TERRE HAUTE — Although a lawsuit against the City of Terre Haute was dismissed last week, the plaintiff may not be finished pursuing legal action.
On Feb. 6, Sullivan Circuit Court Judge P.J. Pierson ruled in favor of Terre Haute Mayor Kevin Burke and the city in a lawsuit filed by John R. Bischoff, manager of Haute Maison LLC. In the lawsuit, Bischoff accused Burke and his administration of conspiring with private developers to prevent competition in the bidding process in restoration of the old Terre Haute House.
Pierson ruled to dismissed the lawsuit.
“It continues to be frustrating for me to watch taxpayer money have to be spent to defend the city against frivolous lawsuits,” Burke said.
Bischoff, who said he first read the ruling on Friday afternoon, believes an issue arose because he — and not Haute Maison Development — filed the lawsuit. He later added that, since he represented himself, he could not file a suit on behalf of the company.
He is only a minority stockholder in the Haute Maison Development, so he will have to discuss any lawsuit filed on behalf of the company with other stockholders.
“I want to” continue, Bischoff said, “but it’s not solely my decision.”
The former Terre Haute House at Seventh Street and Wabash Avenue was demolished in late 2005 to make way for the new Hilton Garden Inn-Terre Haute House on the site. Before the new hotel was announced, the city issued a request for proposals on renovating the former hotel.
Those proposals were rejected in favor of the new hotel, which is slated to open later this year.
The city’s legal representation argued that Bischoff was not guaranteed any success since he personally did not file a response to the city’s request for proposals, said city attorney Kendall Boyd.
Bischoff said that he will review the case this weekend before determining any future litigation. He later said that he was “weary” of litigation, but would not say if he was finished with the case.
Burke responded to the possibility of further lawsuits against the city by saying, “At some point in time, the city may have to consider recouping the costs of defending ourselves against frivolous lawsuits.”
Boyd said that frequently means requesting attorney’s fees for a court case, and not necessarily filing a counterlawsuit.
Austin Arceo can be reached at (812) 231-4214 or austin.arceo@tribstar.com.
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