Builder beware: The big-time mistakes a builder could make.
The company’s owner is seeking $3 billion in damages for allegedly breaching the terms of the building materials contract.
The lawsuit says that the company violated the contract when it refused to pay workers wages.
The owner claims that the contract was signed by the company’s former CEO, who is now a director.
But the suit alleges that the former CEO “failed to comply with his duties and duties as a director, failing to meet the required disclosure obligations, and failing to perform his duties in accordance with the terms and conditions of the contract.”
The lawsuit alleges that one of the most egregious failures is that the builder’s contractor was not properly licensed.
The suit alleges the builder did not disclose the name of the company and did not file a proper certificate of incorporation.
The builder says that he was unaware of the lack of licensing until a customer complained.
The building materials contractor has not yet been named.