Construction company says it wasn't paid for work

By Cara Bailey | Jan 17, 2007

CHARLESTON - A West Virginia construction firm is suing five companies for breach of contract and failure to pay for all of the work completed.

McClanahan Construction Company is suing NLC Construction, a Georgia-based company. McClanahan's complaint says NLC does not have a West Virginia contractor's license but is contracting to do and perform general constriction work within the state.

McClanahan is claiming NLC has not paid $113,659.75, for work performed on a shredder/separator project in Glasgow, W.Va. NLC has paid for part of the job, but still has an outstanding balance, the suit states.

A shredder/separator system -- known as the R.J. Recycling Project -- was being constructed in Glasgow on property owned by Raleigh Junk, R.J. Recycling, A.G. Holding and Poor Charlie and Company, all of which also were named as defendants in the suit.

NLC was the general contractor for the job. NLC did not, nor does it currently, hold a West Virginia contractor's license, the complaint states.

NLC and McClanahan entered into a contract in March 2006 to provide labor and materials for pouring and laying concrete for the project.

"Despite the fact that it held no West Virginia contractor's license, NLC held itself out and represented itself to be a duly licensed contractor within the state of West Virginia when negotiating and conducting all business with McClanahan and others," the suit claims.

McClanahan last worked on the project on July 12, 2006. The contract required NLC to pay McClanahan within 30 days of the receipt of the invoice.

During the course of the work on the project, the suit claims NLC approached McClanahan to conduct additional work or to amend the work proposed.

Despite regularly submitting invoices to NLC, upon McClanahan's completion of its work on July 12, it was owed $113,659.75.

McClanahan caused two mechanic's liens to be issued to the sum due on Aug. 8 and Aug. 17. The first lien was released on Oct. 5 to correct redundancy created when the second lien was filed.

McClanahan says it has suffered further economic damages as a result of NLC's failure to pay.

The suit claims breach of contract, active fraud, and constructive fraud. McClanahan suffered compensatory damages, including annoyance and inconvenience. McClanahan requests it receives all damages, including compensatory damages, economic damages, annoyance and inconvenience, punitive damages, attorneys fees and costs, and all such further relief as allowable by law.

The suit was filed Jan. 9 by attorney Dwane L. Tinsley and has been assigned to Judge Irene Berger.

Kanawha Circuit Court case number 07-C-57

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