LONG BEACH : City, Builder Settle Suit Over Energy Plant
The City Council agreed Tuesday to accept a $16-million settlement from the builder and the operator of a city refuse-to-energy plant to resolve a lengthy legal dispute.
Under the settlement, Pittsburgh-based Dravo Corp. agreed to pay the city $6 million now and another $4 million in monthly payments over several years. The plant’s operator, Montenay Pacific Power Corp., agreed to make $6 million in additional repairs to the facility.
Dravo also agreed to dismiss a countersuit seeking $17 million in unpaid bills for the construction project. A federal judge must approve terms of the agreement.
Long Beach sued Dravo in 1989, contending the city was losing millions of dollars a year because the plant, which began operation in 1988, was not producing enough energy. Long Beach sought damages of $49 million for alleged design and construction problems.
Start your day right
Sign up for Essential California for news, features and recommendations from the L.A. Times and beyond in your inbox six days a week.
You may occasionally receive promotional content from the Los Angeles Times.
