Lawsuit filed against Blissfield for wastewater treatment plant 'abandonment of contract'

BLISSFIELD — A Farmington Hills construction company responsible for providing improvements to Blissfield’s wastewater treatment plant is suing the village for what it describes as abandonment of contract and alternative, breach of contract.

LaSalle Group Inc., with its principal offices at 30375 Northwestern Highway, Farmington Hills, filed a lawsuit against Blissfield through its legal counsel McAlpine PC, Auburn Hills, that was dated March 1 in Lenawee County’s 39th Circuit Court.

According to an online case search, a pretrial hearing in the matter is scheduled for June 24, with Circuit Judge Anna Marie Anzalone presiding.

LaSalle, according to the lawsuit — eight pages in length — entered a construction contract with Blissfield on Nov. 24, 2020, where the company was to provide improvements to the village’s wastewater treatment plant. The original schedule shows most concrete work and underground piping being installed and completed during non-winter months.

“LaSalle and its subcontractors bid the project intending to complete the majority of their concrete work and UG piping in the spring, summer and fall and did not include winter conditions for this scope of work in their bids,” the lawsuit said.

Citing project delays and a nationwide pipe shortage, LaSalle’s first day on the jobsite was April 5, 2021, although it did not receive the specified pipe until Oct. 11, 2021 — 131 working days after LaSalle started work on the project.

“LaSalle had previously requested permission from Blissfield to supply a different pipe which was more readily available, but Blissfield refused to allow LaSalle to do so,” the lawsuit said.

To maintain the project schedule, LaSalle claims it performed “out-of-sequence" and “non-critical” path work while awaiting the delivery of the piping, which led to significant labor inefficiencies and extra costs.

“LaSalle had requested to demobilize from the project while awaiting delivery of the UG pipe along with an extension of the schedule, but Blissfield refused,” the lawsuit said.

When the piping was delivered in October 2021, LaSalle said it informed Blissfield it could continue working during the winter months with Blissfield compensating LaSalle for unforeseen winter conditions, or LaSalle could demobilize and return to the jobsite after April 15, 2022, with the village issuing a change order for costs incurred and an extension of the project schedule, according to the lawsuit’s language.

“Blissfield and/or the engineer demanded that LaSalle work through the winter to complete the project knowing that LaSalle and its subcontractors would incur substantial additional costs,” the lawsuit said. “... LaSalle was reassured by Blissfield that the parties would work together in order to compensate Lasalle fairly for the unfavorable winter working conditions.”

According to LaSalle’s lawsuit, however, Blissfield “has improperly refused to compensate LaSalle for its project work, including costs for changed work, loss of productivity due to directed out-of-sequence work, delayed costs and the costs of working in unforeseen winter conditions.”

LaSalle said its company was required to work 112 days during unfavorable winter conditions, coupled with a national material shortage, significant labor inefficiencies, loss of productivity due to the COVID-19 pandemic, concrete/pavement demolition and replacement due to missing information on construction drawings among other complaints.

“These unexpected events, which severely impacted LaSalle’s productivity and substantially extended LaSalle’s project duration, amount to an abandonment of the contract and/or material breaches of contract and a cardinal change,” the lawsuit states.

LaSalle said it was forced to perform unexpected work that “could not be completed efficiently, causing LaSalle to experience significant labor inefficiencies and costs.”

The lawsuit’s language also claims Blissfield acted inconsistently with the contract’s existence, providing evidence of an intent to abandon the contract. LaSalle, meanwhile, states it suffered damages because of Blissfield’s refusal to compensate LaSalle for the benefits conferred as a result of its work.

The company said it is seeking to recover the full market value of the benefits, plus overhead and profit; attorney fees; the loss of the use of funds withheld; and other/further damages that are developed through discovery of the case.

In terms of LaSalle’s argument for Blissfield’s alternative, breach of contract, the company claims Blissfield failed to provide accurate construction drawings, required cardinal changes to scope of the project, failed to compensate LaSalle for the changes to the project and failed to pay LaSalle for all work and costs incurred under the contract.

“Despite repeated demands, Blissfield has failed to pay Lasalle for all its project work and costs incurred under the contract,” the lawsuit said. “LaSalle has been damaged as a result of Blissfield's failure to pay LaSalle in full all amounts due and owing, together with certain direct, indirect, related and consequential damages.”

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In a news release issued March 26, Blissfield said it was advised of LaSalle’s lawsuit against the village in Lenawee County’s 39th Circuit Court, and as part of its efforts to be transparent with the public, provided an online copy of the lawsuit for the public to view. Additionally, a copy of the filed complaint may be obtained at the Blissfield Village Office, 130 S. Lane St., in downtown Blissfield.

While the village and its legal counsel review the lawsuit, no further comment will be made regarding the case, Blissfield said, “until such time a resolution can be reached.”

Blissfield called the lawsuit “disheartening” to the village council, staff and its residents.

“We would like to remind the residents that throughout this process, the village council’s sole focus has and will continue to be the best interest of our residents and the village of Blissfield,” the release said.

— Contact reporter Brad Heineman at bheineman@lenconnect.com or follow him on X, formerly Twitter: twitter.com/LenaweeHeineman.

This article originally appeared on The Daily Telegram: LaSalle Group Inc. files lawsuit against Blissfield in Lenawee 39th Circuit Court