Wal-Mart Stores, Inc., partnered with a general contractor to build a store in Washington, Ind. Under the contract, representatives were required to perform daily stormwater pollution prevention program (SWPPP) inspections of the job site and complete inspection reports, and once every two weeks, a compliance officer was to perform an inspection and complete a report.
On September 12, 2005, the contractor’s project manager, performing the role of compliance officer, signed a daily inspection report without having actually visited the job site on that date.
Wal-Mart was already operating under two consent decrees with the EPA related to stormwater violations. When the company discovered that the daily inspection submission was “false or misleading,” they terminated the contract and filed suit against the contractor.
The Court ruled in favor of Wal-Mart. It was determined that the contractor breached the agreement, and as a result, Wal-Mart was awarded damages in excess of $3 million.
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