In The News

Unanimous Defense Verdict for Engineering Firm

5/26/2006

On May 25, 2006, a unanimous federal court jury returned a defense verdict on behalf of the professional engineering firm, Thrasher Engineering Inc. in a professional malpractice case brought by Mid-State Surety Corporation. Thrasher Engineering was successfully represented by Jack Tinney, John Tinney and Meredith Osborne.

The lawsuit involved the construction of a water treatment plant and water distribution system in Mingo County, West Virginia. Thrasher Engineering designed and inspected the construction of the entire 26 million dollar project. During the course of construction, the general contractor on the water treatment plant project defaulted, leaving many vendors and equipment suppliers unpaid. The general contractor's bonding company, Mid-State Surety, took over the project, paid vendors and equipment suppliers and hired another general contractor to complete the project.

Following completion of the water treatment plant, Mid-State Surety sued Thrasher Engineering, alleging that Thrasher Engineering negligently approved progress payments to the general contractor and negligently approved payments for equipment and supplies.

Prior to trial, the trial court expanded West Virginia law by ruling that the engineering firm was in a "special relationship" with the general contractor's bonding company and, therefore, despite the absence of any contractual relationship, owed a duty of care to the surety company. As a result, Thrasher Engineering was prohibited from arguing at trial that it did not owe a duty to the contractor's surety.

The trial lasted four days and plaintiffs demanded more than 2 million dollars in damages. After deliberating for less than two hours, the jury returned a verdict entirely in favor of Thrasher Engineering and awarding the plaintiff "$0" in damages.