McAninch Corp vs CityBarry A. Lindahl, Esq.
Corporation Counsel
196 Dubuque Building
700 Locust Street
Dubuque, Iowa 52001-6824
(319) 5834113
(319) 583-1040 FAX
E-moji: bojesq~mwd.net
May 30, 2001
Mayor Pro Temp Joseph Robbins and
City Council Members
50 West 13th Street
Dubuque, IA 52001
RE: McAninch Corporation v. City of Dubuque
Dear Mayor and Council Members:
Les Reddick and I are pleased to report to you that we have reached an agreement with the
McAninch Corporation to resolve the pending lawsuit against the City of Dubuque within the
guidelines established by the City Council.
This lawsuit arises out of the contract between McAninch Corporation and the City of Dubuque
for excavating and grading at the westside industrial park. McAninch Corporation claimed that
as a result of delays by the City in obtaining certain permits from the Department of Natural
Resources for re-chauneling waterways at the project site, McAninch sustained damages for
additional excavation work as well as additional costs for remaining on the site beyond the time
they had intended to complete the project. The City's position in the lawsuit was that the delays
were the result of a failure on the part of the City's consulting engineers, Kirkham & Michael, in
advising the City as to when and how to obtain the necessary permits.
The original claim by McAninch was in excess of $500,000. Through the process of negotiation
and mediation, McAninch agreed to accept the sum of $195,000 for a resolution of its claims.
The City wilt contribute $140,000 toward that settlement mount and the Iowa Communities
Assurance Pool will also contribute $20~000 on behalf of the City. The City will also be required
to reimburse the Iowa Communities Assurance Pool for the deductible, which is an amount less
than $10,000. The City's total contribution to the settlement therefore is less than $150,000,
which is consistent with direction provided by the City Council:
Kirkham & Michael, the City's engineering consulting firm, will contribute $35,000 to the
settlement.
All of the parties will release each other from any other claims arising out of this project.
Service People Integrity Responsibility Innovation Teamwork
BAL/jm
Attachment
Cc:
Very sincerely,
Michael Van Milligen, City Manager
Michael Koch, Public Works Director/City Engineer
Les Reddick, Esq.
Frank Miller, Public Entity Risk Services
Brian J. Kane
Gary K- Norby
Les ¥. Reddick*
D. Flktt Drake*'~
Brad J. Pieying
Todd L. Stevenson*
Louis P. Pfeiter
MaryBeth Pfeiler Salmon
Mary A. Cherba
KANE, NORBY & REDDICK, P.C.
ATTOKNEY$
2100 ASBUI~Y ROAD, SIDI'I'~ 2
DUBUQLFE, LA. 52001-3069
All admitted in Iowa
~Also admitted in Illinois
~Also admitted in Wiscortsi~
Phoae: (563) 582-7980
Facs'maile: (563) 582-5312
E-mail: lmrpc~mdeod~sa.net
May 24, 2001
Mr. Barry A. Lindahl
Corporation
196 Dubuque
700 Locust Stre~
Dubuque, IOwa 52001-6824
RE: MCANINCH V. CITY OF DUBUQUE
Dear Barry:
This will confirm settlement of the McAninch for a total of
$195,000: The City.of Dubuque will pay $140,000, Iowa. Communities
Assurance Pool will pay $20,000 and Kirkham, Michael will pay
$35,000. In exchange, we will receive a dismissal with prejudice
of the pending, tawsuit~ dismiss our third-parmy lawsuit agamns5
Kirkham, Mich~I and'e~change mutual releases. Would you please
order the draft and forward it to my attention.
Best personal .regards.
Very truly yours,
KANE~ NORBY & REDDICK, P.C.
Les V. Reddick
LVR/bmc