Estess Contractors sued by man claiming misappropriation of funds, fraud

NEW ORLEANS – A man is suing a contracting company and its owner for alleged misappropriation of funds, fraud and breach of contract.

Dai Viet Nguyen filed suit against Steven Hunter Estess and Estess Contractors LLC in the Orleans Parish Civil District Court on Aug. 8.

On August 23, 2012, Nguyen asserts that he entered into a residential construction contract with Estess Contractors LLC in which Estess agreed to build a residence located at 5870 Fleur De Lis in New Orleans.

The defendants allegedly went ahead with the project, and received periodic payments for work completed as outlined in the construction contract.

Nguyen charges that Estess told him the subcontractors on the project were being paid the correct amounts in a timely fashion, though this was not in fact true. The plaintiff asserts that the payments were being misappropriated in a breach of contract.

The petition states that Nguyen eventually learned that Estess was not paying the subcontractors properly. The plaintiff claims he found out that the subcontractors went unpaid in excess of $200,000, which he remains contractually responsible for.

Nguyen claims that the money paid to Estess was directed to other projects not involving the plaintiff's property. The plaintiff avers that Estess' alleged violation of their contract should essentially void their agreement.

The defendant is accused of fraud, breach of contract and misapplication of payments.

The plaintiff seeks an unknown amount in damages for all funds advanced to Estess and subsequently misapplied. Nguyen also seeks to have the contract between himself and Estess declared null and void.

Dai Viet Nguyen is represented by Jim S. Hall of Jim S. Hall & Associates LLC.

The case has been assigned to District C Judge Sidney H. Cates IV.

Case no. 2014-07787.