New York Crane Owner Files for Bankruptcy after Jury Award

January 7, 2015 - James F. Lomma, the owner of a tower crane that collapsed in 2008 and killed two crew members, filed for chapter 11 bankruptcy along with his companies after a $96 million jury award to the victims last year.

 

Lomma said he decided to file for bankruptcy to try to preserve his business while he appeals the verdict, according to the Wall Street Journal. The action halts attempts from creditors, including the victims, to collect money while the companies and he are in bankruptcy. Court papers say he will ask for permission to continue his appeal during the case.

 

In May 2008, a crane owned by New York Crane & Equipment Corp. collapsed in Manhattan, killing a crane operator and a crew member. The collapse was the second deadly incident in several months involving New York Crane. The company is also a defendant in a March 2008 crane collapse in Manhattan that killed six crew members and a tourist; injured 24 including 11 first-responders; and damaged or destroyed six buildings.

 

 

In 2009, the families of the workers killed in the May 2008 accident brought wrongful-death suits against Lomma. The New York District Attorney also filed criminal charges, but Lomma was acquitted. After years in court, a jury awarded $48 million in each case last year. Liability was assigned 61% to Lomma personally; 19% to New York Crane & Equipment; and 20% to J.F. Lomma Inc.