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Litigation ends with Kajima agreeing not to bid on port work. (Up Front).


Kajima Engineering and Construction Corp. has agreed not to bid on any Port of Los Angeles The Port of Los Angeles is located on San Pedro Bay in the San Pedro neighborhood of Los Angeles, approximately 20 miles (30 km) south of downtown. Also called Los Angeles Harbor and WORLDPORT LA  projects for five years and forfeit $7 million the city was withholding for late completion of a $42.2 million port bridge, according to according to
prep.
1. As stated or indicated by; on the authority of: according to historians.

2. In keeping with: according to instructions.

3.
 documents filed with the Los Angeles Superior Court.

The out-of-court settlement An agreement reached between the parties in a pending lawsuit that resolves the dispute to their mutual satisfaction and occurs without judicial intervention, supervision, or approval. , reached earlier this month, ended a four-year legal dispute that included allegations of fraud, embezzlement embezzlement, wrongful use, for one's own selfish ends, of the property of another when that property has been legally entrusted to one. Such an act was not larceny at common law because larceny was committed only when property was acquired by a "felonious taking," i.  and racketeering Traditionally, obtaining or extorting money illegally or carrying on illegal business activities, usually by Organized Crime . A pattern of illegal activity carried out as part of an enterprise that is owned or controlled by those who are engaged in the illegal activity.  against the Monterey firm, which was hired to replace the Badger Avenue Bridge that connects Terminal Island with Wilmington.

Kajima, a unit of Tokyo-based Kajima Corp., sought $35 million in a 1999 lawsuit filed against the city, alleging breach of contract. The city countersued, seeking up to $105 million in penalties. Kajima missed the deadline on the 210-foot long bridge by 230 days, according to the complaint. Construction was scheduled to start in May 1995 and finish two years later.

In the end, Kajima settled for $1 million of the $8 million payment the city had held back due to late completion.

"We had a very strong case against Kajima but we decided to settle because of the uncertainty that's inherent in any type of litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute.

When a person begins a civil lawsuit, the person enters into a process called litigation.
," said David McKenna, an assistant city attorney assigned to the Harbor Department. "This was a very favorable settlement for the city because we ultimately paid $35.1 million for a $42.2 million bridge."

Attorneys John Clark and Timothy Pierce of L.A.-based Thelen Reid & Priest, which represented Kajima, did not return calls.

Kajima's only other project for the port in the last decade was construction of a $30.7 million wharf at Berth 301, completed in 1997, said Rachel Campbell, a port spokeswoman.

The firm beat out six other contractors in 1995 to replace the bascule bascule /bas·cule/ (bas´kul) [Fr.] a device working on the principle of the seesaw, so that when one end is raised the other is lowered.  rail bridge, originally constructed in the 1920s. Its low bid of $34.7 million was about $4.2 million less than the second lowest bidder, Long Beach-based American Bridge Co.

The final bill came to $42.2 million after the Board of Harbor Commissioners approved changes of $7.5 million during construction.

In addition to work delays and cost overruns, Kajima allegedly violated city ordinances by placing minority firms on its bid proposal, only to give them little or no work after the contract was awarded, the city alleged.

The contractor also allegedly submitted false and inflated invoices.

In the settlement, Kajima did not admit any wrongdoing wrong·do·er  
n.
One who does wrong, especially morally or ethically.



wrongdo
.
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Title Annotation:Kajima Engineering and Construction Corp. loses $7 mn
Comment:Litigation ends with Kajima agreeing not to bid on port work. (Up Front).(Kajima Engineering and Construction Corp. loses $7 mn)
Author:Greenberg, David
Publication:Los Angeles Business Journal
Geographic Code:1USA
Date:May 19, 2003
Words:399
Previous Article:Investment bank strikes deal to sell two airport-area hotels. (Up Front).(Credit Suisse First Boston sells Doubletree Club Hotel and Ramada Plaza)
Next Article:Plan to hand workers' comp to HMOs raises hackles. (Up Front).(health maintenance organizations would handle workers compensation cases)
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