Confidential

Facts

On July 15, 2003, plaintiff Jeptha McGee, 26, was injured when a core drill he was using to bore a hole into the
side of an underground telecommunications vault struck an underground power line, which had been encased
in a concrete duct bank that ran parallel to the wall of the vault. The plaintiff was working for subcontractor
Sanford Construction Company ("Sanford") on a project for Alameda Point Collaborative (APC). The
Alameda Reuse and Redevelopment Authority had sublet the property to APC.
Sanford Construction was hired to help install electrical and telecommunications facilities for modular
classrooms that were to be installed on the property. Because a trench had to be dug to install the lines, a
search for existing underground electric lines and other potential hazards needed to be conducted. Alameda
Power and Telcom (APT) is an electric utility owned by the City of Alameda and had the responsibility and
control of the electrical system in the area. On July 14, 2003, SanfordÆs project foreman informed APT that
they were ready to drill into the electric and telecommunication manholes, pursuant to the plans and
specifications of the APC. APT required that one of their lineman employees be present whenever drilling was
to be performed into an electrical vault. There was no similar requirement for drilling into a
telecommunications vault and the Sanford foreman was told he could proceed with that drilling on his own.
Two APT employees arrived at the site on July 15, 2003 and the Sanford foreman selected the location for drilling
into the communications vault. One of the APT employees noticed that the drill was on a line with a bracket
inside the telecommunications vault, so the drill was moved over a few inches. However, he elected not to refer
to any of his electrical line drawings and not to order that the electrical power be turned off. Instead, he helped
the foreman drill. Rather than drilling into the wall of the telecom manhole vault, the foreman, with the help of
APT employees, drilled into a concrete duct bank, which housed a 12,000 volt line. The plaintiff alleged that
the APT employee should have realized this error.
The foreman took a break from drilling and asked the plaintiff to get in the trench and continue the drilling work.
Within seconds of taking over, the drill came into contact with an energized electrical line contained within the
duct bank, causing a massive explosion. The plaintiffÆs heart stopped and he was resuscitated, but the loss of
oxygen caused severe brain damage.

PLAINTIFFS' CONTENTIONS:
The plaintiff contended that the APT employees negligently directed the location of core drilling and failed to warn of the presence of underground live electrical lines, and failed to de-energize the lines before drilling began.

DEFENDANTS' CONTENTIONS:
The defendants contended that the incident was caused by the negligence of the plaintiff's employer and co-employees who had been advised of the presence of the electrical lines. The defendants further contend that APT had correctly marked the location of the underground electrical lines on the pavement a month before the accident, and on at least one other subsequent occasion, but the Sanford crew had covered those lines with dirt. The Sanford foreman who was familiar with the job and the location of the lines quit over a pay dispute one week before the accident, and his replacement had only been on the job for one or two days. The foreman who quit testified that the lines which had been covered showed the location of the lines in the duct bank, and he would not have drilled in that area had he been on the job.

Specials in Evidence

$1.4 million $75,000 $1 million $11 million

Injuries

The plaintiff sustained several injuries, including: amputation of the left arm above the elbow; loss of the right leg below the knee; loss of all toes on the left foot; anoxic brain damage; organic personality syndrome; emotional distress; impotence; and neurogenic bladder and bowel and urinary incontinence. The plaintiff suffered diminished quality of life and requires 24-hour care.

Result

After mediation with Judge Coleman Fannin, the plaintiff settled with the City of Alameda and the Alameda Reuse and Redevelopment Authority for $25 million (policy limits). The workers' compensation lien of $1.4 million was reduced to $200,000 with an agreement by the State Compensation Insurance Fund to continue paying all future medical benefits for life.