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February 26, 2007
If the Suit Doesn't Fit, Make It Bigger
InsideServices filed a new motion Thursday in its lawsuit against the city. It wants to add a couple of people as defendants in the lawsuit, namely Missy Crutchfield and George Parker.
Crutchfield and Parker were named in the website developer’s lawsuit against the city. But the city was the only party being sued in court.
Here’s why InsideServices is wanting to sue Crutchfield and Parker separately: the website developer claimed in December 2006 that Crutchfield, who is director of the city’s Department of Education, Arts and Culture, and Parker, general manager of the Tivoli and Memorial Auditorium, acted on behalf of the city to enter into a contract with the company.
The complaint states that the city did not pay money due the company for services it provided in designing, maintaining and hosting OnStageChattanooga.com.
The company agreed to maintain the site for three years, charging the city $100 for five hours of design time to handle each city-sponsored event, based on a minimum of 50 events for each facility per year. That is a total of $10,000 per year, for three years, or $30,000. Each non-city-sponsored event that was placed and maintained would cost $200 for five hours of design time.
The city responded in January that the two entered into a contract outside the scope of their authority as city employees. According to City Code, department heads or the city purchasing agent may execute a contract without getting permission from the City Council if charges are under $10,000. Should charges be more than $10,000, the City Council has to OK the contract. According to the code, the “award of a contract [over $10,000] … shall not be binding on or create any liability against the city until approved by the City Council.”
Because Crutchfield and Parker were not originally named as co-defendants in the initial claim, InsideServices now is asking a Chancery Court judge to allow their addition as individuals to the lawsuit.
“Such individuals are therefore exposed and subject to personal liability for executing the subject agreement and must be added to the above litigation in order to compel the individuals to participate in the alternative dispute process,” the motion states.
A hearing is set for March 12.
When contacted, Parker said he could not comment at this time.
“We do not comment on pending litigation,” city spokeswoman Michelle Michaud said.
When contacted at her office for comment, Crutchfield’s assistant Carla Johnson said her boss was out of the country until March 5 and referred The Pulse to city attorney Michael McMahan for a statement.
McMahan said he does not make comments on pending litigation.
BlogBeats | By pulseblogger | 12:40 PM
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