The back story: When the city of Meridian decided to build a new City Hall, it hired Petra to serve as construction manager to oversee the nearly $20 million project and coordinate the myriad subcontractors. The city agreed to pay Petra about $850,000 for this service.
The dispute: Just a few months before the building's completion, Petra sent a bill to the city for an additional $376,808. The city refused to pay, saying it had not been notified about the extra costs. The city also said it had numerous problems with new building. Meridian said it has spent $1.1 million in repairs since City Hall opened in late 2008 - including nearly $500,000 to reconstruct the heating, ventilation and air conditioning system and another almost $300,000 to replace the roof.
Day in court: The city took Petra to court in 2009, saying it should not have to pay the $376,808; the city also sought compensation for repair costs. The city lost; the court ordered the city to pay Petra $324,808 in additional construction costs and nearly $1.9 million in legal fees and court costs. The city appealed the District Court's decision to the Idaho Supreme Court.
Stay tuned: The justices heard oral arguments Wednesday and should issue an opinion in 30 to 60 days.