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Archive for Tuesday, July 10, 1990

FORMER OWNER STILL WORKS FOR FIRM, DESPITE LAWSUIT

July 10, 1990

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An attorney for Professional Services Industries Inc., the Chicago-based firm that purchased Hall-Kimbrell Environmental Services Inc., says W. David Kimbrell, Hall-Kimbrell's co-founder, continues to work for the firm, despite being sued by PSI for $5 million.

However, Kimbrell, who stayed on as a consultant at Hall-Kimbrell after he sold the firm for an undisclosed amount in January, no longer maintains an office at the company's headquarters at 15th and Wakarusa Drive, said Robert Naibert, corporate counsel for PSI.

"He has had an office up until this point. He still works for the firm," Naibert said. "From this time forward he will not have an office on the campus."

Kimbrell has declined to comment about the lawsuit.

Meanwhile, Naibert said Kimbrell has not issued his response to the lawsuit filed against him by PSI Thursday in U.S. District Court in Wichita. Kimbrell has 20 days to answer the lawsuit, Naibert said.

The suit, which seeks $5 million in damages, claims Kimbrell and his wife, Janet, withheld information about their company and its potential liabilities from PSI before the sale.

Among those liabilities are fines of more than $1 million issued by the Environmental Protection Agency in May for failure to comply with EPA guidelines in inspecting school buildings in Colorado, Utah and Wyoming for asbestos in 1989

In its complaint, PSI said that in addition to the EPA fines, it could cost the company "millions of dollars" to redo the inspections and rewrite previously submitted plans.

Meanwhile, Naibert said that PSI plans to hold another informal settlement meeting with the EPA in about a month.

Kimbrell co-founded Hall-Kimbrell in 1983 and the company has grown to be among Lawrence's largest employers. Before PSI bought the firm, Hall-Kimbrell had 700 employees and estimated its 1989 sales at nearly $44.5 million.

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