City of Bend, sewer plant contractor to settle out of court

BEND, Ore. (AP) — A judge has ruled that the city of Bend will have to settle an expensive sewer plant lawsuit out of court.

The Bulletin reports that Apollo Inc., the contractor hired by the city to expand the plant, has been pushing to arbitrate its $8 million lawsuit, while the city’s been fighting to have its day in court.

The Deschutes County judge agreed with the contractor on Monday, saying an “ambiguous” clause in Apollo’s contract didn’t negate another paragraph stipulating that any conflict should be ultimately handled in arbitration.

Apollo received a $32 million contract to expand the sewage treatment plant and double its capacity, but the city paid Apollo just $24 million and removed the contractor from the job after the project fell nearly a year behind schedule.