Dive brief:
- A grand jury chose last week not to indict anyone with a crime stemming from 2019 Collapse of the construction of the Hard Rock Hotel in New Orleans, which killed three people and injured 30 others.
- A statement from Orleans Parish District Attorney Jason Williams obtained by CNN the grand jury indicated he did not see enough evidence to build a criminal case. Williams’ investigation into the collapse began in 2021 when he took office, giving him two years to file criminal charges. The grand jury reviewed the case but decided not to charge anyone before the deadline.
- OSHA’s lack of cooperation slowed the case, according to the prosecutor’s statement. Although the agency investigated the collapse, it “hampered our progress by withholding a crucial report for our review,” the statement said, adding that “the refusal to disclose all evidence and reports in its arrangement seriously hampered our presentation.”
Diving knowledge:
An OSHA spokesperson told Construction Dive on Oct. 5 that the agency “is aware of the [criminal] case with the DA’s office and the pending deadline,” adding that they are “trying to wrap things up” and reach a settlement imminently. OSHA could not be reached for comment after the grand jury’s decision.
The hotel project at 1031 Canal Street in the city’s central business district partially collapsed on October 12, 2019, as it was under construction. The bodies of the slain workers – Jose Ponce Arreola, Anthony Magrette and Quinnyon Wimberly – lay in the wreckage for months.
Later, The footage showed former workers expressing their concern on support beams, ia a series of civil lawsuits followedalleging that the project used poor design, improper construction practices and unskilled workers.
federal OSHA’s initial investigation concluded in April 2020, when the agency announced appointments to engineer Heaslip Engineering, general contractor Citadel Builders, Suncoast Projects (doing business as Hub Steel) and eight subcontractors as a result of the collapse.
Collectively, the builders faced penalties of $315,536:
- Citadel Builders faced three serious violations for an inappropriate exit from the building. The initial fines totaled $28,338, but the general contractor settled for $21,254. The agency found that other subcontractors also failed to provide training on emergency exits and fall hazards. Citadel could not be reached for comment.
- Steel supplier Suncoast Projects was not sustained structural stability of the building, according to OSHA. Initial fines totaled $37,191, but Suncoast is contesting the citation. Construction Dive attempted to contact Suncoast via a publicly available email for Hub Steel, but did not hear back by the time of publication.
- The the agency determined Heaslip Engineering He “failed to adequately design, review or approve steel bolt connections that affect the structural integrity of the building,” resulting in a willful violation with an initial fine of $154,214. The company also contested the fines. Construction Dive attempted to contact Heaslip via a publicly available email, but did not hear back by the time of publication.
Contested fines can lead to lengthy settlement talks. The agency has not yet announced a settlement in its case with Heaslip or Suncoast, and OSHA does not share information from open cases, the spokesperson told Construction Dive on Oct. 5.
The legal order of things
Such cases usually follow an operational order, and criminal penalties usually come first, said Carol Sigmond, a partner at the Greenspoon Marder law firm in New York City.
“The reason is that administrative agencies don’t want to create potential due process issues with respect to the right against self-incrimination,” Sigmond said. “OSHA could have continued, but I think the general policy of good government at the national level is to hold administrative proceedings in abeyance until criminal proceedings are concluded.”
Sigmond added that local statutes may not be “ready” because criminal charges must be tied to a specific statute, and if the language or application is too narrow or the intent standard too high, this could mean that criminal charges are harder to prove.
However, he stressed that contractors should not want to engage with OSHA to settle a case like the Hard Rock until the criminal charges are settled, since prosecutors could use the guilty plea in a civil execution against them.
Similarly, OSHA may choose to keep the investigation open as long as possible, said Trent Cotney, a partner and construction team leader at the law firm Adams and Reese in Tampa, Florida.
The longer a case remains open, Cotney said, the more time there is for new evidence to come to light or for the subject to commit another violation, adding to the citations issued.
