Indianapolis-Marion County Settles with Eight Construction Companies

Indianapolis–Marion County Settles with Eight Construction Companies

After months of court-ordered mediation, Indianapolis–Marion County (Ind.) Public Library announced a $17.65-million settlement February 14 with eight construction companies for litigation claims related to a parking garage that is a part of a recent Central Library expansion. The project ran into long delays beginning in 2004 with the discovery of multiple defects in the underground garage, which also served as the foundation for a six-story addition.

The library will receive the financial settlement along with a mutual release of pending claims by and between the library and the construction companies that are parties to this settlement. But the library still is $32.35 million away from recouping its goal of more than $50 million in estimated construction cost overruns.

The settlement will be paid by a number of insurance carriers on behalf of the companies: Shook LLC, the garage contractor, and Ambassador Steel, Premier Concrete, Quantum Steel, Shiel-Sexton Company, Trotter Construction Company, Turner Construction Company, and Turner Trotter Shiel Sexton Joint Venture. “All of the released construction firms and their insurers have denied liability throughout the litigation and continue to do so,” said the library in a statement, “but by entering into this settlement, the settling construction companies are able to end their participation in protracted, expensive litigation that will remain ongoing.”

The agreement does not break down the settlement total by party, and it bans all library officials from discussing the agreement, the Indianapolis Star reported February 14.

Thornton-Thomasetti Group, Patriot Environmental and Engineering Company, and Charlier Clark and Linard—contractors with engineering and inspection roles in the project—remain embroiled in the lawsuits, which are scheduled for a consolidated trial in Boone County in September. Library officials said they hope to reach more settlements or win judgments from a jury.

Earlier, IMCPL reached settlements totaling $1.9 million with four other parties, including the fired architects, Woollen Molzan and Partners.

“If we can use money from a settlement to pay down debt service,” library board President Greg Jordan told the Star, “it will free up funds for the operating budget.”

Posted on February 15, 2008. Discuss.

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