COEUR d'ALENE - The city of Post Falls' insurance company must now pay $18,500 in attorneys' fees after it lost a lawsuit filed against the insurance company for one of the city's construction contractors.

The city of Post Falls, listed on the lawsuit as the plaintiff, last year sued Knife River Corp. Northwest, which was hired by the city to do road and sewer construction work. Judge Robert Caldwell filed a final judgment in the case late last week.

Knife River was hired to construct roads and sewer lines at the intersection of Seltice Way and Commerce Street in Post Falls.

During the work, a 6-inch water-supply line was accidentally cut, and the water ran through a wastewater line.

"Black water" backed up through the floor drain in a Post Falls family's home on the 300 block of Cane Street, causing flooding and significant damage. The lawsuit said the city paid more than $7,800 in connection with damages.

Shelly Enderud, the Post Falls city administrator, said the lawsuit was between the two insurance companies. She said the city and Knife River have maintained a good working relationship.

The city's insurance company is ICRMP, based in Boise. ICRMP's executive director, Rick Ferguson, declined to discuss the case on Monday.