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Rapid City Embroiled In Court Battle Over Pipe

May 9, 2012, 9:50 AM


Rapid City is becoming embroiled in court disputes over allegedly defective steel pipe used in a $3.7 million water project.

The City Council has authorized city staff to file a countersuit against general contractor Highmark Inc. of Rapid City and a third-party complaint against Northwest Pipe Co. of Vancouver, Wash.

Reports say Highmark has sued the city, saying the city withheld about $307,000 in payment when the project was delayed for reasons outside the company's control. Highmark also has sued Northwest Pipe.

Northwest Pipe disputes that anything was wrong with the product provided to Highmark for the project. That company has filed a countersuit against Highmark over unpaid bills for the pipe.

The project began in March 2010 and was not finished until September 2011.

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