Klein & Wilson

City sued by construction company for unpaid bills, negligence

While the following story didn't occur here in Orange County, it does demonstrate how construction litigation is a major part of real estate law.

A construction company that was contracted to build a parking garage is suing the city where it was built, alleging that the city is failing to pay its bills and that the city was negligent during the construction, causing construction workers to be placed in a risky position that could have caused them injury.

For the late payments and the negligence, the lawsuit is asking for at least $2 million from the city in damages. Apparently work change orders that required the construction company to perform extra work on the parking lot were unable to be provided by the city. The construction company claims that the city owes them more than $700,000.

Few other details are available, but clearly the construction company in this case has some serious claims against the city. Though it does not appear that construction defects are involved with the parking lot, the business behind the construction process is made clear in this case.

With so many moving parts and so many standards that need to be upheld during the construction process, it is vital for all parties involved to be adequately represented by an attorney. Without such legal counsel, the risks are very high. If you are in need of counsel due to construction defects, contract disputes or other areas of construction and real estate law, reach out to an attorney as soon as possible.

Source: Columbia Daily Tribune, "Construction company sues city over downtown parking garage," Caitlin Campbell, March 10, 2016

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