Local companies in litigation over $50k contract

By David Yates | Jun 2, 2008

Texas Asphalt Sealing has filed suit against K.T. Foods, claiming the company has paid only half of what it owes Texas Asphalt for a parking lot job.

The suit was filed on May 30 in the Jefferson County District Court. Texas Asphalt is owned by John Peddy, a Groves resident. K.T. Foods is located in Port Arthur.

According to the plaintiff's petition, the two companies entered into an agreement on March 7, 2008, whereby Texas Asphalt agreed to scrape and remove existing material from K.T. Food's parking area for $50,000, plus an additional $2,000 for the extra work for covering the culvert and patching holes.

"The parties agreed $25,000 would be paid down, which in fact was paid and received by the Plaintiff, and the balance was to be paid at the completion of the job," the suit says. "Defendant refused to pay the balance of the contractual amount and still refuses to do so."

The suit indicates some type of problem arose involving the parking area's base material. Texas Asphalt says it offered to knock $5,000 of the price of the contract to compensate K.T. Foods, but the company still refused to pay the final $25,000 of the contract.

Texas Asphalt pleads quantum meruit, arguing K.T. Foods accepted work and material of value but refused to pay for such value received -- unjustly enriching itself.

Texas Asphalt is suing for the unpaid balance of the contract and for attorneys' fees.

The company is represented by Carl Parker of The Parker Law Firm.

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

Case No. B181-831

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