» 2011 » June

Breach of Contract and Unpaid Work at Center of Beaumont Business and Construction Lawsuits

A Texas steel fabricating company alleges breach of contract, misapplication of trust funds, and failure to pay a government bond claim as it tries to collect the money it is owed for work on two Beaumont, Texas elementary schools. Steel Masters worked as the subcontractor under the general contractor Allco. Allco allegedly owes the subcontractor more than $50,000 for the steel erection work it did during construction of the Amelia Elementary and Blanchette Elementary Schools.

The lawsuits in Jefferson County District Court are currently underway. The plaintiff argues that Allco was paid by Beaumont Independent School District (BISD) but Allco never paid Steel Masters. The steel work for Amelia Elementary encompassed the new 93,500 square feet facility. Overall, the total budget from the school district for construction reportedly equaled close to $21 million and it took a little less than two years to complete the entire project.

Separately, at Blanchette Elementary, the facility totals 85,593 square feet and was said to involve a little over $17 million in final construction costs. The Steel Masters lawsuits state that Allco’s owner, T.W. Harrison, misapplied funds. When construction finished, Travelers Insurance issued a payment bond to BISD. This payment is earmarked to protect unpaid subcontractors, but when Steel Masters requested Travelers to pay the $91,745.40 it was owed, the suit alleges Travelers refused to pay it.

Construction payment disputes like Steel Masters’ can be complex. It is critical that a business get expert legal counsel early on to protect their interests. Sometimes a matter must go to litigation like the Steel Masters cases; at other times, legal representation will encourage the opposing party to resolve the matter by mediation and faster financial settlements. Austin business litigation attorney and Austin construction litigation attorney Gregory D. Jordan knows the importance of resolving business disputes quickly and efficiently.

Construction contracts are often lengthy documents with many potential traps for the unwary. Unfortunately, large construction projects often end with disputes or litigation. Likewise, insurance claims related to such projects can be difficult to collect on. Businesses often find they obtain better results when they hire an experienced and qualified business lawyer to pursue these matters for them. At the Law Offices of Gregory D. Jordan, Austin business litigation attorney and Austin construction litigation attorney Gregory D. Jordan has more than 20 years of experience representing businesses and individuals in construction and other business-related disputes. To learn more, please contact Austin business litigation attorney, Austin construction litigation lawyer and Austin business attorney Gregory D. Jordan at http://www.theaustintriallawyer.com or call (512) 419-0684.

Gregory D. Jordan is an Austin business attorney, Austin employment lawyer, and Austin business litigation lawyer. To learn more, visit Theaustintriallawyer.com.

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