PROVIDENCE - Lawyers for Prefco, the owner of the building that presently houses FM Global, claimed the town of Johnston sold itself out, out of fear the insurance giant would leave.

Lawyers for both FM Global and Prefco appeared in Superior Court on Thursday.
"In this case, the plaintiff's contend that the town of Johnston is for sale," said William Dolan, lawyer for Prefco. "If you are big enough, large enough, and moneyed enough and have the right connections, you can get what no one else can get. You can get permits issued in violation of law."

Permits to begin work on FM Global's new headquarters were issued before Prefco could appeal. It received a cease-and-desist order, but Johnston's building official allowed work to continue on the foundation, citing safety concerns.

Prefco, however, dismisses the safety concerns, saying there was no proof of the concerns.

Gerald Petros, a lawyer for FM Global, said there are real safety concerns at the construction site and claims that Prefco has an ulterior motive for wanting the construction stopped.

He said the inspection of the construction site by Johnston building experts and an engineer is uncontested.

"You have the judgment of two town officials supported by an engineer and all the consideration that they took into account. What are you going to hear on the plaintiff's side - nothing," Petros said.

Petros said Prefco is just disgruntled and fears being left with an empty building once the headquarters is built.

He said Prefco fears flooding and other problems will make it hard to rent once FM Global moves across the street.