The Weekend Economists' Panglossian Pandemic January 20-22, 2012

[Demeter]

74. 'The law is clear': Judge jails 84-year-old billionaire for contempt after failing to finish Bridge

'The law is clear': Judge jails 84-year-old billionaire for contempt after failing to finish Michigan-Canada bridge project


http://www.dailymail.co.uk/news/article-2085900/Billionaire-84-jailed-finishing-Michigan-Canada-bridge-project.html

The elderly billionaire owner of Detroit's Ambassador Bridge has been jailed January 13th... for failing to meet court-ordered deadlines on a multimillion dollar construction project. Manuel 'Matty' Moroun, along with company president Dan Stamper, has been sent to jail until his company complies with a 2010 court order to get the work on the $230m Gateway project done. It is not yet clear how long the men will stay behind bars, but the work could take up to a year. Detroit International Bridge Co. was declared in contempt of court in November for failing to finish work on the state ordered project linking the U.S.-Canada span with two Detroit interstates. The bridge, which handles 8,000 trucks a day and $100 billion in trade every year, accounts for the bulk of Mr Moroun's £1.5 billion fortune...'It is clear that the Detroit International Bridge Co. does not intend to comply with the court orders unless meaningful sanctions are imposed,' Wayne County Judge Prentis Edwards said. Lawyers for Mr Moroun and Mr Stamper asked Judge Edwards to suspend his decision so they could appeal, but the judge declined.

Ken Mogill, lawyer for Mr Stamper, said the judge was 'absolutely wrong' since it is the company, not the men, that was earlier found in contempt. 'Neither Mr Moroun nor Mr Stamper had received a notice that they individually could be facing consequences,' Mr Mogill said. 'It’s not enough that a company has been found in contempt. The law is so clear.' Stunned Mr Moroun, who according to Forbes is the 259th richest American, and Mr Stamper were escorted out of the courtroom to be booked in by deputies. The bridge company must also pay $7,500, the maximum under state law for civil contempt, and the state’s legal fees. Their lawyers said they would immediately go to the Michigan Court of Appeals seeking to suspend the judge’s order and free them.

The state of Michigan sued the company after it failed to meet a 2008 deadline to finish its part of a $230-million project to improve traffic at the bridge connecting Detroit to Windsor, Canada. The privately-owned Ambassador Bridge is the busiest crossing between the United States and Canada, providing a continuous flow of auto parts and completed vehicles each way from Detroit to Windsor, Canada.The project was intended to link the bridge with Interstate 75 and Interstate 96 in the United States directly, pulling the almost continuous flow of semitrailer trucks off surface streets. Instead, the company has failed to correct variations from the plan and the other parts have not been completed. Gregory Johnson, MDOT chief of operations, said it could take a year to get the work done. 'We take no joy or satisfaction in seeing these gentlemen incarcerated,'Mr Johnson said. 'Our only goal is to see this contract, this project, completed.'

The hearing began with lawyers for Mr Moroun insisting he is not the real owner. They say a Moroun trust has a minority stake in a holding company that owns the bridge. But state officials say Mr Moroun clearly is in charge, and the judge agreed. 'Mr Moroun has the power, the authority to make sure there is compliance.' with court orders, Judge Edwards said.
After a November hearing, state engineer Tony Kratofil said the bridge company has done only 'superficial' work to follow the judge’s previous orders. Without the improvements, he said, trucks are stuck using neighbourhood roads. Mr Kratofil said on Thursday there was still a lack of progress on the project.