Idaho Mountain Express: Judge postpones McKinstry hearing

Friday, December 7, 2012

Judge postpones McKinstry hearing

Elgee grants motion to reshuffle proceedings

By TERRY SMITH
Express Staff Writer

A clearer schedule has now been laid out by Judge Robert Elgee to consider recent motions filed in a lawsuit between the Blaine County School District and its energy contractor McKinstry Essention, headquartered in Seattle.

At a telephonic conference held Wednesday morning in Blaine County 5th District Court, Elgee granted a School District motion to delay a hearing requested by McKinstry wherein the company is seeking to have a contract between the parties ruled “unenforceable.”

Instead of being heard on Dec. 17 as earlier scheduled, the hearing is now set for Jan. 28.

McKinstry filed the motion on Nov. 19. According to the motion, a court order ruling the contract unenforceable would eliminate numerous School District arguments and counterclaims, including those for breach of contract, breach of warranties and breach of financial responsibility.

The judge also on Wednesday rescheduled a hearing on a School District motion to add punitive damages to its counterclaim against McKinstry. Originally set for Jan. 28, a hearing on the district motion, filed on Nov. 16, is now set for Feb. 25.

Elgee previously informed attorneys for both parties that he will consider the contract issue first because the outcome of that hearing will likely affect the district claim of punitive damages.

Litigation between the parties started in May when both parties filed lawsuits against each other. The cases were later consolidated with McKinstry as the plaintiff and the School District as the defendant.

The dispute arose out of a contract that the parties entered into in 2010 for energy savings work and other improvements at eight district schools and facilities.

McKinstry has claimed that it performed work at the School District’s direction worth $25.9 million and that the district still owes the company about $7 million. The district claims it authorized work worth only $18.6 million and is claiming damages against McKinstry for at least that amount.

A jury trial on the case, expected to last about 25 days, is scheduled to begin on Oct. 15, 2013.

Terry Smith: tsmith@mtexpress.com

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