California Skateparks had emerged as the likely leader in its bid to be chosen as the firm responsible for the designing and building of a $1.44 million skate park at Kennedy Park in Napa, California. That may not be the case now after someone anonymously dropped off an envelope that contained several documents detailing the company's legal troubles.
The Napa City Council was expected to announce its decision of which company the contract would be awarded to at its next meeting, which is in October. The council, though, has now stated through an email from the manager of the city's Parks, Trees and Facilities department that California Skateparks will be given the chance to provide their side of the story about the current legal battles in which they are embroiled.
According to court records, the company was accused of calling its competitors in an effort to ask them to bid high on a Los Angeles skate park project so that California Skateparks could bid low enough to be awarded the contract. Just a few days after the lawsuit was filed, it was settled for $65,000. There have also been complaints and allegations of unfair business practices and poor building quality.
When California Skateparks completed the proposal for the skate park in Napa, there is a section in the qualification section that asks if a company is currently involved in any type of termination. According to the Parks, Trees and Facilities manager, none of the five firms that submitted propels, including California Skateparks, disclosed any information about ongoing litigation.
The manager also said that the city does not investigate the litigation history of businesses, but does request that companies disclose it when submitting proposals.
It is not known if the city council will continue with its approval of California Skateparks, but it will be based on the recommendations of the city staff after they have completed an investigation.
A contract dispute is a common occurrence in the business world, but problems can exist even before a contract is signed. Due diligence is required before signing on the dotted line. It always pays to complete all background and investigative checks prior to entering into a contract in order to protect your company and its interests.
Source: napavalleyregister.com, "Skate park contract put on hold as Napa investigates design firm" Chantal M. Lovell, Sep. 14, 2013