Steve, a week ago today, the judge denied our request for preliminary 
injunction, but kept the proceeding open (so we can go back on an expedited 
basis if we need to) and warned Broadwing that its many cuts were very gross 
and that they should exercise extreme care ("digging with a hand trowel, if 
you can," he said) as they continue their construction.  He also said that 
they were facing some pretty significant damages, and that if they cut us 
again he would probably issue an injunction.  He was concerned that future 
cuts, after our system is lit, will generate much higher damage claims from 
us.

If you want a little more detail, the judge ruled that we had met 3 of the 4 
tests to get the injunction--likelihood of succeeding on the merits, 
likelihood of suffering irreparable harm, and satisfied the public policy 
protecting existing utility facilities.  But he found that on the 4th test, 
the comparison of damages, that the damages B'wing would suffer if the 
injunction were granted were similar to the damages we will suffer if it were 
not granted, but the 30 or so menial construction hands who would be laid off 
by the contractors, if the injunction were granted, tipped the balance.  

We knew that the chances of a shutdown were remote, and we were surprised we 
came so close.  Our goal was to get the judge's help to make B'wing use safer 
construction practices, to avoid future cuts (which they have done:  they are 
potholing now, constructing slower, and listening to our inspectors, although 
they still refuse to sign a Construction Coordination Agreement, which we've 
repeatedly offered).  Our outside counsel and witnesses did a great job, and 
the judge was very stern in his warning to Broadwing.  I think the Broadwing 
people realize that  Broadwing did not "win" this proceeding, and that a 
rather large hammer is now hanging over their head.

Next steps: I believe Brad is going to meet on-site with Broadwing's Bill 
Muckle, to explore future steps to prevent future cuts.  We are keeping the 
courthouse warm.  That's about it.

Please let me know if you'd like more info.

Kenton




From: Steve Elliott on 03/10/2000 09:05 AM

To: Kenton Erwin/Enron Communications@Enron Communications

cc: David Leatherwood/Enron Communications@Enron Communications 

Subject: Broadwing status please?

What was the result of the court hearings and next steps?