MYNORTHWEST NEWS

Insurance companies sue to get out of paying for Bertha repairs

Aug 26, 2015, 12:38 PM | Updated: 1:17 pm

Insurance companies have filed a lawsuit to get off the hook for millions of dollars of repair cost...

Insurance companies have filed a lawsuit to get off the hook for millions of dollars of repair costs for Seattle's tunnel-boring machine called Bertha. (AP)

(AP)

Insurance companies have filed a lawsuit to get off the hook for millions of dollars of repair costs for Seattle’s tunnel-boring machine called Bertha.

The Seattle Times reports that the companies filed a lawsuit last week in New York City claiming they shouldn’t have to pay the repair bill because the machine’s design was flawed from the start.

Related: Bertha’s 120-foot drop completed

The suit says the repair costs now exceed the tunnel machine’s original price of $80 million. Repairs are expected to top $143 million.

The news confirms what many have speculated would eventually happen: lawsuits filed over the boring machine and its repairs.

Washington Secretary of Transportation Lynn Peterson previously noted that the state required the contractor to carry $500 million of insurance, and said the state also has insurance tied to the tunnel project. That figure far exceeds the $143 million in repairs cited in the recent lawsuit.

Dr. Patricia Galloway was chair on an expert panel that looked into the stalled project. She cited, in April, a $329 million price tag to cover those costs, which partially relied upon Bertha’s insurance policy, money from a contingency fund, and savings from other parts of the tunnel that were finished early.

If that insurance money is threatened by the lawsuit, it could lead to infighting and further lawsuits that KIRO Radio political analyst Rob McKenna speculated would end in a courtroom.

“Here you have a complicating factor that this joint venture is a consortium of more than one company. So what’s going bankrupt? The consortium, or the individual companies in the consortium?” McKenna said. “It would be a big mess and take years for the state to recover its losses. It will be a mess.”

“Well, we know that one of them is very litigious,” McKenna said. “Which raises the question, ‘Why were they selected?’ The answer is no one else bid on the project. They ended up with Seattle Tunnel Partners as pretty much the sole bidder when everyone else pulled out. So they decided to take a chance. I know they wrote the best contract they could, but took a chance on this particular partnership, even though it includes this company with a history of litigation.”

Related: Governor Inslee says we need to beat contractor like a cheap mule

The tunnel was designed to replace the Alaskan Way Viaduct, damaged in a 2001 earthquake. But Bertha broke down soon after drilling began.

Repairs to the cutter head were completed and it was lowered back into a repair pit this week. The tunnel contractor says drilling should begin again in November.

The Associated Press contributed to this report.

MyNorthwest News

2 slow moving vehicle law...

Chris Sullivan

Five cars behind you and going under the speed limit? In WA, you’re breaking the law

You might know the speed limit, but do you know you're breaking the law if you're driving under it with five cars stuck behind you?

59 minutes ago

trump lake ontario lake america...

Associated Press

Trump says he’s considering renaming Lake Ontario as ‘Lake America’ as trade war escalates

President Donald Trump said Tuesday that he is considering changing the name of Lake Ontario to “Lake America” as the trade war between the United States and Canada intensifies.

2 hours ago

road closures (1)...

Nate Connors

Your commute could get complicated: WSDOT closures across the region this week

The summer heat isn't showing signs of slowing down, and neither is WSDOT as repair work forces closures across the region.

11 hours ago

beef deal...

Aaron Granillo

Cheap imports, high stakes: WA ranchers sound alarm over 90-day beef deal

Trump's announcement that the U.S. will allow up to 300,000 tons of ground beef to be imported tariff-free for 90 days is drawing sharp criticism.

11 hours ago

renton child sexual abuse...

MyNorthwest Staff

Former Renton resident gets 15 years for sexual abuse of 4-year-old, production of abuse images

A former Renton resident was sentenced to 15 years in prison for crimes related to his abuse of a four-year-old and producing of images of child sexual abuse.

12 hours ago

quintuple homicide oregon enumclaw...

Frank Sumrall

Victims identified in Oregon quintuple homicide as suspect found dead by suicide in Enumclaw

Authorities in Enumclaw found the man suspected in a quintuple homicide in Oregon dead inside a pickup truck.

13 hours ago

Insurance companies sue to get out of paying for Bertha repairs