Tarpon makes $75,000 deal to settle engine repair suit

The city opts to settle after a company tells a judge the city's breach of contract cost it $125,000 in profits.

By CANDACE RONDEAUX, Times Staff Writer
© St. Petersburg Times
published February 22, 2003

TARPON SPRINGS -- The city has agreed to pay $75,000 to settle a lawsuit brought by a New Port Richey company that said the city broke its exclusive contract with the firm.

City Attorney John Hubbard said the city's agreement to pay Electrical & Mechanical Services will put the nearly 4-year-old lawsuit to rest.

"I think it's a very advantageous settlement," Hubbard said.

Electrical & Mechanical Services' contract to provide engine repairs to the city was supposed to be exclusive, but the city occasionally contracted with other companies, Hubbard said.

"They didn't like that, so they brought the lawsuit," he said.

During the city's settlement negotiations with Electrical & Mechanical, the company initially demanded $170,000, but agreed to accept roughly half that amount as long as the city cut the check this week.

Last month, city commissioners discussed the possibility of a settlement with two separate companies with lawsuits against the city during an unusual closed-door executive session of the commission. Under Florida law, commission meetings must be held in public. But the state's Government-in-the-Sunshine Law allows the commission to meet privately when discussing litigation with its attorney.

The city opted to settle the lawsuit after the company told a Pinellas-Pasco circuit judge that the city's breach of contract had cost it $125,000 in profits, Hubbard said.

"We determined that, given the court's discussion during the summary judgment (hearing), it didn't look particularly favorable for us, so we agreed to settle," Hubbard said.

The company has changed hands since the lawsuit was filed. The former owners who brought the lawsuit declined to comment this week through the company's current management.

-- Candace Rondeaux can be reached at (727) 445-4182 or rondeaux@sptimes.com.

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