A federal judge has slapped an additional $485,000 to the city of McCall's J-Ditch lawsuit debt.
The total now due ass the result of the lawsuit is about $7 million.
The additional money was from a motion from St. Clair Contractors Inc. of Boise seeking additional interest it was owed.
"We weren't anticipating this," City Manager Lindley Kirkpatrick said.
The motion on the additional interest money was a surprise to everyone at a Nov. 28 hearing held in Boise before U.S. District Judge B. Lynn Winmill.
The new judgment was the result of a motion filed after a 2004 jury ruling that found the city to have mismanaged the construction of the city's wastewater storage pond, also known as the JDitch pond, located on West Deinhard Lane.
The original motion for additional interest money was denied, but it was filed again on a motion to reconsider but was never heard. The court clerk brought the motion to everyone's attention at the Nov. 28 hearing held in Boise, Kirkpatrick said.
Old Request Revived
The Nov. 28 hearing was originally planned to be a hearing on another Employers Insurance of Wausau motion to have the city ruled in contempt of court. That motion was withdrawn.
"It was the correct ruling," St. Clair attorney Geoff McConnell of Boise said." "I think the city has to do the right thing. (St. Clair Contractors) is a family-owned business that has gone without millions of dollars for seven years now."
"The city needs to think of what that means to a business instead of only thinking of its own financial problems," McConnell said. "That's what troubles me about this."
The city has paid about $960,000 toward the judgment so far. The money goes to Employers Insurance of Wausau until that part of the judgment is met. The remaining money goes to St. Clair Contractors.
The most recent ruling brings the total debt to about $7 million. Of that total, St. Clair Contractors is entitled to more than $2 million, while Wausau receives the largest share.
The city has asked a state judge to approve issuing are venue bond so that it can pay off the remaining J-Ditch debt.
The revenue bonds would be paid back with higher sewer rates by as much as $11 per month for the next 20 years.
Kirkpatrick was unsure what effect the additional debt would have on the city's request for a bond or how much it would affect monthly sewer bills.
The city also has attorney Kim Trout of Boise attempting to have Winmill's April ruling ordering the city to pay the judgment overturned in the U.S. Ninth Circuit Court of Appeals. No hearing has been set for that request.
