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Boyer Settles Gateway Dispute

Boyer Settles Gateway Dispute

Posted - Jan. 12, 2003 at 3:48 p.m.



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(Salt Lake City-AP) -- The developer of The Gateway has settled a lawsuit claiming its general contractor overbilled it for work on the shopping district.

The Boyer Company and Layton Construction Company refused to release details of settlement.

The Utah companies fought a bitter court battle for much of the past year over how much Layton was owed.

The two companies announced the settlement yesterday.

Last March Boyer filed a third District Court lawsuit alleging Layton overbilled it by at least one (M)million dollars for work on The Gateway, one of the largest commercial developments in Utah history. It features an open-air retail mall, restaurants, office space, a theater and apartments.

Layton, one of four major construction companies that performed work on The Gateway as well as supervising the work of subcontractors, filed a counterclaim alleging Boyer owed it three (M)million dollars for labor and materials.

Layton defended its practice of charging 38 percent on top of worker wages for extras like unemployment insurance, workers' compensation insurance, health insurance, holiday and vacation pay and sick leave.

Boyer insisted that rate was too high and it had a right to review Layton's books. But it never got that far.

(Copyright 2003 by The Associated Press. All Rights Reserved.)

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