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Home Construction

Jersey contractor says St. Regis Residences still owes money on lux condo construction

Bill Heltzel by Bill Heltzel
July 15, 2022
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A subcontractor that worked on the St. Regis Residences claims that the developer and general contractor have refused to pay $848,513 for extra work performed on the posh Rye condominium project.

Valex Enterprises Inc. sued Opra III LLC, the developer, and Hudson Meridian Construction Group LLC, the general contractor, June 29 in Westchester Supreme Court. Opra is an affiliate of Alfred Weissman Real Estate, Harrison.

St. Regis Residences, Rye

St. Regis Residences is a 92-unit condominium that features luxury services and is aimed at older homebuyers.

Valex, of Marlboro, New Jersey, is a drywall and carpentry contractor that was hired to build a facade.

At some point, Hudson, of White Plains, fired other subcontractors for defective work, according to the complaint, and asked Valex to fix the defects and assume responsibility for the remainder of the work.

Valex worked on the project from December 1, 2020, according to a mechanic’s lien, to March 24, 2022. The agreed upon price for labor and materials was more than $3.2 million.

The new responsibilities were made part of the original subcontract, the complaint states, rather than as a new contract. Valex submitted bi-weekly labor and material records to Hudson, and the submittals that were approved were forwarded to Opra for payment.

But payments, Valex alleges, “were substantially delayed and ultimately ceased altogether.”

Valex says it notified Hudson that unless payments resumed, it would no longer be able to continue the work.

Opra allegedly responded by asking Valex to expedite the job by working on weekends and paying overtime, and by promising to pay Valex promptly.

But once again, the complaint states, payments were not made. When Valex asked why, Hudson allegedly responded that Opra had refused to pay Hudson, so Hudson would not pay Valex.

Valex charges Opra and Hudson with breach of contract and unjust enrichment. It also accuses Hudson of diverting funds that were to be held in trust for the benefit of subcontractors.

It is demanding an accounting of project records, foreclosure on the mechanic’s lien  and payment of at least $848,513.

Opra attorney Richard C. Schoenstein denied the accusations but otherwise declined to comment on the complaint. Hudson did not respond to an email request for comment.

Valex is represented by Manhatan attorney Charles D. Mueller.

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