FY2016 CCDOA Financial Report as of 6302016.pdf - page 126

Notes to Financial Statements
For the Fiscal Years Ended June 30, 2016 and 2015
Clark County v. Coy Church, Case No. A-15-721301-C. This matter involved a lease of property
to Las Fuel Worldwide, Inc. that had been held up by the discovery of a four-foot discrepancy
in the property line. This problem traced back to a 1973 deed that failed to account for that
discrepancy. The property owner at the time the problem originated has passed away.
However, his son, the sole child and heir, has been located and has signed a quit claim deed
and waiver of rights. The title company required the County to initiate litigation to quiet title as
to any unknown heirs. A complaint to quiet title was filed on July 11, 2015, and, upon failure of
any interested parties to respond, a default judgment was granted in favor of the County
awarding declaratory relief and quiet title to the land in dispute. The matter was officially
closed on January 20, 2016.
Bombardier Transportation (Holdings) USA, Inc. v. Clark County, Nevada, Case No. A-14-
698764-J. On or about June 1, 2008, Bombardier Transportation (Holdings) USA, Inc.
("Bombardier") and the County entered into a "Contract for Maintenance of Automated Transit
System Equipment CBE-552" ("Contract"), whereby Bombardier agreed to provide
maintenance services for the Automated Transit System ("ATS") equipment at the Airport. In
early 2010, the Department conducted an analysis to determine whether the County would
save money by performing in-house maintenance services on the ATS equipment. The
Department’s analysis demonstrated that the County could save hundreds of thousands of
dollars each year by doing so. As a result, on June 1, 2010, the Board voted to exercise its right
of termination for convenience granted to the County by the Contract. While the County and
Bombardier were transitioning the work in house, Bombardier submitted a termination claim to
the County asserting that Bombardier was entitled to termination costs in the amount of $1.0
million, including $0.7 million in alleged lost profits. Subsequently, Bombardier sent a revised
termination claim to the County that totaled $5.5 million, including $1.6 million in alleged lost
profits. The County acknowledged its responsibility to reimburse Bombardier for legitimate and
documented costs which resulted from the termination, but declined to pay to Bombardier
any additional costs, including any alleged lost profits.
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