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MERIDIAN The City of Meridian has lost another legal battle to the company that oversaw construction of its new City Hall building.

The Idaho Supreme Court has upheld a District Court judge s 2011 ruling and ordered Meridian to pay Petra, Inc., nearly $2.3 million in attorney s fees, costs, and interest.

In 2006, Petra was hired to build the new Meridian City Hall. After cost overruns, the project cost $20 million. City workers moved into the building in October 2008, and almost immediately found problems such as a leaky roof, heating and cooling issues, flooding and a leaky fountain that has since been shut down.

Meridian officials wanted Petra to pay for what they say was deficient and defective work. Petra came back to the city demanding more money.

The two sides could not resolve their issues through mediation, so the case went to court. Petra won a judgment, but that was put off until the case was appealed to the Idaho Supreme Court. Meridian must now pay nearly $325,000 in additional compensation to Petra.

We are disappointed by the Idaho Supreme Court's ruling, the Meridian City Council said in a joint statement. We felt like the City had a strong argument before the court. However, the City was prepared for this decision and we are ready to move forward.

City leaders say money was set aside to pay Petra, Inc., in case they did not win the appeal. They say Meridian residents will not see any tax increases or change in services because of this ruling.

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