City Pays $2.8 Million to Settle Firm’s Suit

Thousand Oaks has agreed to pay $2.8 million to settle a lawsuit with Amelco Electric stemming from work the contractor did on the Civic Arts Plaza, officials have announced.

Gardena-based Amelco sued the city in 1996, a year after the Civic Arts Plaza was completed, claiming it was not bound by the fixed price of its contract because the city made too many changes to plans. The company was paid $7.2 million for its work and sought an extra $2.7 million.

A jury ruled that the city should pay for the cost overruns. But the case was appealed to the state Supreme Court, which sided with the city.

In a 2003 retrial, a jury ruled that Amelco was entitled to damages, including interest. Facing a possible payout of $4 million, the city sought a settlement to reduce its financial exposure and legal costs, officials said.

The $2.8-million settlement ends all claims and future litigation associated with the case.

“Although the city was disappointed that there had been two jury verdicts against Thousand Oaks in this case, the city determined that prudence dictated the resolution of this case once and for all,” Mayor Bob Wilson said in a written statement.