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<br />ILL SEARS
<br />ROBERT L. BURNS
<br />CHARLES DIPPEL
<br />DAVID M, GLEASON
<br />MARTY D. PRICE
<br />J. MARK BREEDING
<br />CJ
<br />SEARS AND BURNS
<br />ATTORNEYS AT LAW
<br />SUITE 1111
<br />TEN TEN LAMAR BUILDING
<br />HOUSTON, TEXAS 77002
<br />June 1, 1982
<br />Honorable Mayor and City Council
<br />of the City of La Porte
<br />c/o Mr. Knox W. Askins, City Attorney
<br />P. O. Box 1218
<br />La Porte, Texas 77571
<br />Re: City of La Porte; Sanitary Sewer
<br />Rehabilitation Contract -- Pending
<br />Disputes With Tinker Industries,
<br />Inc.
<br />Dear Knox:
<br />L~
<br />TELEPHONE
<br />(713) 654-4434
<br />In response to your letter of May 7, 1982, received May 11, 1982, and our
<br />subsequent conversation respecting same, we submit the following proposal.
<br />1. Scope of the Representation. We understand the facts to be that:
<br />(a) The Texas Department of Water Resources acting for the United States
<br />Environmental Protection Agency, insisted that the captioned contract be let to the low
<br />bidder, Tinker Industries, Inc. (Tinker McKnight, President), although this corporation did not
<br />have bonding capacity. Jesse Loveless Construction Company intervened and sold bonding
<br />capacity to Tinker. The contract was actually issued to a joint venture composed of Tinker
<br />and JLC.
<br />(b) Work actually began in January, 1981, and, without recounting all details,
<br />was considered by City's Engineers to be performed in substandard and unavorl<manlike
<br />manner. After various attempts to inspect and bring the work up to par, the City was met by
<br />the contractor quitting the job about the 19th of August, 1981. All necessary notices to
<br />resume work, both to the contractor and to the engineer, have been issued without response,
<br />except offers to "negotiate". At your request, we met with you on September 18, 1981, to
<br />review the general situation. At that time, you advised this firm that EPA was insisting on a
<br />settlement, if possible, and it was necessary to try to comply with their wishes. About April
<br />5, 1982, Mr. Robert L. Lipstet of Dunn, Stern, Lipstet, Singer and Hirsch, a Houston law
<br />firm, delivered a proposed Settlement Agreement in regard to the entire dispute. At your
<br />request, this firm reviewed this proposal and on April 13, 1982, gave certain verbal advice
<br />concerning it. Your letter of May 7, 1982, requests a formal contract proposal to defend the
<br />City in the pending district court action on a collateral matter arising out of this contract
<br />involving the factoring or attempted assignment of the March, 1981, accounts. The scope of
<br />the representation also includes defense of any anticipated future action by JLC and, finally,
<br />to represent the City on its action against the bonding co(npany for any loss over the amount
<br />of the bond, which the City incurs in fulfilling the contract. You have advised that the City
<br />is now taking steps to rebid the remaining work. In defining further the scope of this
<br />representation, we are enclosing a separate communication between attorneys for the same
<br />client which we request that you take up in executive session with the City Council.
<br />~i T ~
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