Saturday, November 29, 2008

OUCH!!!... I see an appeal coming...

This is a major blow to the ADI Group one of the region’s largest soils engineering and testing companies whose head office is out of Fredericton NB. The CEO of the company is Hollis Cole who has won numerous engineering and management awards including a number of years where the company held the title as one of "Canada's 50 Best Managed Companies"... The bottom line here is (if I could paraphrase the Judge's comments) the Court is saying that ADI had no clue as to what the Company was doing and this is supposed to be the business they are experts in.... I know Hollis well and he's not the kind of guy that is going to lay down and accept this decision so everyone can certainly expect an appeal.. I also know Justice Campbell better and he would have studied the facts very well before he rendered his decision so the outcome of the appeal will be very interesting.... there are big dollars involved here so in the interim I suspect it will be tough sledding for ADI as the spotlight from existing and potential clients, suppliers, lenders, etc... will be on them and unfortunately there are no winners when something goes wrong..
Compost plant builders lose $4.3M lawsuit
Friday, November 28, 2008
CBC News
The builders of P.E.I.'s compost plant were ordered on Friday by the province's Supreme Court to pay the designers of the facility $4.3 million.
'I find ADI's remediation of the facility to have been unnecessary, ill-advised and ineffective.'— Justice Gordon Campbell
The dispute centred around the quality of the compost coming out of the plant. The designers of the plant, Waste Conversion Inc., contended the compost was lower grade, Category B compost, and that its contract was terminated before it could fix the problem.
The defendant, ADI, is the company that won the contract from the P.E.I. government in 2001 to deal with the compost that would be coming out of the province's new waste watch system. ADI hired WCI to design and operate the plant.
There were some problems in the early months of operation, and WCI's contract was terminated in December 2002.
WCI sued after being terminated. The company went on to charge that ADI's solution to the problem was inadequate. ADI counter-sued, saying WCI's design was inadequate.
In a written decision, Supreme Court Justice Gordon Campbell found for WCI.
Campbell ruled ADI didn't understand how the facility was supposed to work, making the comparison to a washing machine.
"Instead of allowing the washing machine to go through its various cycles to produce clean clothing ready to go into the dryer or on the line, ADI simply unplugged the machine and used it as a tub in which to dump dirty clothes into cold water," wrote Campbell.
"They had unwittingly killed the biological process that was at the heart of the WCI design.… I find ADI's remediation of the facility to have been unnecessary, ill-advised and ineffective. It was a failure."
ADI has 30 days to appeal the ruling.

1 comment:

Mark said...

I'll put my money on a settlement before this goes much further.