SUBJECT/RECOMMENDATION:
Title
Authorize the filing of a civil lawsuit against Stantec, Inc., Skanska USA, and their affiliated entities
Body
SUMMARY:
The City hired Stantec to design Coachman Park. The City hired Skanska USA to construct Coachman Park as a construction manager at-risk (CMAR). In reviewing matters with city staff, it has been determined that one or both of these entities are responsible for certain design defects and construction defects. The City has engaged in productive conversations with Stantec and Skanska regarding these issues. However, those conversations have not fully resolved the City's concerns. As a result, the City Attorney's Office is seeking pre-approval to file a lawsuit in the event a resolution cannot be reached swiftly.
Design defects and latent construction defects can be highly technical. The City Attorney has engaged attorney Trevor Arnold with the law firm of Gray Robinson to represent the City in this lawsuit. Mr. Arnold is a board-certified specialist in construction law; he currently serves as the Construction Team Leader for Gray Robinson. The City Attorney recommends and requests approval to incur up to $100,000 in litigation expenses, inclusive of both attorney's fees and expert witness costs. As with any affirmative litigation, the duration and extent of litigation can be heavily influenced by the defendants and Judicial rulings. The actual cost may be significantly less. However, no additional cost will be incurred without Council approval.
APPROPRIATION CODE AND AMOUNT:
Funds are available in the City Attorney’s Office cost code 0109600-530100, professional services, to fund this contract. The City Attorney’s Office is funded by General Fund revenues.