Big Dig Supplier Agrees to $16M Settlement
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Attorney General Martha Coakley said her office had reached the agreement with Powers Fasteners Inc. resolving both the criminal manslaughter indictment and the pending civil claims against the company.
The "Fast Set" epoxy anchor-bolt system in one section of the I-90 connector tunnel failed in July 2006, leading to the collapse of the concrete ceiling panel that killed 37-year-old Milena Del Valle of Jamaica Plain.
"Our goal in this agreement was to reach a resolution of both the criminal and civil matters pending against Powers in a manner that best serves the commonwealth," Coakley, a North Adams native, said at a press conference on Wednesday. "By agreeing to comply with the terms of the deferred prosecution agreement and the compliance program, Powers is taking important steps to ensure that a similar incident will be prevented in the future."
Powers, based in Brewster, N.Y., marketed and distributed the bolt system used in portions of the tunnel, part of the massive Central Artery/Tunnel Project that put the Central Artery highway and the Massachusetts Turnpike under the center of Boston.
| Big Dig Recoveries to Date (PDF) Boston Globe Coverag |
Instead, the company has agreed to enter the deferred prosecution and a corporate compliance agreement to resolve the criminal indictment, and to pay the commonwealth $16 million in civil damages.
The state will file a conditional dismissal within 120 days provided that Powers meets certain conditions, included in both agreements. The indictment may be reinstated within three years if Powers breaches the corporate compliance agreement; it could also have to pay $100,000 a year.
"This is a far more meaningful outcome than a small monetary fine," said Coakley. "In addition, the $16 million civil payment serves as a deterrent, not only for Powers, but for other companies who work on public projects of this magnitude."
Investigators believe that Powers was aware, and had been for a number of years, that its "Fast Set" product was unsuitable for sustained loads based upon the company's own "creep" testing.
Among the conditions are that Powers stop selling the fastener product ("Fast Set"), along with all other adhesive anchors unless they comply with certains standards and regulations. It also has to recall all "Fast Set" products and issue warnings that they have failed certain tests. Powers also agrees that its products won't be qualifed for use in any publicly funded Massachusetts projects until 2012.
The majority of the payment, $15.5 million, will go to the state's Transportation Infrastructure Fund, which pays for Big Dig expenses and the statewide road and bridge program. The remaining $500,000 will go to the city of Boston to reimburse it for costs incurred in the response to the ceiling collapse.
