Federal Jury Says Atlanta Favored CC in Bid Case

RADIO ONLINE | Thursday, July 29, 2010 | 3:59pm CT

A federal jury awarded $17.5 million to Corey Airport Services on Wednesday after finding that the city of Atlanta, Clear Channel and Barbara Fouch, CC's minority partner, allegedly conspired to deprive Corey of its "equal protection rights" while bidding for the ad contract at Hartsfield-Jackson Atlanta International Airport in 2002.

The city of Atlanta, Clear Channel and Fouch will share the compensatory damages of $8.5 million equally. Clear Channel was ordered to pay another $8.5 million and Fouch $500,000 in punitive damages. As a matter of law, the City of Atlanta cannot be held liable for punitive damages.

"This was a clear case of favoritism, cronyism and bid-rigging," said co-lead attorney for Corey Airport Services Jeffrey R. Harris. "The jury not only found that the bidding process at the airport was tainted, but that the city, Clear Channel and Barbara Fouch conspired to ensure the lucrative advertising contract remained with political insiders and City-favored vendors."

The case, which was filed in 2004, concerned how Atlanta procures contracts for advertising at the Atlanta International Airport. Clear Channel and Fouch were first awarded the contract in 1980. Until 1997, the contract stipulated that the City receive 50% of airport advertising revenues. After the contract expired, but Clear Channel and Fouch maintained the advertising concession on a month-to-month basis. Until 2007, they were paying the 1980 rental rate of 50% of revenue.

At the start of trial, Clear Channel and Fouch owed the city $15.6 million in unpaid rental fees due to the month-to-month holdover provision of the advertising contract.

"The fact that the City of Atlanta left more than $15 million dollars on the table, never taking steps to recover that revenue, is compelling evidence of favoritism," said co-lead counsel Darren Penn for the plaintiff. "The jury obviously agreed. It is our hope that the City doesn't continue to waste taxpayers' money by dragging out this process."