Electrical company says developer misrepresented role in condo project

By John Suayan, Galveston Bureau | Nov 21, 2011

GALVESTON - An electrical company claims a developer misrepresented itself as a prime contractor on a condominium project.

Competitive Electric has sued Consulting, Development & Construction on Nov. 7 in Galveston County District Court. Competitive Electric alleges CDC was a prime contractor on a project for Eiband Luxury Condominiums.

The suit states CDC failed to disclose it was actually a construction manager. Competitive Electric seeks to recoup $44,899.

Court papers state the companies entered into a written agreement between contractor and subcontractor for electrical work in December 2008.

CDC "failed to inform the plaintiff, prior to or at the time of execution of the aforesaid agreement, that (it) had not itself actually entered into a contract with defendant Eibands to serve as a prime contractor (as contemplated by the subcontractor agreement), but was instead acting merely as 'construction manager' (and therefore merely as an agent) for defendant Eibands," the suit states.

"The plaintiff believed that defendant CDC was, in fact, the prime contractor for defendant Eibands," the original petition says.

The suit insists the plaintiff was aware and believed that the defendants entered into an agreement in July 2009 to terminate CDC's "construction management" or "prime contractor" agreement, however, neither of the businesses notified the complainant that the previous agreements between themselves had been terminated.

The project finished in November 2009, but the plaintiff did not receive any payment from either customer, it says.

The complainant is represented by Tramonte, Tramonte & Bastien.

Galveston County 122nd District Court Judge John Ellisor is presiding over the case.

Case No. 11-cv-1760

More News

The Record Network