Background:
In 2024 the City of Sunrise filed three lawsuits against West Construction, Inc. and its surety, Philadelphia Indemnity Insurance Company, for damages arising from the construction projects known as the Veteran’s Memorial Park Project, the Welleby Park Expansion Project, and the Senior Center Renovation and Addition Project. A fourth project, the Pine Island Athletic Complex Project, was the subject of an earlier lawsuit filed by West Construction, Inc. that was dismissed.
The City, West Construction, Inc., and Philadelphia Indemnity Insurance Company have negotiated and prepared the attached Settlement Agreement to fully resolve and settle all claims and disputes relating to the three lawsuits and the Pine Island Athletic Complex Project.
The terms of the Settlement Agreement include total payment of Two Million Seven Hundred and Sixty Thousand Dollars ($2,760,000) from West Construction, Inc. to the City, with an up-front payment of Nine Hundred and Sixty Thousand Dollars ($960,000), and monthly payments of One Hundred Thousand Dollars ($100,000) thereafter. The surety, Philadelphia Indemnity Insurance Company, is liable for the full amount of the settlement in the event West Construction, Inc. fails to pay the City. The Court retains jurisdiction to enforce the terms of the Settlement Agreement.
The Settlement Agreement contains a provision whereby West Construction, Inc., and any entity with a common ownership interest, voluntarily agrees to not perform work in the future for the City.
City staff is requesting Commission approval of the Settlement Agreement.