|
Wednesday, November 04, 2009
For Immediate Release
Communications
|
Contact: Diana Paul
Telephone: 229-6501
|
|
At today’s Las Vegas City Council meeting, the council approved an agreement to settle the legal fight with Asphalt Products Corporation (APCO) as it relates to the company’s construction of the Darling Tennis Center. By approving the agreement and opting to not appeal an arbitrator’s recent ruling, the action puts an end to the financial burden the city could have faced if it continued the legal fight.
City Attorney Brad Jerbic said the city had solid appellate issues, but recommended against an appeal, due to the expensive process that has already cost the city more than $3 million.
On Oct. 9, 2009, the Nevada Arbitration Association rendered a Decision and Award in the case relating to APCO's construction of the Darling Tennis Center. In a 2-1 decision, the arbitrators awarded APCO $2,410,015.60. The city was awarded $280,770. Both sides to the arbitration agree that APCO is entitled to $1,148,827 in retention, which is a final payment held until the end of a project, leaving a net balance owed to APCO of $980,361.60 plus interest since the date of the award until payment. The city also owes interest on the retention dating from May 15, 2006 less a credit of $12,010.05. The final award as calculated will be $980,361.60 plus interest. APCO sued the city in 2005 for $7 million.
Because of cases like this, the city requested that the Nevada State Legislature make a change to laws governing arbitration. State lawmakers responded favorably to the city's request and changed the law in the 2009 session. Prior to this action, disputes like this were required to go through an arbitration process, which can often be long and extremely expensive. The Legislature now allows disputes like this to be resolved by methods other than arbitration, a move that can save time and reduce legal fees substantially.
-end
Return to News Release Index
|