Judge rules lawsuit can proceed, supported by roadbuilders group

NASHVILLE, Tenn. Copyright 2005 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. ? A lawsuit filed by a contractor accused by the state of shoddy work installing highway guardrails and suspended from further state work can go forward, a judge ruled Friday.

And the powerful Tennessee Roadbuilders Association will be allowed to file a brief supporting the contractor, Lu Inc. of Kingston Springs. The rulings were made in Davidson County Chancery Court.

“Were just very pleased with the ruling,” said Hal Hardin, a former U.S. attorney representing Lu.

“We respect the chancellors decision, and its too early in the process to make any further comment,” TDOT spokeswoman Kim Keelor said.

The lawsuit seeks to have the court issue a stay of Lu’s contract suspension, reinstate its contracts, rule on the propriety of the state’s actions against the company and to recover court costs.

Roadbuilders association spokesman Kent Starwalt has said Lu was suspended improperly, something that could have an impact on the entire roadbuilding industry.

Lu received $40 million in state contracts since 1998, plus millions more in subcontract work.

Tennessee Department of Transportation officials have said Lu did not sink guardrail posts as deep as required, making them ineffective. The posts were sunk 12 inches deep instead of the required 44 inches.

A former employee of the contractor says it was common for workers to cut the posts short.

The claims led to a federal investigation of Lu and a TDOT survey of all 4,000 miles of guardrails in the state.

Lu has been under contract with TDOT to repair damaged guardrails for 60 percent of the state.

The company also has installed $19 million worth of new guardrails on some of the state’s largest construction projects.

Lu officials have denied wrongdoing and said they are allowed to install posts less than the required depth when bedrock or other obstructions make digging to 44 inches impossible.

TDOT claimed another company, KRD Corp. of East Ridge, also installed unsafe guardrails.

The lawsuit also states TDOT allowed other contractors accused of installing unsafe guardrails to correct problems at their own expense, something Lu offered to do, but was denied. The suit also contends Lu was singled out for harsher treatment, because other installers were merely fined and did not have contracts suspended.

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Information from: Chattanooga Times Free Press, http://www.timesfreepress.com