Controversy Brews Between Insurers and Construction Contractors in Wis.

A controversial settlement between Milwaukee’s Miller Park stadium district and a construction contractor has left excessive and unjustified legal bills, according to insurance companies left on the hook for those costs.

Travelers Property Casualty Co. of America and Federal Insurance are disputing the legal bills. Scott Hansen, attorney for Travelers, said the legal bills spiraled out of control for lack of oversight and standard controls.

But attorneys argued that the complex case required expert testimony and said the millions spent reflect the price of aggressively defending their clients.

The case started in January 2002 when the Miller Park stadium district filed suit in Milwaukee County Circuit Court. The district said Mitsubishi Heavy Industries of America was negligent in its construction of portions of the ballpark’s roof. Mitsubishi countersued, seeking millions from the district for making changes to the design after Mitsubishi bid on it.

Lawyers settled the case out of court on Jan. 5, 2005, but the dispute didn’t end there.

Federal Insurance, an insurer involved in paying some of the legal bills, demanded that Travelers reimburse it for its costs. Federal claimed Travelers owed it $29.4 million.

Travelers is contesting the bills in the state appeals court. The dispute likely could last many more months. Travelers attorneys who examined the legal bills argued the charges were excessive and often unnecessary.

Some of the billing entries that have been disclosed are so outrageous they leave no doubt that the bills were never reviewed carefully, even by the firms submitting them,’ wrote Travelers attorney Katherine Stadler.

Some examples of questionable charges included a charge specifically labeled ‘do not charge client,’ time billed to bring the lawyers lunch, a $5,000 charge for one hour of expert work, and a bill for purchases at a Japanese souvenir shop.

David Dekker, a Washington attorney who defended the general contractor in the case, said the $5,000 figure was reasonable. In a legal brief he wrote that the charge was for one unit of work, not one hour.

One attorney on Mitsubishi’s defense team said the costs were high because of what was at stake, reputations and allegations. But Mike
Duckett, the district’s executive director, said the district adopted an aggressive legal strategy because it knew its insurance would cover the cost.

Mitsubishi also spent aggressively because it had a lot at stake and needed to hire experts from around the country, Laing said.

The case is separate from a lawsuit filed by the families of three ironworkers killed in a 1999 crane collapse at the ballpark. A settlement was reached in that lawsuit earlier this year