Litigation

The Critic views court cases and liens as a plague on our construction industry. Contractors, employees and their organizations, and customers should be working together and settling their differences outside of the courthouse. But the trend in our industry is towards more court suits, not less. As the Engineering News Report of February 15, 1999, editorialized:

"If your only tool is a hammer, then every problem will look like a nail. When it comes to the construction industry, the main dispute resolution tool remains a lawyer, and every disagreement will look like a lawsuit. Lawsuits go against the basic nature of the industry. Construction is not an individual endeavor, but rather a business of team building. Successful teams and projects are built on the strengths of each member, while lawsuits and unsuccessful projects are founded on the weaknesses of team members. A decade or more may pass before there is any resolution of a dispute by the courts leaving no one a winner. Some industry sources claim the tide of dispute resolution may be turning back towards the courts. This may indicate that the construction industry has become too complacent to combat creeping litigiousness."

The Critic could not agree more with this ENR editorial. These are the reasons why the Critic devotes its resources to researching and publishing details on litigation in the construction industry. We feel that the sheer numbers and the types of these lawsuits should be of grave concern to every contractor and construction customer. This is why we are publishing the following lists of litigation.

Grinnell installed the sprinkler system on the dream home the Sparks were having built. During the first winter the pipes froze and burst. Water poured through the ceiling and walls of their home causing over $40,000 damage. Their suit charged that Grinnell: "Carelessly and negligently installed piping in the home...failed to insulate pipes in the ceiling...carelessly and negligently installed a sprinkler system in the home that was defective."

This case is pending as of August, 1999.

Grinnell sued this customer for $33,865.

GRINNELL V. GATEWAY SUPPLY

Grinnell sued this customer for $19,025.

Grinnell sued this customer for $6,465.

A Grinnell-operated motor vehicle was operated carelessly and negligently, striking the Wilkerson's’ car, injuring a mother and her daughter.

Dan-Car owed Grinnell $142,468 for unpaid goods. The President of Dan-Car, John Danis, signed a personal note to Grinnell for $154,236 the amount owed plus 12% interest. Although Danis paid off $74,000 over two years, Grinnell still sued him and Dan-Car.

Elwyn Netherdra, a Grinnell foreman, was at a Best Company store construction site when the fire alarm malfunctioned. The Grinnell employee tried to repair the system himself and was injured when he fell into an uncovered ditch. He sued W.G. Clark, a fellow contractor who was working on that job. The case is still pending.

Best Asphalt sued Grinnell, Turner Construction, and others, for payment of over $90,000 for materials provided for the construction of the Wyndham Garden Hotel at the Detroit Airport.