Pay Dispute Triggers Breach-of-Contract Charge : John Wayne Contractor Hit by Lawsuit
The subcontractor building the upper-level roadway in front of the new passenger terminal at John Wayne Airport has filed a $2-million lawsuit against prime contractor Taylor Woodrow Construction California Ltd., alleging fraud, conspiracy and breach of contract.
The lawsuit, filed in Orange County Superior Court by Kettering & Krussman Inc. against Taylor Woodrow Construction California Ltd., also alleges that the prime contractor is insolvent.
The suit did not appear to have any immediate effect on construction of the terminal itself, however, and airport officials were skeptical Friday that the lawsuit would delay completion.
The complaint involves a dispute over how and when the subcontractor, Kettering & Krussman Inc. of Artesia, is to be paid.
The lawsuit was filed shortly after Taylor Woodrow was cited by a California Occupational Safety and Health Administration inspector for allegedly maintaining unsafe conditions on the roadway project. The citation, which was a warning, could lead to severe fines if the conditions are not corrected early next week.
Taylor Woodrow officials blamed subcontractor Kettering & Krussman for walking off the job earlier this week in a contract dispute and leaving the roadway construction with loose and dangerous scaffolding and unsupported concrete.
Taylor Woodrow officials said they will try to correct the problem next week while attempting to resolve their contract dispute with Kettering & Krussman.
James McGee, attorney for Kettering & Krussman, said his firm will also look at the safety problem to see what should be done.
Also on Friday, county officials received a stop-payment notice from Kettering & Krussman.
Under state law, Airport Deputy Manager Alan Murphy said, county officials have no choice but to withhold more than $1.9 million from Taylor Woodrow’s next payment on the airport project.
Taylor Woodrow project executive Chris Elliott said a county delay in paying the $1.9 million to his firm “will be quite a strain.”
On the other hand, Elliott said, his firm will post a special bond to cover the amount of money tied up by the stop notice, thus enabling the county to release its funds.
