Lawsuit: Non-payment of construction materials violated subcontract

John Suayan, Galveston Bureau Sep. 23, 2013, 2:15pm

GALVESTON - Claiming Insulation Specialists is withholding money intended for materials purchased for a project, Morcon Construction Co. Inc. has pursued legal action.

A lawsuit filed Sept. 18 in Galveston County District Court states that the defendant is outstanding on $16,331.12 stemming from fire protection components supplied by a sub-subcontractor.

Morcon and Insulation Specialists were bound by a subcontract "to furnish and install a fire suppression system for the sum of $28,500."

The system was part of the new Children's Learning Adventure facility in League City.

Meanwhile, both parties consented to the respondent "fully and promptly" paying all its laborers, suppliers and sub-subcontractors and "that it would hold any monies received from Morcon in trust for those suppliers and sub-subcontractors and would not divert the monies to the other contracts or for other purposes."

Insulation Specialists then contracted with Supply Network Inc., doing business as Viking Supply Net, to provide the fire protection components that are now the focus of the litigation.

Court papers assert the defendant acknowledged receiving $20,500 and executing receipts and waivers of mechanic's liens "in partial payment of all labor and materials for the project."

They further show the defendant failed to pay Supply Network as of last January, prompting the latter to file a lien affidavit against the project.

"Clearly, Insulation Specialists failed to do so and such failure constitutes a breach of contract with Morcon," the original petition says.

Attorney Craig H. Clendenin of Cokinos, Bosien & Young in Houston is representing the claimant, and Galveston County 212th District Court Judge Susan Criss is presiding over the case.

Case No. 13-CV-1204

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