against the district in December 2000 requesting a final payment of $195,751 for work it did as a primary contractor for the middle school renovation, plus $57,011 for cutting and patching the roof in conjunction with the ventilation contract. The suit sought payment of the balance, plus interest and costs.
The case finally went to a jury trial in April of this year, and after more than a week of testimony, Waller Corp. was awarded $131,403 in damages. Waller at that time sought an additional $669,340.18 for attorney’s fees, interest, expert witness fees and filing fees.
The district’s attorney, Doug Nolin, filed a motion indicating that the district had defense costs of approximately $100,000 and that since the jury awarded damages of approximately 70 percent, the amount the district had to pay toward the interest and fees should be similarly discounted.
The case was settled in full for a payment of $350,000 by the school district to Waller at the school board’s July 10 meeting. Additional expenses of $2,100 covering travel expenses for the district’s former superintendent, Dr. Marian Stevens, to fly from her current job in the state of California and $5,700 reimbursement to her current school district for her salary while she was in Pennsylvania to testify, were approved at the November board meeting.
Dr. R. Tim Marks, the current school district superintendent, said the school board in 2000-2001 entered into the suit after consultation with legal counsel.
“They felt they had grounds to go forward and fight it, so that’s what they did,” Marks said.
Marks said the settlement should not impact the current budget.
“It depleted the construction fund. The rest came out of the reserve fund,” Marks said. “It’s there for a rainy day, and that was a rainy day.”
Marks said the district will need to begin replenishing the reserve fund, so the money is there for a future emergency.