Wauconda settles suit with contractor in 2007 fuel spill

Wauconda officials have settled a financial dispute with a contractor that stemmed from a 2007 fuel leak into Bangs Lake.

The village board on Tuesday unanimously agreed to pay $56,500 to Lampignano & Son Construction Co. for water main replacement work the firm was doing when the leak occurred.

Village officials had been withholding payment of more than $103,292 since the incident. The firm said it was owed an estimated $153,292.

The settlement was reached during a July 11 mediation session in Waukegan, according to a memo from village attorney Rudy Magna.

The village hired an environmental company to contain the fuel and clean up the surface water of the lake, according to Magna’s memo. The cost of that cleanup was more than $77,835.

Lampignano sued the village in Lake County circuit court in August 2012, claiming breach of contract and other violations.

The company also sued Erie Insurance Exchange, its insurance provider, for breach of agreement.

Lampignano claimed the firm performed $50,000 worth of “extra work” on the project, according to the memo. The firm also requested 1-percent monthly interest on the balance of what the village owed.

Payment for some of the extra work was approved by the village. The request for interest was rejected in the settlement.

The settlement ends the case against Erie Insurance, too.

The village board approved the settlement without discussion.