The Denver International Airport has sued the Regional Transportation District for $53 million following a contract dispute. Although both entities have been working together on the South Terminal Redevelopment Program, there is a disagreement about who should pay for it. According to information revealed from the recent lawsuit, the disagreement was first brought to a mediator in May of 2012.
The business litigation concerns the costs of redeveloping the last section of RTD’s East Rail Line. The project would create a stretch of track to carry passengers directly to the airport, a nearby Westin hotel and an open-air plaza. Who should pay for the train station platform, bridges, roads and many other items associated with the project has become the subject of a court battle. According to statements from both DIA and RTD, the legal dispute has not affected the actual construction of the train line.
There have been reports that DIA has already drawn up a budget that includes an anticipated court victory. In its listed costs for the terminal redevelopment project, DIA has excluded the entire $53 million it hopes to recover from RTD. So far, DIA’s budget for the project has gone over by $44 million, making the court victory against RTD critical.
When a company finds itself involved in a similar contract dispute, a business law attorney may be able to help. While representing the company’s interests in court, an attorney may also be able to help maintain a working relationship with the defendant company. To avoid a contract dispute in the first place, companies may also decide to seek legal advice while drawing up a contract.
Source: The Denver Post, “Denver International Airport sues RTD over $53 million on airport project “, David Olinger, January 16, 2014