Jury orders city to pay damages in lift station lawsuit

When City Manager Tom Barwin has discussed the tens of millions of dollars in expenses associated with the ongoing construction of Lift Station 87, he’s been quick to highlight a lawsuit against the project’s previous engineering firm as an opportunity to recoup as much as $20 million.

Last week, a jury ruled that AECOM Technical Services was not responsible for paying any damages to the city, dashing hopes of a large award in the lawsuit.

Instead, the jury found the city had breached its contract with the previous construction company working on the lift station. The jury ordered the city to pay Westra Construction Corp. $686,233 in damages.

The Nov. 2 verdict is the latest in a series of setbacks associated with the city’s efforts to build a lift station in Luke Wood Park at 1900 Mound St. Originally anticipated to be complete as early as 2011, the Lift Station 87 project is still going on and expected to continue into 2020.

The costs to complete the wastewater treatment facility have soared as delays have beset the project and the city has adjusted the plans. The lift station was originally envisioned as an underground facility, and estimates placed the project budget at $8.5 million.

By 2014, the city had hired a new engineer and revised the plans, which now call for an above-ground, hurricane-resistant structure. To date, the city has spent about $20.8 million on construction. Updated estimates put the Lift Station 87 project costs at more than $50 million by the time the work will be completed.

Even as the expenses increased, city officials pointed to the lawsuit as a way to defray some of the spending on the project. In 2012, the city terminated its contract with AECOM, which oversaw the design of the lift station. In 2013, the city filed a suit accusing AECOM of breach of contract and professional negligence.

The suit focused on AECOM’s failure to successfully microtunnel beneath the Hudson Bayou as part of the lift station construction.

AECOM countersued the city in 2014 for breach of contract, filing complaints of wrongful termination and failure to pay. Later that year, former Lift Station 87 contractor Westra Construction Corp. also sued the city for breach of contract, arguing the city improperly handled its agreement with the firm.

The jury trial in the 12th Judicial Circuit Court began in October and continued through Nov. 2. The jury found that AECOM had not violated its contract with the city. Although the jury determined AECOM was negligent and caused damage to the city, it ruled the city sustained no financial damages.

The jury said the city breached its contract with Westra, causing financial damages to the contractor. The jury awarded Westra $686,233 in damages.

The jury ruled the city did not breach its contract with AECOM.

City Attorney Robert Fournier briefly discussed the verdict at Monday’s City Commission meeting. Fournier declined to delve into the specifics of the case, instead asking the commission to hold a shade meeting soon on the city’s litigation strategy moving forward. That meeting is scheduled for 5 p.m. Wednesday, Dec. 5.

Through Oct. 31, the city has incurred about than $7.5 million in legal expenses associated with the Lift Station 87 lawsuit.

Project engineer McKim and Creed, hired in 2013 to replace AECOM, hopes to complete Lift Station 87 by early 2021. When complete, the facility will handle about one-third of the city’s wastewater.

This article has been updated to clarify the timeline and costs associated with the Lift Station 87 project.