R&R sues K&K for fraudulently invoicing job costs

David Yates Apr. 16, 2008, 6:38am

R&R Marine Maintenance Inc. has filed suit against K&K Insulation Inc., claiming K&K fraudulently overbilled the company for materials and services on a rig job.

R&R Marine's suit was filed in the Jefferson County District Court on April 15. Burt Sanders is also named as a defendant in the suit.

According to the plaintiff's petition, R&R Marine of Port Arthur and K&K Insulation of Nederland entered into a contract in September 2006 in which K&K would provide services to R&R Marine for several rig jobs that R&R Marine had for a customer. The rig jobs included the "Ensco 83" job and "Ensco 93" job.

"K&K and/or Sanders provided initial estimates for the materials and services before the jobs began," the suit said. "K&K and/or Sanders periodically invoiced R&R Marine for its materials and services. R&R Marine would immediately pay K&K the amount owed per the invoice."

After completion of the Ensco jobs, R&R Marine determined that it had paid a considerable sum over that which was originally estimated by K&K. "In other words, K&K over-billed R&R Marine for its materials and services, and R&R Marine likewise over-paid K&K," the suit said.

"K&K refused to return the over-paid amounts, or at the very least, show that K&K incurred those costs to R&R Marine's benefit over the course of the Ensco jobs," the suit said. "R&R Marine has the right to immediate possession of the over-paid amounts for the Ensco jobs."

The two count suit accuses K&K of fraud and negligent misrepresentation. The plaintiff alleges K&K made material and false representations when representing the costs for services when invoicing R&R Marine for the Ensco jobs, and did so knowingly with the intent that R&R would pay the overbilled amount. The suit also claims that K&K and Sanders did not exercise reasonable care or competence in obtaining or communicating the information.

The plaintiff demands a trial by jury and is represented by F. William Mahley, attorney for the Strasburger & Price law firm.

Judge Milton Shuffield, 136th Judicial District, has been assigned to the case.

Case No. D181-596

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