Suit says Fort Smith owes four contractors $200,000

FORT SMITH — Four companies are suing Fort Smith for more than $200,000 for work they performed on the River Valley Sports Complex before city directors terminated their agreement with the complex’s developers.

An attorney for B&A Electric Inc., Megehee Fence Contracting LLC, Grimes Dozer Service Inc., and James Griffith filed the lawsuit Monday in Sebastian County Circuit Court.

In the civil complaint, the companies argue that the River Valley Sports Complex, which hired them to work on a complex of eight softball fields on city property, acted as the agent for the city and that the city breached its contract with each of the companies.

“All work and materials were provided by these individuals and entities with the understanding that the city of Fort Smith was the owner of the property and entity in control of the project,” a portion of the lawsuit said.

Fort Smith officials have said the complex’s former developers — state Sen. Jake Files, R-Fort Smith, and Sebastian County Election Commissioner Lee Webb — are responsible for payment of the subcontractors.

City directors terminated their 2014 agreement with Files, chairman of the Senate Revenue and Taxation Committee, and Webb on Feb. 7

because of repeated failures to meet deadlines in finishing the project.

According to the lawsuit, the companies entered into contracts with Fort Smith through River Valley Sports Complex to provide various services:

B&A Electric supplied and installed the fields’ lighting and seeks $151,880.

Megehee Fence put up fencing around one of the two fourfield circles on the site and contends it is owed $14,926.

Grimes Dozer did dirt work on the site and wants $12,977.

James Griffith provided framing and construction services and seeks $20,337.

The suit claims the city has been unjustly enriched by the improvements the companies made on the property and should compensate them.

The companies also say the city should have known there would be significant costs and expenses associated with the construction of the sports complex but relied on the complex developers to handle the project.

City Administrator Carl Geffken did not return a call Tuesday seeking comment on the lawsuit. But he laid out Fort Smith’s stance on its financial obligations on the project in March 6 letters to B&A Electric and to Grimes Dozer.

“The city of Fort Smith contracted with the River Valley Sports Complex for this project,” Geffken wrote. “The fact that the city terminated its

agreement with the River Valley Sports Complex does not extend to the city’s assumption of liabilities incurred by the River Valley Sports Complex.

“All outstanding liabilities or amounts due remain the responsibility of the River Valley Sports Complex and not the city of Fort Smith.”

The original deadline for completion was June 2015, according to the agreement between the city and the sports complex. City directors agreed to pay $1.6 million to Webb and Files as they completed specific portions of the project. The city paid out $1.08 million before terminating the agreement.

Even though the estimated cost of developing the complex was $4 million to $6 million, Webb and Files persuaded city directors to let them do the project with the promise that they could complete the project with donated materials and labor.

“Supplemental to the $1.6 million to be paid by the city for the constructed facility, seller [Webb and Files] shall secure and provide all funding and contributions required for the design and construction of the sports complex,” a portion of the 2014 agreement said.

Once the complex was finished, according to a lease agreement between the city and the complex developers, the city would buy the fields, for its $1.6 million investment, and lease them back to the sports complex to operate and maintain.