SPEARFISH, SD – The Spearfish City Council Monday approved the settlement agreement and release, as well as all other necessary and related documents, to resolve pending litigation with GTI Companies, Inc., and dismiss the lawsuit with prejudice.
City Attorney David Knox explained GTI Companies, Inc., commenced an action against the City and several current or former City employees on May 10, 2024, alleging various claims related to two projects GTI contracted with the City to undertake: Sandstone Hills Street Repairs and Sewer Upsize Project; and 2022 annual pavement maintenance project in Green Acres.
In response to this lawsuit, the City countersued GTI for remediation expenses related to the completion of the Sandstone Hills project, and the litigation progressed. In October 2024, the parties agreed to pause the litigation and attempt to resolve the dispute.
After a meeting in December 2024, the parties agreed to resolve the litigation in the terms set forth in the Settlement Agreement and Release, which outlines that GTI will mill and overlay a portion of Sandstone Drive and Roundup Circle cul-de-sac at no cost and will dismiss the lawsuit against all parties with prejudice. In exchange, the City will release $133,012.18 in retainage and other claims related to the Sandstone Hills project that would otherwise be due upon completion of the project; pay $165,000 for resolution of claims associated with liquidated damages and deductions for the Green Acres project; and release all existing warranties for both projects. The agreement specifies GTI will complete the mill and overlay work by September 1, 2025, and the City will retain $60,000 until the mill and overlay work is completed, at which point the funds will be released.
City Attorney Knox explained upon execution of the Settlement Agreement and Release, as well as the associated change orders of the projects, the lawsuit will be dismissed.
