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The Shawwee Board of Education Friday unanimously voted to file a lawsuit against American Safety Casualty Insurance Company (ASI).
Rob Duran, one of the attorneys for Shawnee School District will file a lawsuit around the beginning of next week against ASI, the company that holds the bonds for the track at the Jim Thorpe Stadium.
The school district has been in negotiations between ASI and Homeland General Contractors, LLC, the company that worked on the track, on how the track would be completed under the performance bond.
“Those negotiations have broken down, so the school has authorized our law firm to file a lawsuit against the surety company to enforce their obligations,” Duran said.
The lawsuit could later include Homeland General Contractors, but at this point the board has only authorized litigation against ASI.
“They have an obligation to perform and complete the project and they are refusing to do so without conditions, which the school can’t and shouldn’t agree to,” he said.
ASI wants other parties, including the school district, to help pay for the repairs to the track, and the school’s position is that the district is not at fault and will not commit to those conditions.
Duran speculated that after the lawsuit is filed, ASI may be more willing to come to an agreement with the school to complete their services.
“At this point in time my marching orders are to file a lawsuit,” Duran said.
The track project was part of a $22 million bond issue approved by Shawnee school patrons in October 2005. Construction on the Jim Thorpe Stadium project began in March 2010. Voters also approved additional funding for the track in November 2009.
The vote came during a special called Board of Education meeting on Friday.
The Shawwee Board of Education Friday unanimously voted to file a lawsuit against American Safety Casualty Insurance Company (ASI).
Rob Duran, one of the attorneys for Shawnee School District will file a lawsuit around the beginning of next week against ASI, the company that holds the bonds for the track at the Jim Thorpe Stadium.
The school district has been in negotiations between ASI and Homeland General Contractors, LLC, the company that worked on the track, on how the track would be completed under the performance bond.
“Those negotiations have broken down, so the school has authorized our law firm to file a lawsuit against the surety company to enforce their obligations,” Duran said.
The lawsuit could later include Homeland General Contractors, but at this point the board has only authorized litigation against ASI.
“They have an obligation to perform and complete the project and they are refusing to do so without conditions, which the school can’t and shouldn’t agree to,” he said.
ASI wants other parties, including the school district, to help pay for the repairs to the track, and the school’s position is that the district is not at fault and will not commit to those conditions.
Duran speculated that after the lawsuit is filed, ASI may be more willing to come to an agreement with the school to complete their services.
“At this point in time my marching orders are to file a lawsuit,” Duran said.
The track project was part of a $22 million bond issue approved by Shawnee school patrons in October 2005. Construction on the Jim Thorpe Stadium project began in March 2010. Voters also approved additional funding for the track in November 2009.
The vote came during a special called Board of Education meeting on Friday.
