Contact: Denise Turner
Phone: 336-373-2020

City Wins Major Court Ruling

GREENSBORO, NC – (July 1, 2010) – Today, the Federal Fourth Circuit Court of Appeals upheld the ruling of Middle District Court Judge William L. Osteen Jr. allowing the City of Greensboro to recover damages for faulty construction on the TZ Osborne Wastewater Treatment Plant. The City sued MCI Constructors LLC, the company hired by the City in 1996 to expand the treatment capacity of the Osborne plant, and was awarded more than $14 million in the subsequent arbitration, plus interest, which now could be as much as $16 million.
 
The City originally hired MCI in January 1996, but in June 1998, the City terminated the contract due to concerns related to the quality of the work and the company’s lack of progress on the project. The City then hired Haren Construction and Crowder Construction Companies to complete the job and sued MCI to recover the costs associated with its failure to complete the project, as well as liquidated damages.

The City has been represented in the case during the past several years by George House, William Cary and Michael Meeker of Brooks, Pierce, McLendon, Humphrey & Leonard LLP.

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The City works with the community to improve the quality of life for residents through inclusion, diversity, and trust. As the seventh largest employer in Greensboro, the City has a professional staff of 2,800 employees who maintain the values of honesty, integrity, stewardship, and respect. The City is governed by a council-manager form of government with a mayor and eight council members. For more information on the City, visit www.greensboro-nc.gov or call 373-CITY (2489).