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North American Mechanical, Inc., Issue No. 1

February 2003

The Contractors Critic
North american mechanical, INC., AN ABC MEMBER

Reporting on Safety, Productivity, and Honesty in the Construction Industry.

Negligent Work & Unnecessary Litigation

NORTH AMERICAN MECHANICAL’S
NEGLIGENCE CAUSES $141,000 IN DAMAGES

Legal problems began when Telephone and Data Systems, Inc. hired North American Mechanical to troubleshoot and conduct maintenance on their HVAC system, including a pressure check on the air-handling unit. That fateful day, while conducting the pressure check, North American Mechanical negligently allowed the massive release of nitrogen gasses into Telephone and Data System’s offices, causing chaos.

The rolling cloud of nitrogen gasses triggered several of the subfloor smoke detectors in the Telephone and Data Systems’ com-puter room. That, "in turn, triggered a 30-second countdown prior to the discharge of a fire suppressant agent into the computer room." Then the fire alarms sounded. Most of the company’s employees bolted from their workstations and escaped out the doors in a panic, thinking they were fleeing a fire.

Meanwhile, the electrical power to the computer room was switched off and the fire suppressant system discharged all eleven pressurized tanks of fire suppression agent into the computer room.

After the Fire Department arrived and the nitrogen gasses cleared, the Telephone and Data Systems’  employees began the tedious process of rebooting their computers. It took them almost three hours to achieve system recovery. The company estimated that the "down time" cost their company $255,500.

The company was then required to refill the fire suppressant tanks with the active agent, at a cost of $141,349. Telephone and Data Systems charged in their court complaint:

North American Mechanical was negligent" and "breached its duty to exercise ordinary care ... by failing to release the nitrogen gas in a manner which would prevent the formation of the gas cloud which triggered the fire suppression system.

The court complaint also charged that North American Mechanical had breached their contract by causing the discharge of fire suppressant. The court suit asked for $396,849 in damages. (Case #99-CV000047)

The trial court granted summary judgement against North American Mechanical on all issues. That in itself is a rare event. The vast majority of civil cases are settled and only a small percentage actually proceed to a judgement. However, even after North American Mechanical lost the case, they did not cut their losses and go on with their lives. Instead North American Mechanical dragged the Diocese into State Appeals Court. But that effort simply enriched the attorney for North American Mechanical and the Diocese, as the Appeals Court also rejected North American Mechanical’s prayer for relief. (Case #97-CV002327 & Case #98-3251)

As of publication, North American Mechanical has not made any suggestions or refuted any of the information in this publication.

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