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MILLION DOLLAR PLUS SETTLEMENT FOR GSEP CLIENT
A 10-day jury trial beginning in late August, 2004, resulted in a $1.2 million verdict for
Goodell Stratton Edmonds & Palmer client, Newman Memorial Hospital of Emporia.
The Hospital sued the Nashville, TN firm of Everton, Oglesby, Askew Architects, in addition to
the Walton Construction Company, the Fairbury Glass Company, Belles & Associates, Inc., and the
AMCO Insurance Company. Prior to trial, all defendants except the architectural firm settled
with the Hospital.
In 1996-97, construction of a new medical office building was undertaken by Newman Memorial
Hospital which contracted with Everton Oglesby Askew Architects for design and construction
administration services. After the building was completed, the windows leaked and the first
floor concrete slab on grade heaved in several locations. Newman Memorial Hospital sued the
architects to recover damages for breach of contract including building defects.
The Hospital argued that the architect was liable because 1) it failed to identify the
glazing contractor's installation errors, and 2) the architect and the structural engineer
should have designed a structural slab for the first floor, rather than a slab on grade. The
jury awarded the hospital $1,059,289 for cost of repairs, and $133,404 in loss of rental
income. The amount in damages was later reduced by $285,000, a settlement amount paid by the
other contractors/defendants.
GSEP partner Harold Youngentob and John Bausch represented Newman Memorial Hospital.
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Copyright 2005 Goodell, Stratton, Edmonds & Palmer, L.L.P.
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