Kelly Holleran Apr. 25, 2013, 11:57am

A hotel management chain that was attempting to remodel a shuttered hotel claims the construction company hired to do the work ended up causing additional damage to the building instead of repairing it.

HD Hotel Management filed a lawsuit April 16 in Jefferson County District Court against DHN Construction and Be Pham Construction.

In its complaint, HD alleges it decided to purchase a hotel at 2015 H.O. Mills Boulevard in Port Arthur on March 15, 2011, in a foreclosure sale. As part of the contract, it was given interests that were assigned to Southwest National Bank under loan agreements with Port Arthur Interest Development.

Port Arthur Interest Development had hired DHN to complete necessary construction work on the hotel, according to the complaint. It also employed Be Pham to perform sitework, including grading and overseeing that the construction was completed according to plan documents, the suit states.

However, since the defendants have performed their work, HD Hotel Management has endured a number of problems with its hotel, according to the suit.

“Plaintiff discovered various defects in construction including water damage, water leaks, improper exterior wall system installation, grading issues and other construction-related defects, which resulted in damages to the project and its contents,” the complaint says.

Because of the damages, HD Hotel Management claims it has incurred costs to deconstruct and restore the building to fix the source of the water intrusion. It will also incur additional repair costs, according to the complaint.

In its complaint, HD Hotel Management seeks actual damages in excess of the minimum jurisdictional limits of Jefferson County District Court, plus incidental damages, pre- and post-judgment interest, attorneys’ fees, costs and other relief the court deems just.

Robert G. Smith Jr. and Katherine L. Sunstrom of Lorance and Thompson in Houston will be representing it.

Judge Gary Sanderson, 60th District Court, has been assigned to the case.

Case No. B194-247

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