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Leighton sues Hilton
By Paddy Manning
October 9, 2004

BUILDER Leighton Contractors has initiated Federal Court proceedings against the Hilton Group and nine other parties over the asbestos-plagued $182 million Sydney Hilton refurbishment project.

In preliminary hearings yesterday, Leighton applied for discovery of a raft of documents concerning asbestos, fire safety and other issues at the building prior to the signing of the construction contract in August 2002.

Appearing before judge Graham Hill, Mallesons Stephen Jaques partner Peter Perther claimed Leighton might have a case against the respondents for allegedly misleading and deceptive conduct before Leighton entered the construction contract.

Apart from the Hilton Group, the named respondents included: Sunrise Resources (Aust) Ltd; Page Kirkland Management Pty Ltd; HLA-Envirosciences Pty Ltd; Tyco Australia Pty Ltd; Linker & Barker Pty Ltd and four individuals.

Leighton also applied for court orders for a number of these respondents to appear to explain the terms on which they were employed by the Hilton Group prior to the signing of the construction contract.

Neither Leighton Contractors nor the Hilton Group would comment yesterday.

In September 2003, the Construction Forestry Mining & Energy Union stopped work at the site for a fortnight after asbestos was found, leading to a Workcover inspection.

In May, Leighton Holdings, the listed parent of Leighton Contractors, announced a $20 million pre-tax provision against the Sydney Hilton project. It also announced the resignation of then-managing director of Leighton Contractors, Bob Merkenhof.

The Australian

Asbestos delays Wawa site; Council expected to award removal contract Monday

MILFORD - On Monday night, Milford City Council is expected to award a contract for asbestos abatement at the former city public works yard.

Once the asbestos is removed, construction will begin on a Wawa convenience store at the site, said City Manager Richard D. Carmean.

The former city yard at the corner of U.S. 113 and North West 10th Street once held a garage, a few offices and a warehouse.

The buildings were sold at auction. In May, a salvager began work on the site, removing steel trusses and collapsing the roof, Mr. Carmean said.

But the city had to halt work on the site after it discovered that asbestos had been disturbed there.

"We knew we had asbestos there," said Mr. Carmean. "What we didn't know is that he (the salvager) was going to drop the roof."

Although asbestos was found in roofing, paint and flooring material, Mr. Carmean said the biggest problem is the asbestos in the boiler in the basement.

"The city has to clean up the contamination site," he said. "It's been an eyesore for two and a half months, and I apologize for that."

He estimates the cost at about $35,000.

"We had a price four years ago to get the place cleaned up. It's not that bad. After all, we still worked out of there for three years. Now the price is more expensive because it's more difficult to clean up. The money from the sale of the property will pay for it," Mr. Carmean said.

According to a U.S. Environmental Protection Agency Web site, asbestos could present a human health hazard. Exposure to inhaled asbestos could cause a lung disease called asbestosis, characterized by shortness of breath, cough and severe respiratory impairment.

Milford developer Dennis Silicato owns Silicato Commercial Realty and Development, which has been working to bring Wawa to Milford.

"I'm frustrated. It's just one of those things that happens. Their plans hinge on the city's letting them have the property."

He said construction will begin soon after the asbestos is removed, and the Delaware Department of Natural Resources and Environmental Control has approved the process.

"I wish I had a timeline," said Mr. Silicato. "I have all the permits."

He said construction on the 6,200-square-foot store, minus gas bays, will take 120 to 160 days.

"They move quickly. You'll be surprised at how fast this goes. By spring, they will be open. That's my guess," he said.

The city relocated its public works department in the new business park off Airport Road last year.

Wawa opened its first market in 1964 in Pennsylvania, and since then has grown to more than 500 stores in five states, according to its Web site.

Post your comment at newsblog.info/0404.

Editor Gwen Guerke can be reached at 422-1200 or tell2gwen@newszap.com.

 

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