Engineering Inc. - March/April 2005 - 36

ONE ON ONE Financial Pressures, Economic Realities Make Tort Reform Vital
for Industry, Says Syska Hennessy Group's John Magliano mined by which
party has the such uniform standards? engineering firm must make on
largest insurance policy, rather a day-to-day basis? A. than the correct
assessment of As a national firm, we A. Risk plays a significantly
responsibility. This process is have an interest in encouraging
exacerbated by owners who the promulgation of uniform greater role in our
decision- attempt to use the design team's national standards in
connection making than ever before. Con- insurance as a substitute for
with litigation-threshold ques- tracts for major projects have proper
budgeting and contin- tions. Statutes of repose vary grown to 100 pages or
more with gency planning, particularly on widely among states and often
onerous clauses and risk-shifting large, complex projects. are
unreasonable. Recently, we mechanisms that sometimes successfully defended
ourselves make the work uninsurable and Q. against a claim brought by an
put the firm at significant risk. As part of a strategy to owner whose
building was We actually are turning down reduce the cost of health care,
John Magliano is chairman designed and constructed more projects on the
basis of unaccept- Congress soon will consider and CEO of Syska Hennessy
than 20 years ago. We encourage able contract terms. For example, medical
malpractice reform leg- Group in New York City. the uniform adoption of
potent we recently came very close to islation to put a halt to these
Certificate of Merit and joint declining a project with a high
ever-increasing insurance premi- and several liability restrictions.
seven-figure fee after selection ums. How beneficial do you feel Q. based
on an inappropriate/unin- that this would be to engineer- As you know, the
issue of Q. surable standard-of-care clause. ing firms? tort reform at the
federal level What can you and other We have a firm policy that pre- has
been dormant for many ACEC members do to ensure A. cludes accepting
condominium years, but is now on the front that tort reform legislation As
an engineering firm design projects, since our burner. How important is the
favorable to the engineering that specializes in the health care research
has indicated that the issue of tort reform to the engi- community is
enacted? industry, we have a vested inter- vast majority end in lawsuits
neering industry as a whole? est in seeing Congress address A. involving
the design team. We medical malpractice reform. The ACEC members should A.
Tort reform, which has have retained general counsel on funds currently
spent on lawsuits vigorously support tort reform staff, formed a risk
management would be better spent on facili- efforts. Participation in
lobbying been highlighted by the Bush committee consisting of many ties
and practitioners who will efforts arranged by national and
administration, seeks to impose senior staff and have committed deliver
improved health care to local ACEC organizations can uniform limits
applicable to all far more resources to risk man- the public. The
engineering create the awareness and sensi- states, and is very important
to agement than in the past. community may very well bene- tivity
necessary to gain support the engineering community. fit by associating
with the from our elected officials. The industry is under great Q.
medical profession to pass this Involvement in the engineering financial
pressure due to frivo- Syska Hennessy Group legislation. community's
various risk- lous lawsuits, which often have has locations all over the
coun- management committees can no relationship to the design try and
therefore deals with Q. help to foster awareness on the work. In addition,
the economic numerous variations of state tort A recent report found part
of individual firms as to realities of the litigation process laws. ACEC
will be working in that U.S. tort costs grew by 5.4 where their time and
money will often make it expedient to pay this Congress to enact uniform
percent and cost $240 billion be most effective. The important large
settlement sums in order to federal standards for statute of in 2003. What
kind of negative thing to remember is that a large avoid even larger
litigation costs, repose, joint and several liability effects do you feel
this cost constituency pushing for a regardless of the adherence to and
Certificate of Merit. What has on the economy and your uniform agenda is
most likely to applicable standards of care. kind of benefits do you think
business? How does this cost be successful. Claim settlement often is
deter- that your firm would see from affect the decisions that an 3 6
ENGINEERING INC. M a r c h l April 2005         

Engineering Inc. - March/April 2005

Table of Contents for the Digital Edition of Engineering Inc. - March/April 2005

Table of Contents
From ACEC To You
Ask Members
News & Notes
Market Watch
Legislative Action
COVER STORY: A Perfect Legal Storm
Interview With F. James Sensenbrenner, Jr.
Is There an Engineer in the House
The ABCs Of ESOPS
ACEC/PAC Donations Break All-Time Record
ACEC Roundtable
Members In the News
One on One
Engineering Inc. - March/April 2005 - Cover1
Engineering Inc. - March/April 2005 - Cover2
Engineering Inc. - March/April 2005 - Table of Contents
Engineering Inc. - March/April 2005 - From ACEC To You
Engineering Inc. - March/April 2005 - Ask Members
Engineering Inc. - March/April 2005 - News & Notes
Engineering Inc. - March/April 2005 - Market Watch
Engineering Inc. - March/April 2005 - 6
Engineering Inc. - March/April 2005 - 7
Engineering Inc. - March/April 2005 - Legislative Action
Engineering Inc. - March/April 2005 - 9
Engineering Inc. - March/April 2005 - COVER STORY: A Perfect Legal Storm
Engineering Inc. - March/April 2005 - 11
Engineering Inc. - March/April 2005 - Interview With F. James Sensenbrenner, Jr.
Engineering Inc. - March/April 2005 - 13
Engineering Inc. - March/April 2005 - Is There an Engineer in the House
Engineering Inc. - March/April 2005 - 15
Engineering Inc. - March/April 2005 - 16
Engineering Inc. - March/April 2005 - 17
Engineering Inc. - March/April 2005 - The ABCs Of ESOPS
Engineering Inc. - March/April 2005 - 19
Engineering Inc. - March/April 2005 - 20
Engineering Inc. - March/April 2005 - 21
Engineering Inc. - March/April 2005 - ACEC/PAC Donations Break All-Time Record
Engineering Inc. - March/April 2005 - 23
Engineering Inc. - March/April 2005 - 24
Engineering Inc. - March/April 2005 - 25
Engineering Inc. - March/April 2005 - 26
Engineering Inc. - March/April 2005 - ACEC Roundtable
Engineering Inc. - March/April 2005 - 28
Engineering Inc. - March/April 2005 - 29
Engineering Inc. - March/April 2005 - 30
Engineering Inc. - March/April 2005 - 31
Engineering Inc. - March/April 2005 - Members In the News
Engineering Inc. - March/April 2005 - 33
Engineering Inc. - March/April 2005 - 34
Engineering Inc. - March/April 2005 - 35
Engineering Inc. - March/April 2005 - One on One
Engineering Inc. - March/April 2005 - Cover3
Engineering Inc. - March/April 2005 - Cover4
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