The Richmond Register

Local News

March 3, 2013

Company sues Richmond Utilities alleging breach of contract in pump repair

Richmond Utilities

RICHMOND —

A water management and construction company is suing the Richmond Utility Board claiming the entity has not paid its bill for the 2012 repair of a water pump.

Layne Heavy Civil Inc. filed the suit Feb. 25 in Madison Circuit Court. A division of the global company Layne Christensen, Layne Heavy Civil works with with government and industrial clients to oversee design and construction of water and wastewater treatment plants and pipeline installations, according to the company’s website.

Layne’s complaint states representatives of the company were present in 2008 to supervise the installation and start up of two new water pumps at the Richmond plant.

In 2009, Richmond Utilities notified Layne that the motor oil in the pump units had turned red. The utility asked Layne to change the oil, according to the court document.

Layne agreed to perform the oil change, and the complaint states Richmond Utilities ordered the motor oil that Layne use to perform the job.

However, in September 2011, Pump Unit 2 failed, and Richmond Utilities asked Layne to submit a proposal to fix the pump, which included replacement, repair, labor, equipment and material costs, the company said in its complaint.

Layne submitted a proposal Nov. 16, 2011, which was accepted, and the work was completed Jan. 5, 2012, the water management company stated.

Layne billed Richmond Utilities $70,641 for the repair work, but after “numerous requests,” no payment was received, according to the complaint.

“Richmond’s representatives gave a number of excuses for the failure to pay the original invoice and eventually claimed that Richmond was excused from paying the amount owed to Layne because Richmond believed that Layne had caused the failure of the pump by installing the incorrect oil in the motors in 2009,” the complaint stated.

Layne claims the accusation is “unfounded” in part because the type of failure the water pump experienced was not related to the motor bearings. Also, even if the wrong oil was used, that was the fault of Richmond Utilities because Layne used the oil Richmond had ordered, according to the complaint.

On April 17, Layne agreed to give Richmond Utilities credits totaling $15,274 and submitted a revised invoice of $55,366. Although an email included with the lawsuit indicates that Richmond was willing to pay the revised bill, Layne said no payment had been received.

Layne is asking for either the $70,641 amount or $55,366, plus interest and attorney fees.

No reply to the complaint has been filed by Richmond Utilities. Defendants typically have 30 days in which to file a response.

Lakeshore Engineering federal lawsuit

The Richmond Utilities Board also was sued in federal court in April by a Michigan company that performed work on the Otter Creek Wastewater Treatment Plant. Lakeshore Engineering claimed that it was misled by the site’s flawed geotechnical report and incurred significant extra costs in constructing 12 miles of pipeline.

Lakeshore stated that Richmond Utilities owed the company nearly half a million on its final contract balance. The two entities tried to work out the issue in mediation in March 2012, but the effort failed, leading to the civil lawsuit.

Richmond Utilities responded June 22 to Lakeshore’s complaint, denying the allegations and making a counterclaim for nearly $500,000 in “unliquidated damages” caused by Lakeshore’s failure to “substantially and finally complete its work under the Agreement in a timely manner.”

No additional court documents have been filed in the case since July 30, according to Pacer, the federal court system’s online filing system.

Sarah Hogsed can be reached at shogsed@

richmondregister.com

or 624-6694.

1
Text Only
Local News
  • 4-24 UKatWaco1.jpg Wildcats encourage Cardinals to work hard in school

    University of Kentucky student athletes Kastine Evans, a guard on the women’s basketball team, and Jon Hood, a guard on the men’s team, stopped by Waco Elementary School on Wednesday to talk about the benefits of working hard in school.

    April 23, 2014 4 Photos

  • Mayor, commissioner pay changed

    The Richmond City Commission approved 5-1 a new pay scale for the mayor and commissioners at a special-called meeting Wednesday morning.

    April 23, 2014

  • 4-24 Lorenzo McWilliams.jpg Harrodsburg to get old Richmond police mobile computers

    Richmond is donating to the city of Harrodsburg eight of 39 old computers formerly used in police cruisers.

    April 23, 2014 1 Photo

  • 4-24 HOSAblooddrive.jpg Health science students organize blood drive

    Aside from the gift cards and free snacks, 50 Madison County high school students have other reasons for donating 35 pints of blood Wednesday to the Kentucky Blood Center at Madison Central High School.

    April 23, 2014 1 Photo

  • Third student charged in dorm room robbery

    A third person, originally thought to be a robbery victim, was charged Wednesday in connection with an armed robbery that occurred March 30 on Eastern Kentucky University’s campus

    April 23, 2014

  • Bucher Family plant sale starts Friday

    The Bucher Family annual plant sale, a yearly tradition in Madison County for 15 years, will kick off Friday morning.

    April 23, 2014

  • 4-23 Gravestone.jpg In search of the last resting place

    At a popular illegal dump site off Bybee Loop in Waco, two marble grave markers were among some items found there by Pat and Ronnie Aldridge, residents who live about 250 yards from the area.

    April 22, 2014 1 Photo

  • Fiscal court awards EMA bids

    Two more bids were awarded at Tuesday’s Madison County Fiscal Court meeting for the emergency operations agency.

    April 22, 2014

  • 4-23 Peter Crowe.jpg Intoxicated man charged with wanton endangerment

    A 27-year-old Richmond man was charged Sunday with second-degree wanton endangerment after he was found intoxicated and walking with several young children in the Keystone Drive area, according to a Richmond police report.

    April 22, 2014 1 Photo

  • Absentee voting available for May 20 election

    Walk-in absentee voting for the May 20 primary has begun and will continue until May 19, County Clerk Kenny Barger announced Tuesday at the Madison Fiscal Court meeting.

    April 22, 2014

AP Video
SKorea Ferry Toll Hits 156, Search Gets Tougher Video Shows Possible Syrian Gas Attack Cubs Superfans Celebrate Wrigley's 100th Raw: Cattle Truck Overturns in Texas Admirers Flock to Dole During Kansas Homecoming Raw: Erupting Volcanoes in Guatemala and Peru Alibaba IPO Could Be Largest Ever for Tech Firm FBI Joining Probe of Suburban NY 'Swatting' Call U.S. Paratroopers in Poland, Amid Ukraine Crisis US Reviews Clemency for Certain Inmates Raw: Violence Erupts in Rio Near Olympic Venue Raw: Deadly Bombing in Egypt Raw: What's Inside a Commercial Jet Wheel Well Raw: Obama Arrives in Japan for State Visit Raw: Anti-Obama Activists Fight Manila Police Motels Near Disney Fighting Homeless Problem Michigan Man Sees Thanks to 'bionic Eye' S.C. Man Apologizes for Naked Walk in Wal-Mart Chief Mate: Crew Told to Escape After Passengers
Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide
Poll

Should Richmond rezone the southwest corner of Main Street and Tates Creek Avenue to B-1 (Neighborhood Business) with restrictions to allow construction of a financial services office?

Yes
No
     View Results