State Recovers $610M in Big Dig Related Cases
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A total of $610,625,000 has been recovered by Attorney General Martha Coakley's office from various vendors and contractors who worked on the massive Central Artery project that put a tangle of highways, including I-90 under the heart of the state's capital. The project was plagued with cost overruns and faulty work, including a concrete ceiling panel in the I-90 connector tunnel that fell on a vehicle, killing the driver.
There is one remaining outstanding civil-cost recovery matter, unrelated to the ceiling collapse, that should be resolved in the coming weeks.
On behalf of the commonwealth, the Massachusetts Turnpike Authority and the Massachusetts Highway Department, the attorney general entered into a settlement agreement with ceiling designer Gannett Fleming Inc., resolving the pending civil claims against the company in connection with the collapse. Gannett Fleming has agreed topay $1,525,000 into the Central Artery Statewide Road and Bridge Infrastructure Fund, also known as the TIF, $50,000 to the city of Boston, and forgo $150,000 in payments from the MTA.
Sika Corp., manufacturer of the epoxy glue used in the ceiling that was sold to Powers Fasteners Inc., has agreed to pay $200,000 into the fund. Powers Fasteners resolved both criminal manslaughter indictment and civil claims in a $16 million settlement on Dec. 17, 2008, and entered into a deferred prosecution and corporate compliance agreement.
Coakley's office is dismissing claims against Sigma Engineering International Inc., a structural engineering company and Conam Inc., a materials inspection company, finding that the corporations were not liable in connection with the ceiling collapse.
"Since taking office two years ago, it has been one of my priorities to resolve all matters related to the Big Dig ceiling collapse in a manner that was fair and just for the commonwealth, and for the loved ones of Milena Del Valle who so tragically lost her life almost three years ago. We believe that we have achieved that goal," said Coakley. "The resolutions we have reached with the various companies involved in the project appropriately hold accountable those responsible for the problems in our tunnels, ensure that similar problems will be prevented in the future, and provide the Commonwealth with the necessary funds to maintain the tunnels and other transportation infrastructure in the years ahead."
Gannett Fleming has also agreed to a Corporate Compliance Program as part of the settlement. The program requires it to provide a Federal Highway Technical Advisory to the owners of all facilities for which Gannett Fleming performed design services since 1990 in which adhesive anchors may have been used. Gannett Fleming must also provide the Technical Advisory to their current and former employees.
The advisory provides guidance and recommendations on the use and inspection of adhesive anchors, strongly discourages their use in sustained tension or overhead applications, and recommends retrofitting or replacing current systems.
As part of the settlement with Sika, the company affirms that it has ceased all sales and production of the Fast Set epoxy used in the ceiling and complied with the National Transportation Safety Board's requirements to provide warning labels on its products and alert its distributors of the NTSB’s recommended prohibition on the uses of adhesive anchors.
Since January 2007, the attorney general's office has recovered approximately $610.625 million on behalf of the Commonwealth, the MTA, and MHD. Some of those recoveries reflect settlement agreements entered in conjunction with the U.S. attorney's office.
In addition to already cited settlements, they are:
■ May 12, 2007: $58.5 million; AIG state settlement (recovery of workers' compensation insurance overcharges.)
■ July 27, 2007: $50 million; Aggregate Industries federal-state settlement (false claims for adulterated cement). Also include $75 million additional insurance coverage.
■ Jan. 23, 2008: $458.2 million; Global federal-state settlement with Bechtel/Parsons Brinkerhoff and other contractors for ceiling collapse, wall leaks, various design errors and problems. In addition, B/PB may be liable for up to $100 million for any future catastrophic event.
■ Nov. 14, 2008: $21 million; Modern Continental Construction Co., settlement for damages.
■ Nov. 14, 2008: $5 million; Newman Associates Inc. and Renner Colony LLC settlement for damages with a Corporate Compliance Agreement with the company that sold the epoxy glue to Modern Continental.
The attorney general expects to revert approximately $2.1 million back to the MTA as a result of unused monies from the cost recovery fund.
