The South Dakota city of Redfield and a contractor are engaged in a legal battle over work done on a $757,000 storm and sanitary sewer project.
Quam Construction Co. says it encountered unforeseen circumstances on the Shar-Winn Estates project that the city failed to disclose. The city attorney says Willmar, Minn.-based Quam never inspected the subsurface conditions at the site to determine what dewatering was needed.
After mediation failed, Quam asked U.S. District Court Judge Charles Kornmann to force arbitration. Kornmann denied that request, and the company this week appealed to the 8th U.S. Circuit Court of Appeals.
The city earlier this month filed a federal suit against Liberty Mutual Insurance Co., which issued a performance bond for project. The city attorney says Redfield incurred dewatering costs of about $70,000.
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