Harris County has taken legal action against three companies, alleging breach of contract and warranty obligations over a defective storm sewer construction project. On March 28, 2025, Harris County filed a complaint in the District Court of Harris County against Statewide Services, Inc., CraCon, Inc., and Atlantic Specialty Insurance Company. The county claims that these entities failed to fulfill their contractual duties by improperly constructing a reinforced concrete pipe storm water sewer.
The lawsuit stems from a contract signed on June 29, 2021, between Harris County and Statewide Services for the construction of a storm sewer along El Dorado Boulevard in Houston. The contract was valued at $2,886,919. CraCon was listed as the supplier for the project. Harris County alleges that after substantial completion was certified on October 6, 2022, it discovered over 212 construction failures in the storm sewer system. These included offset joints, broken pipes with soil infiltration signs, and improperly sealed joints. Furthermore, the county's investigation revealed significant deficiencies such as deficient cement stabilized sand thickness and missing PVC conduit.
Despite initial cooperation from Statewide and CraCon to address these issues, both companies eventually abandoned the project by July 31, 2024. Atlantic Specialty Insurance Company (ASIC), which had issued a performance bond for the project, allegedly failed to assume control of the contract or complete the necessary work after this abandonment.
Harris County accuses Statewide and CraCon of breaching their contractual obligations by not properly installing reinforced concrete pipes (RCP) and failing to apply adequate quantities of cement stabilized sand as required by their agreement. Additionally, ASIC is accused of breaching its performance bond obligations by not taking over and completing the work following Statewide's and CraCon's abandonment.
The plaintiff seeks several forms of relief from the court: actual damages exceeding $1 million; compensation for loss of use due to construction defects; reimbursement for repair costs; attorneys' fees; expert fees; court costs; prejudgment and post-judgment interest; and any other appropriate relief deemed just by the court.
Representing Harris County are Christian D. Menefee as Harris County Attorney with Jonathan G.C. Fombonne as First Assistant Harris County Attorney. Tiffany Bingham serves as Managing Counsel for Affirmative & Special Litigation alongside Luis Pacheco Garcia and Pierre Grosdidier as Assistant County Attorneys. The case is being heard in front of Judge Monioa Jackson under Case ID No. 2025-21227 in Court No. 269.