Protracted Los Angeles Red Line Subway Litigation Could Use ADR Intervention
The litigation arising from the construction of the Los Angeles Red Line subway described in Ari B. Bloomekatz' Los Angeles Times article, "MTA's long legal battle draws fire" reads like a modern-day version of Charles Dickens' Bleak House, the story of the long and expensive probate litigation in England's Court of Chancery that wasted many lives and the fortune of the deceased benefactor. Mr. Bloomekatz reports that the litigation between The Metropolitan Transportation Authority and Tutor-Saliba, the general contractor, has lasted fifteen years and cost the public $34 million with no end in sight. Tutor-Saliba has paid about $25 million in litigation costs.
One thing is certain: the litigation costs of both sides far exceed their respective claims:Tutor-Saliba is seeking around $16 million and the most MTA can expect is about $15 million.
Even sophisticated parties like public agencies and national construction companies can lose sight of the goal-conflict resolution-when their aim is to be proved right. Conflict is a part of life, and it is inevitable in most construction projects to one degree or another. Therefore, the management of the conflict becomes an important part of managing the project. No project is truly complete until all disputes have been resolved.
Some simple tools of construction conflict resolution include:
- Don't take it personal. Even if the other side is making it personal, don't.
- To borrow from Stephen R. Covey's The 7 Habits of Highly Effective People, "Begin with the end in mind."
- Through contract or stipulation, establish efficient discovery procedures for effective and early evaluations.
- Remember the parties are in a better position to evaluate the dispute than 12 jurors, a judge, or an arbitration panel who will never understand the facts or the law as well as you do.
- Be realistic about your litigation costs. Like construction projects, litigation tends to cost more and take longer than originally planned.
Although the final chapters of the Red Line subway litigation saga have yet to be written, its impact will soon be felt by the very people the MTA is supposed to serve-public transportation users. The Times article reports:
With the agency now considering fare increases and service cuts, some officials are calling for an audit of the expenditures and wonder if the lawsuit represents a waste of taxpayer dollars.
Some people believe that certain disputes must go to trial, and in the Times article, MTA officials express their views on non-monetary reasons for pursuing the litigation. Nevertheless, the wisdom of a negotiated resolution which provides certainty while minimizing costs is illustrated by the 15 year $59 million Red Line subway litigation.
