Contractor Sues Moriarty, Group W Cable : Says He Was Cheated Out of Contract to Build Santa Ana System
A Corona contractor filed a multimillion-dollar lawsuit Tuesday in which he claimed that indicted fireworks manufacturer W. Patrick Moriarty, his associates and Group W Cable Inc. conspired to block an agreement he had to build Santa Ana’s cable television system.
Joseph Parks, primary owner of Cal Neva Cable Corp., claims that Moriarty and his associates, who ran competing cable construction firms, destroyed his $15-million business by obtaining a confidential police “rap sheet” on him and using it to dissuade Group W and other cable operators throughout Southern California from hiring his firm.
Parks and Cal Neva are seeking up to $60 million in general and punitive damages under each of eight claims listed in the 22-page Orange County Superior Court suit.
‘Industry Leader’
Richard Bonner, attorney for Parks and Cal Neva, said in an interview that Parks’ company had “pioneered inexpensive installation of underground cable systems” and was “the industry leader before the Santa Ana affair.”
“They have had no major contracts since then,” said Bonner, whose office is in Newport Beach.
Parks contends in his suit that he had an oral contract with Group W to help the cable company secure a franchise for the east San Fernando Valley area in Los Angeles County in return for the contract to construct Group W’s cable system in Santa Ana.
Group W eventually dropped out of the San Fernando bidding, but, according to the suit, acknowledged to Parks in July, 1982, that he had fully performed his consulting services.
Subsequent negotiations led to an oral contract for Cal Neva to install 80 miles of underground construction for $3.1 million. But before the contract was put in writing, the suit charges, Moriarty and his associates conspired with Group W to end the association with Cal Neva.
Several Named
Named in the suit with Moriarty and Group W are Rodney Caldwell and his firms, R.A.C. Construction Corp. and Winegar Construction Inc.; Moriarty business associate Richard Keith, who was paid by R.A.C. for lobbying efforts; former state Fire Marshal Albert Hole, and his son, Michael.
Albert Hole worked for Moriarty’s Solid M Corp. in Anaheim. His son is a former Los Alamitos police officer who later went to work as security chief of a poker club in Commerce of which Moriarty was the principal stockholder.
Last November, Moriarty, who owns Pyrotronics Corp., manufacturers of Red Devil and other fireworks, was indicted on federal racketeering and mail fraud charges in connection with an investigation of alleged corrupt practices in the City of Commerce. The 18-count indictment also included charges against five others. Keith was indicted in December on federal charges of tax and bankruptcy fraud.
Group W, meantime, has been involved in a bitter dispute with the City of Santa Ana over its efforts to cut services and raise customer rates. The Santa Ana City Council voted Monday to alter its contract with Group W to end the dispute.
Representatives of Group W were unavailable for comment Tuesday night.
