Werner Deconstruction, Llc V. Siteworks Services Ny, Inc. Et Al

Case Background

On October 23, 2015, Plaintiff Werner Deconstruction LLC filed a lawsuit against Defendant Siteworks Services NY, Inc. (“SSNY”) and others, including allegations of breach of contract, fraud, and unjust enrichment. The case was filed in the United States District Court, New Jersey (Trenton). The case was assigned to Judge Peter G. Sheridan and referred to Magistrate Judge Tonianne J. Bongiovanni. [Case number: 3:15cv7682]

Cause

On February 6, 2015, Werner Deconstruction and SSNY signed a Debris Removal Services Agreement. According to this agreement, SSNY committed to removing a demolition debris pile from the Werner Generating Station in South Amboy, New Jersey.

Subsequently, SSNY allegedly subcontracted Minerva Enterprises, LLC to transport the debris to a landfill that accepted asbestos-contaminated material. Additionally, SSNY reportedly subcontracted Ani & Joe Abatement Demolition, LLC for asbestos abatement services related to debris removal.

The debris pile contained approximately 20,000 tons of material, some of which was contaminated with asbestos. SSNY agreed to use its “best efforts” to complete the work within ten weeks, starting from the contract’s effective date. In return for SSNY’s services, Werner Deconstruction agreed to specific payment rates for transport and disposal.

On the same day the contract was signed, Werner Deconstruction wired an initial payment of $100,000 to SSNY’s designated account, as stipulated in the contract. This payment was intended solely for prepayment to the landfill and for specific services outlined in the agreement.

Moreover, SSNY committed to sending weekly invoices to Werner Deconstruction. These invoices would estimate the upcoming week’s debris removal costs and report actual costs incurred. SSNY also agreed to submit weekly statements detailing its expenses and an accounting balance from the landfill contractor.

Between February 13, 2015, and May 26, 2015, Werner Deconstruction transferred a total of $2,314,904.96 to SSNY’s account at SSNY’s request. By May 26, 2015, Werner had wired a total of $2,414,904.96 in accordance with the contract.

In May 2015, Werner discovered that SSNY had not paid Minerva Enterprises for debris removal, despite SSNY’s assurances. In September 2015, Werner also found out that SSNY had failed to pay Ani & Joe Abatement for asbestos abatement services.

Damages

Due to SSNY’s breach of contract, Werner Deconstruction had to hire another contractor, referred to as the “Completion Contractor,” to complete SSNY’s work. This decision resulted from SSNY’s failure to fulfill its obligations under the Debris Removal Contract.

Werner Deconstruction incurred significant costs because of this situation, and these costs would not have arisen if SSNY had completed its work as promised. Therefore, Werner Deconstruction, LLC sought a judgment in its favor against Siteworks Services NY, Inc. for compensatory damages. Additionally, they requested pre-judgment interest, legal costs, attorney fees, and any other relief the Court deemed appropriate.

As of the filing date of this Amended Complaint, Werner Deconstruction reported approximately $525,122.94 in additional expenses incurred to have the Completion Contractor finish the work that SSNY failed to complete.

Key Arguments and Proceedings

Legal Representation

  • Plaintiff(s): Werner Deconstruction LLC
    • Counsel for Plaintiff(s): Thomas Joseph O’Leary | Fabian Marriott | Joseph L. Linares
  • Defendant(s):  Siteworks Services NY, Inc. | John Does 1-10
    • Counsel for Defendant(s): Saul Roffe

Claims

Werner Deconstruction claimed the following:

A. SSNY’s Incomplete Work

SSNY agreed to complete all work under Article 3A of the Debris Removal Contract but failed to remove the entire Demolition Debris Pile from the Werner Generating Station. On June 29, 2015, SSNY abandoned the project without a valid reason, forcing Werner Deconstruction to hire another contractor and incur approximately $525,122.94 in additional expenses.

B. SSNY’s Payment Failures

Between February 5 and May 21, 2015, SSNY issued 14 invoices totaling $2,414,904.96, which Werner Deconstruction prepaid. However, SSNY did not fully pay Minerva Enterprises or Ani & Joe Abatement for their services, breaching Article 6 of the contract.

C. Indemnification Failures

SSNY failed to defend or indemnify Werner Deconstruction against construction lien claims filed by Minerva Enterprises and Ani & Joe Abatement, resulting in additional legal costs.

D. Refund of Pre-Payments

Despite a balance of $175,001.89 remaining in the Pre-Payment Account, SSNY refused to refund the demanded $207,537.69.

E. Removal of Contaminated Materials

SSNY neglected to remove contaminated tracking pads, leading to further costs for soil sampling and project delays.

In total, Werner Deconstruction estimated damages exceeding $737,774.82.

Specific Performance of Contract 

SSNY breached its obligation to provide shipping manifests for debris removal. Werner Deconstruction demanded specific performance of this contract.

In addition to the breach of contract and specific performance claims against SSNY, Werner Deconstruction asserted multiple other claims. These included quantum meruit, negligence, and accounting, along with allegations of fraud, negligent misrepresentation, and conversion. The suit also addressed claims under the New Jersey Consumer Fraud Act, veil piercing, unjust enrichment, and fiduciary duty breaches, as well as successor and alter ego liabilities related to various defendants.

Defense

Defendant Siteworks Services denied allegations of breach of contract and responded by arguing that the February 6, 2015 Debris Removal Agreement did not require it to perform the specific actions claimed by Plaintiff. Furthermore, emphasized that it was not a party to the Debris Removal Agreement. Therefore, SSNY asserted that it bore no liability for any claims arising from that agreement.

Jury Verdict

On March 11, 2024, the New Jersey jury found that Defendant SSNY had breached the Debris Removal Services Agreement as a result of which Plaintiff had suffered damages. The jury also determined that Defendant SSNY had acted negligently with respect to the PCBSs on the surface of the tracking pad at Werner Generating Station. It was also found that SSNY fraudulently misrepresented facts to misrepresent facts to induce payments from Plaintiff Werner which caused damages to Werner.

The jury awarded $1,154,115 to Plaintiff Wener as compensatory damages. Additionally, in another verdict sheet, the jury awarded $300,000 in punitive damages. The total award came up to $1,454,115.

Court Documents:

Available upon request