consultis information technology v Colonial Mechanical Corporation

Contractors usually rely on temporary employment agencies to provide cheap labor and avoid paying the benefits that allow families to live in dignity. The relationship between the contractors and the temporary employment agencies are usually cozy, because both companies are making money off the labor of the temps.

However, Colonial Mechanical Corporation not only wants to avoid paying benefits to employees, it is not above trying to cheat the temporary employee company, according to a lawsuit filed in Henrico General District Court in Henrico County, Virginia.

The parent company of Computemp, Consultis Information Technology, filed a lawsuit against Colonial Mechanical Corporation alleging that Colonial Mechanical failed to pay Computemp $9,000 for placement of an employee.

The lawsuit claims that Colonial tried to avoid paying a placement fee for fulltime hire. In violation of a contract, Colonial hired a temporary employee on a fulltime basis without paying the fee, the lawsuit alleges. (Case #99-2820)

Credit General sued Colonial Mechanical in Maryland federal court on July 20, 1998 according to this court case. Credit General’s complaint charged that Colonial Mechanical failed to pay its subcontractors on the Loudon Hospital Project. This dispute involved over $75,000. (Case #98-1688)

Colonial Mechanical ended up in federal court again in this civil case involving over $50,000. The case started when Citicorp, through its equipment arm Leasetek Funding Group, rented heavy construction equipment to Colonial Mechanical. According to Citicorp’s complaint, Colonial displayed the characteristics of a deadbeat. Namely, Colonial Mechanical didn’t pay Citicorp over $70,000 in equipment rental fees. This may not seem like a life-and-death issue, but it could have entitled Citicorp to file a lien against Colonial’s construction customers to collect their $70,569. If it had been your property that had been liened because Colonial Mechanical did not pay its bills, it would be a very big deal indeed.

Another detail that makes this case stand out is that over 90% of civil cases are simply settled. According to the court documents, this case went all to the way to a final judgment order against Colonial Mechanical, in the amount of over $50,000. (Case #92-211)

Colonial Mechanical Corporation was the mechanical subcontractor to Omni Construction on the Quincy Street Station project in Arlington, Virginia. In turn, Colonial Mechanical subcontracted to Airway Sheet Metal to fabricate and install the sheet metal, heating and air conditioning ducts, registers and grills for the project. When Airway’s work was done, Colonial Mechanical failed and refused to pay Airway almost $27,000 for the building work and the tenant build out balance, according to Airway’s court complaint. Airway Sheet Metal ultimately sued Colonial, charging breach of contract. (Case #91-1225)

In 1999, Colonial was hired by Prestige Construction Group to work on the renovation of the Watkins Cottrell brick buildings at 109-125 South 14th Street, Richmond, Virginia. ICM Enterprises was the project owner. At the end of the job, Colonial said they were still owed $267,548. In July 2000 Colonial filed liens against ICM Enterprises for $86,998, $55,464, $45,925, $41,388 and $38,772. Colonial also sued Prestige’s insurance company, Travelers Casualty for the sum of $267,548. A month later Colonial claimed in a court filing that they were still owed $40,242, and in another motion that they were still owed a separate $229,829.

Travelers Casualty objected, stating they had not breached any obligations to Colonial, and asked the court to dismiss the suit with prejudice and in turn award Travelers their costs. (Case #LL-1410-1)

According to the court suit, Resort International hired Colonial to perform construction and maintenance work at their Shenandoah Cross project in Gordonsville, Virginia. Colonial says that Resort International still owes them $28,063. In this case, Colonial sued its own customer. (Case #LB-2846-4)

According to the court suit, Jesson & Frantz were the general contractor for the construction of the American Family Health and Racquet Club in Henrico County, Virginia. Jesson & Frantz subcontracted part of the work to Colonial for $206,169. Colonial Mechanical then claimed that Jesson & Frantz approved change orders thus owing Colonial more money. Colonial sued for over $33,000. Jesson & Frantz counterclaimed that the owner had not paid them, and that they were not contractually obligated to pay Colonial until the owner paid them. Colonial also filed a lien for $33,084 against Sigma BR Associates, who were the owners of the racquet club. (Case #LS-2979-2)