ELKO — Reconciliation between the City of Elko and Canyon Construction Co. appears to be further unlikely after a decision made at Tuesday’s city council meeting.
The city has been involved in a six-year legal battle with Canyon Construction over concrete work done at the Elko Regional Airport.
In February, Senior Judge Miriam Shearing ruled in favor of awarding the city a total of $952,000 in damages from Canyon Construction and Knight Piesold.
At Tuesday’s meeting, Canyon Construction President Matt Lattin approached the council to ask for a Satisfaction of Judgment after submitting a check to pay for the interest owed on the judgment.
Canyon Construction presented an additional check to the council on April 17 for the amount of $351,000 — the company’s portion of the judgment.
“Our position is that when we tendered the check on the 17th — with no strings, no conditions attached — that we stopped the interest from accruing,” Lattin told the council. “My request is that you accept (the checks) ... and then we can close the matter between the city and Canyon Construction.”
City Attorney Rich Barrows warned that by issuing Canyon Construction’s proposed Satisfaction of Judgment, the city would be unable to pursue a cross appeal when the airport dispute reaches the Nevada Supreme Court.
Approving the Satisfaction of Judgment — as written — would be “a release from all claims by the city against Canyon Construction,” Barrows told the Free Press Wednesday morning.
The most contested provision in Canyon Construction’s proposed Satisfaction of Judgment is listed under one of the two options the company provided to handle the interest owed.
“The City hereby releases Canyon from any further obligation to the City and assigns all rights and interest of the City’s judgment against the defendants to Canyon Construction and Canyon Construction may pursue collection of any and all amounts Canyon claims are due from Knight-Piesold,” the provision requires.
Council members suggested Canyon Construction revise the statement or drop the appeal entirely. Councilman Robert Schmidtlein, who is the vice president of Canyon Construction, had earlier recused himself from the agenda item.
“If you drop your appeal right now, this would all be over,” Councilman John Patrick Rice told Lattin.
Lattin replied that dropping the appeal “was not on the table.”
Council concluded the dispute by voting to accept Canyon Construction’s payment — and to return additional interest — if the company did not request a full Satisfaction of Judgment for the money.
“Does that sound (to be) on the right track?” Mayor Chris Johnson asked Lattin.
“No,” Lattin replied.
Canyon Construction and city officials will participate in a mediation meeting on Aug. 15, as required by the Supreme Court.
Source: http://elkodaily.com
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