More Construction Companies File Suit Against GRMC and DCK Pacific

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IMCO General Construction and Kinden Corporation say they also have been denied payment of $2.1 million and $2.8 million, respectively.

Guam – Citi Development Construction isn’t the only company suing dck Pacific, Pernix Guam and the Guam Regional Medical City. Two other companies, Kinden Corporation and IMCO General Construction are also suing for failure to pay for the materials and services they provided. The total amount for all three companies is $5.3 million.

 

Yesterday we reported that Citi Development Construction is suing GRMC, Pernix Guam and dck Pacific for $407,000 in alleged unpaid construction costs. But Citi Development isn’t the only one who says they haven’t been paid for the construction project. It turns out at least two other construction companies say they too have been denied payment.

In court papers IMCO General Construction says they are owed $2.1 million while Kinden Corporation says they are owed $2.8 million.

Both have also filed lawsuits against GRMC, Pernix and dck Pacific. Dck Pacific was the general contractor for the construction of the hospital. IMCO, Kinden Corp and Citi Development were subcontractors for dck Pacific.

Pernix has now taken over as general contractor since they bought dck Pacific last year June.

According to the separate complaints filed in Superior Court, despite demanding payment from dck Pacific and GRMC, the companies have refused to pay the money IMCO and Kinden believe they are owed.

Just like Citi Development, IMCO and Kinden Corp also filed mechanic’s liens against GRMC for the amounts they are owed and they are also seeking foreclosure of the $215 million property.

GRMC has responded to at least one of the civil complaints in court. In their answer to IMCO General’s complaint, GRMC is asking that the complaint be dismissed.

They are also asking that the mechanic’s lien be voided because GRMC says the lien was not timely filed. However, in the event IMCO is awarded the lien, GRMC asks that the amount be “reduced or offset due to defective, incomplete or warranty work furnished by IMCO to the project.”

GRMC has not yet filed an answer to Kinden Corporation or Citi Development’s complaints.

However, GRMC did file a cross claim against Pernix, which assumed responsibility of the project when they bought dck Pacific. GRMC believes that they are entitled to indemnity from any claims filed by the subcontractors since Pernix is the successor-in-interest to dck Pacific.

In the original contract between GRMC and dck Pacific signed in 2011, GRMC says dck is “required to indemnify and hold harmless GRMC from any loss, cost, damage, expense or liability of every kind and nature which may incur, arise out of, or in connection with any subcontractor dispute.”

Pernix Guam filed a response to GRMC’s cross claim for relief. Pernix wants GRMC’s cross claim dismissed.