Legal Battle Unfolds: Community Asphalt Corp. vs. Palm Bay Over Unpaid Fees 💸🏛️

Dissecting the Legal Dispute: Unpaid Fees Allegations in Palm Bay Construction Project

🚧 A legal battle is brewing between the City of Palm Bay and Community Asphalt Corp. (Community), the construction company responsible for the St. Johns Heritage Parkway Interchange to Babcock Street project. Community has filed a lawsuit against the city, alleging breach of contract, unfair practices, and delayed payments totaling $412,576.60.

📅 The dispute traces back to 2017 when Community was awarded the design-build contract for the project. However, the relationship between the two parties appears to have soured shortly after the city issued a Notice to Proceed in March 2018. Community claims they requested a postponement due to unresolved issues that would impact project timelines and costs, but the city refused, leading to additional time and cost burdens for the company.

📝 Community's lawsuit outlines a series of events and actions by the city that they believe constitute breaches of contract and good faith. These include:

• Premature Notice to Proceed: Community asserts that the city's insistence on moving forward with the project before critical issues were resolved directly resulted in delays and increased costs.

• Unjustified Liquidated Damages: Despite acknowledging delays caused by the city, Community claims Palm Bay assessed $142,155 in liquidated damages for 39 days beyond the Substantial Completion deadline.

• Unpaid Fees: The lawsuit contends that the city has only paid $9,430,779.94 for the construction services, leaving a remaining balance of $412,576.60 owed to Community under the contract.

• Failure to Negotiate Change Orders: Community alleges that the city failed to engage in good faith negotiations and execute necessary change orders to address project modifications and their associated costs.

• Breach of Good Faith and Fair Dealing: The lawsuit argues that the city's actions throughout the project demonstrate a lack of good faith and fair dealing, hindering Community's ability to fulfill its contractual obligations.

• Violation of Prompt Payment Act: Community claims the city violated the Local Government Prompt Payment Act by failing to timely pay the undisputed portion of their final invoice, submitted in March 2023.

Transparency Note: It is important to note that the information presented here is based solely on the legal documentation filed by Community Asphalt Corp. against the City of Palm Bay. The city's perspective and response to these allegations will not be available until the legal matter is resolved and relevant records become accessible under Florida's Sunshine Laws.

🤔 The lawsuit's outcome could have significant implications for both the city and its taxpayers. If the court rules in favor of Community Asphalt Corp., Palm Bay may be liable for the unpaid fees, potential additional damages, and legal costs.

⏩ The legal process is now underway, and we will continue to monitor the case and provide updates as they become available.

🔗 This lawsuit follows a recent City Council meeting where an executive session was scheduled to discuss the litigation matter. You can read more about the meeting and its agenda here.

For more Palm Bay news and updates, visit The Palm Bayer.