Business Dissolution; Bankruptcy; Engineering Malpractice; Soil Testing
A large retailer with its own free-standing building was being liquidated, and filed for bankruptcy protection to reorganize. When the property was to be sold, the sales contract required that the soil be tested for contaminants, and the engineering report revealed the presence of toxic chemicals, which significantly reduced the sales price at the court-ordered auction. The retailer's bankruptcy counsel retained the Firm, and suit was filed against the engineering company for failing to conduct the soil tests in keeping with industry standards, and subsequent tests revealed that there were no toxic chemicals. A settlement was achieved which allowed the retailer's creditors to receive 100% recovery on their claims, and the retailer recovered the profit which had been lost on the sale.