Texaco Suit Says Work on Red Line Damaged Building
Texaco has sued the Metropolitan Transportation Authority for $35 million, alleging that construction on the Metro Red Line subway damaged a former headquarters building in the Mid-Wilshire district.
Texaco officials say construction under the oil company’s building resulted in cracking and settling of the facility’s support structure and surrounding sidewalks. The suit says the damage has made it difficult to lease office space and makes the company vulnerable to lawsuits because of “dangerous conditions” caused by cracked walkways.
Although the MTA has been sued before by property owners who are irate about the huge underground construction project, this suit is believed to be the largest, and it means the MTA faces a court showdown with an opponent that has considerable resources.
MTA spokeswoman Kathy Irish declined to comment on Texaco’s action, which was filed in Superior Court, saying that the MTA has not yet been served with the suit. The firm’s lawyers said they expect the MTA to be served this week.
The building, on Wilshire Boulevard near Western Avenue, is no longer used by Texaco employees, who are now at a North Hollywood headquarters. It is leased to private tenants.
“It’s still an asset on the books,” said Tim Miller, a senior attorney with Texaco Inc. “We owe it to our shareholders to protect this asset.”
The Texaco suit is only the latest official complaint from businesses along the subway’s second segment, a large portion of which will run beneath Wilshire Boulevard. MTA spokeswoman Irish said she did not know how many property owners have filed suit.
The historic Wiltern Center, which houses the Wiltern Theater, has sunk more than one inch, said Wayne Ratkovich, a managing partner of the group that owns the Art Deco building. Ratkovich, however, has not taken legal action.
The litigation is one more public relations hurdle for the MTA as it sells the subway project to merchants and property owners in North Hollywood, which will soon be affected by construction. In neighborhood meetings, North Hollywood businesses have expressed concern about what they are likely to endure once construction is in full swing.
The first phase of the Red Line subway runs from MacArthur Park to Union Station. Construction on the next leg--along Wilshire Boulevard--began two years ago and caused a 50% decline in some businesses as customers began to encounter inconveniences. Since July 9, 1991, construction crews have struck gas, water, utility or telephone lines on 17 occasions, sometimes interrupting service, according to an MTA memo.
In its suit, Texaco is seeking damages as well as indemnification so that it will not be liable for injuries caused by the project. Last September, a pedestrian, James Bryant, was injured in a fall that he said was caused by the buckled sidewalk. Bryant has told Texaco he plans to sue.
The next 6.7-mile leg of the Red Line subway will be built in two phases. The first, scheduled to open in 1996, will run from MacArthur Park to Wilshire Boulevard and Western Avenue. The second portion will reach Hollywood Boulevard and Vine Street. That section is scheduled to open in 1998.
