Contractor Says Kaiser Owes $1 Million
OAKLAND, Calif. (CN) - Kaiser should pay a subcontractor for work done on a hospital before it pays anyone else, a concrete company says in an Alameda County Superior Court complaint.
Kaiser hired defendant Rudolph and Sletten, Inc. (R&S) in August 2010 for construction work on the Kaiser Medical Center in San Leandro. R&S subcontracted with co-defendant Tucker Engineering Inc., which subcontracted with plaintiff, FBD Vanguard Construction Inc., to perform concrete reinforcing and formwork at the hospital.
FBD alleges it performed all work required under the contract, but that the defendants still owe $1,006,000.
Defendants "breached the written subcontracts with plaintiff by refusing to pay all of the sums due, and/or failing to make timely payments when due, to plaintiff despite plaintiff’s repeated requests, by mismanaging the project, by failing to timely and properly submit and process change orders for plaintiff, and by failing to properly coordinate work,” according to the complaint.
“Defendant Tucker has also asserted improper and inflated back charges against plaintiff, has not agree to reasonable credits, and has breached the duty of good faith and fair dealing implied in every contract. As such, the plaintiff has been damaged due to said breaches and is owed a principle amount of at least $1,006,000.00.”
FBD sued Tucker Engineering Inc., Rudolph and Sletten Inc., Travelers Casualty and Surety Company of America and Kaiser Foundation Health Plan Inc.. The company sued Kaiser as the “owner” of the project and filed a stop payment notice against the hospital, in an effort to get Kaiser to pay up.
“On or about Dec. 17, 2013, plaintiff filed with Kaiser … a partial release of stop payment notice, which reduced the amount of plaintiff’s stop payment notice to $703,912,” the complaint states. “Plaintiff believes … Kaiser had in its possession sufficient funds from which it was obligated to make payments or advancements to defray the cost of the work of improvement.”
FBD says its rights and interests in that money is superior to all others' rights.
“Plaintiff is entitled to enforce its stop payment notice in the amount of at least $703,912,” according to the complaint.
The company is suing for breach of contract and wants the court to act on its mechanics’ lien release bond and to enforce its stop payment notice.
The plaintiff is represented by D. Michael Schoenfeld and Kenneth Schumaker of Murphy Austin Adams Schoenfeld, in Sacramento.