City Hires Outside Legal Counsel For HVAC Litigation
Posted
David Slone-dslone@timesuniononline.com
A Carmel law firm will represent the city of Warsaw in its litigation over the HVAC (heating, ventilation, air conditioning) system installed at City Hall.
The Warsaw Board of Public Works and Safety on Friday approved an engagement letter with Drewry Simmons Vornehm LLP (DSV) by a vote of 2-0 for the attorneys to act as legal counsel for the city in the case. Mayor Joe Thallemer was absent from Friday’s meeting.
City attorney Scott Reust told the Board, “As you’re aware, the city filed a lawsuit against many entities that were involved in our HVAC installation. And as that proceeds with litigation, we’re looking to hire outside counsel. We found some good outside counsel who are more versed in construction litigation than myself. So we’d like to hire outside counsel to help us proceed with the litigation that we have for the HVAC lawsuit.”
The engagement letter states DSV’s fees for legal services are calculated upon the current hourly rate of the attorney performing the service and are calculated in tenth-hour increments. For this litigation, Joseph Leone will primarily serve for strategy and oversight at $400 per hour; his law firm partner Thad Schurter will serve as primary litigation counsel at $300 per hour; and senior associate Evan Norris will serve as second chair litigation counsel at $250 per hour. The range of hourly rates for other DSV professionals, if necessary, the letter states, are $450 to $300 for partners; $195 to $250 for associates; and $135 for law clerks and paralegals.
In addition to legal fees, other expenses that occur in connection to the matter may be billed to the city. Invoices will be sent on a monthly basis.
Asked by Board member George Clemens if he was involved in this decision, Reust said, “Yes, I think they’re who we need.”
According to an Oct. 31, 2020, Times-Union article, the city of Warsaw filed a lawsuit in regards to an improperly installed HVAC system in City Hall in Kosciusko County Superior 1 on Oct. 22, 2020.
The city of Warsaw entered into an AIA contract dated Dec. 16, 2011, for remodeling of City Hall. The contract was primarily with Harold McComb & Son, Fort Wayne, according to the lawsuit. Phoenix Mechanical, Garrett; MechTec/David Wortham, The Villages, Fla.; Indiana Thermal Solutions, Indianapolis; and Scearce Rudisel Architect, Warsaw; were also named as defendants. According to the complaint, they were subcontractors or participants in the performance of the contract.
The performance of the contract resulted in the HVAC being improperly installed, installed out of conformity to the contract documents or being negligently installed. According to the complaint, the systems resulted in malfunctions, degradation of other parts of the HVAC system and building installations, which are all ongoing.
Due to the failure of the contractor and several subcontractors improperly installing the HVAC system, the HVAC system needed to be correctly reinstalled, which was estimated to cost the city at least $725,000. The city of Warsaw also suffered out-of-pocket expenses of at least $55,000 from temporarily addressing the failures of the HVAC system.
The contract also called for the installation of “instant” water heaters. The lawsuit stated the water heaters were installed and wired for 110 voltage, when it should be 220. The faulty installation caused multiple failures, replacements and anticipated failure problems and damages, for which the complaint claims the defendants are responsible for.
