Construction company sues City of Chattanooga, claims breach of contract for demolitions

A construction company has sued the City of Chattanooga, claiming a breach of contract for demolitions. (Image: WTVC)

NewsChannel 9 obtained a copy of a lawsuit filed against the City of Chattanooga back in March.

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It says P &D Construction had a 12-month blanket contract to supply demolition services for the Department of Economic & Community Development but says the contract was violated.

According to the lawsuit, “ The defendant did breach the contract and or blanket purchase order.... by allocating jobs to other contractors and not the Plaintiff.”

A memorandum by the City Auditor says Donna Casteel, Chief Code Enforcement Inspector, authorized Tower Construction, the back up demolition contractor, to “proceed with several demolition projects prior to determining whether P & D was ready, willing & able to perform.”

It then goes on to say Tower Construction performed most of the City's demolition work at a higher cost.

The City of Chattanooga says “As a result of the internal audit, the city is reviewing all procedures of the code enforcement department. Mrs. Casteel has been cooperative with attorneys in turning over all communication regarding the demolition contracts in question.”

Tower Construction company says it has done business with the city for years and doesn't know Casteel on a personal level, just through business.

You can see the full lawsuit below:

After the lawsuit was filed, an attorney with the city filed a motion to dismiss.

You can read that here:

This is a developing story and will be updated as we learn more.

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