Kinsley Construction sues Kroger over alleged breach of contract for facility construction

By Gene Johnson | Oct 14, 2015

A York construction company is suing the Kroger Co. over claims of not being compensated for costs in the building of a retaining wall as a part of the overall construction of a new cooler warehouse and separate maintenance facility.

Kinsley Construction Inc. filed a lawsuit against The Kroger Co. on Sept. 17 in the U.S. District Court for the Eastern District of Pennsylvania citing breach of contract and violation of the Contractor and Subcontractor Payment Act.

On or about Aug. 26, 2013, Kinsley entered into a contract with the Kroger Co. to serve as a general contractor for the Turkey Hill Dairy Expansion, the complaint states. The project included the construction of a new cooler warehouse and an office along with a separate maintenance facility, with a guaranteed maximum price for their services of $18,210,047, according to the claim. The project is located on River Road in Conestoga.

In connection with the construction, it was determined that a retaining wall needed to be completed. According to the lawsuit, Kinsley incurred more expenses to complete this arm of the project because the soils on the site were not suitable for use as backfill for the retaining wall, despite the recommendation of the ARM Group, a well-known engineering firm, stating otherwise. Kroger rejected Kinsley’s request for further compensation, which totaled more than $1 million, the complaint states.

Kinsley is seeking damages, interest, and court costs. It is represented by Lancaster-based attorney Timothy J. Woolford of Woolford Law.

U.S. District Court for the Eastern District of Pennsylvania case number 5:15-cv-05185-JFL

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