ContractsProf Blog

Editor: Myanna Dellinger
University of South Dakota School of Law

Friday, January 7, 2005

Town faces sewage, lawyers

The sewage problem in Cortez, Colorado, is getting worse.  Not only is the city's proposed new sewage treatment facility stalled in mid-construction, but now they're faced with lawyers, too.

The Cortez Sanitation District is embroiled in a contract dispute with a contractor that walked away from the project.  The contractor, RMCI of New Mexico, claims that the district and its engineers misrepresented the site’s soil conditions, provided misleading survey information and obstructed work through “overzealous work inspections.”  It is seeking $12 million in damages for breach of contract and negligence.  The district, which terminated the contract on September 7, claims RMCI has failed to do the required work.

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