Caltrans Loses in Court

An Orange County jury awarded nearly $1 million to the owners of a former lumber and building materials firm in Anaheim, who had sued the state Department of Transportation for damage caused by the agency’s work on the Santa Ana Freeway project.

William and Faye Phillips, whose business was near the interstate, agreed to sell their company to Caltrans in the early ‘90s as part of the agency’s project to widen the roadway. But Caltrans failed to pay for such things as costs incurred during the company’s relocation and lost profits during that time.

“The state’s appraiser . . . offered to pay them $148,000,” said Michael Leifer, the Phillips’ attorney. “We tried to negotiate, but the state wouldn’t get back to us.”

Caltrans officials said they are still considering whether to appeal the jury’s decision on the suit, which was filed in 1994 in Superior Court in Santa Ana.