WAUKESHA 鈥 The city has responded to allegations filed by a Minnesota-based contractor who worked on the Great Lakes water pipeline project. The contractor says the city withheld payment of sums related to construction delays, which the firm says were beyond its control. The city demands the dismissal of all the claims, saying many need "legal conclusion."
The Great Lakes water pipeline project was designed to provide an alternative drinking water solution to the city鈥檚 well water supply, which is contaminated with radium, a naturally occurring substance. The project was completed last fall, after more than 20 years in the making. An estimated $286 million was spent constructing pipelines to supply the city with Lake Michigan water and return treated water to the lake.
SJ Louis Construction, Inc. of Rockville, Minnesota sued the city in the federal court in Milwaukee on Feb. 29, seeking almost $28.16 million plus interest of 12% annually on all amounts the firm alleges the city failed to pay when due. City Attorney Brian Running previously told The Freeman that the two sides are "very far apart on some of these numbers" and he is in the dark on the basis for some of the numbers provided by S.J. Louis.
SJ Louis was the prime contractor for three of seven segments of the project. The firm was tasked with constructing more than 26 miles of pipelines for the return flow of water in accordance with plans and specifications supplied by the city. The lawsuit claims that SJ Louis鈥檚 work was 鈥渄elayed, disrupted, and changed by several factors that were not its responsibility and which were beyond its control and outside its knowledge at the time (of) the (project鈥檚) bid.鈥
The city of Waukesha submitted answers to SJ Louis鈥檚 allegations on Wednesday, denying that the city wrongfully withheld compensatory costs for revised designs and denied time extensions.
The city鈥檚 response, filed by attorneys Jessica C. Mederson and Kyle W. Engelke of Stafford Rosenbaum LLP, says that SJ Louis鈥檚 claims call for a 鈥渓egal conclusion鈥 and the existing contract documents between the two entities speak for themselves.
SJ Louis claims there were conflicts in working around existing sewer, water, electrical and fiber utilities along the project path, adding that some were missing from city-provided designs or marked in the wrong place. The contractor also says it fixed design errors regarding underground horizontal directional drilling at its own expense, and complained of delays in receiving permits from the U.S. Army Corps of Engineers and the state Department of Transportation.
The contractor also alleges that the city breached contracts by failing to recognize the 鈥渟ubstantial completion鈥 of the project, despite the city having admitted to running water through the project pipes since at least the end of July 2023.
Waukesha filed a series of 18 affirmative defenses, statements which if proved would remove liability from the city for any damages the contractor experienced, restating that SJ Louis鈥檚 claims are all subject to the existing agreements between the entities.
The city also alleges that the contractor鈥檚 claimed damages may have been caused or contributed to by 鈥渋ts own failure to use ordinary care to protect the interests it claims in this action鈥 or by outside actors. The city also claimed it acted at all times in good faith, but it alleges the contractor breached the 鈥渋mplied duty of good faith and fair dealing鈥 required by Wisconsin law and is therefore not entitled to relief.
Discovery 鈥 the exchange of information 鈥 in this case is expected to go into September 2025.
