After more than a year of litigation, Virginia’s Bedford Broadband Authority and Blue Ridge Towers (BRT) have reached a settlement. The Roanoke Times reported that the Bedford County Board of Supervisors unanimously approved the transfer of ownership of a tower site (known as “Big Island”), rents, and leases to the broadband authority.
The case began in January 2021, when the Broadband Authority filed a suit against BRT. It accused the company of breaking a contract and demanding an “overblown” payment to transfer ownership of the Big Island tower and site. BRT countered with a breach of contract allegation, accusing the Broadband Authority of “shortchanging” BRT and “engaging in misrepresentation and deception.”
The authority contracted with BRT in 2018 to build 11 towers across the county to improve internet service. With construction complete, the authority planned to transfer the rollout and management of services to ISP BriscNet, which paid rent on the towers.
According to the Times, the Big Island tower and site were owned by Georgia-Pacific. In May 2019, BRT was working to negotiate ownership of the tower and site on behalf of the Broadband Authority, but the lawsuit claims BRT drafted a deed with itself as the owner. In May 2020, BRT demanded $302,324 to turn the tower back over to the authority instead of the agreed-upon amount of $30,000.
The suit claims BRT entered into leases with T-Mobile and UScellular in 2019, to colocate on the Big Island tower. Those leases would be void by law except for the fact the providers were unaware of BRT’s “subterfuge,” making them “bona fide purchasers for value” whose leases “should not be disturbed,” the complaint stated.
The authority demanded at least $27,470 in payments that BRT received from leasing the tower, plus any future lease payments while the lawsuit was pending. As an alternative option, it demanded $769,000 in damages from BRT, the combined value of the leases with T-Mobile and UScellular plus the amount the authority had spent on construction costs.
The Times reported the other towers had been turned over without issue, yet BRT refused to relinquish control of the Big Island tower. The settlement closure is projected to be completed before the end of the month.
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