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False Site Report Sinks Contractor, Even If It Didn?t Deceive Owner

Wednesday, August 11, 2010 02:10 am


Contract Interpretation

Wal-Mart Stores, Inc. v. S.C. Nestel, Inc. and Ohio Farmers Insurance Company, 2010 U.S. Dist. Lexis 54367 (D. Ind. June 2, 2010)

An overworked contractor falsely stated that he?d performed a required site inspection. That error resulted in a judgment of more than $3 million in the owner?s favor.

General contractor S.C. Nestel, Inc. (Nestel) lost its contract with Wal-Mart Stores, Inc. (Wal-Mart) when it submitted a storm water pollution prevention plan (SWPPP) report that contained false information. The report stated that Nestel?s compliance officer had visited the job site that day and found the site SWPPP compliant. In truth, the compliance officer had visited the job site four days earlier [...]

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