Countywide : $1.6 Million Might Settle Road Dispute

A $3.2-million county road building project could wind up costing an extra $1.6 million if supervisors approve a tentative deal that could end a bitter legal battle.

The agreement would give J. W. Mitchell Co. 50% more than the original contract price and “vindicates” the Orange County construction firm in the legal dispute, the company’s lawyer, Richard C. Goodman, said Friday.

Central to the case were disputes about two steel tunnels delivered for the 1983 building of Weir Canyon Road between the Riverside Freeway and the Santa Ana River.

The conflict arose when the county’s architects, Gill and Pulver Engineers Inc. of Sacramento, refused to approve two steel tunnels provided by a Mitchell subcontractor, Armco Steel Inc. The architects alleged that the spans failed to meet specifications.

In a lawsuit, however, Mitchell disputed the architects and claimed that Armco was the only firm that manufactured steel tunnels to Gill and Pulver’s specifications. Although Armco’s work was eventually accepted and the spans have functioned properly, the seven-month delay damaged Mitchell, the firm claimed.

A total of $965,000 would be paid by the county to Mitchell. The architects contributed $600,000 and a construction bonding firm paid $100,000.

Armco would receive $325,000 from Mitchell, representing the price of the steel spans, according to Michael J. Bayard, a lawyer representing the county.

Bayard said the county plans to pursue a claim against the architect for reimbursement for the county’s contribution to the settlement.