East Texas city sues construction company for failure to uphold quality of work

By Michelle Massey, East Texas Bureau | Mar 16, 2011

MARSHALL - The city of Gladewater is suing the construction company it hired in connection with a street and drainage project on W. Gay Avenue for breach of contract for failing to adequately complete the construction.

The lawsuit was filed against Dual Construction Inc. and Berkley Regional Insurance Co. on Jan. 26 in Upshur County District Court. The defendant transferred the case on March 9 to the Eastern District of Texas, Marshall Division.

The city hired the defendant in April 2008 for a project that involved the removal and replacement of approximately 1,655 linear feet of concrete storm sewer pipe, including two curb inlets and one junction box and for required repairs of W. Gay Avenue. Dual Construction submitted the lowest bid for the project at $288,055, the suit states.

Berkley Regional Insurance issued three bonds -- performance, payment and maintenance bonds -- regarding the work.

According to the allegations, Dual performed the initial construction of the project between May 2008 and November 2008, but by spring 2009 unacceptable settling was apparent and base failure went unrepaired.

The defendant was notified of the need for remediation work but for 10 months failed to address the failure of its quality of its work. The defendant has not made any offers to complete the repairs of the work since March 2010, according to the complaint.

Dual Construction is accused of breach of contract for neglecting the construction of the project, failing to provide work that was not defective and for failing to correct all defective work or remove all defective work from the project site.

The plaintiff is asking the Court for an award of actual damages, compensatory and economic damages, attorneys' fees, court costs and interest.

Gladewater is represented by Ronald D. Stutes of Potter Minton in Tyler.

A jury trial is requested.

U.S. District Judge T. John Ward is assigned to the case.

Case No. 2:11-cv-00156

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