Construction company faces business litigation in Michigan

Category: Commercial Litigation

Construction projects can be complicated, and many unexpected events may end up occurring. This can put a construction company at risk of a business litigation lawsuit if a party believes the company’s negligence may have caused injury or damage to property. One state government agency in Michigan has recently accused a construction company of negligence, which allegedly resulted in damage to the basements of over 20 residential properties.

The construction company, Pamar Enterprises Inc., was contracted by the Michigan Department of Transportation to work on a reconstruction project. The lawsuit alleges that the defendant construction company had removed concrete and asphalt materials from the project site. Removing the concrete and asphalt, which had been used to cover a road, had caused a trench that had become filled with water during rainfall.

The plaintiffs claim that this caused the sewage and sanitation systems to be flooded with dirt and stone gravel. This resulted in raw sewage being backed up into the homes of 20 local residences and caused damage to personal property and real estate property. The residents are asking for $600,000 in damages from the court.

However, the construction company will also have a chance to defend itself during the business litigation process in the court of law in Michigan. The defendant is arguing that the sewage leak was a result of pre-existing conditions. On the other hand, in order to prevail, the defendant construction company will have to show with evidence and testimony that the company should not be held liable for damages.

Source: Huron Daily Tribune, “Company responds to Bad Axe flooding lawsuit“, Kate Hessling, June 10, 2014

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