Trammell Crow foes vow to keep fighting

Opponents of the outsourcing plan said they will refile their failed lawsuit after the deal is finalized. This week's dismissal of a lawsuit challenging the University's proposal to outsource its facilities-management to the Trammell Crow Co. may not spell the end of the legal fight against the deal, as the attorney representing the plaintiffs said he is ready to try again. Stephen Pennington, who is representing the employees suing Penn and Trammell Crow, said the dismissal "does not affect the merits of the case" and the plaintiffs "fully anticipate re-filing the case when a contract [between the two sides] is signed." The initial suit, which sought class-action status for all employees affected by the deal, alleged that Penn and Trammell Crow officials conspired to avoid providing University employees with benefits such as vacation days and tuition reimbursement. Additionally, the suit accused the defendants of wanting to implement reductions in employees' pensions and health coverage. But U.S. District Judge Ronald Buckwalter dismissed the lawsuit Tuesday on the grounds that the plaintiffs have not yet suffered any damages because no contract has been finalized Trammell Crow and the University. Penn and Trammell Crow signed a nonbinding letter of intent October 8 and are now close to finalizing the deal. Trammell Crow, a Dallas-based real estate management firm, is scheduled to take over the management of most University buildings April 1. Currently, University and Trammell Crow officials are discussing changes in the proposed contract, which was originally to be a 10-year agreement, that would ensure that University properties managed by Trammell Crow retain their tax-exempt status. University spokesperson Ken Wildes said yesterday that officials are not concerned about another challenge from the plaintiffs. "They have every right to re-file the suit," Wildes said. "If they do so, fine. The litigation does not affect our business decision to go forth. And we will [go forth]." The three employees and one of their wives filed the suit in October, two weeks after the announcement that management of University facilities would be outsourced to the real estate company. In the suit, the plaintiffs accused Penn and Trammell Crow of violating the federal Employee Retirement Income Security Act, which regulates employment benefits. The judge, however, ruled that no such violation had occurred since Trammell Crow has not yet taken over. It is not clear whether the two divisions of Trammell Crow named as defendants in the suit would be included in any future suits. Trammell Crow officials said Tuesday that the dismissal meant that they were improper defendants in the case since they are not the original employers, and thus could not have taken any benefits away from the employees. Pennington said he has not carefully reviewed the decision and was unsure whether he would include the company again. The outsourcing deal affects approximately 160 employees, roughly 122 of whom were offered jobs in December by Trammell Crow. Officials estimate the agreement will save the University between 5 percent and 15 percent on facilities management costs, which this year totaled about $100 million. University and Trammell Crow officials have emphasized since the October 8 announcement that employee benefit packages will not be substantially cut. The deal attracted controversy after it was made public because of a perceived lack of consultation between officials and the University community before the announcement. The plaintiffs are Richard Cipollone of Swarthmore, Lisa Karnincic of Philadelphia, and Donald Calcagni and his wife Linda of Levittown.

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