WSPE eNews

A monthly publication from the Wisconsin Society of Professional Engineers

January 2009 Edition

1. 

WSPE's President's Corner

2.

2009 Engineers Week Resources - Feb. 15-21, 2009

3.

Entries Encouraged for WSPE’s 2009 Governor’s New Product Awards Competition

4. College of Engineering, Math and Science (EMS) Expo April 2, 2009
5. The Effects of § 895.447, Wis. Stats., Voiding Certain Agreements that Limit or Eliminate Tort Liability Upon Indemnity Agreements in Standard Design Contracts
By Attorney Robert J. Kay
6. Welcome New WSPE Members

1.

WSPE's President's Corner

Fellow P.E.s,

2008 was a year that I will long remember. I am amazed at the amount of snow we have been getting. I think we were spoiled for a number of years, and it looks like the weather gods are in the payback mode. Of course, having spent my undergraduate time at Michigan Tech during a record snowfall year, this isn’t much of anything. If it gets so bad that I have to enter my house through the second floor window, as they do in some places in Michigan’s U.P., it will be time to worry. If it wasn’t for the negative environmental impacts, global warming may not be a bad deal.

If it isn’t the weather it is the economy. And, of course, to a lesser degree, if you are a football fan, there is the downfall of the Packers and Badgers. It has been a tough year in the Wisconsin football scene.

Even amidst all the turmoil and negativity in 2008, there are no doubt much worse problems. Let’s be thankful for the good things and try to maintain a positive outlook as we move into 2009.

As a reminder, the 2009 WSPE Discovery Conference and Governor’s New Product Award dinner are scheduled for Thursday, April 23, 2009 in Green Bay. The Discovery Conference will focus on topics relating to the “Future of Energy.” While the final list of speakers and topics is still in development, we have several potential speakers from Wisconsin’s Office of Energy Independence, Great Lakes Bioenergy Research Center, Electric Power Research Institute, and Wisconsin Public Service Corporation. We hope to finalize the program by mid-January. We still have room on the program for additional speakers. Topics that would be of particular interest would be in the areas of solar energy, fuel cell technology, coal, oil, and geothermal energy. Please give me a call or e-mail me (Michael.Lefebvre@gasai.com) if you have any ideas. The GNPA dinner will be held at Lambeau Field. In addition to outstanding technical sessions, the venue will be exceptional. Please put this conference and GNPA dinner on your 2009 schedule.

One last note….we are in need of an individual to fill the vacant spot of Young Engineer Representative on the WSPE State Board. If you know of someone or feel that you would like to be that person, give me a call or e-mail me. It is a great opportunity to get involved with WSPE on a State level and work with some great professionals.

Have a great holiday season and a super 2009.

Michael J. Lefebvre, P.E.

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2.

2009 Engineers Week Resources - Feb. 15-21, 2009

Engineers Week (E-Week) occurs from February 15-21, 2009, and it is a great time for engineers to get out to local schools and teach children of all ages about the exciting opportunities available in engineering and related fields. WSPE has access to information on a wide variety of classroom activities and presentations to help make it easy for our members to reach out to schools and encourage more kids to pursue careers in engineering.

If you have never done anything like this before, you will be amazed at how easy and rewarding it is! Kids are very curious, but many of them have no idea what kinds of things engineers do or how critically important our work is. By doing a presentation that explains the different types of engineering or by working with kids on classroom activities, you can open up a whole new world of possibilities. The participating kids benefit from the adventure, and they tell their friends about it, so the learning and excitement at Engineers Week has a ripple effect among children.

Please consider taking a little time around E-Week to contact a school and arrange a time to do a presentation or activity. Contact Chad O'Donnell, P.E., at 414-278-3347 or codonnell@hga.com for more information. Thank you for your support of the engineering profession!

NSPE Partners with “Design Squad”

The National Society of Professional Engineers (NSPE) has partnered with “Design Squad” a 30-minute television program that airs nationally on PBS to encourage its members to promote the engineering profession to future generations. The “Design Squad” Web site contains a wealth of resources for engineers to use to help young people experience engineering first-hand. The activities found on the Engineers page can be easily duplicated for in-school presentations. The site also includes a profiles and video library of copyright-free videos that could be used to highlight different aspects of the profession.

We encourage you to use these resources and visit a local school during National Engineers Week (February 15-21, 2009).

For more information about the “Design Squad” program please click here.

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3.

Entries Encouraged for WSPE’s 2009 Governor’s New Product Awards Competition

You are invited to enter the Wisconsin Society of Professional Engineers (WSPE) 2009 Governor’s New Product Awards (GNPA) Competition. Applications are due February 16, 2009. The awards ceremony and banquet will be held Thursday evening, April 23, 2009 inside Lambeau Field’s Legends Club Room, Green Bay, WI. For applications, click here.

The 2009 GNPA winners will be entered into NSPE’s (National Society of Professional Engineers) 2010 new product competition. Last year, two companies from WI (InSinkerator and Cummins) won at NSPE’s 2008 competition.

For additional information, please contact Dale R. Swenson, P.E., WSPE Chair, 414-343-8452, dale.swenson@harley-davidson.com.

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4.

College of Engineering, Math and Science (EMS) Expo April 2, 2009

Mark your calendars! This expo has two purposes: to inform youth what engineering, mathematics and science are all about, and to provide incentive for the challenge awaiting those of you who choose a career in one of these fields. You will have the opportunity to observe students and faculty “in action” and to see what people educated at UW-Platteville College of Engineering, Mathematics and Science can do.

Look for more information soon at: http://www.uwplatt.edu/EXPO.

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5.

The Effects of § 895.447, Wis. Stats., Voiding Certain Agreements that Limit or Eliminate Tort Liability Upon Indemnity Agreements in Standard Design Contracts
By Attorney Robert J. Kay

In the last issue of this publication I discussed the indemnity agreements that are found in standard design contracts. In that article I discussed the indemnification provisions found in AIA Document A201 - 2007, § 3.18 and EJCDC C-700 - 2007, § 6.20. Those indemnity provisions in standard design contracts must be evaluated along with § 895.447 of the Wisconsin Statutes which provides:

895.447 Certain agreements to limit or eliminate tort liability void.
(1) Any provision to limit or eliminate tort liability as a part of or in connection with any contract, covenant or agreement relating to the construction, alteration, repair or maintenance of a building, structure, or other work related to construction, including any moving, demolition or excavation, is against public policy and void.
(2) This section does not apply to any insurance contract or worker’s compensation plan.
(3) This section shall not apply to any provision of any contract, covenant or agreement entered into prior to July 1, 1978.

The Wisconsin Court of Appeals has addressed the issue of whether § 895.447, Wis. Stats., voided indemnity agreements contained in construction contracts for a project. In Gerdmann v. U.S. Fire Insurance Company, 119 Wis. 2d 367, 350 N.W.2d 730 (Ct. App. 1984), the Wisconsin Court of Appeals held that § 895.49, Wis. Stats. (renumbered § 895.447 by 2005 Act 155, § 49, effective April 5, 2006) did not void indemnity agreements contained in construction contracts. The Court held that indemnity clauses were not mentioned in the statute and that it would be unreasonable to conclude that the legislature intended to apply the statute to indemnity agreements. The effect of the decision was to permit owners and contractors on a construction project to enter into construction agreements that contained indemnity provisions notwithstanding § 895.447, Wis. Stats.

In the Gerdmann case, Gerdmann, an employee of Bay Shipbuilding, was injured when he was accidentally struck by a wooden pole when a Roen Salvage Company truck flipped the pole along a haul road on property owned by the Manitowoc Company, Inc. Roen and its insurance carrier settled with Gerdmann for $3,000,000 and Roen brought an action against Manitowoc claiming that Manitowoc had violated the Safe Place Statute by laying the poles near the haul road. The jury found in favor of Manitowoc and the circuit court entered judgment in favor of Manitowoc and against Roen because Manitowoc had counterclaimed for indemnification. The construction contract between Manitowoc and Roen stated:

Contractor shall indemnify the Owner and Engineer against and hold the Owner and Engineer harmless from any and all liability for damages on account of injury, including death, to persons, including employees of Contractor, or damage to property resulting from or arising out of or in any way connected with the performance of work under this Contract by Contractor or any Subcontractor. In addition, Contractor shall reimburse Owner for all costs, expenses, and loss incurred by them in consequence of any claims, demands, and causes of action, whether meritorious or not, which may be brought against them and arising out of the operations covered by the Contract . . . . Contractor shall pay any costs, including Attorney’s fees, that may be incurred by Owner in enforcing this indemnity . . . .

The Court of Appeals in Gerdmann was willing to apply the indemnity agreement to Roen’s action for contribution against Manitowoc. The Court stated:

Roen claims that the plain meaning of the clause’s language shows that the clause does not apply when the parties to the agreement are adverse. Both parties contend that the language of the agreement is clear, and the trial court’s decision was based only upon the language of the written agreement . . . .

The plain language of the clause is unambiguous. Roen argues that the use of the word ‘them’ in the clause refers to both Roen and Manitowoc, and that the clause only covers actions brought against both. The clause, however, requires Roen to reimburse ‘Owner for all costs . . . incurred by them.’ . . .

The indemnity clause provides for reimbursement of costs and fees Manitowoc incurs ‘in consequence of any claims, demands, and causes of action . . . which may be brought against them and arising out of the operations covered by the Contract.’ The clause does not distinguish between claims brought by third parties and actions brought for contribution. It covers ‘any claims’ arising from the dredging operations, which includes an action for contribution.

The Court of Appeals in Gerdmann noted that the Wisconsin Supreme Court in Dykstra v. Arthur G. McKee, decided in 1981, noted that § 895.49 does not necessarily outlaw indemnity agreements of this type, although the court in Dykstra did not have to decide that question because the statute was not in effect when the Dykstra indemnity agreement was made. Nonetheless, the Gerdmann court noted that Supreme Court’s observation was important. The Gerdmann court stated:

This indemnity agreement neither limits nor eliminates Manitowoc’s tort liability to third parties. Rather, it makes Roen the insurer should damages result. The Dykstra footnote indicates that the supreme court did not believe that the statute clearly voids such indemnity agreements, and since the statute must be interpreted as narrowly as possible, we will not extend its coverage to void this indemnity agreement.

The Gerdmann decision demonstrates that the indemnity agreements found in construction contracts protecting owners and design professionals is alive and well, notwithstanding § 895.447 of the Wisconsin Statutes.

Attorney Robert J. Kay is the senior partner in the law firm of Kay & Andersen, S.C. and devotes his time to representing professional engineers, architects, contractors, material suppliers and owners of construction projects. Please feel free to contact him at (608) 833-0077 or visit www.kayandandersen.com.

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6.

Welcome New WSPE Members

The WSPE board of directors would like to extend a heartfelt welcome to the following new WSPE members:

  • Dale B. Lindemer
    National Engineering Manager
    ThyssenKrupp Safway, Inc.
    Southeast Chapter

New members contribute to the growth, strength and leadership of the WSPE in enhancing its recognition as a leading voice for Professional Engineers throughout Wisconsin and promoting excellence in engineering.

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