Derek Engineering, MC Development sue each other over Taco Bell project

WAYNE - MC Development Company Inc. is suing Derek Engineering of Ohio Inc. after it claims the company failed to meet deadlines and caused its project to be delayed.

Meanwhile, Derek Engineering claims MC has failed to pay more than $300,000 for building materials, services and labor.

The disputes are the subject of two recently filed complaints in Wayne Circuit Court.

MC and Derek entered into a construction contract on April 25, 2011, and Derek agreed to construct a Taco Bell restaurant and make other improvements for the sum of $770,500, according to a MC's complaint filed April 5 in Wayne Circuit Court.

MC claims Derek was required to have the work substantially completed no later than 90 days after May 16, 2011, but it did not have the work done by Aug. 14, 2011 and, after missing the deadline, Derek repeatedly promised that the work would be done, but failed to complete the work.

Derek agreed to complete all the items on three lists that were compiled on three site visits between April and June 2012 by July 20, but failed to do so, according to the suit.

MC claims it sent Derek a default letter on Aug. 9 and pointed out that Derek had failed to complete the work and, in fact, no longer even had a supervisor at the job site.

Derek failed and refused to comply with its contractual obligations, according to the suit, and has failed and refused to pay various vendors and/or subcontractors for labor and/or materials that were used for the work at the Taco Bell restaurant.

MC claims Derek breached its contract and breached its duty of good faith and fair dealing.

MC is seeking compensatory damages with pre- and post-judgment interest. It is being represented by Richard J. Bolen and Cindy D. McCarty of Huddleston Bolen LLP.

Meanwhile, Derek says it furnished certain materials, services and labor used in construction of improvements of the property, according to a complaint filed April 1 in Wayne Circuit Court.

Derek claims MC owes $301,853.14, plus interest from Sept. 7 for the materials, services and labor used in the structures and improvements of MC's real estate.

MC has failed and refused to make payment for the materials, services and labor, despite Derek's demands for payment, according to the suit.

Derek claims the defendant breached its contract by failing and refusing to pay for the materials, services and labor.

MC has been unjustly enriched at Derek's expense, which has caused Derek to suffer damages, according to the suit.

Derek claims it filed and served its Notice of Mechanic's Lien within 100 days of the last date of supplying materials, services and labor to the project and claimed a lien on the real property to secure payment for the materials, services and labor.

Derek is seeking compensatory damages in the amount of $301,853.14 with pre- and post-judgment interest; judgment declaring and adjudging its claim to be a lien on all the property, including buildings and improvements on the real property and a judgment decreeing Derek's lien be foreclosed; and direction by the court that the property be sold and, out of the proceeds, pay Derek the amount of its judgment. It is being represented by John F. Loehr.

MC's complaint has been assigned to Circuit Judge Darrell M. Pratt, and Derek's case has been assigned to Circuit Judge James H. Young Jr.

Wayne Circuit Court case numbers: 13-C-059 and 13-C-060