United States Attorney
Northern District of Texas

1100 Commerce St., 3rd Fl.
Dallas, Texas 75242-1699

Telephone (214) 659-8600
Fax (214) 767-0978

$2.33 MILLION IN SETTLEMENT FUNDS RECEIVED
FROM CONSTRUCTION COMPANIES WHO
CAUSED FLOOD IN DOWNTOWN DALLAS FEDERAL BUILDINGS IN 2000

U.S. Attorney Richard B. Roper, of the Northern District of Texas, announced today the receipt of $2.33 million in settlement funds from Dynamic Cable Construction and Reata Construction Company to compensate the U.S. for flood damage that occurred in September 2000 to two federal buildings in downtown Dallas.

This affirmative civil case successfully collected water loss damages to General Services Administration (GSA) federal property located at 1100 and 1114 Commerce Street, in Dallas, also known as the Earle Cabell Federal Building/U.S. Courthouse and the Santa Fe Federal Building, resulting from a catastrophic break of a 30-inch pressurized underground water main flooding an abandoned rail tunnel connected to the federal buildings.

In November 2004, a federal jury in Dallas returned a verdict against Dynamic Cable Construction Company and Reata Construction Company to compensate the U.S. for damage when the force of water flooded the tunnel from Young Street to the wall that separates the Santa Fe Federal building from the Santa Fe Terminal Lofts building. The intense water pressure forced the collapse of the sealed concrete cinder block tunnel entrance causing the basement in the Santa Fe Federal building to be demolished and flooding into the basement and sub-basement of the Earle Cabell Federal Building/U.S. Courthouse.

Due to the construction companies’ negligence, 30-40 million gallons of treated water were released into the tunnel and surrounding city streets, causing the Dallas central business district, between Young, Jackson and Griffin Streets, to resemble a large lake with geysers spouting water from breaks in the tunnel’s ceiling. (See attached .jpg files) The Santa Fe Federal building, with 12 feet of water in it, was closed for seven days, while the Earle Cabell Federal Building/United States Courthouse was closed for two days. The calamity happened during a period of record-setting heat in Dallas and while most of the city was under some type of water restrictions because of the lack of rainfall.

Neither Reata Construction Company nor Dynamic Cable Construction Company had obtained maps and design plans in order to avoid city water utilities. Dynamic Cable Construction Company was the licensee which had contracted with the City of Dallas to safely lay fiber optic conduits beneath city streets. Dynamic had specifically agreed to obtain city maps and plans prior to proceeding with the project. However, they drilled with a blind eye, and even after they were surprised to discover the Santa Fe Railroad Tunnel, a structure 20 feet deep and 50 feet wide under Young Street, neither Reata nor Dynamic stopped to consult any of the city’s water utility maps or plans for that area of Young Street.

Dynamic Construction Company and Reata Construction Company appealed their trial loss that resulted in the judgment of $2,212,636.72, plus costs and interest. The case was settled while pending before the U.S. Court of Appeals for the Fifth Circuit. The settlement agreement gave the U.S. essentially full recovery of the amount due as of that date, $2.33 million.

The case was handled by Assistant U.S. Attorneys Katherine Savers McGovern and Steve Fahey.

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