A three-year-old breach of contract lawsuit against the City of Carroll and a subsequent countersuit filed against Drake Construction of Menlo were settled on Monday night. The Carroll City Council entered into a closed session at the conclusion of their meeting to discuss the pending litigation and settlement agreement. Once out of closed session, a vote was taken and the settlement agreement and release of all claims was approved on a unanimous vote. A payment of $50,000 from the City of Carroll to Drake Construction releases both parties from any further claims. The original lawsuit was filed against the city in April of 2018 when Drake Construction alleged they had completed orally requested additional work on water supply well transmission lines, but were denied payment. The City of Carroll filed a counterclaim, stating in their petition that proper channels for all work adjustments were made through written change orders. On July 2, 2018, the city also filed a third-party petition against Northern American Specialty, the insurance company who provided the surety bond for the project. The claim was that the City of Carroll suffered damages through delays to the project and additional labor and equipment costs because of Drake Construction’s violation of the contract. It is also stipulated in this agreement that the City of Carroll and Drake Construction deny any and all liability based on the allegations from those suits.
