The Metropolitan Transportation Authority has spent more than $34
million in a legal battle with one of America’s largest contractors —
even though the most the transit agency could win in damages would be
about half that sum.
The case has dragged on for 15 years, with new hearings set to begin in coming weeks.
With
the agency now considering fare increases and service cuts, some
officials are calling for an audit of the expenditures and wonder if
the lawsuit represents a waste of taxpayer dollars.
Many MTA
board members disagree, saying contractor Tutor-Saliba tried to cheat
the agency out of millions of dollars by submitting a low bid and then
asking for dozens of change orders and other requests that dramatically
increased the price of constructing parts of the Red Line subway.
They
argue that the lawsuit is about more than recovering money. If the MTA
wins, they say, it will send a message to other contractors doing work
for the agency. It could also give the MTA and other public agencies
the ammunition to dismiss Tutor-Saliba from future bidding processes
even if the company submits the lowest bid for a project.
— Ari B. Bloomekatz
Photo: Red Line subway. Credit: Los Angeles Times