man000204 121

Mr. Leo McNamee October 22, 1956 310 Fremont Street Las Vegas, Nevada Re: Liquidated damages; Lembke- Clough & King; Charleston Reservoir Dear Mr* McNamee: Reference is had to the Las Vegas Valley Water District letter, dated October 17, 1956, addressed to my client, Lembke-Clough & King, relat­ing to the proposed offer of settlement of the liquidated damage issue in the subject contract. As of this date, we are filing a cross-claim against the District with reference to these claims in the action recently filed by Lincoln Welding. However, my clients Lembke-Clough & King, Inc. and Structural Steel & Forge Co., are still willing to reach a settlement of this issue to avoid further expenses of litigation. To this end, I am authorized to accept $7,100.00 as the full amount of liquidated damages to be assessed by the District; this being the amount orally suggested by Mr. Rosenblatt of Structural to your Mr. Renshaw last week. This proposal is made on the basis that settlement can be affected without further litigation expense and is, of course, predicated on the assumption that the District will assume and defend the claims of Lincoln Welding with respect to the damage to the reservoir floor. I would appreciate it if you would present this matter to your Board at its next meeting so that we may know promptly whether to take further necessary steps in the pending litigation. Very sincerely, /s/ W. BRUCE BECKLEY In response to a question by President Campbell, the Manager explained that a figure approximating the $7,100 offered would be reached by reducing the estimated out-of-pocket costs to the District in proportion to the days of delay for which the contractor was not assessed liquidated damages. He believed that it might be possible to justify such a figure if the Board felt that a reduction should be made. It was his opinion that the costs of defending a suit would possibly exceed the difference between $7,100 and the $9,400 originally proposed. Attention was called by Attorney McNamee to the provision of the offer, that the District assume certain liabilities in connection with the suit of Lincoln Welding Works against Structural Steel and Forge Company and others, including the District. After a brief discussion, a motion was duly made by Director Miller, seconded by Director Cornwall, and unanimously approved by the six Directors present, that Lembke-Clough & 'King be advised that the District vrould be willing to accept the settlement in the amount of $7,100, but without assuming any liability in connection with the suit of Lincoln Welding Works. MYERS LINE Manager Renshaw advised that there were still six customers near the Stewart Burial Plot who had not paid back charges. Shutoffs have been deferred