07.01.2016

Lomma files for bankruptcy

New York crane company owner James Lomma has filed for Chapter 11 bankruptcy protection.

The move came after the two families of two men who died in a 2008 tower crane collapse in the city, were given leave to collect the combined award of $96 million for compensation and punitive damages, that resulted from their civil law suit against him.

Lomma, 70, is reported to have filed for Chapter 11 bankruptcy for himself and three of his companies. A statement from Lomma’s legal team said that the filing was initiated in order to seek protection from creditors while an appeal against the verdict goes ahead, after a judge ruled that the claimants could collect prior to the appeal being heard.

According to the filing other debtors include some relatively minor amounts state and federal taxes and one or two substantial debts to a partner and a finance company. Lomma said that his personal assets are less than $10 million, while his liabilities could amount to around $50 million.

Last month the New York Post reported a claim from the families of crane operator Donald Leo and construction worker Ramadan Kurtaj, that Lomma had been moving assets to a company set up in the name of his daughter. As far as we know this has not been corroborated.

The lawyers representing the two families said: “Mr Lomma has filed for bankruptcy simply to avoid accountability to the families who have waited almost eight years for justice for their sons.”
Click here to see initial report on verdict
Click here to see Families win civil trial