Cordish Loses Lawsuit Filed By Contractor

The Cordish nightmare wrought upon Louisville by Jerry Abramson isn’t over. Don’t worry, your night sweats aren’t going to end any time soon.

It seems that Cordish is keen on taking millions upon millions of our tax dollars without a care in the world. When it comes to paying contractors, however, it’s not so keen on parting with its cash or keep up its end of the deal.

Take a look at this lawsuit Cordish just lost to Badgett Constructors, LLC:

Gary Darnell, a Cordish representative, contacted Dale Lemmel, Badgett’s project supervisor, in February of 2007 and engaged Badgett to do demolition and build-out work at Fourth Street Live. Badgett was to work on the tenant spaces that were to become the Roc Bar and the Mex Bar. Darnell advised Lemmel that the work had to be done in time to allow both businesses to open for Derby, 2007.

Over the next several months, Badgett submitted invoices totaling $374,972.46 for its work at Fourth Street Live. These invoices were not paid when submitted. In June or early July of 2007, ECI requested that Badgett resubmit an invoice for $265,940.00 because that was all that Cordish would pay at that time. Badgett did so, believe that ECI would pay the full amount eventually. The resubmitted invoice stated that it was for “Fourth Street Live, Remodel — Roc Bar/Mex Bar, 2nd draw”. In mid-August, ECI sent Badgett a check for $265,940.00. The check had an attachment which contained the words “payment in full/2nd dr”. At trial, Badgett acknowledged receipt of the payment. Badgett alleges that the Defendants owe an additional $109,032.46 for work Badgett performed under the contract. The Defendants allege that the contract between them and Badgett was “not to exceed” contract and the amount sought by Badgett exceeds the limit set in the alleged contract. The Defendants further claim that the payment accepted by Badgett constitutes an accord and satisfaction. Badgett denies ever being advised that there was a “not to exceed” amount in place for its work. There is no written contract memorializing the terms agreed upon by the parties.

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The Court finds that this indicates that Badgett was willing to work under that arrangement but it does not prove that Badgett agreed to do the earlier work for Cordish and ECI on that basis. The Court finds that the contract was a “time and materials” contract.

Cordish and ECI also allege that the $265,940.00 payment operates as an accord and satisfaction. When they sent Badgett a check for $265,940.00, the attached check stub contained the following: “Payment in full/2nd dr”. They maintain that when Badgett cashed the check for $265,940.00 without protest, that operated as an accord and satisfaction.

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The Court finds that the “Payment in full/2nd dr” language is not sufficient to put Badgett on notice that the check was a final payment on all claims. On its face, the memo is ambiguous. It does not clearly indicate that the second draw was the final draw. The Court finds that Cordish has not demonstrated that there was an accord and satisfaction of any claim by Badgett for the work in question.

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The Court finds that Badgett is entitled to judgment on its claims.

Click here (Warning: PDF Link) to read the entire judgment.

Badgett will receive 12% interest on the $109,032.46 judgment until paid in full by Cordish.

Thoughts?

11 thoughts on “Cordish Loses Lawsuit Filed By Contractor

  1. The court was right to rule that the check did NOT constitute accord and satisfaction for all claims against Cordish.

    It’s nice to see the justice system work — especially when a shady company like Cordish so blatantly seeks to short-change a good-faith contractor.

    Cordish was plenty sneaky but not very smart.

    This should serve as a lesson in law to anyone with a claim.

    An endorsed check is enforceable as a legal contract, so read the memo and know what it means.

    If it had been written more cleverly and endorsed by Badgett (the payee), then Cordish might have kept the $109K it obviously owed.

    Metro government might apply a higher standard of integrity to its business partners.

    Or to itself. The same government is squeezing an East End couple to pay almost $100,000 for its own mistakes. To read all about the corrupt goverment outrage of the century, google “Paalz” (the couple’s last name).

  2. So Cordish is not wanting to pay up for the remodel of the ROC BAR & the MEX joint…..that’s TWO seperate bars/clubs that were re-done at a frantic pace & cost of $375k to be open for Derby of ’07……”Fast Forward”…..Now remember Cordish was given $950k to redo the Bowling alley and all the controversary over what it cost!….remember the opinions that nobody could see more then maybe $200k spent in the Converted Sports & Social Club…..Lets use some Common sense here!….Just how bad do you think the taxpayers got screwed along with the local guys who were downtown for 19 years when the city partners up with crooks likeCordish…..And seeing how they dont want to disclose what they spent the $950 large on claiming “Trade Secerets”….Lets make a common sense comparrisons on the cost of the two clubs vs. the bowling alley!…..You think the things the $375k were spent on in the two clubs were “Propritary” info & Trade secerets”…..vs. the $950k spent by Cordish on the bowling alley.
    Again lets put some common sense perspective to work here…..This action was in progress going on ,while Jerry and Traughber were across the street at the bowling alley whipping an extra $950 large on Cordish, “Isn’t it there JOB to have known this action was going on, and wouldn’t that make them a bad risk?….And to TOP it all off?…..Tandy goes to BAltimore and comes home and spits in the taxpaying citizens faces by protecting them from having to tell what the $950 was spent on!….Hell he should have been wanting to know how comethe difference in the two remodels were so far apart when there was that much difference in the scope of each, comparatively speaking,Just more reason to be suspicious that TANDY did waht he was told to do by the MAyor & his cronie Traughber….Just more shit leaking out of the bag……Oh! the stench of it All!….Stinks to High Heaven!….and to think someone like Tandy could have actually been possibly elected by some fluke, !!!!

  3. Just for grins I googled up the Paalz info….Typical!….a survey mistake made years ago, by the city and they want to screw the homeowner….The city can give away the whole property of 4th st Live for $1.00…..and sell the Parking garage to Cordish for pennies on the dollar of it’s value, but they want to rake these poor folks over the coals!…The City should be setteling with the Paalz’s for $1.00….end of story!

  4. Tom, Damn’t it; You took all of my opinions and put them in your post! You are right on the money.

    My estimate for the $ 950 K Sports & Social Club renovation (3 page, 110 line item, construction budget by a seasoned construction estimator, using generous & conservative numbers + public permit costs + review of the shoddy blueprints + a comparison with LEO’s estimate last year) is a little under $ 500 K. That leaves a nice $ 450 K unaccounted for – which – hold on – this will come as a shock – THAT’s the reason Cordish ascribed their job costs on this project as “proprietary”. My ass, it’s a freaking construction project estimate – Publish it, show a decent overhead & profit margin and hide any “excess” profit among the other 30 budget/estimate line items, like the rest of us in the business do. Geez, I even put in $ 110,000 for TV’s, Audio, etc. and other electronics to be generous.

    Listen, I have studied this issue way too much. BottomLine: Cordish took, seized, “earned” or stole a half million taxpayer dollars from Louisville citizens, with the Mayor’s okay, for some reason, yet to be known.

  5. Oops, just one mistake. $ 500 in excess profits cannot be distributed (hidden) in a $ 450 K construction budget. Probably the reason they did not want any auditing by our fine leadership downtown…….

  6. Now apply that same equation to the Total $74,000,000.00 that they have gotten on the entire project….WtF….There has been some serious conspiciary ,collusion,ect thruout this project and relationship with Cordish….Don’t For get that the city has bought the Water Co. for something like $16,000,000.00 and given that to Cordish also , with another obligation to give them another something like $350,000,000.00….for the City Center project….
    You know who shouldbe studying the Cordish deals is the FEDS!,….In every city they have done projects in?….all 13-15 of them….if there isn’t proof of criminal intent in all those deals the way the money is handled,then David Tandy is white!….and I’d bet the Farm he had discussions with the MAyor,Traughber,Cordish about a stratgey of how the Baltimore fact finding mission would go down!….that turned out to be a NON-FACT Finding mission.
    I’ve been well aware of whats been going on with all the deception and coverups, as usuall it’ll all at some time come out and surface , Whats really sick is the people of this town are mostly unconcerned cause they don’t understand it & don’t have the time to care about it till they realize the wool has been pulled over their eyes.
    It’ll be interesting to see how fast Cordish spits the deal when he can’t be slid any more free money for 4th street!…..That’s when some kind of activity will start on the City Center project, to tap that cash.
    Cordish is only here for one reason, using FREE & patient money waiting to figure out how to get gaming!!….gambling!!!…thats their ultimate goal….and Jerry is a big part on that…No telling what he’s billing them in some fashion or subtrafuge thru a shell or person on one of their other 13-15 projects…You know he & his close cronies have been well paid!….somehow.
    The other big Question the public should be answering is why would they TRUST Councilman Tandy, who has Cordish deal in His district and sucked up to them like a good Boy!…Hell he was Jerrys pick & plant after Willie Bright as the successor to that district, another planned and subbersive move bythe Cronies, They had to have a guy like Tandy that would do & act as he was told and expected !…why do you think he’s been totally useless to any other business downtown thats petitioned for assistance, hell he’s been the lookout for Jerry to identify the ones they want to mark as the troublemakers that dont agree with them!
    The city hasn’t stimulated any real development!….Jobs,….residents moving downtown, All they havedone is manufacture a partnership deal to compeate with local business, that gets Free Money!…..Can’t wait to See how Hal or Greg take their orders from what seems be be an organized entrenchment of Crooks!

  7. Couldn’t have said it better or agreed more with what you say there Chico….The one thing that also should be addressed is Just how long can or will the Cordish stay in the game if they arent getting free money?, When will they start the pressure process of , “we’ll just board the dumps up and let’em sit empty if you don’t keep throwing the free money to us.

    After all you’d think the city would be required to audit the performance ,cash flow,balance sheets, P&L’s of the opperations to determine if any money has actually been MADE?….An outside local consultant should inspect the books to determine what the money is to be spent on, and how….I mean when you spend aprox 70 mil, what are the dynamics to determine how much business you have to generate! in sales tomake the #’s work

  8. This thread tells me one thing I needed to know; Assuming Cordish used a Louisville contractor to renovate the S&SC, like they hired Badgett to build out those two bars, then my generous estimate is too high. I’ll redo and state my revised estimate, but the “excess” Cordish profit will probably rise to $ 500 K instead of $ 450 K projected earlier. Man, talk about a Grand Opening party – Except this one was held in Baltimore after picking up a cool half million + after a 6 week simple renovation project. I should have wished harder for a similar project during my career!

  9. No Shit! TallGuy…..Just think about how much money was raked off initially off the Millions they were given for the original buildout!…..What is there down there about 12-13 places…..you just do the Math and then try to figure out where all the Money went!…..It’s OBVIOUS…..just F l o l l o w ….the MONEY!….however thats impossible to do the way the crooks all conspired to craft the deal!…..So that being said, the only way to justify all the Millions spent and cut up since day one is to have a taxpayers lawsuit and supenoa the records and have the audit produced in court , kinda like Badget did to Cordish!….I’ll bet anything It would unravel the the bigest con & scandal of Criminal intent you ever saw!…..Then maybe Jerry could be the MAyor of Eddyville, and that Traughber Guy & Tandy could trully be his bitches!

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