ELLSWORTH – More than two years after the case went to trial, the city has been vindicated in its long-running dispute with a Penobscot contractor over a harbor dredging project.

Hancock County Superior Court Justice Jeffrey Hjelm issued a 42-page written decision filed April 22, which concluded that Ellsworth had every right to terminate the contract of Northeast Marine Towing and Construction Inc. in February 2004.

The city was awarded punitive damages in the amount of $339,493, plus attorney fees that totaled $87,699.

“What this means is vindication for the city,” said David Herzer, a Portland attorney who represented Ellsworth. “The city really took some hits about this project. There were a number of different conspiracy theories that claimed the city was trying to bamboozle the contractor. But the fact that a well-respected, diligent and thorough third party found at every turn that the city was in the right, we feel very good about this.”

Representatives of Northeast Marine could not be reached for comment.

Ellsworth City Manager Michelle Beal said the city always was confident in a positive outcome, but she was relieved that the matter has been put to rest.

“It was just one of those things you don’t want hanging over your head,” she said.

Northeast Marine was hired in 2001 by the city to dredge a portion of the Union River. The project coincided with a similar effort that already was under way by the U.S. Army Corps of Engineers, which removed silt and debris in an effort improve the river’s quality for boats and other vessels.

Northeast Marine started in late 2001 and worked about 40 days before halting work until the next season. In two years, the contractor completed only about 25 percent of the project, according to court documents.

After much back and forth between the city and Northeast Marine, Ellsworth finally decided to fire the contractor for failing to live up to the terms of its contract.

Four months after that termination, the Penobscot company filed a civil lawsuit against the city, citing a breach of contract and misrepresentation of the project’s scope. The suit also named as a defendant Woodard and Curran Inc. of Bangor, a firm the city hired to assist with permitting and management of the project.

While the civil matter was tied up in court, the city hired Prock Marine of Rockland to finish the dredging project.

Northeast Marine filed its civil suit in 2004 but the matter didn’t go to trial until March 2006 and then it took another two years for a decision.

“It was a dense trial with a lot of information to sift through,” Herzer said of the long wait. “As it was taking so long, of course we had some doubts, but we never really worried. As the judge pointed out, the city really bent over backwards to give them the chance to finish the job. I’m surprised it went as far as it did.”

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