GBB prepares to sue GWA and insurers over leakage claim | Guam News

According to GBB attorney Joyce Tang, federal administrator Gershman, Brickner & Bratton Inc. is preparing to sue the Guam Waterworks Authority and its insurer Dongbu Insurance over their lawsuit over water leaks that lead to excessive leachate at the former Ordot landfill.

“We submitted seven applications. I don’t think GWA is ready to comply, that’s the message I’m getting,” Tang said during a meeting with the Guam Solid Waste Authority board on Thursday.

Tang added that GBB has notified Dongbu so the insurer is aware of the claim and GBB assumes its claim is covered by relevant policies. Tang said GBB is preparing to file a lawsuit to confirm the claim and protect the claim for GSWA.

GBB is currently monitoring the former Ordot landfill as part of its duties as federal administrator. Last year, the company filed a $2.6 million lawsuit with GWA over alleged impacts that GWA water main leaks had on the plant’s leachate levels. This year, GBB filed updated claims with the water utility, increasing the amount to $4.4 million.

The District Court of Guam appointed GBB as the federal administrator for local waste management services in 2008. This was because the government of Guam had complied with a consent decree in the 2002 lawsuit that sought to force the closure of the Ordot Landfill due to environmental concerns.

The local waste disposal companies are still subject to partial compulsory administration. Daily waste collection was handed over to GSWA in 2019. GBB oversaw the capping and closure of the Ordot Landfill in 2016 and continued to be responsible for post-closure containment efforts.

Aftercare estimates for the former landfill skyrocketed in 2022, with increased leachate volume reportedly a major factor in the change. It was later discovered that water pipe leaks had occurred along Dero Road, which runs adjacent to one side of the landfill. GBB attributed the increased leachate discharge to the water leaks at the site.

Although GBB continues to pursue its claim, GovGuam sent an email to the bankruptcy trustee in August stating that GSWA could investigate and resolve the water leak problem on its own and that it neither welcomed the bankruptcy trustee’s involvement in a legal remediation effort on behalf of the agency was necessary.

GSWA Chairman Andrew Gayle indicated during a status hearing in September on the bankruptcy issue that board members were concerned about the cost of GBB resolving the leak issue as it was expected to take some time.

Leakage is also at the center of a lawsuit GovGuam is trying to file against the bankruptcy trustee.

GovGuam filed a lawsuit in Guam District Court earlier this year against contractors involved in the closure of the Ordot Landfill, alleging design and construction defects that led to elevated leachate levels at the facility.

The lawsuit was filed in a separate case known as the contractor case. GovGuam wanted to include GBB in this lawsuit, but the district court ruled that the receiver could not be sued without first obtaining court approval, particularly in the 2002 case that led to receivership, now known as the Consent Decree case.

GovGuam has filed a motion to sue the bankruptcy trustee in the consent decree case, but insists its claims are part of the contractor’s case.

Transition plan

The GSWA Board and GBB also discussed developing a transition plan for GSWA to assume full responsibility for activities following the closure of the Ordot Landfill. A plan must be submitted to the district court by October 31st. A special GSWA meeting is scheduled to take place on October 30 to discuss the transition plan.