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Waynesboro Area School Board OKs lawsuit settlement

Board will pay $1.14 million related to renovation and expansion of Waynesboro Area Senior High School

October 23, 2012|By JENNIFER FITCH | waynesboro@herald-mail.com

WAYNESBORO, Pa. — The Waynesboro Area School Board on Tuesday authorized settling out of court a lawsuit connected with the renovation and expansion of Waynesboro Area Senior High School three years ago.

The school board voted unanimously to spend $1.14 million to settle the lawsuit with Lobar Inc., Herre Bros Inc. and EI Associates.

In making the motion to settle, board member Chris Lind identified the expense as “an amount lower than the balance due on the contract.”

“It’s a fair amount,” Solicitor James Flower said of the reason for settling.

High school contractors sued the district for breach of contract and other complaints in Franklin County (Pa.) Court of Common Pleas.

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General contractor Lobar Inc. was asking for $2.9 million in damages, saying it incurred additional labor, material and overhead costs associated with a deficient and defective design for the building’s steel structure.

It also claimed in a complaint filed in June 2010 that the school district refused to pay $1.4 million owed to the company.

Flower said attorneys will prepare a comprehensive settlement agreement and secure full releases from the parties involved. Then, the payment will be made and the case status updated “settled.”

He said that process will take a few weeks.

The Waynesboro Area School Board spent about $46 million renovating and expanding the school between 2007 and 2009. The project added 108,000 square feet onto the school, including a 1,600-seat auditorium and three-court gymnasium.

Attorney Paul Cianci represented the school board in the lawsuit. Flower said he was unsure how much was paid in attorneys’ fees as the case progressed.

The school board set aside money in reserve to address the lawsuit, Flower said.

Board member Leland Lemley was absent from Tuesday’s meeting.

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