Jury: Galveston Must Pay Nearly $15M to Contractor in Ike Housing Dispute

September 26, 2018

Southeast Texas city has been ordered to pay nearly $15 million to a fired contractor that was overseeing some federally funded housing recovery after Hurricane Ike hit in 2008.

The Galveston County Daily News reports jurors on Sept. 25 decided in favor of Boston-based CDM Smith.

Galveston City Manager Brian Maxwell says an appeal is expected.

The newspaper reports CDM Smith, doing business as Camp Dresser & McKee, signed a contract with Galveston in 2009 for Ike recovery but was fired in 2012. City officials raised performance issues and said the company misrepresented its disaster recovery expertise.

Jurors ordered Galveston to pay $8.5 million for failing to comply with the contract and $2.4 million in accrued interest. The jury also awarded CDM Smith $3.8 million for economic losses.

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