Herrera Issues Demand Letter to Office Depot in Wake of S.F. Controller's Audit
City Attorney prepared to 'vigorously pursue' $5.75 million in overcharges plus interest, costs and attorney's fees
SAN FRANCISCO (Dec. 21, 2009) -- City Attorney Dennis Herrera today issued a demand letter to Office Depot, Inc. expressing his intention to "vigorously pursue" at least $5.75 million in overcharges together with interest, attorney's fees, and costs incurred by the City in conducting the audit.
The demand letter follows the release of an exhaustive audit report by the Office of City Controller Ben Rosenfield, which was released on Dec. 18, 2009. The Controller's 96-page audit concluded that, among other overcharges, the Boca Raton, Fla.-based office products supplier failed to provide the City with contractually mandated discounts for items covered by the 5-year contract, which was valued at some $18 million.
"Any resolution of this matter must include compensation to the City for the costs of the audit, and for attorney's fees, as well as full reimbursement for price overcharges, with interest," Herrera wrote. "If the City is unable to obtain a satisfactory informal resolution of this matter, I will not hesitate to pursue the matter in court. Further, if court action becomes necessary, rest assured that my office will vigorously pursue the City's claims to the fullest, including seeking civil penalties and debarment, if appropriate."
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