FBCC votes to settle 2012 lawsuit over playground equipment

Submitted by Suanne Z. Thamm

Reporter - News Analyst

September 21, 2017 5:43 p.m.

At their September 19, 2017 Regular Meeting, Fernandina Beach City Commissioners (FBCC) voted 5-0 to spend $29,000 to settle a lawsuit with Columbia Cascade that has dragged on through Oregon courts since 2012. There was no discussion among commissioners prior to the vote.

Over the intervening five years, the city has spent upwards of $78,000 in legal fees and $29,000 in settlement of a $19,896.35 dispute over whether the city should have paid a sales representative or the manufacturer for playground equipment that the Parks and Recreation Department purchased.

On October 30, 2012, the City of Fernandina Beach was served with a complaint for Columbia Cascade Company v. City of Fernandina Beach et al., in the Oregon Circuit Court for Multnomah County, Case No. 12-1013287. In this case, the City paid a sales representative $19,896.35 directly through a purchase order for playground equipment. The sales representative stole the money and never paid the manufacturer for the equipment. The manufacturer, Columbia Cascade Company, sued the City alleging that the City should have paid the manufacturer directly. The City defended the case successfully through arbitration and trial. However, Columbia Cascade Company appealed the trial court's decision. The appeals court remanded the case back to trial court. In order to avoid further litigation costs and attorneys' fees, the City Commission decided it was in the best interest of the City to settle the case for $29,000.

Although it appeared that the city had won its case, the Appeals Court reversed this decision earlier this year. During an Executive Session in August, the FBCC apparently instructed City Attorney Tammi Bach to settle the case. (See: https://fernandinaobserver.com/2017/07/31/playground-equipment-lawsuit-columbia-cascade-vs-city-of-fernandina-beach/)

Suanne Z. Thamm

Editor's Note: Suanne Z. Thamm is a native of Chautauqua County, NY, who moved to Fernandina Beach from Alexandria,VA, in 1994. As a long time city resident and city watcher, she provides interesting insight into the many issues that impact our city. We are grateful for Suanne's many contributions to the Fernandina Observer.