Law firm files lawsuit against Birmingham Water Works for breach of contract

BIRMINGHAM, Ala. (WIAT) — Fuston, Petway, & French, LLP, an Alabama law firm, has filed a lawsuit against the Birmingham Water Works Board for breach of contract, according to court filings.

The lawsuit stems from what the law firm alleges was an improper termination of its recently renegotiated contract with the board. The firm signed a one-year agreement with BWWB in 2015 to provide legal services, and in October 2016, both sides met to renegotiate the contract which was approved at the board’s Nov. 22 meeting of that year.

The agreement was set for a three-year term that stated that the law firm would provide legal services and administer the BWWB Contract Compliance Program, according to court filings. The deal was set for the board to pay $1.2 million every year for legal services and $2 million every year for management of the Contract Compliance Program.

The contract stated that it would require a supermajority, at least seven of the board’s nine members, to vote to terminate the firm. However, according to the lawsuit, the board voted to terminate the firm with only four members voting in favor as three opposed and two members were not present.

In the lawsuit, the firm is seeking compensation to cover “expectation damages, compensatory damages, interest, costs of court, and other remedies and equitable relief in such sum as may deem just and proper.”

 

 

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