Legal Updates for Cape Charles

The legal case with Kevcor is now officially completed.

Background: Kevcor was hired to construct Phase II of the Community Trail project (Washington Ave and north Peach Street). Problems and disagreements arose throughout the project that ultimately led the town to assess liquidated damages. This resulted in Kevcor filing suit against the Town in November of 2019 for approximately $540,000.

The town spent over a year trying to resolve the matter informally, however, both sides could not come to any kind of agreement. Instead, Cape Charles and Kevcor then agreed to non-binding mediation in early 2021.

The mediation led to a final settlement agreement which reduced the original amount requested to $308,000. The project was 80% funded by VDOT, so the state needed to agree to the agreement–they would be responsible for covering 80% of the settlement.

VDOT’s agreed to the settlement, and the town was able to settle the litigation and the matter is now closed.

The lawsuit filed by Dave Fauber is still pending. Fauber sued the town alleging certain Virginia Freedom of Information Act violations and wrongful termination.

Now that the Supreme Court of Virginia has remanded the Gallagher case back to the Circuit Court in Eastville, legal fees to the two law firms of Frank Rennie and Conrad are being covered by VML insurance. Using VML insurance for an assessment lawsuit since it does not relate to Zoning issues. On the surface, this raises the speculation that the Town failed to enforce its own Ordinances for the Bay Creek PUD which has specific requirements such as posting a bond for completion of work – not posted by Foster/Bay Creek. The permits to complete work expired after two years from original approval and that meant all work had to be performed unless extended (which did not occur) no later than 2007-2008. As a note, the streets weren’t paved until 2016 and 2017.

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Wayne Creed

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