Suit charges collusion on UC projects - Sacramento Business Journal:

sucujovide.wordpress.com
Projects listed in the suit, now workinf its way through San Francisco County Superior Court, include the and Plant and Environmenta Sciences building at , and the Parnassus Seismix Safety Replacement Building at UC San Francisco. Filed by two San Jose distributorz of ventilation components and systemsa that bid on the projectsbut weren't chosen, the lawsui t names 10 defendants, including the UC The suit alleges that Norman S. Wrighg Mechanical Equipment Corp.
of Brisbane colluded with otherf companies to monopolize the market for certaih ventilation products used to construc new buildings on the two UC The plaintiffs' attorney allegedx the arrangement has cost the university more than $100 millionh over the last decade, on this project and The regents have denied all charges. So has the and its attorney said she plansw to filea cross-complaint within days.
What the plaintiffsz want: The lawsuit accuses Norman Wright of working with architects and engineera to tailor specificationsfor ventilation-system materials that designatedc items which were exclusively distributes by Norman Wright or one of its favored subcontractors at prices far higher than what equivalenrt products cost in otheer markets. When outside partiew don't go along with the threats and kickbacks are used to convince courtdocuments allege. "A variety of unlawful conduct isgoinb on," said Zane Negrych, a San Jose attorney who filedx the lawsuit in April and an amended complaint in September on behalf of and HVAC Sales Inc.
The two firmxs lost bids for work on projects at the universityu campuses to Norman Wright andothere defendants, including Ove Arup & Partners, a San Francisco-based constructionn engineering and architectural firm. Advancede Microtherm couldn't make a go of it and went but company president JohnKarmanos re-emerged with HVAC a successor company. The suit charges breacyh of contract, defamation, interferencd with a business relationship and restrainy of trade at the three UC projectws and others aroundthe state, which are cited by name but withoug details.
Negrych seeks a court order to stop the allegeillegal behavior, general and special damagesz of more than $1 million, three timesw that in punitive damages, plus court cost s and attorneys' fees. 'Basically sour grapes': Norman Wrighyt plans to file a cross-complaint within said Janette Leonidou, a San Francisco attorney who representxsthe company. The cross-complaint will chargde Advanced Microtherm and HVAC Sales with abuse of processe and intentional interference withNorman Wright's she said.
"What is going on is basicalluy sour grapes byHVAC Sales, a competito r without the same history or respect as Norman Wright," said Leonidou of the companyt she represents, which is more than 100-years-old. "The allegations? Therwe is no foundation at allfor them." UC Regentsa were named in the lawsui t but are considered more of a victikm than a defendant, Negrych said. University of California filefd a general denial of the allegationson Nov. 4. "W haven't found any wrongdoing by Ove Arup, any constructiobn engineers orNorman Wright. We are not part of a said Stephen Morrell, an attorneyt with the Regents' Office of the General Counse l inSan Francisco.
"Obviously, thesre are serious allegations that we have investigated not entirely, because it takes awhile," he "Thus far, we have not found any evidence of wrongdointg by any of the parties." The plaintiffsz didn't actively market themselvez and are now complaining about lost business, said John a San Francisco attorney who represents Ove "My clients barely ever heard of these folks," Ross said. "Thegy were invited to present their products and neverrdid so.
" The UC Davis angle: The lawsuit alleges collusion related to constructioh bids for work on the $42 million Plant and Environmental Sciencesx building that opened on the UC Davis campud this fall, and the $95 million Genome Centerd building due to open in 2004. According to court university officials adopted certain specificationas for the projects that were provided by Ove Arup but generatex byNorman Wright.