Subcontractor sues for breach of contract over a City of New Orleans project

By Lizzy Fitzsousa | Mar 13, 2014

NEW ORLEANS – A local subcontractor is suing for breach of contract after completing work on a city repair to a recreation center.

Boes Iron Works Inc. filed suit against FHP Tectonics Corp., Continental Casualty Company, Liberty Mutual Insurance Company and Fidelity and Deposit Company of Maryland in the Orleans Parish Civil District Court on Dec. 9, 2013.

FHP was hired as a general contractor by the City of New Orleans to repair the Joe W. Brown Memorial Recreation Center. Continental, Liberty Mutual and Fidelity issued surety bonds guaranteeing payment to all of FHP’s subcontractors. According to the lawsuit, Crescent entered into a subcontract with Boes to furnish and install steel and iron work in support of the project at a base price of $132,500.

During the course of the work FHP requested Boes provide extra material, work and overtime labor resulting in an additional $10,499.71 bringing the total FHP-Boes subcontract $142,999.71. Boes completed its work as of Jan. 21, 2013, but claim Crescent failed to pay them $34,699.71 of the subcontract price. Despite the lien Boes filed on Jan. 22, at least $17,124.40 of the invoice allegedly remains unpaid.

FHP is accused of failure to pay promptly, misapplication of payments and unfair trade practices.

Boes is requesting damages in the amount of the outstanding invoice and additional penalties appropriate under the Public Works Act.

Boes is represented by attorney Keith L. Magness of Gretna.

The defendants answered the suit on Feb. 28 denying any wrongdoing.

They are represented by James M. Garner of Sher Garner Cahill Richter Klein & Hilbert LLC of New Orleans.

Case is assigned to Division F Judge Christopher J. Bruno.

Case no. 2013-11609.

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