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Court News Ohio
Ohio Court of
Claims Considers $1.8 Million Judgment Against State Agency
By Stephanie Beougher
September 21, 2015
TransAmerica Building Company, Inc. v. Ohio School Facilities
Commission, etc., Case No. 2013-00349
A state agency could be on the hook for more than $1.8 million if a
recommendation pending in the Ohio Court of Claims is approved.
A Court of Claims referee made the recommendation on Sept. 17 in the
lawsuit TransAmerica Building Company, Inc. brought against the Ohio
School Facilities Commission (OSFC) over problems with a dormitory
construction project at the Ohio State School for the Blind and the
Ohio School for the Deaf in Columbus.
TransAmerica, the general trades contractor for partial construction of
12 dormitories that was plagued with many problems, including delays
and budget overruns, filed a lawsuit in June 2013 to recover damages
after OSFC withheld payments. The state agency filed a counterclaim for
breach of contract.
The referee’s $1,837,404.35 recommendation in favor of TransAmerica
noted what should have taken about four years became a 5- to 6-year
project because of “politics and budgeting problems” that were not the
contractor’s fault.
“It was the fault of OSFC in its efforts to build facilities that [the
schools] could not afford, and in trusting its agents to carry out the
task, agents who often acted in their own interest and not in the
interest of the OSFC, or fairly and honestly in their dealings with
[TransAmerica],” the referee wrote.
OSFC would not receive any damages for its counterclaim to recover the
cost of correcting roof work or for increased operating costs and fees.
The parties have 14 days from the filing date of the decision to file
objections. A judge of the Court of Claims will then rule on any
objections and may adopt, reject, or modify the referee’s decision.
The Court of Claims is given original jurisdiction to hear and
determine all civil actions filed against the State of Ohio and its
agencies.
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