Lawsuit

Liberty Mutual: Bonded Contractor Stonewalled Us

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“A North Carolina contractor lost a big lawsuit, ran into financial trouble and then stonewalled surety Liberty Mutual Insurance Co. for a short while before filing for protection from its creditors in U.S. bankruptcy court.

That is the picture that emerges of Intercoastal Contracting Inc., a Castle Hayne, N.C.-based heavy construction general contractor that started as a diving company in 1987, from a lawsuit against it in August by Liberty Mutual. The contractor’s downfall is also recorded in other legal documents and lawsuits.

During a year when contractor failures have spiked, sureties are often forced to step in to finish projects while their contractor clients are in financial free fall. Because the surety almost always has the right under its agreement with the contractor to be compensated in full for its losses, the relationship can become strained. And when all the complexities of a bankruptcy are factored into the equation, the projects may languish.”

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Lawsuit filed by Target alleges massive fraud by contractor

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“Target Corp. filed a federal racketeering lawsuit in Minneapolis Friday, alleging that it has been systematically defrauded by a contractor it hired in 2009 to oversee about $100 million in repairs and maintenance on its parking lots around the country.

The company alleges that LCH Pavement Consultants of Pearland, Texas, conspired with paving contractors in California, Wisconsin, Texas and Illinois to inflate prices, rig bids, fix prices, misrepresent work being done and distribute kickbacks.

It’s unclear from the lawsuit how much Target claims it was damaged, though it appears to be in the millions of dollars. The company is seeking triple damages, with the precise amount to be proven at trial.”

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Roanoke construction firm Breakell being sued for breach of contract

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“A prominent Roanoke construction company has been unable to complete two major projects and owes $1.2 million for defaulting on them, a lawsuit alleges.

Breakell Inc. is being sued in federal court for breaching its contract with Hanover Insurance Co., which issued construction bonds on the two public projects.

The lawsuit filed by Hanover involves a $2.5 million upgrade of a wastewater treatment plant in Pulaski County and a $3.9 million athletic field and facility renovation at a high school in Greene County.”

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Builder due in court Thursday

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“David Jelenik, the owner of Jelenik Construction Co., is scheduled to appear in City Court Thursday on tax fraud charges.

According to the state Department of State, Jelenik, 51, has formed construction companies under six different names: Jelenik Renovations in 1996; Jelenik Building and Renovations, Inc., in 1998; Mobec Homes, Inc., in 1998; Jelenik Construction Co., LLC in 2002; Jelenik Contractors, Inc., in 2007; and Jellco Construction, Inc., in 2010. He recently built six “senior living” condominiums on Jefferson Street with developer Charles Toohey under the name CDJT Development LLC.

In 2003, the U.S. Occupational Safety and Health Administration fined Jelenik $3,750 in connection with the Dec. 7, 2002, death of Jeffrey Post, 42, a worker on one of his company’s job sites. Post fell 10 feet from a scaffold. Jelenik Building and Renovations was cited for not providing guard rails for the scaffolding and not properly training employees, reports said. Jelenik paid OSHA $2,300 in 2005 as part of a settlement.

Jelenik paid a $3,000 penalty to the state in 2003 for altering a protected wetland on Route 9N in Greenfield; and $6,000 for placing fill on a regulated wetland on Ruggles Road in Wilton, according to the state Department of Environmental Conservation. In 2009, DEC charged him with polluting Saratoga Lake. He pleaded guilty to the violation and paid a fine in 2009, a Stillwater court clerk said. The Workers Compensation Board of the State of New York cited Jelenik Contractors $70,000 for failing to carry workers compensation insurance from May 2010 to May 2011, the board confirmed.

Many others who contacted the Times Union to say they were victims of Jelenik’s business practices said they didn’t have the resources to file lawsuits.”

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