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Issue 11
Litigation
Layoffs
Liens
Meetings
Source Notes

Grinnell liens its customers, fellow contractors and suppliers

Along with lawsuits, liens are an unnecessary evil in the construction industry. Many Construction customers know how maddening it is to try and obtain bank financing where there is some claim or lien against your property. That is why it is important for construction customers to be concerned about whether a contractor’s practices are likely to cause liens to be filed against them. A lien against your property as a result of a construction payment dispute, is as effective a claim against your equity as a bank’s mortgage, according to the Engineering News-Record.
 

Defendent/ Property Owner Location Amount
La Quinta Inns, Inc. Denver County, CO $ 23,691
Capital Columbine Office, Ltd. LLP Denver County, CO $ 45,655
Kaiser Electro Optics San Diego County, CA $ 14,625
Partners Steel San Diego County, CA $ 14,625
CSM Corporation Arapahoe County, CO $ 2,856
Roundup Realty LLC Denver County, CO $ 6,356
COM Realty, Inc. Riverside County, CA $ 10,022
Ryan Automatic Sprinkler Corporation Riverside County, CA $ 26,254
Delores & Paul Wynia Canyon County, ID $ 15,936
Dillingham Construction Riverside, CA n/a

Total Dollar Amount of listed Liens: $ 160,020

This list of liens is only a sampling of the liens Grinnell has been involved with.

Another Grinnell sprinkler system floods a warehouse
Komar Company, Transportation Insurance Co. v. Grinnell Corporation

The Komar Company is a magazine and book distributor with a warehouse at 3300 Clipper Mill Road in Baltimore, Maryland. Grinnell had converted the Komar’s existing wet sprinkler system into a dry sprinkler system. According to the complaint, the Komar’s warehouse was anything but dry after the Grinnell-converted system, "... discharged in the plaintiffs’ warehouse releasing water ... damag[ing] the building and a large portion of the inventory stored in the warehouse. [Grinnell] negligently converted/installed the dry sprinkler system so that it discharged without cause," according to their court complaint.

Komar also hired an investigator, FTI Corporation, to inspect the site of the sprinkler release. FTI reported that it was likely that somehow water was allowed to enter the Grinnell-modified system, and it must have frozen and forced a sprinkler head to fail, allowing water to discharge. FTI also noted that "parts of the installation did not conform to local or national standards for the installation of commercial fire alarm equipment. These deficiencies included: the fire alarm panel ... was not approved for commercial fire alarm systems, wiring... was not in conformance with the National Electrical Code.... [Instalation did] show a general pattern of no-conformance and shoddy installation.... The sprinkler system was not provided with required supervisory alarms ... the installation was deficient in a number of areas, indicating the general disregard of requirements by the fire alarm installer. (Case # 96051082/CL)
 

Wells Fargo and Norwest Bank v. Grinnell Fire Protection Systems, others

Grinnell Fire Protection originally installed the fire sprinkler system at the Norwest Bank Phase 4 project at 4455 West Arrows Drive, Colorado Springs, Colorado. On July 12, 1999, at 3:36 a.m., "several signals were received from the fire alarm system" at the Norwest facility. One signal indicated a fire alarm at Phillips LMS, an adjacent tenant of the building.

However, there was no fire at Phillips LMS. The false alarm in the Norwest portion of the building caused the dry sprinkler system to charge. According to the complaint, "a break in the piping... caus[ed] water to flood Norwest’s offices.... The false alarm, improper installation of the fire alarm and fire sprinkler systems, and the failure of the piping system and resultant release of water caused physical damages to the property... in an amount of over $360,000, and... business interruption losses in excess of $150,000."

Damages may have been avoided but, "Due to a malfunction in the fire protection system, the fire department was dispatched to the [wrong] premises... causing a delay in the discovery of the break in the sprinkler system piping at Norwest and allowing additional flooding damage to occur." (Case #01 CV 2084)
 

Grinnell dodges the truth in its bid on an Ohio school job

As part of its April 2002 bid on the fire protection work at the Granville, Ohio, renovation, Grinnell/Simplex had to fill out a Contractor’s Qualification Statement. One of the questions on the statement was, "Are there any judgements, claims arbitration proceedings of suits pending or outstanding against your organization or its officers?"

Grinnell left the answer to that question blank.

Of course, as of that date, there were literally hundreds of serious civil cases pending against Grinnell and its corporate organization of Tyco, including the Diversified Records warehouse case that just went to a multi-million dollar judgement against Grinnell. Less than two months later, criminal charges were filed against the Tyco/Grinnell CEO.

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