BY GREGORY A. HALL
The Cincinnati Enquirer
COVINGTON -- The stakes in the Kenton County bidding controversy increased Friday when the county asked for an unspecified amount of punitive payments from Corporex Cos. in addition to more than $1.5 million in other damages.
The county is suing the company and its chairman, Bill Butler, to recoup an $850,000 settlement paid to the two losing bidders -- Wessels Construction and Development Corp. and Carroll Properties -- over the 1996 competition for courthouse and parking garage construction contracts.
A revised complaint filed Friday asks for more damages and spells out more of its allegations against Mr. Butler and Corporex.
The county accuses Mr. Butler of manipulating the process to win the $35.6 million contracts.
Corporex and Mr. Butler deny any wrongdoing and have previously detailed a number of reasons why they believe Deputy Judge-executive George Neack has targeted them. Corporex attorneys also said the county was responsible for following the laws and already had opened bids before a controversial meeting.
Corporex and Mr. Butler said there was nothing improper about his meeting the night the bids were opened at the home of then-Judge-executive Clyde Middleton, where the developer was able to see competitors' bids and later copy them. They said the bids were public records available to anyone.
Mr. Middleton resigned at the time of the settlement, admitting he had to accept responsibility for what happened. Mr. Neack has denied Mr. Butler's allegations.
Complaints in lawsuits only present one side of the case. Attempts to reach Mr. Butler's attorneys Friday night were unsuccessful. County Attorney Garry Edmondson said Mr. Butler's behavior in the bidding process merited punitive damages, which are decided by a jury in addition to any financial losses the county can prove.
"Punitive damages are allowed when conduct is outrageous and when ordinary damages do not sufficiently address the conduct of the defendant," Mr. Edmondson said.
The county also increased the amount it is seeking in actual damages to more than $1.55 million.
In addition to trying to recover $850,000, the county is asking for $450,000 that Corporex added to its bid during negotiations and $250,000 for interest costs and all profits -- the amount of which are unknown -- the company is making on the projects.
Mr. Edmondson said the county is financing the courthouse and garage, so Corporex is not entitled to any construction interest costs.
"We're paying the costs as we go along," he said. "There is no construction interest."
One of the losing bidders testified that his company would have made about $800,000 profit.
The county's revised complaint includes allegations that Mr. Butler and Corporex's actions violated the county's administrative code and state procurement law.
The complaint also claims Mr. Butler misused his opponents' proposals for his and his company's gain.
Corporex gained an unfair advantage, the complaint alleged, as the only bidder able to revise its prices knowing details of competitors' proposals.
It also says Mr. Middleton's release of the bids "was improper and - or negligent conduct."
The lawsuit does not, however, name Mr. Middleton as a defendant. "Certainly Clyde Middleton has some culpability in what he has done," Mr. Edmondson said, "and has admitted that and resigned from office."
