Mediation that Worked: Role of Osha in L'Ambiance Plaza Settlement

As a workplace disaster, the L'Ambiance Plaza building collapse triggered an investigation conducted by OSHA with the technical assistance of the National Bureau of Standards. Following the investigation, OSHA charged several contractors with violations and levied the highest fines in its history. In addition, the matter was referred to the U.S. Department of Justice for consideration of possible criminal prosecution. Not long after the collapse occurred, however, a joint federal and state judicial mediation panel began to explore the possibility of a “global” settlement of all L'Ambiance Plaza‐related lawsuits. The central goal of that effort was to provide as large a settlement fund as possible for victims and their families, without protracted litigation. OSHA eventually became involved in this process, and ultimately reached a mediated resolution of its claims as part of a package that settled all disputes arising from the collapse.