Kennedy Bridge, Louisville

A pair of painting contractors and a bonding company will receive $12 million, according to a May 23, 2003, settlement of claims against the Kentucky Transportation Cabinet in Franklin Circuit Court. 

Abhe & Svoboda, of Prior Lake, Minn., was default terminated in December 2000 for failure to make progress on a $14 million contract to overcoat the John F. Kennedy Bridge over the Ohio River in Louisville.  Federal Insurance Co., Abhe & Svoboda's bonding company, assumed performance of the contract and sub-subcontracted to Brighton Painting Co. of South Roxanna, Ill.  All three eventually claimed that they were delayed by a defective specification and by the Cabinet's inspectors soliciting bribes to gain favorable inspections. 

Federal terminated its contract with the Cabinet and sued the state in October 2001, together with Abhe & Svoboda and Brighton, after having completed approximately 60 percent of the contract, for which the companies had been paid approximately $8 million.  Abhe & Svoboda's claims against the state included wrongful termination, delay, defective specifications, civil RICO against the inspectors and breach of contract.