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UNITED STATES OF AMERICA FOR USE OF KE FLATWORK, INC. v. ALACRAN CONTRACTING, LLC et al complaint

ATTENTION: It is possible that this information may no longer be current and therefore may be inaccurate. The index contains both open and closed cases and is not a complete list of cases in which an ACE Insurance Group company is involved. This information is provided to give interested persons an idea of the issues disputed in the indexed cases. For a full understanding of a case, one should read the rest of the court file, including the response. For the most up-to-date and complete information on a case, visit www.pacer.gov or contact the clerk of the relevant court.

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IN THE UNITED STATES DISTRICT COURT
FOR THE CENTRAL DISTRICT OF ILLINOIS
UNITED STATES OF AMERICA, )
for use of KE FLATWORK, INC., )
an Iowa Corporation )
)
Plaintiff, )
)
vs ) NO.
)
ALACRAN CONTRACTING, LLC, )
an Illinois Limited Liability Company, )
VSE CORPORATION, a Delaware )
Corporation, ICRC, LLC, an Illinois Limited )
Liability Company, and WESTCHESTER )
FIRE INSURANCE COMPANY )
)
Defendants. )
COMPLAINT
NOW COMES Plaintiff, the UNITED STATES OF AMERICA for use of KE
FLATWORK, INC., an Iowa corporation (hereinafter “KE FLATWORK”), by and through its
attorneys , Brooks Law Firm, P.C. and for its Complaint, states as follows:
COUNT I
Miller Act Bond Claim—Westchester Fire Insurance Company
1. Plaintiff, KE FLATWORK, is an Iowa corporation, with its principal place of
business at 501 Blackhawk Trail, Eldridge, Iowa 52748. At all times relevant, KE FLATWORK
was engaged in the construction business.
2. Defendant, ALACRAN CONTRACTING, LLC (hereinafter “ALACRAN”) is an
Illinois limited liability company with its principal place of business located at 309 South Main
St., Rockford, IL 61101.
E-FILED
Tuesday, 29 July, 2014 03:35:48 PM
Clerk, U.S. District Court, ILCD
4:14-cv-04064-SLD-JEH # 1 Page 1 of 5
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3. Defendant, ICRC, LLC (hereinafter “ICRC”) is an Illinois limited liability
company with its principal place of office located at 2550 Huntington Ave, Suite 109,
Alexandria, VA 23303.
4. Defendants, ALACRAN and ICRC are both managed by the same individual, Dai
Bui, located at 309 South Main Street, Rockford, Illinois 61101.
5. Defendant, VSE CORPORATION (hereinafter “VSE CORP.”) is a Delaware
corporation with a principal place of business located at 6348 Walker Lane Alexandria, Virginia
22310. VSE CORP is registered to do business in Illinois as a foreign corporation.
6. Defendant, WESTCHESTER FIRE INSURANCE COMPANY (hereinafter
“WESTCHESTER”) is a Pennsylvania-based insurance company with a principal place of
business located at 436 Walnut St., Philadelphia PA 19106. Westchester is an insurance
company engaged in the business of providing surety bonds. Westchester does business
throughout Illinois including Rock Island County.
7. On or about J uly 18, 2012, ALACRAN entered into a contractual agreement with
the United States of America, acting by and through the United States Army Garrison
Contracting Branch Rock Island, Contract No. W5P1J -12-C-5007, whereby ALACRAN was to
be the primary contractor with regard to certain construction and repair of North Avenue located
at the Rock Island Arsenal in Rock Island County, Illinois (hereinafter the “Project”). A copy of
the Garrison Contracting Branch Solicitation, Offer, and Award, dated J uly 18, 20012, is
attached hereto Exhibit “A”.
8. Defendant, WESTCHESTER, was the surety on the Project and on J uly 19, 2012,
it provided a payment bond (hereinafter the “Bond”) in the amount of one million two-hundred
4:14-cv-04064-SLD-JEH # 1 Page 2 of 5
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seventy –eight thousand seven hundred thirty-four dollars and zero cents ($1,278,734.00). A
copy of the Bond is attached hereto as Exhibit “B”.
9. Pursuant to the Miller Act, 40 U.S.C. § 3133(b)(3), venue is proper for this action
in the United States District Court for the Central District of Illinois, because the contract
requiring the issuance of a payment bond was to be performed and executed there.
10. Because this was a federal construction project, the provisions of the Miller Act,
40 U.S.C. § 3131 et. seq. apply.
11. On or about October 5, 2012, KE FLATWORK entered into a written contractual
agreement (hereinafter “Subcontractor Agreement”) with ICRC, acting as an agent of
ALACRAN, whereby KE FLATWORK agreed to act as an ALACRAN subcontractor on the
Project. A copy of the Subcontract Agreement is attached and marked as Exhibit “C”.
12. As part of the Subcontract Agreement with ICRC, acting as an agent of
ALACRAN, KE FLATWORK was to provide labor and material for concrete and paving
construction and repair work in exchange for payment of $900,000.00.
13. On or about May 10, 2013, KE FLATWORK entered into a Subcontract
Agreement Extension (hereinafter the “Extension”) with VSE CORP, acting as an agent of
ALACRAN. A copy of the Extension is attached hereto as Exhibit “D”.
14. On or about J uly 20, 2013, ALACRAN and KE FLATWORK entered into a
change order agreement (hereinafter the “Change Order”). A copy of the Change Order is
attached hereto as Exhibit “E”.
15. As part of the Change Order with ALACRAN, KE FLATWORK was to perform
the additional work of constructing an access road, landscaping, trash enclosures, tunnel work,
4:14-cv-04064-SLD-JEH # 1 Page 3 of 5
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and excavate bed rock in exchange for an additional $58,375.00. As a result, the total amount
under the Contract and the Change Order was $958,375.00.
16. ALACRAN, and/or one or all of its agents, has breached its/their contractual
agreement by failing to pay KE FLATWORK all amounts due and owing to KE FLATWORK
under the Subcontractor Agreement, Subcontract Extension Agreement, and Change Order for
work performed, labor supplied, and materials supplied to and for the Project.
17. KE FLATWORK last performed work on this project on or after August 13,
2013.
18. KE FLATWORK’s damages are calculated as follows:
Base Contract Price plus change orders ………………………….. $958,375.00.
LESS payments received ………………………….- $764,260.00
TOTAL DAMAGES …………………………. $ 194,115.00
19. KE FLATWORK has demanded the sum of $194,115.00 from ALACRAN. A
copy of an invoice indicating the remaining scheduled amounts owed to KE FLATWORK is
attached hereto as Exhibit “F”.
20. More than ninety (90) days has passed since this sum was invoiced and payment
has yet to be received.
21. In accordance with the Miller Act, 40 U.S.C. § 3131 et. seq., KE FLATWORK, a
subcontractor, is entitled to sue on the Bond.
WHEREFORE, Plaintiff, the UNITED STATES OF AMERICA for use of KE
FLATWORK, prays that judgment be entered in its favor on the Bond and against
WESTCHESTER in the amount of $194,115.00 plus prejudgment interest and court costs.
4:14-cv-04064-SLD-JEH # 1 Page 4 of 5
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COUNT II
Breach of Contract
1-16. For paragraphs 1 through 16 of Plaintiff’s Complaint, Plaintiff reasserts and
realleges paragraphs 1, 2, 3, 4, 5, 7, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21 of Count I as is fully
set forth herein.
WHEREFORE, Plaintiff, KE FLATWORK, prays that judgment be entered in its favor
against ALACRAN, VSE CORP, and ICRC, jointly and severally, in the amount of $194,115.00
plus prejudgment interest and court costs.
UNITED STATES OF AMERICA for use
of KE FLATWORK, INC., an Iowa
Corporation
By: /s/ Peter J . Wenker
Peter J . Wenker
BROOKS LAW FIRM, P.C.
3725 Blackhawk Road, Suite 200
Rock Island, IL 61201
Telephone: (309) 786-4900
Facsimile: (309) 786-4940
Email: PJ W@brookslawfirmpc.com
Peter J . Wenker
BROOKS LAW FIRM, P.C.
3725 Blackhawk Road, Suite 200
Rock Island, IL 61201
Telephone: (309) 786-4900
Facsimile: (309) 786-4940
E-Mail: PJ W@brookslawpc.com
4:14-cv-04064-SLD-JEH # 1 Page 5 of 5

Published under a Creative Commons License By attribution, non-commercial
date: 
Tue, 2014-07-29
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D.E. 1 COMPLAINT against All Defendants.pdf48.69 KB

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