|
|
| Penn. County Sues for Million Over Jail's Phone Pact |
| By Pittsburgh Post-Gazette |
| Published: 08/26/2002 |
|
For the financially strapped Allegheny County government, the possible receipt of $1.2 million in badly needed revenue is riding on a judge's interpretation of three words. The definition of the phrase 'gross revenue generated' is at issue in a lawsuit that the county has filed against Allegheny Telephone, the company that used to handle all the collect calls placed by inmates at the county's jail and juvenile-detention center. In an exclusive contract running from 1995 to 2000, Allegheny Telephone agreed to give the county 50 percent of the 'gross revenue generated' from the calls. The county claims that the Penn Hills company shorted the government $1.2 million by inappropriately deducting such things as uncollectible bills and subcontractor fees before calculating the gross revenue. In the county's view, the amount left after such deductions represents net revenue, not gross. But Allegheny Telephone maintains that the disputed phrase applies only to revenue that the company received and kept, not to money paid to its billing subcontractor or to bills deemed uncollectible. 'Allegheny Telephone paid the county one half of every dime they received, but not one half of money they never received. That's what this case is all about,' said Pittsburgh attorney Edward Friedman, the phone company's lawyer. But a county dealing with budget overruns in the sheriff's department and property assessment office can't afford to concede a $1.2 million point. 'That is a significant piece of revenue and certainly it's something we feel we're entitled to,' County Manager Bob Webb said. The county and Allegheny Telephone are scheduled to go to trial Sept. 25 before Common Pleas Judge Joseph James. |
advertise
|
privacy policy
|
add URL
|
about us
|
terms/disclaimer
|
contact us
|
join our team
|
help
Comments:
No comments have been posted for this article.
Login to let us know what you think