Texas firm being sued by CPA sues engineer and contractor

A Texas company that is being sued by the Commonwealth Ports Authority for alleged defects in its design and management of the West Tinian Airport facility project is, in turn, now suing a civil engineer and a contractor.

Leo A. Daly Co., also called LADCO, filed last week in the U.S. District Court for the NMI a third-party complaint against civil engineer William S. Hofschneider and AIC Marianas Inc.

LADCO, through the O’Connor law firm, is suing Hofschneider for breach of contract.

LADCO is demanding contribution, indemnity, and reimbursement from Hofschneider and AIC Marianas if the court determines that CPA should recover damages against the company.

Saipan Tribune tried but failed to obtain comments from Hofschneider and AIC Marianas.

LADCO was contracted by CPA on Jan. 22, 2003, to provide architectural, engineering, and management services for the construction of some renovation work at the West Tinian Airport.

On Dec. 22, 2004, CPA contracted AIC Marianas for general construction contracting services. The construction contract included an original price of $2,651,263.25 for work completed. AIC Marianas agreed to furnish all labor, materials, and equipment needed to construct and complete the improvement.

On Nov. 17, 2005, LADCO subcontracted Hofschneider for the construction management services that LADCO had agreed to provide CPA.

As required by the subcontract, Hofschneider was mandated to, among other things, perform the final “walk-through” to inspect the project and come up with a list of any items for completion.

The O’Connor law firm alleged that the subcontract required Hofschneider to indemnify LADCO against any and all claims, liabilities, losses, damages, costs and reasonable attorney’s fees that LADCO incurred as a result of Hofschneider’s breach of the terms of the subcontract. The subcontract also allegedly required Hofschneider to indemnify LADCO for any negligent act, error, mistake or omission he commits in performing the subcontract.

CPA sued LADCO for breach of contract claims, professional malpractice claims, negligence, Consumer Protection Act claims, fraud claims, and a claim for violations of the CNMI Building Safety Code.

In its $1-million lawsuit against LADCO, CPA alleged that LADCO violated several aspects of its contract. “For example, LADCO’s work was not compliant with the Americans with Disabilities Act, nor was it compliant with typhoon and earthquake standards applicable to Tinian,” according to the complaint.