$2.7-Million Ruling Against City Is Overturned

The California Supreme Court has thrown out a $2.7-million judgment against the city of Thousand Oaks stemming from the construction of the Civic Arts Plaza, officials said Monday.

“We’re ecstatic,” City Atty. Mark Sellers said. “It’s like kicking a field goal in the Super Bowl in the last minute and winning the game.”

Amelco Electric of Gardena sued the city in 1996, claiming that city officials and consultants made so many last-minute changes to the plans for the plaza that costs for the project rose more than $2 million.

By the time the plaza opened in 1994, the city had paid Amelco $7.2 million for its work, but denied the company’s claim that it had done more work than the original contract called for.

A jury ruled that Amelco was owed $2.7 million in cost overruns and interest. The city appealed, but the judgment was upheld by a state appellate court.

In the Supreme Court’s ruling, it noted that Amelco waited until January 1995, a year after the project was completed, before submitting its claim.

Moreover, the high court stated that Amelco was fully aware of the risks and strict regulations inherent in the bidding process when dealing with a public agency.