Upper East Fork Interceptor System
title
Beck Branch Parallel Interceptor Improvements, Beck Branch Parallel Interceptor Phase II, and Plano Spring Creek Force Main Parallel; Final Settlement Agreement; Project No. 501-0439-16
end
SUBJECT
recommendation
Authorize final global settlement agreement of lawsuit styled Ark Contracting Services, LLC v. North Texas Municipal Water District, Lockwood, Andrews & Newnam, Inc., Freese & Nichols, Inc., and Garver, LLC.; Cause No. 471-02694-2023; In the 471st Judicial District Court, Collin County, Texas.
end
PURPOSE
Authorize execution of final global settlement agreement resolving lawsuit.
RECOMMENDATION
The Executive Director, NTMWD staff, and Saunders | Walsh recommend the Board of Directors authorize execution of a global settlement agreement securing resolution of all claims in the lawsuit.
Scope:
Global settlement related to ongoing litigation
Project:
No. 501-0439-16, Beck Branch Parallel Interceptor Improvements; Beck Branch Parallel Interceptor Phase II and Plano Spring Creek Force Main Parallel
Amount:
Confidential (to be discussed in Executive Session)
Committee:
This will be a Champion Update at the March 25, 2026 Wastewater Committee meeting
DRIVER(S) FOR THIS PROJECT
? Regulatory Compliance
? Asset Condition
? Capacity
? Redundancy/Resiliency
? Relocation or External Requests
? Operational Efficiency
? Safety
? Administrative
? Policy
? Other Legal Services
BACKGROUND
* On May 26, 2023, Ark Contracting Services, LLC (ARK) filed suit against NTMWD, Lockwood, Andrews & Newnam (LAN - Engineer of Record), Garver (Leased Employee - Project Management), and Freese & Nichols (FNI - Inspection Services).
* ARK's current live pleading seeks recovery of $15,000,000 from NTMWD, plus attorneys' fees and interest. ARK also sued LAN, Garver, and FNI in contract and tort, seeking similar actual damages, plus punitive damages of $25,000,000.
* Trial is preferentially set on March 30, ...
Click here for full text