Anaheim : Bus Company Sues L.A. Schools on Contract Loss
An Anaheim bus transportation company has filed a $15-million claim against the Los Angeles Unified School District, alleging fraud, bribery, extortion and violation of competitive bidding laws.
The claim alleges that the Taylor Bus Co. lost a multimillion-dollar contract with the district because the company refused to drop two lawsuits against the district and because it threatened a separate legal action on an insurance matter.
Taylor, which had provided transportation services to the district since 1975, operated 400 buses for the district until June, 1987, when the district canceled its contract. It filed an administrative claim with the district on April 1. Such claims often precede the filing of a civil lawsuit.
In the claim, the company alleges that the Los Angeles Board of Education offered to pay Taylor $50,000 to drop the lawsuits and a potential claim of insurance fraud. If the company did not agree, the district would cancel Taylor’s $15-million contract, the claim says.
District officials said the school board canceled Taylor’s contract because the bus company was unable to purchase sufficient insurance.
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