DeKalb Schools Locked in Legal Battle with Construction Management Firm
For six years the DeKalb County school district has been embroiled in a lawsuit with a construction management firm. Both sides say they’re closer to a resolution although it’s unclear exactly when the case will wrap up. Hear the audio version of this story.
The district recently amended an agreement with its attorneys in the case. The new arrangement removes a provision that would’ve required DeKalb to pay law firm King & Spalding $30 million in accrued legal fees if the district settles the case against the firm’s advice. Robert Khayat, a partner with King & Spalding and one of the lead attorneys on the case, says the agreement is unprecedented.
“King & Spalding is taking this fairly extraordinary step because it believes in the merits of this case and we understand the severe cost pressures that are on the school system,” Khayat says, “It’s our view that the school board should not have to walk away from a meritorious case because of financial pressures.”
In addition, the district will only pay King & Spalding further if it wins the case.
The lawsuit dates back to 2007 when the district fired construction management firm Heery/Mitchell, complaining about costs and delays. Heery sued the district for $487,000 in unpaid invoices. The district counter-sued, alleging, among other things breach of contract and fraud. Khayat says the lawsuit could’ve been decided by now.
“This case has taken so long and cost so much because Heery has followed a calculated strategy of delay,” he says.
For example, he cites a motion Heery filed to have King & Spalding disqualified from the case. The process took 14 months and was unsuccessful. But Heery/Mitchell spokesperson David Rubinger says there’s no ulterior motive.
“We are confident that when the facts are laid out before the jury, Heery will win,” Rubinger says, “But the criminal case involving former school district officials must go first.”
That’s a separate criminal lawsuit involving four former school system employees, including ex-superintendent Crawford Lewis. The four were accused of running a “pay to play” scheme where they allegedly awarded school construction contracts to their friends. Heery/Mitchell has claimed it was fired so the alleged scheme could go forward.
“We believe that justice requires that their criminal proceedings be resolved before we can have a fair, civil trial,” Rubinger says.
King & Spalding says the outcome of the criminal trial shouldn’t affect the civil case.
The criminal case is scheduled to go to trial in October. No date has been set yet for a civil trial.
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