Monday, Jan. 9, 2012 | 3:25 p.m.
CARSON CITY -- The state will pay a Virginia law firm $6 million to defend the transportation department against a $40 million suit related to freeway construction.
The state Transportation Department awarded an $85 Million contract to the Ames Construction Company of Minneapolis, Minn. to build a section of freeway in Carson City. Ames says delays caused by the state forced it to lose money.
Ames filed suit asking for $40 million and the state hired the firm of Watt, Tieder, Hoffar and Fitzgerald, which is based in McLean, Va., with offices in Las Vegas, to defend it against the action brought in 2006.
Transportation Board member Tom Fransway of Winnemucca said he recognized the need for legal help but added that the fees "are pretty exorbitant." Fransway said he hoped the department would look for "more responsible" fees in the future.
The senior partner in the law firm charges $340 an hour and other members charge $295 to $310 an hour.
Board Chairman Gov. Brian Sandoval said he wasn't questioning the fees but wondered if the firm put in that much time on the suit.
Other board members said they had not seen legal fees that high in the past.
Attorney General Catherine Cortez Masto defended the fees, while adding that some senior partners earn $500 to $600 an hour.
The suit now goes to nonbinding mediation in February.
In other action, the board awarded an $8.1 million contract to Aggregate Industries SWR Inc. of Las Vegas for construction from Pahrump to Death Valley on State Route 372 and State Route 160. Aggregate was the lowest of four bidders. The state estimated the job to cost $9.3 million.
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