Longmont hotel owner files counterclaim in payment dispute with builder

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Less than a month after Milliken-based contractor Hall-Irwin Corp. sued the owner of the new Hilton Garden Inn in Longmont alleging withheld payments related to construction of the hotel, Longmont Harvest Junction Hospitality LLC countersued with allegations that the builder failed to deliver on its contract.
The 105-room Hilton Garden Inn is managed by St. Louis, Missouri-based Genuine Hospitality LLC and opened late last year. (Christopher Wood/BizWest / Courtesy photo)
“Hall-Irwin was chosen by Longmont Harvest based on Hall-Irwin’s assurances that it could deliver the project as promised, within budget and in accordance with contractual requirements and Hilton brand standards,” according to the complaint filed this month in Boulder County District Court.

That delivery didn’t occur, the hotelier alleges.

Rather, “during the course of construction of the project, Hall-Irwin was incapable of meeting the contractual requirements of completing the project on time and in a satisfactory manner,” the complaint claims. “This was extremely disappointing to Longmont Harvest, which had paid Hall-Irwin millions of dollars on this project. Longmont Harvest gave Hall-Irwin numerous opportunities to correct and/or cure its material breaches of the contract during the course of construction and beyond, but Hall-Irwin has been and continues to be unable to perform.”

Specifically, Longmont Harvest’s dissatisfaction relates to:
Installation of incorrect and/or defective electrical fixtures. Defectively installed stucco. Defectively installed exterior concrete flatwork and asphalt. Installation of a chlorine pool instead of the specified salt water pool. Defectively installed ceiling tile. Defective painting of the property. Failure to properly clean the property at the conclusion of construction and prior to opening. Failure to properly oversee the construction. Failure to secure the property and prevent vandalism and other property damage. Failure to adhere to the plans and specifications as set forth in the contract documents.
Additionally, the counterclaim alleges, “Hall-Irwin has refused to make payments to subcontractors that it promised Longmont Harvest it would make, refused to fix its work and refused to pay its subcontractors, apparently preferring to pocket their payments for itself.”

The counterclaim does not demand specific damages but claims that Hall-Irwin’s alleged failures resulted in millions of lost dollars. The hotel project cost about $16 million to build, court documents show.

Longmont Harvest representatives declined to comment beyond the contents of the court filing, and Hall-Irwin did not respond to requests for comment.

The legal dispute began a month ago when Hall-Irwin sued the hotel operator, alleging $806,000 in unpaid bills.

In February, the contractor recorded a mechanic’s lien against the hotel owner, according to court documents.

As part of the suit, Hall-Irwin is seeking an order to foreclose on that lien. The suit — which includes as defendants other parties that may have a claim on the property: Wayne’s Electric Inc., Signature Communications Inc., Rexel Inc., Randy Kneebone Excavating and Trucking Inc., R-R Concrete LLC, American Sprinkler Inc., Air Mechanical Inc., Adams Bank and Trust and the Boulder County Public Trustee  — also demands unspecified damages.

The 105-room Hilton Garden Inn is managed by St. Louis, Missouri-based Genuine Hospitality LLC and opened late last year.

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