Long Beach City Council members voted last Tuesday night to pay $250,000 in a settlement with a contractor after superstorm Sandy.
The city settled a three-year-old lawsuit with Gallatin, Tennessee-based Servpro cleaning services for work undertaken the day after Sandy at several Long Beach facilities, including the Ice Arena, Martin Luther King Center, city garage and Magnolia Senior Center, Corporation Counsel Rob Agostisi said.
Agostisi said Servpro workers began cleaning the facilities after speaking with various city staff but did not have a contract or authorization. He said the work done was incomplete.
Servpro filed suit against the city in 2014 seeking up to $500,000, but did not provide any invoice for $343,000 of work.
A federal judge denied the city’s motion for breach of contract, but set a settlement conference in July. The court recommended the city and Servpro reach a settlement of $250,000 to split the difference of potential damages owed.
The settlement was paid through the city’s judgment and claims insurance reserve fund.
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