City will not appeal judgment
The City of Whitehouse will pay Stan�s Backhoe Services $245,000 on Nov. 15 to settle a judgment levied against it earlier this month in Smith County�s 241st District Court.
The unanimous decision of the city council not to appeal the judgment came at the conclusion of its meeting Tuesday night, following an executive session to discuss that item, as well as the status of City Engineer Phil Elledge and the roles of City Attorney Steve Evans and City Manager Ronny Fite.
The amount is an apparent negotiation between the two parties in the lawsuit since the original judgment of $232, 246.96 did not include $31,763.75 in interest which was also awarded to the plaintiff� Stan�s Backhoe Services.
The payment will be made from the balance in the city�s Utility Fund, according to Mayor Suzanne Loudamy. She chose not to comment further when asked if the city engineer had any liability in the matter.
The suit brought by Stan�s Backhoe arose out of a dispute between the company, which was performing sewer system work for the city in the Quail Run Subdivision, and the City Engineer Phil Elledge, who found some defects in the work being performed. The alleged �interference� of Elledge resulted in an apparent disagreement between the parties as to the specifications called for in the work contract.
The disagreement led Stan�s Backhoe to leave the project unfinished and the city to withhold payment to the company. Stan�s Backhoe Services subsequently filed suit.
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