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M. Claims & Litigation History City of Sunny Isles Beach | Request for Qualifications No. 15-08-02 September 23, 2015 Page 56 Response Hensel Phelps is or within the past five years has been involved in the following significant litigation matters related to Hensel Phelps’ project work. W. G. Tomko, Inc. v. U.S. Engineering Co. and HPCC, et. al. (arbitration) W. G. Tomko is a second-tier subcontractor that filed an arbitration demand against HPCC’s subcontractor, U.S. Engineering, claiming delay and impact damages on the construction of a prison in Hazelton, West Virginia. HPCC was joined to the arbitration in May 2013. Prior to an arbitration scheduled for September 2014, the parties settled with Hensel Phelps receiving a net payment of $1.2M. MixOnSite USA Inc. v. HPCC (Arbitration) This arbitration was filed in April 2013 and stems from a dispute related to a project in Hawaii. Subcontractor MixOnSite claims delay damages and loss of productivity. HP has counterclaimed since it had to complete the subcontractor’s scope of work, suffering damages in the process. The arbitration took place in December 2013. In March 2014, Hensel Phelps was awarded over $67,000 in damages plus attorneys’ fees and costs. CMH Manufacturing, Inc. v. HPCC, et al., Case No. 12-CV-1223 This case involves burst sprinkler pipes that were not properly insulated at the Fort Bliss dormitory in Texas. In December of 2012 a Western District of Texas suit was filed by a lower tier subcontractor after arbitration against the first tier sub, Warrior, failed. In response, CMH sued every party with any connection, however remote, to the sprinkler pipes. Most of the claims are against the other subcontractors, which is, essentially, what this case is about - who should ultimately pay for the improper pipe installation. The matter was ultimately settled in mediation with Warrior bearing nearly all of the financial burden. HPCC v. San Diego Unified Port District, Case No. 37-00053225 On October 21, 2011, the California Court of Appeals issued an opinion holding that the San Diego Hilton construction project located on land leased by a public entity to the hotel owner qualified as a “public work” under state prevailing wage statutes. The Court’s ruling reversed a lower court decision and the position taken by the public entity in the governing lease documents. As the prime contractor, Hensel Phelps completed the Project in accordance with the public entity’s position and the lease documents. We complied with the ruling by ensuring that all Project workers were paid at the then applicable prevailing wage rates for the work they performed. See Hensel Phelps and San Diego Unified Port District (Respondent) v. Carpenters/Contractors Cooperation Committee (Appellant) (Super. Ct. No. 2008-00086718-CU-PT-CTL). HP then filed suit against the public entity to recover these funds under the statutory indemnity provisions of California’s Labor Code. In May 2015, the court awarded HP over $11M in damages, including costs, fees, and interest. Hensel Phelps v. USACE ASBCA No. 58393 This matter arises out of a “pass through” appeal complaint filed in December 2012 with the Armed Services Board of Contract Appeals on behalf of several Hensel Phelps subcontractors seeking compensation for extra work performed on the DISA Headquarters Project at Fort Meade, Maryland. In October 2013, the parties settled with Hensel Phelps receiving $6,000,000 plus interest from the date of claim certification. Quality Iron v. Hensel Phelps (Arbitration) This arbitration action was commenced in August 2011. Claimant’s demand arises out of work performed on the USMC BEQ Project in San Diego, California. QI seeks approximately $100,000 for installation of temporary safety posts required to comply with OSHA standards and Hensel Phelps has counterclaimed for $140,000 in costs incurred facilitating the timely completion of portions of QI’s work. Following an unsuccessful mediation, the parties were able to resolve the matter under confidential terms and the arbitration proceeding was dismissed. Dallas/Fort Worth Airport Board v. KBR, Hensel Phelps, McCarthy et. al. Cause No. 11-03855 This matter arises out of an action filed in March 2011 in Dallas County, Texas by DFW against its designer, Kellogg Brown and Root (KBR) alleging errors in the design of concrete panel connections for the automated people mover project completed by HPCC in 2006. Hensel Phelps was joined in February 2012 based on KBR’s claim of potential construction defects. The cost of repair is estimated to be $2,000,000. Based on our investigation of the allegations in the suit, Hensel Phelps took the position that the panel failure was caused by errors in the design and that there was no evidence of any construction defects. The court agreed and, on its motion for summary judgment, dismissed Hensel Phelps from the suit in December 2012.