News

Grinnell customer gets 'shock'
University dragged into court when Grinnell wants more money

SAN DIEGO, CA. — Grinnell Corporation's demands for more money drove up the costs of an energy conservation program designed to save one California university money.

The University of San Diego project to conserve energy on its La Jolla campus resulted in a lawsuit by Grinnell Corporation.

The California university wanted to save electricity costs, but Grinnell gave them "sticker shock" by demanding more money from the general contractor and dragging the university into court over tens of thousands of dollars.

Recognizing the need to conserve on its skyrocketing energy bills, the university entered into two contracts with First Mechanical to retrofit a heating and air conditioning system at the Applied Physics and Math Building, and to install energy conservation measures at its Basic Science Building.

Grinnell was hired to perform work on fire suppression sprinkler systems in both buildings, but the contract resulted in a bitter dispute that dragged the matter into California Superior Court.

Grinnell claimed that it had a right to more money than First Mechanical determined Grinnell was owed. The lawsuit, one of many filed by Grinnell against general contractors involving public works projects, involved tens of thousands of dollars.

Taxpayers Sued When Grinnell Given Police Job

SAN DIEGO, CA. — When Grinnell Corporation didn’t get its way in a contract dispute with a general contractor, it sued the taxpayers of the city of San Diego and the public financing source used to secure a new police department building.

That was the legal strategy employed in a March 28, 2000 lawsuit filed by Grinnell’s lawyers against the city of San Diego and two other defendants, the general contractor and a company that insured the bonds for city’s public works project.

Although Grinnell claimed its beef was with general contractor Pacesetter Industries of Wyoming, and its president, Ron Savona, Grinnell dragged the city and the bonding agency into the fray, costing taxpayers thousands of dollars in legal fees.

Savona and his Wyoming Company declared bankruptcy, Grinnell claims in its lawsuit, and didn’t pay Grinnell for work Grinnell claims it performed at the Aero Drive modular building project in San Diego.

Although Grinnell claims Savona was the one who didn’t pay Grinnell for the work it performed, Grinnell claims it is up to the city to make sure Grinnell gets paid. That’s why Grinnell filed suit against the city’s taxpayers.

Extensive Offshore Oil Rig Damage Leads To Finger Pointing By Grinnell

JEFFERSON PARISH, LA.—When Grinnell Fire Protection Systems Company installed pipes and fittings on an offshore oil rig, the leaky plumbing caused major damage that the company later tried to pin on subcontractors and an insurance company.

In 1998, Grinnell admits that it installed pipes and fittings on an oil rig near Jefferson Parish that began leaking and caused damage to the customer. Faced with expensive claims by the customer, Grinnell filed suit against the subcontractors, its insurance company and even the company that supplied the pipes and fittings.

Because there are no moving parts in pipes and fittings, and because their manufacture are routine, it is rare to find defective parts suits against manufacturers of quality pipe and fittings manufacturers. Yet, Grinnell used this defense in attempting to assign blame to anyone but themselves when the pipes and fittings it installed leaked and caused damage to the offshore oil rig.

In addition to the customer’s damage, the leaky pipes installed by Grinnell caused the customer to sustain substantial delays and expenses in having the work that it had contracted to Grinnell completed.

Typical of many of the lawsuits involving Tyco International or Grinnell, the leaky pipes lawsuit set off a firestorm of expensive countercharges and other finger pointing that ultimately involved the customer’s insurance company in the costly fray.