A subcontractor that has been trying for three years to get paid what it says it is owed on an Anderson High School construction project has asked a judge to order Forest Hills to hand over nearly $816,000 in escrowed funds.
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The request is part of an ongoing lawsuit the J&D Rack Co. filed against the Forest Hills Local Schools Board of Education, the former general contractor of the project and others in 2018 for more than $2 million for its work.
The Green Township company, which has a lien on the school property, said in a motion filed in Hamilton County Common Pleas Court that it is entitled to the escrowed money now because the former general contractor has said in earlier court filings that Rack is owed almost $1.3 million.
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Parties in the case can sort out in the future whether Rack is owed more money for the site preparation work it did at Anderson High School for the renovation and additions project in 2017, Rack said.
But a spokesman for Forest Hills said in an email that the school district disputes the amount of money Rack says it is owed and that other contractors and vendors involved in the project have competing claims on the escrowed money.
'We remain hopeful that we can resolve our differences'
Assistant Superintendent Mike Broadwater also said Forest Hills and Rack are in settlement talks.
“We remain hopeful that we can resolve our differences, and all parties have agreed to re-enlist the efforts of an outside mediator to assist with facilitating a resolution,” Broadwater said.
Performance Construction of North Bend was fired as general contractor of the $23 million Anderson High School project in 2017, then rehired to finish the work. Rack was a subcontractor of Performance.
“Rack has waited three long years for payment even as the district enjoys its new facilities,” Rack said in its motion.
Rack’s request is one of multiple new developments in the litigation surrounding the construction project.
Hamilton County Common Pleas Court Judge Tom Heekin has referred a lawsuit filed in 2019 by Performance Construction against the Forest Hills Board of Education and others to mediation. Performance is asking for more than $8 million in claims of breach of contract, fraud and unpaid bills.
Due to delays caused by the COVID-19 outbreak, judges presiding in the lawsuits filed by Rack and Performance Construction have postponed jury trials set to begin this fall. Now, the Rack lawsuit is set for a jury trial in June of 2021 and the Performance lawsuit is set for a jury trial in November of 2021.
B&J Electrical Co. of Golf Manor has sued the Forest Hills Board of Education and Performance Construction in Hamilton County Common Pleas Court for $117,500 in unpaid invoices for work it did as a subcontractor for Performance on the Anderson High School project. Judge Robert Ruehlman has agreed to B&J Electrical’s request that the suit be suspended pending arbitration proceedings between itself and Performance.
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Rack said in its motion to get the money Forest Hills has in escrow that the school district and Performance Construction urged Rack and other contractors on the construction project to work virtually around the clock so that school had a chance to open on time for the 2017-2018 school year. Mount and blade warband vassal requirements.
“In what was truly an ‘all hands on deck’ moment for this proud, family-owned company, Rack expedited its work,” Rack said.
Nonpayment 'a bitter (and almost fatal) pill'
Because it was not paid in full for its work, Rack says, the company had to lay off about a third of its workforce, curtail the hours of its remaining employees and was for some time unable to pursue other opportunities.
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“This was a bitter (and almost fatal) pill for this ninety-year-old company,” the Rack motion stated.
Broadwater said Forest Hills stands by its position that the amount Rack claims it is owed is grossly exaggerated.
“Forest Hills is prepared to defend its position if a resolution cannot be reached,” Broadwater said.
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