Chalk Another One Up for the Little Guy

Atlanta, GA Turns out you can fight city hall and win. An Atlanta businessman who alleged the city was guilty of awarding lucrative advertising contracts to a competitor with political connections has been awarded $17.5 million dollars in damages.

"Billy Corey is a self-made man," says Corey's attorney, Darren Penn. "Not many people would have fought as long as he has just to see this day, and thank goodness he did. In fact, I think Atlanta ought to give him the key to the city for exposing this."

Corey argued that the city had violated his rights and its own bidding rules by consistently awarding the contract to Clear Channel Inc. and a friend of the mayor, Barbara Fouch.

In fact, Clear Channel first obtained the contract in 1981 without even making a formal bid.

According to the evidence introduced at the two-week trial, there were efforts in the 1990s to see that airport advertising bids were properly tendered. "All of that was completely shut down by the former of Atlanta, Bill Campbell, who literally said, 'Ms. Barbara Fouch is my friend and I don't want to see her hurt,'" says Darren Penn.

When media scrutiny finally forced the advertising contract to be submitted to tender in 2002, Billy Corey's bid was still rejected, even though it was cheaper and, in his view, superior to the Clear Channel offer.

"This was a long-running scheme to keep this very lucrative contract in the hands of the same people and they were able to do it for 30 years," says Penn.

"I think the message here is you have got to handle these situations in a fair, open and equal manner. Small companies and big companies need to be treated fairly and equally—and that is really the message we are trying to send with this case."

The courted order the city of Atlanta to pay Corey $8.5 million in compensatory damages, to be paid in equal parts by the city of Atlanta, Clear Channel Inc. and Barbara Fouch.

Clear Channel is to pay an additional $8.5 million in punitive damages and Fouch is to pay another $500,000.

"Mr. Corey is ecstatic with the verdict," says Penn. "And we are happy to be part of this decision, but sometimes you know this is just the beginning."

The three defendants have all indicated they plan to appeal.

Darren Penn is a name partner with the firm of Harris, Penn & Lowry. The firm represents plaintiffs in product liability cases, medical malpractice and other types of serious litigation.