Lawsuit claims construction company, convention center owe $413,000

(Source: KAIT)
(Source: KAIT)
(Source: KAIT)
(Source: KAIT)

JONESBORO, AR (KAIT) - A Paragould construction company says they're owed hundreds of thousands of dollars by a couple of Region 8 companies, including the company working on the proposed Hyatt Hotel and Convention Center on the bypass.

KEG Construction filed the lawsuit in Craighead County Circuit Court this week.

KEG Construction named Construction Network Inc., and the Northern Arkansas Hotel and Convention Center, among others, as defendants. They seek to enforce a lien on the property they worked on.

In the lawsuit, KEG claims they contracted with CNI and NAHCC in 2016 to do nearly $800,000 worth of grading, storm drain, curb work and base on the property, located on Browns Lane.

KEG said they did their part up until December when CNI's material default caused them to suspend work.

"Despite proper demand, CNI has failed and refused to pay KEG for the work performed by it, and CNI is presently liable to KEG in the amount of $413,175.00 on account of such work."

It goes on to say the NAHCC hasn't paid for all of the work described in the contract, and NAHCC isn't entitled to the work KEG did on the property.

"To avoid NAHCC's unjust enrichment at the expense of KEG, NAHCC must pay KEG for the value of its work, which value has been established by the Contract to be $413,175.00."

First Community Bank and Naylor Concrete and Steel Erectors have also been named defendants in the civil suit.

"Separate Defendants, FBC and Naylor, are joined herein for the purpose of allowing each of them to assert any interest either of them may claim in the real property interest against which KEG asserts its lien, which interests are alleged to be inferior to the lien claim of KEG."

The lawsuit was filed in Craighead County Circuit Court on April 5.

Copyright 2017 KAIT. All rights reserved.

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