E-FILED

THURSTON COUNTY, WA
SUPERIOR COURT
July 24, 2017
Linda Myhre Enlow
1 EXPEDITE (if filing within 5 court days of hearing)
No hearing is set. Thurston County Clerk
Hearing is set:
2 Date: September 1, 2017
Time: 9:00 a.m.
3 Judge/Calendar: Carol Murphy - Civil The Honorable Carol Murphy
4

6
IN THE SUPERIOR COURT OF THE STATE OF WASHINGTON
7 FOR THURSTON COUNTY
8 WASHINGTON STATE DEPARTMENT OF
TRANSPORTATION,
9 No. 16-2-00980-34
Plaintiffs,
10 (Consolidated with Cause No.
v. 16-2-04826-34)
11 SEATTLE TUNNEL PARTNERS, a joint DECLARATION OF BRIAN NIELSEN
venture,
12 IN SUPPORT OF WSDOTS MOTION
FOR PARTIAL SUMMARY
Defendants.
13 JUDGMENT

14 SEATTLE TUNNEL PARTNERS, a

Washington joint venture,
15
Third-Party Plaintiff,
16
v.
17
HITACHI ZOSEN U.S.A., LTD, a Delaware
18 corporation; HITACHI ZOSEN
CORPORATION, a foreign corporation; and
19 HNTB CORPORATION, a Delaware
corporation,
20
Third-Party Defendants.
21

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DECLARATION OF BRIAN NIELSEN ISO WSDOTS

MOTION FOR SUMMARY JUDGMENT 1 STOEL RIVES LLP
ATTORNEYS
600 University Street, Suite 3600, Seattle, WA 98101
93328077.1 0081287-00001 Telephone (206) 624-0900
 1
HITACHI ZOSEN U.S.A. LTD.,
2
Fourth-Party Plaintiff,
3
v.
4
WASHINGTON STATE DEPARTMENT OF
5 TRANSPORTATION, FIDELITY AND
DEPOSIT COMPANY OF MARYLAND;
6 ZURICH AMERICAN INSURANCE
COMPANY; LIBERTY MUTUAL
7 INSURANCE COMPANY; TRAVELERS
8 CASUALTY AND SURETY COMPANY OF
AMERICA; FEDERAL INSURANCE
9 COMPANY; AND SAFECO INSURANCE
COMPANY OF AMERICA,
10
Fourth-Party Defendants.
11

12
HITACHI ZOSEN U.S.A. LTD.,
13
Plaintiff,
14
v.
15
WASHINGTON STATE DEPARTMENT OF
16 TRANSPORTATION and SHANNON &
WILSON, INC.,
17
Defendants.
18
SEATTLE TUNNEL PARTNERS, a joint
19 venture,
20 Plaintiff,
21
v.
22
SHANNON & WILSON, INC., a Washington
23 corporation; and WSP USA, INC., formerly
known as PARSONS BRINCKERHOFF,
24 INC., a New York corporation,
25
Defendants.
26

DECLARATION OF BRIAN NIELSEN ISO WSDOTS

MOTION FOR SUMMARY JUDGMENT 2 STOEL RIVES LLP
ATTORNEYS
600 University Street, Suite 3600, Seattle, WA 98101
93328077.1 0081287-00001 Telephone (206) 624-0900
 1 I, BRIAN NIELSEN, state and declare as follows:
2 1. I am employed by the Washington State Department of Transportation
3 (WSDOT) as the deputy administrator for the Alaskan Way Viaduct Replacement Program
4 (the Project). I make the statements in this Declaration from my personal knowledge in
5 support of WSDOTs Second Motion for Partial Summary Judgment.
6 2. My duties include administration of the WSDOT/STP contract (Contract) for
7 work on the Project. True and correct portions of the Contract are attached as follows:
8 a. Portions of the General Terms and Conditions are in Exhibit A.
9 b. Portions of Appendix 2 (Abbreviations and Definitions) are in Exhibit B.
10 c. Portions of the Geotechnical and Environmental Data Report (GEDR) text and
11 appendices are in Exhibit C.
12 3. Under the Contract, WSDOT may be responsible if STPs work is affected by
13 Type 1 Differing Site Conditions. These are defined in Appendix 2 (in Exhibit B to this
14 Declaration) as follows (the part relevant to STPs claim for Differing Site Conditions is quoted):
15
Differing Site Conditions . . . means (1) actual subsurface or latent physical
16
conditions at the Site that are substantially or materially different from the
17 conditions identified in the Geotechnical Baseline Report, the Environmental
Baseline Report, or the Geotechnical & Environmental Data report as set forth
18 in Section 5.7.2
19 Contract Section 5.7.2, referenced in this definition (in Exhibit A to this Declaration),

20 provides:

21 In the event the Geotechnical Baseline Report or Environmental Baseline

Report, as applicable, is silent with respect to a particular geotechnical or
22 environmental condition, Design-Builder may rely upon the Geotechnical &
Environmental Data Report . . . as describing such condition.
23

24 4. Article 24 of the Contract establishes a Disputes Review Board (DRB) to make

25 non-binding recommendations about resolving project disputes. In 2015, STP and WSDOT
26 asked the DRB to consider whether TW-2 was a Type 1 Differing Site Condition. STP

DECLARATION OF BRIAN NIELSEN ISO WSDOTS

MOTION FOR SUMMARY JUDGMENT 3 STOEL RIVES LLP
ATTORNEYS
600 University Street, Suite 3600, Seattle, WA 98101
93328077.1 0081287-00001 Telephone (206) 624-0900
 1 submitted position papers to the DRB that advanced its two-inch PVC theory. In its written
2 submissions and in its oral presentation to the DRB, STP suggested that it had been misled by
3 erroneous information in the GEDR. STP did not tell the DRB that (a) no one at STP ever
4 believed that TW-2 had a two-inch PVC casing, (b) STP actually knew about TW-2 and its
5 eight-inch casing, (c) STPs geotechnical manager, Tony Stirbys, recognized that TW-2 should
6 be closed down before we tunnel, (d) after burying TW-2 with crushed concrete and gravel,
7 STP forgot that it was there until the TBM hit it, and (e) STP invented the two-inch PVC
8 theory after-the-fact for claim purposes. WSDOT did not know these facts at the time of the
9 DRB hearing and STP did not volunteer them.
10 5. STPs contract, Section 5.7.3.1 (in Exhibit A), provides:
11
[I]f in the exercise of due diligence and standard of care Design-Builder
12
determines or reasonably should have determined that it has encountered
13 Differing Site Conditions, Design-Builder shall provide written notice to
WSDOT. Such notice shall be provided within seven days (for the tunnel) or
14 promptly (for all other areas) after the date of such determination or date the
Design-Builder should have known of the conditions.
15

16 Contract Section 5.7.3.4 (also included in Exhibit A) provides that failure to give timely
17 notice shall result in a waiver of STPs claim for Differing Site Conditions.
18 6. STPs contract, Section 2.2(f) (copy in Exhibit A), requires STP to comply with
19 all requirements of all Laws. Laws are defined in Appendix 2 (copy in Exhibit B) in part as
20 follows:
21 Law or Laws means all applicable federal, state and local laws, codes, ordinances,
rules, [and] regulations. . . .
22

23 7. STPs Contract, Section 11.7.1 (copy in Exhibit A), provides that STP is not

24 entitled to any increase in compensation for costs caused by the breach of contract or fault or

25

26

DECLARATION OF BRIAN NIELSEN ISO WSDOTS

MOTION FOR SUMMARY JUDGMENT 4 STOEL RIVES LLP
ATTORNEYS
600 University Street, Suite 3600, Seattle, WA 98101
93328077.1 0081287-00001 Telephone (206) 624-0900
 1 negligence, or act or failure to act of any DB-Related Entity." Section 11.7.2.2(c) (copy in

2 Exhibit A) imposes the same restriction on claims for damages due to delay. "DB-Related

3 Entities" are defined in STP's Contract, Appendix B (copy in Exhibit B), to include STP.
4 8. I make the statements in this Declaration under penalty of perjury under the laws
5
of the State of Washington.
6

7 SIGNED at e.t\}t) , Washington this day of July, 2017.

8
9 Brian Nielsen
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DECLARATION OF BRIAN NIELSEN ISO WSDOT'S

MOTION FOR SUMMARY JUDGMENT - 5 STOEL RlvES LLP
ATTORNEYS
600 University Street, Suite 3600, Seattle, WA 98101
93328077.1 0081287-00001 Telephone (206) 624-0900
 1 DECLARATION OF SERVICE
2 Cindy Castro hereby declares as follows:
3 1. I am a legal practice assistant employed by the law firm of Stoel Rives LLP, a
citizen of the United States, over the age of 18 years, not a party to this matter, and competent to
4 testify herein.
5 2. On the date indicated below, I caused to be delivered one true and correct copy of
the foregoing document on counsel of record as follows:
6
7 Attorneys for Defendant and Third Party
Plaintiff Seattle Tunnel Partners
8 hand delivery via legal messenger
John Parnass, WSBA #18582 overnight delivery
9 Zachary Tomlinson, WSBA #35940 mailing with postage prepaid
Sarah S. Washburn, WSBA #44418 e-service per agreement of the parties:
10 PACIFICA LAW GROUP, LLP john.parnass@pacificalawgroup.com
1191 Second Avenue, Suite 2000 zak.tomlinson@pacificalawgroup.com
11 Seattle, WA 98101 sarah.washburn@pacificalawgroup.com
Phone: 206 245-1700
12
Joseph L. Luciana, III, PA Bar #50286* overnight delivery
13 John R. Dingess, PA Bar #28861* mailing with postage prepaid
Samantha L. Brutout, PA Bar #203553* e-service from King County ECF system
14 Brian R. Davidson, PA Bar #74684* e-mail service per agreement of the parties:
James S. Malloy, PA Bar #89354* jluciana@dfllegal.com
15 DINGESS, FOSTER, LUCIANA, DAVIDSON jdingess@dfllegal.com
& CHLEBOSKI, LLP sbrutout@dfllegal.com
16 20 Stanwix Street, 3rd Floor bdavidson@dfllegal.com
Pittsburgh, PA 15222 jmalloy@dfllegal.com
17 *Admitted pro hac vice
18 Attorneys for Third Party Defendants and
Fourth Party Plaintiff Hitachi Zosen U.S.A.,
19 Ltd. and Hitachi Zosen Corporation hand delivery via legal messenger
overnight delivery
20 Richard O. Prentke, WSBA #5786 mailing with postage prepaid
Andrew L. Greene, WSBA #35548 e-service per agreement of the parties:
21 Brendan J. Peters, WSBA #34490 rprentke@perkinscoie.com
V.L. Woolston, WSBA #9453 vwoolston@perkinscoie.com
22 Mica D. Simpson, WSBA #46596 agreene@perkinscoie.com
Nicholas P. Gellert, WSBA #18041 bpeters@perkinscoie.com
23 Jonathan P. Goddard, WSBA #49872 msimpson@perkinscoie.com
Todd W. Rosencrans, WSBA #26551 ngellert@perkinscoie.com
24 PERKINS COIE LLP jgoddard@perkinscoie.com
1201 Third Avenue, Suite 4900 trosencrans@perkinscoie.com
25 Seattle, WA 98101
Phone: 206 359-8000
26

DECLARATION OF BRIAN NIELSEN ISO WSDOTS

MOTION FOR SUMMARY JUDGMENT 6 STOEL RIVES LLP
ATTORNEYS
600 University Street, Suite 3600, Seattle, WA 98101
93328077.1 0081287-00001 Telephone (206) 624-0900

1 Attorneys for Third Party Defendants HNTB
Corporation
2 hand delivery via legal messenger
Bradley G. Taylor, WSBA #18611 overnight delivery
3 John V. Leary, WSBA #36345 mailing with postage prepaid
Petra N. Ambrose, WSBA #48924 e-service per agreement of the parties:
4 GORDON & REES, LLP btaylor@gordonrees.com
701 Fifth Avenue, Suite 2100 jleary@gordonrees.com
5 Seattle, WA 98104 pambrose@gordonrees.com
Phone: 206 689-5100
6
hand delivery via legal messenger
7 Stephen B. Hart* overnight delivery
Christine E. Drage* mailing with postage prepaid
8 Jenifer J. Brannen* e-service per agreement of the parties:
Mark E. Petersen* bhart@weildrage.com
9 Sheila K. McDonald* cdrage@weildrage.com
Catherine L. Rigney* jbrannen@weildrage.com
10 WEIL & DRAGE mpetersen@weidrage.com
23212 Mill Creek Drive smcdonald@weildrage.com
11 Laguna Hills, CA 92653 crigney@weildrage.com
Phone: 949 837-8200
12 (*Admitted Pro Hac Vice)
13 Attorneys for Defendant Shannon & Wilson

14 Terry Scanlan, WSBA #19498 hand delivery via legal messenger
Patricia A. Robert, WSBA #46716 overnight delivery
15 Rochelle Y. Nelson, WSBA #48175 mailing with postage prepaid
SKELLENGER BENDER e-service per agreement of the parties:
16 1301 Fifth Avenue, Suite 3401 tscanlan@skellengerbender.com
Seattle, WA 98101 aschuchman@skellengerbender.com
17 Phone: 206 623-6501 probert@skellengerbender.com
rnelson@skellengerbender.com
18

19 Attorneys for Fourth-Party Defendants, the

Sureties
20 hand delivery via legal messenger
Thomas K. Windus, WSBA #7779 overnight delivery
21 WATT, TIEDER, HOFFAR mailing with postage prepaid
& FITZGERALD, LLP e-service per agreement of the parties:
22 1215 Fourth Avenue, Suite 2210 twindus@watttieder.com
Seattle, WA 98161
23 Phone: 206 204-5800
24

25

26

DECLARATION OF BRIAN NIELSEN ISO WSDOTS

MOTION FOR SUMMARY JUDGMENT 7 STOEL RIVES LLP
ATTORNEYS
600 University Street, Suite 3600, Seattle, WA 98101
93328077.1 0081287-00001 Telephone (206) 624-0900
Exhibit A
Exhibit B
Exhibit C