Explanation
This Ordinance is submitted to settle three lawsuits against the City pending in the Court of Common Pleas of Franklin County, Ohio: Gutknecht Construction Company v. City of Columbus, Ohio, Case No. 21-CV002381; Gutknecht Construction Company v. City of Columbus, Ohio, Case No. 21-CV002382; and Mr. Excavator, Inc. v. Gutknecht Construction Company, et. al., Case No. 21-CV001568; plus a related case in which the City is not a party: Epic Steel Company v. Gutknecht Construction Company, et al., Case No. 20-CV005949. The cases are consolidated before a single judge. The City payment to settle the claims made in all four lawsuits is Five Hundred Thousand Dollars and zero cents ($500,000.00).
The four lawsuits arise out of two construction projects undertaken by the City at two locations: the Far North Police Station and the Indian Mound Park Recreation Center. The Gutknecht lawsuits arise out of the City’s withholding of certain payments and refusal to pay certain other payments in connection with Gutknecht’s construction work on the two projects as general contractor.
Under the proposed settlement, funds held back by the Department of Finance and Management for the Far North Police Station project are available in the amount of Three Hundred Twenty-Three Thousand Dollars and zero cents ($323,000.00), and funds are available from the City Recreation and Parks Department, which will contribute One Hundred Seventy-Seven Thousand Dollars and zero cents ($177,000.00) toward the settlement. Other non-City parties in the lawsuits are paying Gutknecht One Hundred Twenty Thousand Dollars and zero cents ($120,000.00). Gutknecht in turn will pay its involved subcontractors, Mr. Excavator and Epic Steel.
Emergency action is requested for this ordinance to be effective immediately in order for the parties to effectuate the settlement of these lawsuits in accordance with the terms of the settlement agreement, which is in the best interest of the City...
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