Legal
PCL Awarded $74.6M After Suing Casino Owners Alleging Refusal to Pay
Contractor had been in a five-year legal battle with Monarch Casino Resort Spa Black Hawk
A worker toils on the facade during the reopening of Monarch Casino and Resort after being closed for the past three months because of the spread of the new coronavirus Wednesday, June 17, 2020, in Black Hawk, Colo.Credit: AP Photo/Courtesy of Monarch
PCL Construction has been awarded $74.6 million in damages after suing Colo.-based Monarch Casino Resort Spa Black Hawk over refusal to pay for construction services rendered.
In a 236-page ruling issued Feb. 21, Denver District Judge Andrew Luxen sided with PCL Construction and four of its subcontractors on four claims against owners Monarch Growth, Inc., Monarch Casino & Resort, Inc., and Monarch Black Hawk, Inc.—including breach of contract, breach of good duty and fair dealing, breach of implied warranty and gross negligence, following the renovation and completion of a 23-story building at the casino and resort.
“PCL presented a significant amount of persuasive evidence showing Monarch and its team contracted for the Project in a piecemeal fashion, erected significant roadblocks to PCL’s success, mismanaged the Project, engaged in protracted CRX negotiations over the price of changes it wanted, misused the CCD process to compel PCL to perform without getting paid and withheld payment without sufficient justification,” wrote Luxen in his ruling.
Following PCL’s lawsuit filing in August 2019, Monarch’s owners countersued the contractor four months later alleging multiple deadlines missed and poor quality of work, and expressing frustration over project delays.
In a 2019 press release, Monarch alleged PCL’s lawsuit was an attempt to “deflect attention” away from “their failures” while the owners “remained focused on the transformation of Monarch Casino Black Hawk.”
At the time, the company added, “Unfortunately, we must now respond to PCL’s lawsuit with our affirmative defenses as well as counterclaims against PCL which will detail their numerous contract and performance breaches.”
In addition to the PCL’s aforementioned claims, Monarch also alleged in its countersuit that PCL induced its agreement in the contract by affirming that the project could be completed within 28 months prior execution. However, in his decision, Luxen ruled that Monarch was “combative and adversarial and looked to place blame on PCL rather than solve problems.”
Luxen added, “The Court concludes, based on the evidence and testimony, that Monarch actively interfered with and delayed PCL’s performance, causing damages. The Court further determines such active interference delayed and disrupted the plan.”
Overall, Monarch was awarded $144,894 in damages, which was used to set off damages owed to PCL.
PCL’s Ryan Schmidt, vice president and district manager, welcomed the verdict after he says the company submitted “over 700 documents and hundreds of hours of witness testimony” in support of the 28-day trial.
“Despite ongoing project challenges, PCL continued work and successfully completed the Monarch project, turning it over in January 2021,” said Schmidt. “The parties made extensive efforts to resolve this complex matter, but ultimately, PCL turned to the courts to protect its contractual rights and secure payment for its work, including amounts owed to its subcontractors and suppliers.”
PCL was ranked No. 10 on ENR’s 2024 Top 400 Contractors list.
