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Thursday, November 23, 2017
New Claims by State in Airport Hangar Lawsuit
By News Release @ 4:04 AM :: 990 Views :: Ethics, Hawaii State Government


News Release from Hawaii AG, November 22, 2017

HONOLULU – Today state circuit Judge Gary W.B. Chang granted the State of Hawaii, Department of Transportation (HDOT)’s motion to amend the State’s cross-claim against dck pacific construction, LLC (“dck pacific”) and Terrace Pacific. Judge Chang also allowed the State to file an additional third-party complaint against dck worldwide, LLC, the parent company of dck pacific.

dck worldwide is being added to the complaint because of new evidence discovered by the State during the course of the existing lawsuit. The evidence suggests that dck worldwide directed how dck pacific handled payments to subcontractors. The evidence also suggested that dck worldwide directed how Terrace Pacific Insurance handled certain types of insurance claims. In addition to the new claims against dck worldwide, the existing claims against dck pacific and Terrace Pacific Insurance are also being further developed.

Attorney General Chin said, “the State is making sure that those responsible for the problems that occurred during the construction of this state facility are held accountable.”

HDOT contracted with dck pacific to build the Hawaiian Airlines Terminal Maintenance and Cargo Facility. The project fell behind schedule. HDOT learned subcontractors were not sending employees to the job because dck was not paying the subcontractors. HDOT provided dck time to remedy the situation. When dck failed to do so, HDOT terminated the general contractor for cause. HDOT learned that dck had kept more than $3 million that should have been paid to suppliers and subcontractors up to that point. For the past several months, HDOT has settled claims with subcontractors who did work on the facility, but who were never paid by the general contractor. These payments were made possible when the state legislature appropriated the funds earlier this year.

PDF: A copy of the order is attached.

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