The June 2023 implosion of two chimneys at the former power plant in Springdale, and the lawsuit that followed, now has the plant’s property owner and its demolition contractors at odds legally.
Attorneys representing Cheswick Plant Environmental Redevelopment Group — a subsidiary of Charah Solutions — filed the lawsuit Monday in U.S. District Court against Grant Mackay Co. and Controlled Demolition Inc. CPERG used the two companies as subcontractors for last year’s implosion of two smokestacks and a planned demolition of the boiler house at the former Cheswick Generating Station.
CPERG seeks monetary damages from Grant Mackay for what it alleges to be a breach of contract and from CDI for alleged negligence and strict liability based on the “improper demolition and implosion of chimneys” at the property.
The lawsuit also alleges Grant Mackay was contracted to compensate CPERG for damages and attorneys’ fees for the chimney implosion, and also failed and refused to demolish the boiler house.
Messages left for CDI and Grant Mackay officials were not immediately returned Tuesday.
Some history
CPERG acquired the former power plant in April 2022 with the intent to raze the buildings, remediate the land and sell it for redevelopment. Since, it has retired and decommissioned the coal-fired power plant and, working with subcontractors, is in the process of demolishing buildings and remediating the site.
In August 2022, CPERG and Grant Mackay entered into a “subcontractor master agreement” for the plant’s demolition, where Grant Mackay determined three structures — the two chimneys and the boiler house — should be imploded rather than torn down conventionally, the lawsuit said.
Part of Grant Mackay’s obligations included preparing those structures for implosion, and the implosion and cleanup of the boiler house and the chimneys, according to the lawsuit.
CPERG agreed to pay Grant Mackay just over $7.7 million for that and other related work.
In turn, Grant Mackay contracted with CDI to perform the implosions, the lawsuit states.
CPERG claims in the lawsuit that when the chimneys were imploded on June 2, 2023, one of the stacks failed to break apart as intended, causing it to fall mostly intact until it hit the ground. Nearby residents had alleged it caused an air blast, leaving dust and debris on their properties and causing an electrical power surge.
In response, 16 of those residents filed a lawsuit in September 2023 seeking to block the implosion of the boiler house, claiming property damage and bodily injury as a result of the chimney implosion.
CPERG, in its Monday lawsuit, claimed the stack’s failure to implode as intended was Grant Mackay breaching its agreement and work authorization with the company, and “CDI’s negligence in failing to implode the stacks in a professional, reasonable and proper manner, and in a manner consistent with industry practices.”
As a result of the implosion, CPERG claims it is facing a number of claims and increased costs. It alleged Grant Mackay has been adjusting property owners’ claims, “but, on information and belief, others remain outstanding and unresolved.”
CPERG also faces legal fees in regard to the injunction lawsuit that has been ongoing since last September, which, it alleges, has caused losses including increased demolition costs, attorneys’ fees and business interruption losses.
“CPERG believes that some or all of the neighboring landowners may file a lawsuit against it, Grant Mackay and CDI alleging property damage and bodily injury from the implosion of the stacks,” the lawsuit said.
CPERG also claims its master agreement states that Grant Mackay “will be liable for all of its errors, if any, in judgment relative to the work.”
State of the boiler house
The boiler house, which is near Springdale’s Porter Street, is still standing.
Because of the alleged damage from the chimney implosion, CPERG said, the injunction plaintiffs were able to persuade an Allegheny County judge to issue a preliminary injunction, blocking an implosion of the boiler house.
On appeal, the state’s Superior Court reversed that decision, allowing Grant Mackay to go forward with an implosion, according to the lawsuit. But Grant Mackay has refused to do that, “despite repeated requests by CPERG,” the lawsuit states.
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Grant Mackay, CPERG claims, was only willing to demolish the boiler house by conventional means on CPERG adjusting conditions that were not in the master agreement or work authorization.
CPERG is seeking damages in an amount to be proved in a trial and reasonable attorneys’ fees, costs and interest.
It also seeks the court to declare that Grant Mackay has breached its master agreement and work authorization, and that it is obligated to defend, compensate and hold harmless CPERG from future claims, and to pay CPERG its increased demolition costs for not demolishing the boiler house.