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NYC Contractor Sues Developer for $3.4M

Monday, September 10, 2018

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Firms in New York City are embroiled in a $3 million battle over wrongful termination accusations regarding the revamp of a former Long Island hospital.

What Happened

New York City contractor ICS Builders is suing Brooklyn-based Fortis Property Group for $3.4 million, accusing the firm of wrongful termination and accruing past due bills surrounding a job to convert the former Long Island College Hospital into a high-rise of luxury condominiums.

Fortis reportedly hired ICS for the job in July 2016. In ICS’s lawsuit, the company says that it was supposed to complete the project in November 2017, but was unable to meet that expectation because of delays caused by Fortis and BKSK Architects.

Delays allegedly included inability to access the jobsite, deficient plans and specifications, unforeseen site conditions and improper applications to the New York City Department of Buildings.

ICS says, that it was eventually able to continue working, but on Aug. 9 received a termination letter effective Aug. 31.

In addition to payment for invoices, ICS is also asking the court to stop the termination of the contract and to keep Fortis from making a claim against the performance bond that ICS provided.

Fortis has responded with a countersuit, which claims that ICS failed to meet the November deadline. The developer claims that it suggested several construction management consultants to remedy the delays in March but that ICS rejected all proposals.

Neither firm’s attorneys have commented publicly on the debacle.


Tagged categories: Business matters; Good Technical Practice; Lawsuits; North America

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