City wins Vanum lawsuit
The city of Eudora announced this week it won its lawsuit with Vanum Construction.
Eudora was awarded $54,500 in liquidated damages and another $33,000 for Vanum’s poor workmanship during the construction of the Eudora Community Center.
Vanum sued Eudora last October, alleging it was owed $120,845.18 by the city for work done on the facility in 2007.
The city filed a counter suit in December for damages related to the roof, HVAC system and failure of the gymnasium floor.
The city entered into a contract with Vanum in December 2006 for the construction of the aquatic and community center, including the pool and gymnasium. The original completion date for the whole project was set for Aug. 29, 2007. The pool was completed July 6, 2007, and the recreation center was completed Nov. 6, 2007.
However, the whole project wasn’t completed until Dec. 11, 2007.
Since the completion of work, the city had made calls to Vanum for various non-warranty repairs outside the original scope of the contract, as well.
The city withheld $54,500 in liquidated damages, which equated to 109 days at $500 a day, according to the contract — because it claimed the project was completed late.
Liquidated damages is the fixed sum two parties in a contractual agreement decide upon in the event that work done is not satisfactory.
Vanum also said the city had been using at least 50 percent of the facility while the contract and additional work were ongoing. So, it couldn’t claim liquidated damages when it was partly using the facilities.
The city’s attorney Curt Tideman said the city offered Vanum $25,000 in order to save court costs, but Vanum elected to go ahead with the suit.
“Frankly, we bent over backwards to try to settle, but they (Vanum) wouldn’t take the settlement so we arbitrated it,” Tideman said.