Houston Pays Company $4.8 Million After Voters Reject Red Light Cameras

The city of Houston, Texas announced Friday that it would pay American Traffic Solutions (ATS) $4.8 million to settle the lawsuit the company set up after voters rejected red light cameras in November 2010. Upon approval by the city council Wednesday, the Arizona firm will receive $2.3 million up front with another $2.4 million provided as the company collects on unpaid citations over the next three years.

ATS was able to extract this sum from the city for two reasons. First, former Mayor Bill White removed an early termination clause from the red light camera contract in an attempt to save the camera program through the year 2014 in the event the state legislature passed legislation outlawing cameras. As a result, ATS demanded the share of ticket profits it would have received through that date. Second, ATS had an ally in US District Court Judge Lynn N. Hughes, who overturned the election results and sided with ATS at every step. For example, when ATS lawyer Andy Taylor complained in a November 26, 2010 hearing that the city required ATS to take down its cameras, Hughes came to the rescue.



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internationalmanofmystery - 1/24/2012 1:04:40 PM

+2 Boost

"Houston Pays Company $4.8 Million After Voters Reject Red Light Cameras"

I thought John Gotti died!!! Guess not!!

CarCrazedinCali - 1/24/2012 7:08:24 PM

+3 Boost

holy crap, what a waste of tax money, great job Houston politicians, keep up the bad work!

AutoFanatic_WW - 1/25/2012 5:38:59 PM

+1 Boost

Only in TEXAS.... Great job COWBOYS...