Leo v. Lomma

154 A.D.3d 139, 62 N.Y.S.3d 11

This text of 154 A.D.3d 139 (Leo v. Lomma) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Leo v. Lomma, 154 A.D.3d 139, 62 N.Y.S.3d 11 (N.Y. Ct. App. 2017).

Opinion

OPINION OF THE COURT

Webber, J.

In these two consolidated wrongful death actions arising out of the catastrophic crane collapse on East 91st Street in Manhattan on May 30, 2008, defendants New York Crane & Equipment Corp. (NY Crane), J.F. Lomma, Inc. (JF Lomma), and James F. Lomma (Lomma) (collectively referred to as defendants) appeal from a judgment awarding plaintiff Leo $7.5 million for the preimpact terror and $8 million for the pain and suffering of her decedent, and $24 million in punitive damages as against them, and from a judgment awarding plaintiff Kur-taj $7.5 million for preimpact terror, $24 million for pain and suffering, and $24 million in punitive damages as against them.

Defendants argue that the trial court erred in allowing the jury to pierce the corporate veils of NY Crane and JF Lomma, subjecting Lomma to personal liability, and in precluding defendants’ expert witness James Wiethorn from testifying, and that the jury’s awards should be set aside as excessive.

The trial in this matter lasted some 11 months. More than 87 witnesses were called to testify. The facts as elicited are essentially the following:

On May 30, 2008, a 34-story building complex that was to include residential units, office space, and a public middle school was under construction at 331-333 East 91st Street in Manhattan. Leon D. DeMatteis Construction Corporation (DeMatteis) was hired to act as the construction manager, and Sorbara Construction Corp. (Sorbara) was hired to construct the building’s concrete superstructure. Sorbara leased a crane from defendant NY Crane, a company owned by Lomma.1

The crane was a Kodiak tower crane with four main components: a tower, a cab, a boom, and a counterweight assembly. At the time of the accident, the tower was 205 feet high, and was attached to the building under construction at the ninth floor. The cab, within which sat plaintiff Leo’s decedent, Donald Leo, as the operator, the 160-foot boom (or arm that extended out to hoist materials), and the counterweight arm that extended in the opposite direction from the boom all rested upon a turntable assembly that connected those elements to the tower while allowing them to rotate. One of the main components of the turntable assembly was a 69-inch diameter bearing (or slewing) ring that effectuated rotation of the assembly. Hoist lines ran from the counterweight assembly arm through the top of the boom, and then hung down from the boom tip over a rotating disc called a sheave. That portion of the hoist line hanging from the boom tip, i.e., the lifting line, terminated at a hook, directly above which sat a “headache ball” (also referred to as a header ball), a heavy ball used as ballast to keep the lifting line taut.

Sometime in 2007, before being used on the subject project, the crane’s bearing ring, which was denoted “turntable 052,” developed a crack while at another site and required replacement. NY Crane attempted to obtain a replacement from the manufacturer of the original turntable, and was informed that it would cost $34,000 and take one year, unless NY Crane paid an additional $120,127 to expedite its manufacture within 28 weeks. At that time there was a waiting list for the company’s cranes, and Sorbara had begun the project using a cherry picker while waiting for a crane to become ready. The testimony was that Lomma directed one of his employees, a mechanic with no technical expertise, to locate an alternate source. The employee, through a Google Internet search, was able to locate a China-based company, “RTR Bearing Company Limited” (RTR), that said it would create the bearing ring for $20,000.

Lomma testified that because NY Crane had never used RTR before, he “asked to see if they were ISO [International Organization for Standardization, an international nongovernmental organization that publishes safety standards] certified and . . . asked for some references” and “other stuff [he just couldn’t] remember.” Lomma also contacted one of RTR’s clients to confirm that it had purchased a bearing ring from RTR. According to Lomma, he had no direct contact with RTR; contact was only through his employees. Lomma did receive a brochure that said that RTR had ISO certification. Attached to the brochure was the business card of Joyce Wang. Lomma testified that he assumed that Wang worked for an engineering firm and that RTR had engineers on staff. In fact, neither Wang nor anyone at RTR was an engineer, and RTR was not a manufacturer but a broker/distributor that subcontracted its work out to factories in China.

Lomma admitted that he was aware that if a turntable bearing ring failed, it would have catastrophic results, creating a mortal risk to the operator, other workers, and the general public.

Neither NY Crane nor Lomma had drawings for the bearing ring that required replacement. Drawings of a different bearing from the subject bearing’s original manufacturer were forwarded to RTR. Handwritten notes were then added to the drawings to indicate the differing dimensions of the desired replacement bearing. Following receipt, Joyce Wang of RTR emailed NY Crane the following:

“Just discussed with our general engineer, and we think the information I gave below is not right. He said we once had done this likely bearing also use in crane, it should be the whole bend ring weld on the bearing. But last time we did only the bearing and didnt weld and customer weld itself, he said because in the crane it is a very important part, and we are afraid the weld technic we had is not good, because normally we didnt do like that. And honest speaking we dont have confidence on this welding. So he suggest if you can weld the bend yourself, and we supply the slewing bearing without holes in inner ring. Is that OK? If still need us to do, please advise the material of the bend and dimension of it [sic].”

In response, Lomma’s employee sent Wang a drawing with some general information from the manufacturer regarding welds. After NY Crane agreed to a price increase of $1,710, Wang responded, “We can do this.” The testimony was that there were back-and-forth emails between Wang and NY Crane indicating confusion on RTR’s part as to the bearing’s specifications.2 Notably, RTR was never provided engineering drawings. It received graphics or “cartoons” produced using Microsoft Paint that illustrated what the bearing should look like. The testimony was that RTR also was never informed of the type of load the bearing would be subjected to.

Lomma testified that while he knew of the email from RTR stating that it did not have confidence in its welding technique because it was “not good,” he decided to allow RTR to weld, because it ultimately said it could. He admitted that he was aware that the bearing’s components, i.e., balls and spacers, were of a different size and number than those in the bearing being replaced.

Lomma also admitted that he was aware that before the crane could be used again, any new bearing was subject to certification by the New York City Department of Buildings (DOB) that it met the original manufacturer’s specifications for safety. During the process of obtaining the RTR bearing, Lomma contacted engineers to “get their take” on the bearing, as well as to see whether they would sign off on it for the DOB certification.

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Bluebook (online)
154 A.D.3d 139, 62 N.Y.S.3d 11, Counsel Stack Legal Research, https://law.counselstack.com/opinion/leo-v-lomma-nyappdiv-2017.