Sedano’s Prevails in Construction Contract Lawsuit
A Miami court recently ruled that Sedano’s Supermarkets doesn’t owe nearly $700,000 in claims by a general contractor. The Feb. 28 decision of Judge Mavel Ruiz, of the Eleventh Judicial Circuit of Florida, came after a bitter years-long dispute between the Hispanic grocery chain and Doral, Fla.-based Burke Construction Group. Sedano’s was represented in the suit by attorney Javier J. Rodriguez, of Coral Gables, Fla.-based Agentis PLLC, a boutique law firm focusing on business and commercial disputes, business restructuring, insolvency and bankruptcy in a variety of industries.
In 2018, Sedano’s hired Burke to build out its Hialeah, Fla., store for a contract price of $2.6 million, but the project ended in disagreements over the amounts owed under the contract and responsibility for 263 days of delays. Burke filed suit in 2020, alleging $770,709 in damages for unpaid change orders and additional compensation for delays that it claimed were caused by Sedano’s.
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Sedano’s countered that the change orders were invalid because they weren’t signed by the company as required by the contract. The grocer also argued that the change orders were properly rejected because the work was included in the original scope for the project, or the work was insufficiently documented, was performed by Sedano’s itself, was deficient, or included in prior change orders that had been approved and paid.
Sedano’s also sought $130,500 in liquidated damages as a set-off to the amounts due to Burke under the contract for construction delays.
“Judge Ruiz properly ruled that the construction contract was unambiguous, would be enforced as written and that Sedano’s was due $1,500 per day for each day of delay caused by Burke,” noted Rodriguez. “The judge found that the evidence presented by Sedano’s, and the testimony of its witnesses had the greater credibility. We are gratified by the result. As I told Judge Ruiz throughout the case, Sedano’s wanted to pay what was owed under the contract, not a penny less and not a penny more. Ultimately, she agreed with our calculations. We believe she decided the case correctly.”
Sedano’s proposed a settlement in September 2021 for $250,000, which was rejected by Burke. The ultimate award to Burke was $88,383. Sedano’s plans to pursue a claim to recover its attorneys’ fees and costs.
Hialeah-based Sedano’s is an independent grocer operating 32 stores in South Florida.
