Bayou City Glass Files Suit Against Haley-Greer Alleging Breach of Contract
April 7, 2011

Bayou City Glass (BCG) in Webster, Texas, filed suit April 5 in Harris County District Court against Dallas-based Haley-Greer Inc. (HGI) and Suretec Insurance Co. in Houston alleging Haley-Greer materially breached its contract with BCG. BCG is seeking actual damages in the amount of $367,484.73, prompt pay interest at the statutory 18-percent per annum, attorney’s fees and court costs.

According to court documents, the dispute concerns the Phoenix Tower project in Houston, for which HGI had been hired to replace the spandrel glass. The suit alleges that HGI and BCG entered into a verbal agreement, with BCG agreeing to provide all labor necessary to replace a portion of the spandrel glass. All of the materials necessary to replace the spandrel glass were provided by HGI, which also provided the swing-stages BCG used when replacing the spandrel glass. No materials were provided by BCG.

Court documents also allege that BCG completed its work on the project in February 2009, and its work was inspected and approved by the owner’s agent, Curtainwall Design Consultants, as it was being done. However, “despite the fact that BCG completed replacing all of the spandrel glass provided by HGI and that HGI requested that BCG replace, HGI has refused and continues to refuse to pay BCG the total sum of $367,484.73.” In April 2009, BCG recorded an Affidavit for Statutory Mechanic’s and Material man’s Lien against the project in the amount of $367,484.73, which includes a claim for $190,899.64 in retainage.

The documents also claim that “BCG sent written notice of its intent to record a lien to HGI and the owner on April 7, 2009. Meeting the requirements of §53.055 of the Texas Property Code, BCG sent written notice of and a copy of its recorded Affidavit for Statutory Mechanic’s and Materialman’s Lien to HGI and the owner on April 8. 2009.

BCG says that, After discussions with HGI, it recorded a Partial Release of Lien on July 10, 2009, releasing $90,751.05 of its Affidavit for Statutory Mechanic’s and Materialman’s Lien only, and not its right to recover such amount. BCG contends that this leaves a valid and perfected lien claim in the amount of $276,733.78.”

The documents go on to say that in July 2009, HGI, as principal, and Suretec, as surety, issued and recorded a Surety Bond to Indemnify Against Lien in the amount of $415,100.67 to remove BCG’s lien from the project. HGI served BCG with a copy of the Notice and the Bond on or about July 24, 2009.

“BCG, HGI and Suretec have entered into five Tolling Agreements, extending limitations and the deadline for BCG to file suit against HGI and Suretec on the Bond until April 8, 2011,” according to the documents.

The plaintiff’s petition also alleges that, “by failing to pay the outstanding amount due and owing to BCG, HGI has materially breached its contract with BCG. HGI’s material breach has proximately caused BCG to suffer actual damages in the amount of at least $367,484.73. As such, BCG is entitled to recover from HGI at least $367,484.73 in actual damages, plus all interest, costs and attorney’s fees as allowed by law.”

At press time™ could not reach Bayou City Glass representatives for comment and representatives from Haley-Greer had not responded to request for comment.

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