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Published: 10:13 am Thursday, Oct. 13, 2011

Jury awards City of SLO $224,000 in lawsuit with contractor

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By AnnMarie Cornejo

The city was recently awarded $224,000 in damages by a San Luis Obispo County jury for a multi-year lawsuit involving the city and Pacific Mechanical Corporation, according a press release issued by City Attorney Christine Dietrick.

The lawsuit stemmed from a construction contract the city had with Pacific Mechanical Corporation in 2003 to build a portion of the city’s water recycling facility. The work was not completed as planned, according to the city. The city paid Pacific Mechanical Corporation $4.8 million, withholding $1.2 million because the contractor did not finish the project on time.

Pacific Mechanical Corporation sued the city in federal district court in Los Angeles in 2008 saying the city violated the due process for handling the contract. That case was later dismissed.

A breach of contact case was then filed against the city in San Luis Obispo Superior Court seeking $4.8 million from the city. On Oct. 11., after almost 11 weeks of trial, the jury ruled in favor of the city, said Dietrick in a statement.

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