A Manhattan firm that oversaw construction of the St. Regis Residences in Rye is suing the developer for $9.2 million for allegedly failing to pay for its services.
Hudson Meridian Construction Group accused OPRA III of breach of contract in a complaint filed March 31 in Westchester Supreme Court.
“We don’t comment on pending litigation,” OPRA’s attorney, David J. Pfeffer of Tarter Krinsky & Drogin said in a brief telephone interview, but OPRA “takes serious exception to Hudson Meridian’s recently filed complaint.”
OPRA is affiliated with Alfred Weissman Real Estate, of Harrison, and is the condominium sponsor.
Hudson Meridian was hired as the construction manager in 2018 to build a 92-unit luxury condominium that would be marketed to older homebuyers.
Hudson Meridian claims that the developer produced flawed architectural, design and engineering documents; increased the scope of work “without due and proper payment;” failed to pay subcontractors for extra work it required; misapplied contingency funds; interfered with Hudson’s relationships with subcontractors; and caused a work stoppage by delaying processing of change orders.
Last May, after the developer allegedly failed to make payments to the construction manager and subcontractors, Hudson Meridian filed notice of a $7.4 million mechanics lien.
Then OPRA terminated the construction management agreement last June, according to the complaint, after the St. Regis work was “substantially completed.”
Hudson Meridian disputed the reasons OPRA gave for terminating the agreement, Manhattan attorney Daniel E. Katz says in the complaint. Now the construction manager claims it is owed at least $9.2 million for unpaid work, delay costs and a share of project contingency savings.
The St. Regis project has generated several lawsuits by subcontractors and suppliers accusing both Hudson Meridian and OPRA of not paying for work and materials.
Valex Enterprises Inc. of Marlboro, New Jersey, for instance, sued Hudson Meridian and OPRA III last June for allegedly refusing to pay $848,513 for drywall and carpentry services.
Hudson Meridian had agreed to pay Valex $3.2 million to fix work by a previous subcontractor whose services were deemed defective, according to the complaint, but delayed and eventually ceased making payments to Valex.
Hudson Meridian broadly denied the allegations and responded with a cross-claim against OPRA III blaming the developer for the problems.
OPRA III also broadly denied Valex’s allegations and filed cross-claims against Hudson Meridian. It accused the construction manager of mismanagement and negligence and failure to indemnify the developer from subcontractor claims.
The litigation remains active in Westchester Supreme Court.
