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DOCKET NO.: FST-CV-23-6060966-S SUPERIOR COURT
NEW ERA MECHANICAL CORP. and JUDICIAL DISTRICT OF
LRC FUNDING, LLC STAMFORD-NORWALK
v. AT STAMFORD
170 GLOVER AVENUE, LLC, and
ATLANTIC SPECIALTY INSURANCE
COMPANY JANUARY 24, 2024
MOTION TO CONSOLIDATE
Pursuant to Connecticut Practice Book § 9-5, the Plaintiffs, New Era Mechanical
Corporation ("NEM") and LRC Funding, LLC ("LRC") (collectively, the "Plaintiffs"), hereby
move to consolidate this action with Civil Docket Nos. FST-CV23-6060971-S and FST-CV23-
6061197-S, currently pending in the Judicial District of Stamford-Norwalk at Stamford.
Consolidation of these matters is warranted because, as is set forth in more detail below,
these three cases involve the same plaintiffs and defendants that are affiliated with one another.
The claims all arise from two construction projects in Stamford and one construction project in
Norwalk. The construction contracts at issue for each project contain the same terms, except for
the particular contract prices, scope of work and schedules. Moreover, Defendant 170 Glover
Avenue, LLC ("170 Glover") has alleged set-off special defenses and counterclaims that the
sums claimed by 170 Glover's affiliate on the project that is the subject of Civil Docket FST-
CV-23-6060971-S (defendant HPP-Six, LLC in that matter) offset any amount due NEM or LRC
in the case at bar. Consolidation, therefore, will avoid duplicative litigation, wasted resources,
and the potential for inconsistent rulings and interpretations of relevant contract provisions.
I. FACTUAL BACKGROUND
This action arises from a construction project located at 300 Glover Avenue, Grist Mill
Village, in Norwalk, Connecticut (the "Glover Ave. Project"). The Plaintiffs allege that the
Project Owner, Defendant 170 Glover, entered into a trade contract pursuant to which NEM was
to perform certain plumbing work (the "Plumbing Trade Contract") for the construction of an
apartment building that comprised the Glover Ave. Project. Pursuant to the Plumbing Trade
Contract, BLT Management, LLC ("BLT") was designated as 170 Glover's agent for
construction management and supervision. Pursuant to a written assignment agreement,
consented to by 170 Glover, Plaintiff LRC was assigned the proceeds of the Plumbing Trade
Contract.
The Complaint alleges that, during the course of construction, 170 Glover and/ or BLT
failed to properly manage the Glover Ave. Project by, among other things, failing to properly
coordinate, control and sequence the work of the various trade contractors to avoid interference,
delays, and disruptions. The Complaint further alleges that 170 Glover and/ or BLT changed the
scope of work, failed to issue appropriate time extensions to which NEM was entitled, issued
improper backcharges, and failed to pay sums due to NEM. The Plaintiffs allege that the
foregoing caused NEM to perform extra work without due compensation, required it to
accelerate work and work excessive overtime incurring substantial additional labor costs, and
caused delays which resulted in material price escalation, as well as other financial harm to
NEM.
To secure payment for the labor and services it performed, NEM filed a mechanics lien
on the Glover Ave. Project, and commenced this lawsuit seeking damages for breach of contract
and foreclosure of its mechanic's lien. Defendant, Atlantic Specialty Insurance Company
("Atlantic"), issued a bond in substitution of the mechanic's lien (the "Lien Bond"). The
Complaint, therefore, was amended to seek recovery against the Lien Bond and to add Atlantic
as a defendant. See Dkt. No. 111.00.
2
170 Glover has answered the Plaintiffs' Complaint, generally denying the allegations,
and asserting special defenses and counterclaims.
Contemporaneous to the commencement of this action (the "170 Glover Action"), the
Plaintiffs commenced two other actions, namely Civil Docket Nos. FST-CV23-6060971-S (the
"HPP-Six Action") and FST-CV23-6061197-S (the "HPP-One Action"). The HPP-Six Action
concerns a similar Plumbing Trade Contract for the construction of an apartment building
located at 0 Washington Blvd., #P6 in Stamford, Connecticut (the "HPP-Six Project"), owned by
HPP-Six, LLC ("HPP-Six"). HPP-Six is affiliated with 170 Glover.
The HPP-One Action concerns a similar Plumbing Trade Contract for the construction of
an apartment building located at 880 Pacific Street, P1/P2 Harbor Point in Stamford, Connecticut
(the "HPP-One Project"), owned by HPP-One ("HPP-One"). HPP-One is affiliated with 170
Glover and HPP-Six.
In both the HPP-Six Action and the HPP-One Action, the Plaintiffs raise similar claims.
Namely, that the defendants in those actions, through their agent, BLT, failed to properly
coordinate, control and sequence the work of the various trade contractors to avoid interference,
delays, and disruptions; that defendants and/ or BLT changed the scope of work, failed to issue
appropriate time extensions to which NEM was entitled, issued improper backcharges, and failed
to pay sums due to NEM; that the foregoing caused NEM to perform extra work without due
compensation, required them to accelerate work and work excessive overtime incurring
substantial additional labor costs, and caused delays which resulted in material price escalation,
as well as other financial harm to NEM.
Similarly, in both the HPP-Six Action and the HPP-One Action, the Plaintiffs brought
breach of contract and lien foreclosure claims, which were later amended to assert claims against
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Atlantic, which posted lien substitution bonds in both of those other actions as well. Attached
hereto as Exhibits A and B are the Amended Complaints in both the HPP-One Action and the
HPP-Six Action, respectively.
In the case at bar, 170 Glover has asserted a special defense and counterclaim alleging the
sums owed its affiliate in the HPP-Six Action are a set-off to any sums owed to Plaintiffs in the
present action. As such, the trial of the present 170 Glover Action will involve the facts, issues
and circumstances that are part of the HPP-Six Action. Attached hereto as Exhibit C and D are
the answers, special defenses and counterclaims asserted by defendants in the HPP-One Action
and the HPP-Six Action, respectively.
II. ARGUMENT
Practice Book § 9-5 provides that the judicial authority may, upon motion by any party,
consolidate two or more matters. CT Practice Book § 9-5(a). "Th[e] procedure of trying cases
together, which has long been the established practice in this state, assists in expediting business
without doing anyone an injustice." Rode v. Adley Express Co., Inc., 130 Conn. 274, 277 (1943).
See also Marciano v. Piel, 22 Conn. App. 627, 632 (1990) ("The public's interest in avoiding
unnecessary litigation and conserving scarce judicial resources is too powerful a factor to
ignore."). "Whether the action arise out of the same transaction or involve identical parties are
important factors in determining the propriety of the joinder or the consolidation of
actions." Clarke v. Ochart, 1993 Conn. Super. LEXIS 934, at *2 (Super. Ct. Apr. 13, 1993)
citing Groth v. Redmond, 24 Conn. Sup. 467, 469, 194 A.2d 531 (Super Ct. 1962). Where two
actions concern the same issues and parties, the matters should be transferred to the same judicial
district and consolidated. Nielsen v. Nielsen, 3 Conn. App. 679, 684 (1985).
Consolidation of these matters is warranted because the 170 Glover Action, the HPP-One
Action, and the HPP-Six Action all involve the same Plaintiffs and affiliated Defendants and
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similar claims. As 170 Glover, HPP-One, and HPP-Six acknowledge in their respective special
defenses and counterclaims, each entity is an affiliate of the other. The actions involve the same
party and non-party witnesses, such as, for example, BLT, which acted as construction manager
and agent for each defendant on all three projects. The causes of action raised in the complaints
are similar, namely, whether NEM (and LRC) are entitled to funds owed on plumbing trade
contracts with similar terms for the three apartment construction projects at issue. But, most
significantly, the set-off special defense and counterclaim asserted by 170 Glover that NEM
owes money to 170 Glover's affiliate HPP-Six as a result of claims asserted by HPP-Six against
NEM on the HPP-Six Project means that the facts and events arising out of the HPP-Six Project
will be part of the trial of the 170 Glover Action. Thus, all three matters will involve the same or
similar claims and require resolution of the same issues.
Under these circumstances, consolidation will avoid duplicative litigation, wasted
resources, and the potential for inconsistent rulings. For the foregoing reasons, Plaintiffs
respectfully request that this motion be granted, and that this action be consolidated with Civil
Docket Nos. FST-CV23-6060971-S and FST-CV23-6061197-S.
PLAINTIFFS: NEW ERA MECHANICAL
CORP. and LRC FUNDING, LLC
By: /s/ Thomas G. Librizzi #302559
Thomas G. Librizzi
Jonathan E. Friedler
McElroy Deutsch Mulvaney
& Carpenter, LLP
One State Street - 14th Floor
Hartford, CT 06103
Phone: (860) 522-5175
Fax: (860) 522-2796
Juris No. 101812
tlibrizzi@mdmc-law.com
jfriedler@mdmc-law.com
5
CERTIFICATION
The undersigned hereby certifies that a copy of the foregoing was served via electronic
mail, pursuant to Practice Book §§ 9-5 and 10-12 through 10-17 on this 24th day of January,
2024, upon all counsel and self-represented parties appearing in this matter, as well as all counsel
and self-represented parties appearing in Civil Docket Nos. FST-CV-23-6061197-S and FST-
CV-23-6060971-S, as follows:
CIVIL DOCKET NO.: FST-CV-23-6060966-S
COUNSEL FOR 170 GLOVER AVENUE, LLC and
ATLANTIC SPECIALTY INSURANCE COMPANY
Michael J. Jones, Esq.
Sean M. Hamill, Esq.
Ivey, Barnum & O'Mara, LLC
170 Mason Street
Greenwich, CT 06830
Email: mjones@ibolaw.com
shamill@ibolaw.com
Ivey, Barnum & O'Mara, LLC, through Attorneys Jones and Hamill, has appeared in
Civil Docket No. FST-CV-23-6060966-S
CIVIL DOCKET NO.: FST-CV-23-6061197-S
COUNSEL FOR HPP-ONE, LLC and
ATLANTIC SPECIALTY INSURANCE COMPANY
Michael J. Jones, Esq.
Sean M. Hamill, Esq.
Ivey, Barnum & O'Mara, LLC
170 Mason Street
Greenwich, CT 06830
Email: mjones@ibolaw.com
shamill@ibolaw.com
Ivey, Barnum & O'Mara, LLC, through Attorneys Jones and Hamill, has appeared in
Civil Docket No. FST-CV-23-6061197-S
6
CIVIL DOCKET NO.: FST-CV-23-6060971-S
COUNSEL FOR HPP-SIX, LLC and
ATLANTIC SPECIALTY INSURANCE COMPANY
Michael J. Jones, Esq.
Sean M. Hamill, Esq.
Ivey, Barnum & O'Mara, LLC
170 Mason Street
Greenwich, CT 06830
Email: mjones@ibolaw.com
shamill@ibolaw.com
Ivey, Barnum & O'Mara, LLC, through Attorneys Jones and Hamill, has appeared in
Civil Docket No. FST-CV-23-6060971-S
/s/ Thomas G. Librizzi #302559
Thomas G. Librizzi
7
EXHIBIT A
RETURN DATE: AUGUST 22, 2023 SUPERIOR COURT
DOCKET NO.: FST-CV-23-6061197-S
JUDICIAL DISTRICT OF
NEW ERA MECHANICAL, CORP. and STAMFORD-NORWALK
LRC FUNDING, LLC
AT STAMFORD
v.
HPP-ONE, LLC and ATLANTIC
SPECIALTY INSURANCE COMPANY JULY 26, 2023
AMENDED COMPLAINT
GENERAL ALLEGATIONS AS TO ALL COUNTS
1. Plaintiff, New Era Mechanical Corp. ("NEM" or "Plaintiff'), is a plumbing and
mechanical contracting corporation organized and existing under the laws of the State of New
York with a principal place of business located at 99 Lafayette Avenue, White Plains, New York
10603 is authorized to conduct business in the State of Connecticut.
2. Plaintiff, LRC Funding, LLC ("LRC Funding"), is a limited liability company
organized and existing under the laws of the State of New York with a principal place of
business located at 7 Renaissance Square, 4th Fl., White Plains, New York 10601 and is
authorized to conduct business in the State of Connecticut.
3. Defendant, HPP-One LLC, ("HPP-One"), is a Delaware limited liability company
with a principal place of business located at 1 Elmcroft Road, Suite 500 in Stamford,
Connecticut 06902. Prior to February 28, 2020, HPP-One was the record owner of real estate
located at 880 Pacific Street, Stamford, CT 06902, PI/P2 Harbor Point in the Town of Stamford,
County of Fairfield, State of Connecticut (the "Property"). HPP-One is the current owner of the
Property.
4. Defendant, Atlantic Specialty Insurance Company is a corporation organized and
existing under the laws of the State of New York, with a business address located at 605
Highway 169 North, Suite 800, Plymouth, MN 55441 and is licensed to do business in the State
of Connecticut and to issue surety bonds.
5. In 2020, the Property was undergoing construction of an apartment building (the
"Project").
COUNT ONE: Breach of Contract
1-5. Paragraphs 1-5 of the general allegations are incorporated herein as if fully set
forth in this Count One.
6. On or about March 12, 2020, HPP-One entered into a written Plumbing Trade
Contract with NEM pursuant to which NEM was to perform certain plumbing work for the
Project (the "Plumbing Trade Contract") for the agreed upon services fee budget of
$8,441,550.00.
7. The Plumbing Trade Contract further provided that HPP-One designated BLT
Management, LLC ("BLT") as its agent for construction management and supervision of
performance of the Plumbing Trade Contract.
8. Subsequent to entering into the Plumbing Trade Contract, NEM undertook the
performance of its obligations thereunder in strict and full accordance with the applicable Project
plans and specifications and completely and fully satisfied its obligations despite interferences,
disruptions, delays, demands for extra work and other acts or omissions of HPP-One and/or its
agent, BLT.
9. During the course of construction for the Project, the Covid-19 pandemic caused
material and supply shortages, which impacted the cost of materials and supplies for the Project,
which constituted a force majeure event and for which NEM is entitled to time extensions and
additional compensation under the Plumbing Trade Contract.
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10. During the course of the performance of the work under the Plumbing Trade
Contract, HPP-One ordered, required, and directed NEM to perform certain additional work
beyond that called for or required under said contract.
11. NEM performed such additional work and submitted change order requests to
HPP-One for costs incurred and other sums due NEM under the Plumbing Trade Contract.
12. HPP-One failed and/or refused to accept NEM's change order requests and did
not issue change orders to compensate NEM for such extra and additional work.
13. Such failure and/or refusal was wrongful and in breach of the Plumbing Trade
Contract, causing NEM financial harm and detriment.
14. During the course of construction for the Project, HPP-One and/or BLT, failed to
properly manage and perform its express and implied obligations under the Plumbing Trade
Contract in that they, among other things:
a. Failed to properly schedule the work;
b. Attempted to manage construction of the Project by utilizing 3-week look
ahead schedules that included randomly established dates that routinely
failed to get accomplished, thereby throwing the Project into disarray;
c. Failed to properly coordinate, control and sequence the work of the trade
contractors to avoid interference, delays, and disruptions to NEM's work
on the Project or to facilitate completion of the Project as reasonably
anticipated;
d. Demanded that NEM work in areas prior to the completion of the
predecessor work;
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e. Changed the scope and sequence of NEM's work during the performance
of the Plumbing Trade Contract without granting time extensions or
paying for said changes;
f. Delayed and disrupted the progress of NEM's work;
g. Failed to issue appropriate time extensions to which NEM was entitled for
completion of its work;
h. Issued improper backcharges;
i. Failed to provide temporary heat during construction; and
j. Failed to pay all sums otherwise due NEM.
15. As a result of the foregoing, numerous activities by various trades were performed
in a piecemeal fashion, out of sequence, which forced NEM to perform its own work in a
piecemeal fashion, requiring it to repeatedly return to areas to complete work instead of
performing in a sequential fashion as reasonably anticipated.
16. The foregoing conduct constituted a breach of HPP-One's express and implied
contractual obligations and, as a result, NEM was a) forced to perform extra work without
additional compensation, b) forced to perform work out-of-sequence and contrary to its planned
execution; c) delayed and disrupted; and d) forced to accelerate its work and work excessive
overtime; all of which caused NEM to suffer severe financial harm and detriment, including, but
not limited to, material price escalation costs, excessive labor and overtime costs, and additional
costs attributable to out-of-sequence work, delays and loss of productivity.
17. In compiling its bid and contract price for the Project, NEM could not have
reasonably anticipated the ongoing and constant interruptions and interferences in the
prosecution of its work.
4
18. On or about March 26, 2021, NEM and LRC Funding executed a written
Assignment of Contract Proceeds (the "Assignment") pursuant to which, among other things,
NEM assigned to LRC Funding all of NEM's right, title and interest in and to all monies and
claims for monies due and to become due to NEM under the Plumbing Trade Contract.
19. On or about April 5, 2021, HPP-One acknowledged and consented to the
Assignment in writing.
20. HPP-One's breaches of the Plumbing Trade Contract as described above caused
NEM severe financial harm and detriment, including material escalation costs, increased labor
and excessive overtime work and costs attributable to out-of-sequence work, delays, disruptions
and loss of productivity.
21. By virtue of the Assignment, all sums and damages owed to NEM are due and
owing to LRC Funding.
COUNT TWO: Quantum Meruit
1-5. Paragraphs 1-5 of the general allegations are incorporated herein as if fully set
forth in this Count Two.
6. NEM performed work and supplied labor, services and materials which benefitted
the Project, and which HPP-One knowingly and voluntarily accepted, and promised to
compensate NEM for the reasonable value of its labor services and materials.
7. NEM performed its Work under circumstances which a reasonable person would
expect to be paid.
8. HPP-One accepted the benefit of NEM's labor, services and materials and
benefitted from such services.
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9. Nevertheless, HPP-One has failed to pay NEM for the reasonable value of the
labor, material and services provided by NEM and is obligated to make payment to NEM for
same.
COUNT THREE: Unjust Enrichment
1-9. The allegations of paragraphs 1-9 of Count Two are incorporated as if fully set
forth in this Count Three.
10. HPP-One was benefitted by NEM's provision of labor, services, and materials for
the Project.
11. HPP-One retained possession and enjoyed the benefits and results of said labor,
materials, and equipment, but has not made payment therefor and thus has been unjustly enriched
by the retention of said benefits.
12. The failure of HPP-One to compensate NEM for the procurement of its labor,
services, and materials is to the detriment of NEM.
COUNT FOUR: Claim Against Bond in Substitution For Mechanic's Lien Pursuant to
Conn. Gen. Stat. § 49-37
1-21. The allegations of paragraphs 1-21 of Count One are incorporated as if fully set
forth in this Count Four.
22. NEM commenced to furnish labor, services and materials on the Project on or
about February 28, 2020 and ceased furnishing labor, services, and/or materials on the Project on
about July 21, 2022.
23. On July 26, 2022, NEM, to secure the sums owed it under the Plumbing Trade
Contract, filed a Certificate of Mechanics Lien for the amount of $817,000.00, in writing duly
signed and sworn by its principal, Edward Fitzpatrick, with the Town Clerk of Stamford,
6
Connecticut, which Certificate was duly recorded in the Stamford Land Records, Volume 13036,
Page 267 and served on HPP-One.
24. On or about May 23, 2023, pursuant to an agreement between plaintiffs and
defendant HPP-One, a Bond In Substitution For Mechanic's Lien pursuant to Conn. Gen. Stat. §
49-37 was substituted for NEM's mechanic's lien (the "Lien Bond").
25. The executed original of such Lien Bond was then provided to Plaintiffs by HPP-
One, which named HPP-One, as principal, and Atlantic Specialty Insurance Company, as Surety.
26. In reliance upon its receipt of said Lien Bond, NEM then provided HPP-One with
a release of its mechanic's lien. A copy of said Lien Bond is attached hereto as Exhibit A.
27. The sum due to NEM for labor and materials under the Plumbing Trade Contract
remains unpaid, and NEM is entitled to the recovery of said sum against HPP-One, as principal,
and Atlantic Specialty Insurance Company, as Surety, under the Lien Bond.
COUNT FIVE: Violation of Conn. Gen. Stat. § 42-158j
1-21. The allegations of paragraphs 1-21 of Count One are incorporated as if fully set
forth in this Count Five.
22. On January 23, 2023, pursuant to the provisions of Conn. Gen. Stat. § 42-158j,
NEM made written demand via certified mail on HPP-One for payment for the labor, material,
and equipment provided to the Project for which it has not been paid. NEM demanded that if
payment was not made within ten days, that HPP-One place funds in the amount of its claim,
plus interest of one percent per month, into an interest-bearing escrow account. NEM also
demanded, pursuant to Conn. Gen. Stat. § 42-158p, that HPP-One provide information
concerning the retainage escrow account for the Project, including the name of the bank where
7
the escrow account was established, the account number, and the most recent monthly report as
to the value of retainage being held.
23. Despite NEM's demands pursuant to Conn. Gen. Stat. § 42-158j for payment,
HPP-One has failed and/or refused to make payment to NEM for the labor, material, and
equipment provided to the Project for which it has not been paid.
24. Upon information and belief, despite NEM's demand, HPP-One has failed and/or
refused to place any funds owed to NEM for the Project in an interest-bearing escrow account.
25. Accordingly, HPP-One is in violation of Conn. Gen. Stat. § 42-158j by failing to
make payment to NEM or place any funds owed to NEM in an interest-bearing escrow account.
26. As a direct and proximate result of HPP-One's violations of Conn. Gen. Stat. §
42-158j, NEM is entitled to interest on the full balance due at the statutory rate of one percent
per month, statutory penalties, and reasonable attorney's fees.
COUNT SIX: Violation of Conn. Gen. Stat. § 42-158p
1-26. The allegations of paragraphs 1-26 of Count Five are incorporated as if fully set
forth in this Count Six.
27. NEM's January 23, 2023 letter to HPP-One demanded that HPP-One provide
evidence and an accounting of the Project's retainage escrow account in accordance with Conn.
Gen. Stat. § 42-158p.
28. Despite NEM's demand pursuant to Conn. Gen. Stat. § 42-158p, HPP-One has
failed and/or refused to provide evidence and an accounting of the Project's retainage escrow
account, as demanded by NEM.
29. Upon information and belief, despite the requirement under Conn. Gen. Stat.
§ 42-158p that HPP-One maintain all retainage it has withheld from NEM, which retainage
8
includes amounts due and owing to NEM, in an escrow account within the State of Connecticut,
HPP-One has failed and/or refused to comply with this statutory requirement.
30. As a direct and proximate result of HPP-One's violations of Conn. Gen. Stat.
§ 42- 158p, NEM is entitled to interest on the retainage funds withheld by HPP-One at the
statutory rate of one percent per month, as well as attorney's fees for the enforcement of its rights
pursuant to Conn. Gen. Stat. § 42-158r.
9
WHEREFORE, Plaintiffs respectfully request the following relief:
COUNT ONE
1) Compensatory damages in excess of $15,000;
2) Costs;
3) Interest pursuant to Conn. Gen. Stat. § 37-3a; and
4) Such other and further legal and equitable relief as may be required.
COUNT TWO
1) Damages for Quantum Meruit;
2) Costs; and
3) Such other and further legal and equitable relief as may be required.
COUNT THREE
1) Damages for unjust enrichment;
2) Costs; and
3) Such other and further legal and equitable relief as may be required.
COUNT FOUR
1) Compensatory Damages in excess of $15,000;
2) Costs;
3) Interest pursuant to Conn. Gen. Stat. § 37-3a; and
4) Attorneys' fees and costs pursuant to Conn. Gen. Stat. § 52-249.
COUNT FIVE
1) Interest, penalties, and attorneys' fees pursuant to Conn. Gen. Stat. § 42-158j; and
2) Such other and further legal and equitable relief as may be required.
10
COUNT SIX
1) Interest, penalties, and attorneys' fees pursuant to Conn. Gen. Stat. §§ 42-158p
and 42-158r; and
2) Such other and further legal and equitable relief as may be required.
PLAINTIFFS: NEW ERA MECHANICAL
CORP. and LRC FUNDING, LLC
By: A/4 1(7
Thomas G. Librizzi
Jonathan E. Friedler
McElroy Deutsch Mulvaney
& Carpenter, LLP
One State Street - 14th Floor
Hartford, CT 06103
Phone: (860) 522-5175
Fax: (860) 522-2796
Juris No. 101812
tlibrizzi@mdmc-law.com
jfriedler@mdmc-law.com
11
RETURN DATE: AUGUST 22, 2023 SUPERIOR COURT
DOCKET NO.: FST-CV-23-6061197-S
JUDICIAL DISTRICT OF
NEW ERA MECHANICAL, CORP. and STAMFORD-NORWALK
LRC FUNDING, LLC
AT STAMFORD
v.
HPP-ONE, LLC and ATLANTIC
SPECIALTY INSURANCE COMPANY JULY 26, 2023
STATEMENT OF AMOUNT IN DEMAND
The amount in demand, exclusive of interest and costs, exceeds Fifteen Thousand Dollars
($15,000.00).
PLAINTIFFS:
NEW ERA MECHANICAL CORP. and
LRC FUNDING, LLC
By: ,01.41-,1
/7e
Thomas G. Librizzi
Jonathan E. Friedler
McElroy Deutsch Mulvaney
& Carpenter, LLP
One State Street - 14th Floor
Hartford, CT 06103
Phone: (860) 522-5175
Fax: (860) 522-2796
Juris No. 101812
tlibrizzi@mdmc-law.corn
jfriedler@mdmc-law.com
12
CERTIFICATION
The undersigned hereby certifies that a copy of the foregoing was served via electronic
mail pursuant to Practice Book § 10-13, on this 26th day of July, 2023, to all counsel and self-
represented parties of records, as follows:
COUNSEL FOR HPP-ONE, LLC
Michael J. Jones, Esq.
Ivey Barnum & O'Mara
170 Mason Street
Greenwich, CT 06830
Email: mjones@ibolaw.com
Thomas G. Librizzi
13
Bond No. 800141530
BOND IN SUBSTITUTION FOR MECHANIC'S LIEN
(Pursuant to Conn. Gen. Stat. Sec. 49-37)
KNOW ALL BY THESE PRESENTS:
That HPP-One, LLC, a Delaware limited liability company with a principal place of
business located at 1 Elmcroft Road in Stamford, Connecticut, as principal, and Atlantic
Specialty Insurance Company, a corporation organized under the laws of the State of New
York, and licensed to do business in the State of Connecticut, as Surety, are holden and firmly
bound unto New Era Mechanical Corp. of White Plains, New York in the penal sum of
$898,700.00, to which payment well and truly to be made, we hereby bind ourselves, our heirs,
executors, administrators and successors firmly by these presents:
The condition of this obligation is such that,
WHEREAS, the said New Era Mechanical Corp. has filed a mechanic's lien on property
owned by HPP-One, LLC and which is situated at 880 Pacific Street in the City of Stamford,
Connecticut, which lien is to secure the sum of $817,000.00 and is dated July 22, 2022 and
recorded in the land records of the City of Stamford, Connecticut in Volume 13036 at Page 267;
and
WHEREAS, the bond is being substituted for said lien.
NOW THEREFORE, if the principal shall pay to the obligee lienor or its assigns, such
amount as a court of competent jurisdiction may adjudge to have been secured by such lien with
interest, costs and attorney's fees, not exceeding the sum of $898,700.00, then this bond shall be
void, but otherwise to remain in full force and effect.
IN WITNESS WHEREOF, the/said Principal has caused these presents to be signed and
its seal affixed hereunto this ____ZZLZ, day of May, 2023.
HPP-ONE, LLC
By:
Witness: toe---CA elaAli le
its is"e
ovri-#04 a 4kis .$74.) 4-732 ac-7
WitaSS: Qvni
IN WITNESS WHEREOF, the said Surety has caused these presents to be signed and its
seal affixed hereunto this _22nd_ day of May, 2023.
ATLANTIC SPECIALTY INSURANCE
COMPANY
W ess: Grace Hol 'rfield
Its Attorney-in-Fact, Mark W. Edwards, II
8.4, itness. n.43Alm
444Ttr---.
[intact INSURANCE Power of Attorney
KNOW ALL MEN BY THESE PRESENTS, that ATLANTIC SPECIALTY INSURANCE COMPANY, a New York corporation with its principal office in Plymouth,
Minnesota, does hereby constitute and appoint: Robert M. Verdin, Mark W. Edwards II, Jeffrey M. Wilson, Alisa B. Ferris, Robert Read Davis, William M.
Smith, Anna Childress, Richard H. Mitchell, Robert R. Free!, each individually if there be more than one named, its true and lawful Attorney-in-Fact, to make, execute,
seal and deliver, for and on Its behalf as surety, any and all bonds, recognizances, contracts of indemnity, and all other writings obligatory in the nature thereof; provided that no
bond or undertaking executed under this authority shall exceed in amount the sum of: unlimited and the execution of such bonds, recognizances, contracts of indemnity, and all
other writings obligatory in the nature thereof in pursuance of these presents, shall be as binding upon said Company as if they had been fully signed by an authorized officer of
the Company and sealed with the Company seal. This Power of Attorney is made and executed by authority of the following resolutions adopted by the Board of Directors of
ATLANTIC SPECIALTY INSURANCE COMPANY on the twenty-fifth day of September, 2012:
Resolved: That the President, any Senior Vice President or Vice-President (each an "Authorized Officer") may execute for and in behalf of the Company any and
all bonds, recognizances, contracts of indemnity, and all other writings obligatory in the nature thereof, and affix the seal of the Company thereto; and that the
Authorized Officer may appoint and authorize an Attorney-in-Fact to execute on behalf of the Company any and all such Instruments and to affix the Company
seal thereto: and that the Authorized Officer may at any time remove any such Attorney-in-Fact and revoke all power and authority given to any such Attorney-in-
Fact,
Resolved: That the Attorney-in-Fact may be given full power and authority to execute for and in the name and on behalf of the Company any and all bonds,
recognizances, contracts of indemnity, and all other writings obligatory in the nature thereof, and any such instrument executed by any such Attorney-in-Pact shall
be as binding upon the Company as if signed and sealed by an Authorized Officer and, further, the Attorney-in-Fact is hereby authorized to verify any affidavit
required to be attached to bonds, recognizances, contracts of indemnity, and all other writings obligatory in the nature thereof.
This power of attorney is signed and sealed by facsimile wider the authority of the following Resolution adopted by the Board of Directors of ATLANTIC SPECIALTY
INSURANCE COMPANY on the twenty-fifth day of September. 2012:
Resolved: That the signature of nnAuthorized Officer, the signature of the Secretary or the Assistant Secretary, and the Company seal may be affixed by
facsimile to any power of attorney or to any certificate relating thereto appointing an Attorney-in-Fact for purposes only of executing and sealing any bond,
undertaking, recognizance or other written obligation In the nature thereof, and any such signature and seal where so used, being hereby adopted by the Company
as the original signature of such officer and the original seal of the Company, to be valid and binding upon the Company with the same force and effect as though
manually affixed.
IN WITNESS WHEREOF, ATLANTIC SPECIALTY INSURANCE COMPANY has caused these presents to be signed by an Authorized Officer and the seal of the Company
to be affixed this twenty-seventh day of April, 2020.
o orl0. ,..tit ry, „
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ina: 71:::1I: : : '\11
,)-.2 1985 -81 By
STATE OF MINNESOTA 1\,-,tann aocat nW, Paul J. Brehm, Senior Vice President
HENNEPIN COUNTY ,.. .4'1;" • • }:t•Ve
On this twenty-seventh day of April, 2020, before me personally came Paul J. Brehm, Senior Vice President of ATLANTIC SPECIALTY INSURANCE COMPANY, to me
personally known to be the individual and officer described in and who executed the preceding instrument, and he acknowledged the execution of the same, and being by me
duly sworn, that he is the said officer of the Company aforesaid, and that the seal affixed to the preceding instrument Is the seal of said Company anti that the said seal and the
signature as such officer was duly affixed and subscribed to the said in strumenr by the authority and at the direction of the Company.
-,Aaliaalate,atianatt.ada.ar na,
ALISONDUN NASIOROOT 47141,
NOTARY PUBLIC • MINNESOTA
My Commission Expires I,
`nionfin-' January 31, 2025 .( Notary Public
I, the undersigned, Secretary of ATLANTIC SPECIALTY INSURANCE COMPANY, a New York Corporation, do hereby certify that th e foregoing power of attorney is in felt force
and has not been revoked, and the resolutions set forth above are now in force.
Signed and sealed. Dated 22nd day of May , 2022
i ;;
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40 - • • • • •:*%.
ii".• oft44."
cj SEAL
ts-' • 1986 (S'i
'This Power of Attorney expires I oi+
• /
January 31, 2025
Kara Barrow, Secretary
Please direct bond verifications to sniety@Ingerinsurance.com
-naaa'an.a.valaraimacn....
EXHIBIT B
RETURN DATE: AUGUST 29, 2023 SUPERIOR COURT
DOCKET NO.: FST-CV-23-6060971-S
JUDICIAL DISTRICT OF
NEW ERA MECHANICAL, CORP. and STAMFORD-NORWALK
LRC FUNDING, LLC
AT STAMFORD
v.
HPP-SIX, LLC, and ATLANTIC SPECIALTY :
INSURANCE COMPANY JULY 26, 2023
AMENDED COMPLAINT
GENERAL ALLEGATIONS AS TO ALL COUNTS
1. Plaintiff, New Era Mechanical Corp. ("NEM" or "Plaintiff"), is a plumbing and
mechanical contracting corporation organized and existing under the laws of the State of New
York with a principal place of business located at 99 Lafayette Avenue, White Plains, New York
10603 and is authorized to conduct business in the State of Connecticut.
2. Plaintiff, LRC Funding, LLC ("LRC Funding"), is a limited liability company
organized and existing under the laws of the State of New York with a principal place of
business located at 7 Renaissance Square, 4th Fl., White Plains, New York 10601 and is
authorized to conduct business in State of Connecticut.
3. Defendant, HPP-Six, LLC, ("HPP-Six"), is a Delaware limited liability company
with a principal place of business located at 1 Elmcroft Road, Suite 500 in Stamford,
Connecticut 06902. Prior to September 25, 2020, HPP-Six was the record owner of real estate
located at 0 Washington Boulevard, #P6 Stamford, Fairfield County, Connecticut (the
"Property"). HPP-Six is the current owner of the Property.
4. Defendant, Atlantic Specialty Insurance Company is a corporation organized and
existing under the laws of the State of New York, with a business address located at 605
Highway 169 North, Suite 800, Plymouth, MN 55441 and is licensed to do business in the State
of Connecticut and to issue surety bonds.
5. In 2020, the Property was undergoing construction of an apartment building (the
"Project").
COUNT ONE: Breach of Contract
1-5. Paragraphs 1-5 of the general allegations are incorporated as if fully set forth in
this Count One.
6. On or about October 13, 2020, HPP-Six entered into a written trade contract with
NEM pursuant to which NEM was to perform certain plumbing work for the Project (the
"Plumbing Trade Contract") for the agreed upon services fee budget of $3,446,550.00.
7. The Plumbing Trade Contract further provided that HPP-Six designated BLT
Management, LLC ("BLT") as its agent for construction management and supervision of
performance of the Plumbing Trade Contract.
8. Subsequent to entering into the Plumbing Trade Contract, NEM undertook the
performance of its obligations thereunder in strict and full accordance with the applicable Project
plans and specifications and completely and fully satisfied its obligations despite interferences,
disruptions, delays, demands for extra work and other acts or omissions of HPP-Six and/or its
agent, BLT.
9. During the course of construction for the Project, the Covid-19 pandemic caused
material and supply shortages, which impacted the cost of materials and supplies for the Project
which constituted a force majeure event and for which NEM is entitled to time extensions and
additional compensation under the Plumbing Trade Contract.
2
10. During the course of the performance of the work under the Plumbing Trade
Contract, HPP-Six ordered, required, and directed NEM to perform certain additional work
beyond that called for or required under said contract.
11. NEM performed such additional work and submitted change order requests to
HPP-Six for costs incurred and other sums due NEM under the Plumbing Trade Contract.
12. HPP-Six failed and/or refused to accept NEM's change order requests and did not
issue change orders to compensate NEM for such extra and additional work.
13. Such failure and/or refusal was wrongful and in breach of the Plumbing Trade
Contract, causing NEM financial harm and detriment.
14. During the course of construction for the Project, HPP-Six and/or BLT, failed to
properly manage and perform its express and implied obligations under the Plumbing Trade
Contract in that they, among other things:
a. Failed to properly schedule the work;
b. Attempted to manage construction of the Project by utilizing 3-week look
ahead schedules that included randomly established dates that routinely
failed to get accomplished, thereby throwing the Project into disarray;
c. Failed to properly coordinate, control and sequence the work of the trade
contractors to avoid interference, delays, and disruptions to NEM's work
on the Project or to facilitate completion of the Project as reasonably
anticipated;
d. Demanded that NEM work in areas prior to the completion of the
predecessor work;
3
e. Changed the scope and sequence of NEM's work during the performance
of the Plumbing Trade Contract without granting time extensions or
paying for said changes;
f. Delayed and disrupted the progress of NEM's work;
g. Failed to issue appropriate time extensions to which NEM was entitled for
completion of its work;
h. Issued improper backcharges;
i. Failed to provide temporary heat during construction; and
j. Failed to pay all sums otherwise due NEM.
15. As a result of the foregoing, numerous activities by various trades were performed
in a piecemeal fashion, out of sequence, which forced NEM to perform its own work in a
piecemeal fashion, requiring it to repeatedly return to areas to complete work instead of
performing in a sequential fashion as reasonably anticipated.
16. The foregoing conduct constituted a breach of HPP-Six's express and implied
contractual obligations and, as a result, NEM was a) forced to perform extra work without
additional compensation, b) forced to perform work out-of-sequence and contrary to its planned
execution; c) delayed and disrupted; and d) forced to accelerate its work and work excessive
overtime; all of which caused NEM to suffer severe financial harm and detriment, including, but
not limited to, material price escalation costs, excessive labor and overtime costs, and additional
costs attributable to out-of-sequence work, delays and loss of productivity.
17. In compiling its bid and contract price for the Project, NEM could not have
reasonably anticipated the ongoing and constant interruptions and interferences in the
prosecution of its work.
4
18. On or about March 26, 2021, NEM and LRC Funding executed a written
Assignment of Contract Proceeds (the "Assignment") pursuant to which, among other things,
NEM assigned to LRC Funding all of NEM's right, title and interest in and to all monies and
claims for monies due and to become due to NEM under th
Preview
DOCKET NO.: FST-CV-23-6060966-S SUPERIOR COURT NEW ERA MECHANICAL CORP. and JUDICIAL DISTRICT OF LRC FUNDING, LLC STAMFORD-NORWALK v. AT STAMFORD 170 GLOVER AVENUE, LLC, and ATLANTIC SPECIALTY INSURANCE COMPANY JANUARY 24, 2024 MOTION TO CONSOLIDATE Pursuant to Connecticut Practice Book § 9-5, the Plaintiffs, New Era Mechanical Corporation ("NEM") and LRC Funding, LLC ("LRC") (collectively, the "Plaintiffs"), hereby move to consolidate this action with Civil Docket Nos. FST-CV23-6060971-S and FST-CV23- 6061197-S, currently pending in the Judicial District of Stamford-Norwalk at Stamford. Consolidation of these matters is warranted because, as is set forth in more detail below, these three cases involve the same plaintiffs and defendants that are affiliated with one another. The claims all arise from two construction projects in Stamford and one construction project in Norwalk. The construction contracts at issue for each project contain the same terms, except for the particular contract prices, scope of work and schedules. Moreover, Defendant 170 Glover Avenue, LLC ("170 Glover") has alleged set-off special defenses and counterclaims that the sums claimed by 170 Glover's affiliate on the project that is the subject of Civil Docket FST- CV-23-6060971-S (defendant HPP-Six, LLC in that matter) offset any amount due NEM or LRC in the case at bar. Consolidation, therefore, will avoid duplicative litigation, wasted resources, and the potential for inconsistent rulings and interpretations of relevant contract provisions. I. FACTUAL BACKGROUND This action arises from a construction project located at 300 Glover Avenue, Grist Mill Village, in Norwalk, Connecticut (the "Glover Ave. Project"). The Plaintiffs allege that the Project Owner, Defendant 170 Glover, entered into a trade contract pursuant to which NEM was to perform certain plumbing work (the "Plumbing Trade Contract") for the construction of an apartment building that comprised the Glover Ave. Project. Pursuant to the Plumbing Trade Contract, BLT Management, LLC ("BLT") was designated as 170 Glover's agent for construction management and supervision. Pursuant to a written assignment agreement, consented to by 170 Glover, Plaintiff LRC was assigned the proceeds of the Plumbing Trade Contract. The Complaint alleges that, during the course of construction, 170 Glover and/ or BLT failed to properly manage the Glover Ave. Project by, among other things, failing to properly coordinate, control and sequence the work of the various trade contractors to avoid interference, delays, and disruptions. The Complaint further alleges that 170 Glover and/ or BLT changed the scope of work, failed to issue appropriate time extensions to which NEM was entitled, issued improper backcharges, and failed to pay sums due to NEM. The Plaintiffs allege that the foregoing caused NEM to perform extra work without due compensation, required it to accelerate work and work excessive overtime incurring substantial additional labor costs, and caused delays which resulted in material price escalation, as well as other financial harm to NEM. To secure payment for the labor and services it performed, NEM filed a mechanics lien on the Glover Ave. Project, and commenced this lawsuit seeking damages for breach of contract and foreclosure of its mechanic's lien. Defendant, Atlantic Specialty Insurance Company ("Atlantic"), issued a bond in substitution of the mechanic's lien (the "Lien Bond"). The Complaint, therefore, was amended to seek recovery against the Lien Bond and to add Atlantic as a defendant. See Dkt. No. 111.00. 2 170 Glover has answered the Plaintiffs' Complaint, generally denying the allegations, and asserting special defenses and counterclaims. Contemporaneous to the commencement of this action (the "170 Glover Action"), the Plaintiffs commenced two other actions, namely Civil Docket Nos. FST-CV23-6060971-S (the "HPP-Six Action") and FST-CV23-6061197-S (the "HPP-One Action"). The HPP-Six Action concerns a similar Plumbing Trade Contract for the construction of an apartment building located at 0 Washington Blvd., #P6 in Stamford, Connecticut (the "HPP-Six Project"), owned by HPP-Six, LLC ("HPP-Six"). HPP-Six is affiliated with 170 Glover. The HPP-One Action concerns a similar Plumbing Trade Contract for the construction of an apartment building located at 880 Pacific Street, P1/P2 Harbor Point in Stamford, Connecticut (the "HPP-One Project"), owned by HPP-One ("HPP-One"). HPP-One is affiliated with 170 Glover and HPP-Six. In both the HPP-Six Action and the HPP-One Action, the Plaintiffs raise similar claims. Namely, that the defendants in those actions, through their agent, BLT, failed to properly coordinate, control and sequence the work of the various trade contractors to avoid interference, delays, and disruptions; that defendants and/ or BLT changed the scope of work, failed to issue appropriate time extensions to which NEM was entitled, issued improper backcharges, and failed to pay sums due to NEM; that the foregoing caused NEM to perform extra work without due compensation, required them to accelerate work and work excessive overtime incurring substantial additional labor costs, and caused delays which resulted in material price escalation, as well as other financial harm to NEM. Similarly, in both the HPP-Six Action and the HPP-One Action, the Plaintiffs brought breach of contract and lien foreclosure claims, which were later amended to assert claims against 3 Atlantic, which posted lien substitution bonds in both of those other actions as well. Attached hereto as Exhibits A and B are the Amended Complaints in both the HPP-One Action and the HPP-Six Action, respectively. In the case at bar, 170 Glover has asserted a special defense and counterclaim alleging the sums owed its affiliate in the HPP-Six Action are a set-off to any sums owed to Plaintiffs in the present action. As such, the trial of the present 170 Glover Action will involve the facts, issues and circumstances that are part of the HPP-Six Action. Attached hereto as Exhibit C and D are the answers, special defenses and counterclaims asserted by defendants in the HPP-One Action and the HPP-Six Action, respectively. II. ARGUMENT Practice Book § 9-5 provides that the judicial authority may, upon motion by any party, consolidate two or more matters. CT Practice Book § 9-5(a). "Th[e] procedure of trying cases together, which has long been the established practice in this state, assists in expediting business without doing anyone an injustice." Rode v. Adley Express Co., Inc., 130 Conn. 274, 277 (1943). See also Marciano v. Piel, 22 Conn. App. 627, 632 (1990) ("The public's interest in avoiding unnecessary litigation and conserving scarce judicial resources is too powerful a factor to ignore."). "Whether the action arise out of the same transaction or involve identical parties are important factors in determining the propriety of the joinder or the consolidation of actions." Clarke v. Ochart, 1993 Conn. Super. LEXIS 934, at *2 (Super. Ct. Apr. 13, 1993) citing Groth v. Redmond, 24 Conn. Sup. 467, 469, 194 A.2d 531 (Super Ct. 1962). Where two actions concern the same issues and parties, the matters should be transferred to the same judicial district and consolidated. Nielsen v. Nielsen, 3 Conn. App. 679, 684 (1985). Consolidation of these matters is warranted because the 170 Glover Action, the HPP-One Action, and the HPP-Six Action all involve the same Plaintiffs and affiliated Defendants and 4 similar claims. As 170 Glover, HPP-One, and HPP-Six acknowledge in their respective special defenses and counterclaims, each entity is an affiliate of the other. The actions involve the same party and non-party witnesses, such as, for example, BLT, which acted as construction manager and agent for each defendant on all three projects. The causes of action raised in the complaints are similar, namely, whether NEM (and LRC) are entitled to funds owed on plumbing trade contracts with similar terms for the three apartment construction projects at issue. But, most significantly, the set-off special defense and counterclaim asserted by 170 Glover that NEM owes money to 170 Glover's affiliate HPP-Six as a result of claims asserted by HPP-Six against NEM on the HPP-Six Project means that the facts and events arising out of the HPP-Six Project will be part of the trial of the 170 Glover Action. Thus, all three matters will involve the same or similar claims and require resolution of the same issues. Under these circumstances, consolidation will avoid duplicative litigation, wasted resources, and the potential for inconsistent rulings. For the foregoing reasons, Plaintiffs respectfully request that this motion be granted, and that this action be consolidated with Civil Docket Nos. FST-CV23-6060971-S and FST-CV23-6061197-S. PLAINTIFFS: NEW ERA MECHANICAL CORP. and LRC FUNDING, LLC By: /s/ Thomas G. Librizzi #302559 Thomas G. Librizzi Jonathan E. Friedler McElroy Deutsch Mulvaney & Carpenter, LLP One State Street - 14th Floor Hartford, CT 06103 Phone: (860) 522-5175 Fax: (860) 522-2796 Juris No. 101812 tlibrizzi@mdmc-law.com jfriedler@mdmc-law.com 5 CERTIFICATION The undersigned hereby certifies that a copy of the foregoing was served via electronic mail, pursuant to Practice Book §§ 9-5 and 10-12 through 10-17 on this 24th day of January, 2024, upon all counsel and self-represented parties appearing in this matter, as well as all counsel and self-represented parties appearing in Civil Docket Nos. FST-CV-23-6061197-S and FST- CV-23-6060971-S, as follows: CIVIL DOCKET NO.: FST-CV-23-6060966-S COUNSEL FOR 170 GLOVER AVENUE, LLC and ATLANTIC SPECIALTY INSURANCE COMPANY Michael J. Jones, Esq. Sean M. Hamill, Esq. Ivey, Barnum & O'Mara, LLC 170 Mason Street Greenwich, CT 06830 Email: mjones@ibolaw.com shamill@ibolaw.com Ivey, Barnum & O'Mara, LLC, through Attorneys Jones and Hamill, has appeared in Civil Docket No. FST-CV-23-6060966-S CIVIL DOCKET NO.: FST-CV-23-6061197-S COUNSEL FOR HPP-ONE, LLC and ATLANTIC SPECIALTY INSURANCE COMPANY Michael J. Jones, Esq. Sean M. Hamill, Esq. Ivey, Barnum & O'Mara, LLC 170 Mason Street Greenwich, CT 06830 Email: mjones@ibolaw.com shamill@ibolaw.com Ivey, Barnum & O'Mara, LLC, through Attorneys Jones and Hamill, has appeared in Civil Docket No. FST-CV-23-6061197-S 6 CIVIL DOCKET NO.: FST-CV-23-6060971-S COUNSEL FOR HPP-SIX, LLC and ATLANTIC SPECIALTY INSURANCE COMPANY Michael J. Jones, Esq. Sean M. Hamill, Esq. Ivey, Barnum & O'Mara, LLC 170 Mason Street Greenwich, CT 06830 Email: mjones@ibolaw.com shamill@ibolaw.com Ivey, Barnum & O'Mara, LLC, through Attorneys Jones and Hamill, has appeared in Civil Docket No. FST-CV-23-6060971-S /s/ Thomas G. Librizzi #302559 Thomas G. Librizzi 7 EXHIBIT A RETURN DATE: AUGUST 22, 2023 SUPERIOR COURT DOCKET NO.: FST-CV-23-6061197-S JUDICIAL DISTRICT OF NEW ERA MECHANICAL, CORP. and STAMFORD-NORWALK LRC FUNDING, LLC AT STAMFORD v. HPP-ONE, LLC and ATLANTIC SPECIALTY INSURANCE COMPANY JULY 26, 2023 AMENDED COMPLAINT GENERAL ALLEGATIONS AS TO ALL COUNTS 1. Plaintiff, New Era Mechanical Corp. ("NEM" or "Plaintiff'), is a plumbing and mechanical contracting corporation organized and existing under the laws of the State of New York with a principal place of business located at 99 Lafayette Avenue, White Plains, New York 10603 is authorized to conduct business in the State of Connecticut. 2. Plaintiff, LRC Funding, LLC ("LRC Funding"), is a limited liability company organized and existing under the laws of the State of New York with a principal place of business located at 7 Renaissance Square, 4th Fl., White Plains, New York 10601 and is authorized to conduct business in the State of Connecticut. 3. Defendant, HPP-One LLC, ("HPP-One"), is a Delaware limited liability company with a principal place of business located at 1 Elmcroft Road, Suite 500 in Stamford, Connecticut 06902. Prior to February 28, 2020, HPP-One was the record owner of real estate located at 880 Pacific Street, Stamford, CT 06902, PI/P2 Harbor Point in the Town of Stamford, County of Fairfield, State of Connecticut (the "Property"). HPP-One is the current owner of the Property. 4. Defendant, Atlantic Specialty Insurance Company is a corporation organized and existing under the laws of the State of New York, with a business address located at 605 Highway 169 North, Suite 800, Plymouth, MN 55441 and is licensed to do business in the State of Connecticut and to issue surety bonds. 5. In 2020, the Property was undergoing construction of an apartment building (the "Project"). COUNT ONE: Breach of Contract 1-5. Paragraphs 1-5 of the general allegations are incorporated herein as if fully set forth in this Count One. 6. On or about March 12, 2020, HPP-One entered into a written Plumbing Trade Contract with NEM pursuant to which NEM was to perform certain plumbing work for the Project (the "Plumbing Trade Contract") for the agreed upon services fee budget of $8,441,550.00. 7. The Plumbing Trade Contract further provided that HPP-One designated BLT Management, LLC ("BLT") as its agent for construction management and supervision of performance of the Plumbing Trade Contract. 8. Subsequent to entering into the Plumbing Trade Contract, NEM undertook the performance of its obligations thereunder in strict and full accordance with the applicable Project plans and specifications and completely and fully satisfied its obligations despite interferences, disruptions, delays, demands for extra work and other acts or omissions of HPP-One and/or its agent, BLT. 9. During the course of construction for the Project, the Covid-19 pandemic caused material and supply shortages, which impacted the cost of materials and supplies for the Project, which constituted a force majeure event and for which NEM is entitled to time extensions and additional compensation under the Plumbing Trade Contract. 2 10. During the course of the performance of the work under the Plumbing Trade Contract, HPP-One ordered, required, and directed NEM to perform certain additional work beyond that called for or required under said contract. 11. NEM performed such additional work and submitted change order requests to HPP-One for costs incurred and other sums due NEM under the Plumbing Trade Contract. 12. HPP-One failed and/or refused to accept NEM's change order requests and did not issue change orders to compensate NEM for such extra and additional work. 13. Such failure and/or refusal was wrongful and in breach of the Plumbing Trade Contract, causing NEM financial harm and detriment. 14. During the course of construction for the Project, HPP-One and/or BLT, failed to properly manage and perform its express and implied obligations under the Plumbing Trade Contract in that they, among other things: a. Failed to properly schedule the work; b. Attempted to manage construction of the Project by utilizing 3-week look ahead schedules that included randomly established dates that routinely failed to get accomplished, thereby throwing the Project into disarray; c. Failed to properly coordinate, control and sequence the work of the trade contractors to avoid interference, delays, and disruptions to NEM's work on the Project or to facilitate completion of the Project as reasonably anticipated; d. Demanded that NEM work in areas prior to the completion of the predecessor work; 3 e. Changed the scope and sequence of NEM's work during the performance of the Plumbing Trade Contract without granting time extensions or paying for said changes; f. Delayed and disrupted the progress of NEM's work; g. Failed to issue appropriate time extensions to which NEM was entitled for completion of its work; h. Issued improper backcharges; i. Failed to provide temporary heat during construction; and j. Failed to pay all sums otherwise due NEM. 15. As a result of the foregoing, numerous activities by various trades were performed in a piecemeal fashion, out of sequence, which forced NEM to perform its own work in a piecemeal fashion, requiring it to repeatedly return to areas to complete work instead of performing in a sequential fashion as reasonably anticipated. 16. The foregoing conduct constituted a breach of HPP-One's express and implied contractual obligations and, as a result, NEM was a) forced to perform extra work without additional compensation, b) forced to perform work out-of-sequence and contrary to its planned execution; c) delayed and disrupted; and d) forced to accelerate its work and work excessive overtime; all of which caused NEM to suffer severe financial harm and detriment, including, but not limited to, material price escalation costs, excessive labor and overtime costs, and additional costs attributable to out-of-sequence work, delays and loss of productivity. 17. In compiling its bid and contract price for the Project, NEM could not have reasonably anticipated the ongoing and constant interruptions and interferences in the prosecution of its work. 4 18. On or about March 26, 2021, NEM and LRC Funding executed a written Assignment of Contract Proceeds (the "Assignment") pursuant to which, among other things, NEM assigned to LRC Funding all of NEM's right, title and interest in and to all monies and claims for monies due and to become due to NEM under the Plumbing Trade Contract. 19. On or about April 5, 2021, HPP-One acknowledged and consented to the Assignment in writing. 20. HPP-One's breaches of the Plumbing Trade Contract as described above caused NEM severe financial harm and detriment, including material escalation costs, increased labor and excessive overtime work and costs attributable to out-of-sequence work, delays, disruptions and loss of productivity. 21. By virtue of the Assignment, all sums and damages owed to NEM are due and owing to LRC Funding. COUNT TWO: Quantum Meruit 1-5. Paragraphs 1-5 of the general allegations are incorporated herein as if fully set forth in this Count Two. 6. NEM performed work and supplied labor, services and materials which benefitted the Project, and which HPP-One knowingly and voluntarily accepted, and promised to compensate NEM for the reasonable value of its labor services and materials. 7. NEM performed its Work under circumstances which a reasonable person would expect to be paid. 8. HPP-One accepted the benefit of NEM's labor, services and materials and benefitted from such services. 5 9. Nevertheless, HPP-One has failed to pay NEM for the reasonable value of the labor, material and services provided by NEM and is obligated to make payment to NEM for same. COUNT THREE: Unjust Enrichment 1-9. The allegations of paragraphs 1-9 of Count Two are incorporated as if fully set forth in this Count Three. 10. HPP-One was benefitted by NEM's provision of labor, services, and materials for the Project. 11. HPP-One retained possession and enjoyed the benefits and results of said labor, materials, and equipment, but has not made payment therefor and thus has been unjustly enriched by the retention of said benefits. 12. The failure of HPP-One to compensate NEM for the procurement of its labor, services, and materials is to the detriment of NEM. COUNT FOUR: Claim Against Bond in Substitution For Mechanic's Lien Pursuant to Conn. Gen. Stat. § 49-37 1-21. The allegations of paragraphs 1-21 of Count One are incorporated as if fully set forth in this Count Four. 22. NEM commenced to furnish labor, services and materials on the Project on or about February 28, 2020 and ceased furnishing labor, services, and/or materials on the Project on about July 21, 2022. 23. On July 26, 2022, NEM, to secure the sums owed it under the Plumbing Trade Contract, filed a Certificate of Mechanics Lien for the amount of $817,000.00, in writing duly signed and sworn by its principal, Edward Fitzpatrick, with the Town Clerk of Stamford, 6 Connecticut, which Certificate was duly recorded in the Stamford Land Records, Volume 13036, Page 267 and served on HPP-One. 24. On or about May 23, 2023, pursuant to an agreement between plaintiffs and defendant HPP-One, a Bond In Substitution For Mechanic's Lien pursuant to Conn. Gen. Stat. § 49-37 was substituted for NEM's mechanic's lien (the "Lien Bond"). 25. The executed original of such Lien Bond was then provided to Plaintiffs by HPP- One, which named HPP-One, as principal, and Atlantic Specialty Insurance Company, as Surety. 26. In reliance upon its receipt of said Lien Bond, NEM then provided HPP-One with a release of its mechanic's lien. A copy of said Lien Bond is attached hereto as Exhibit A. 27. The sum due to NEM for labor and materials under the Plumbing Trade Contract remains unpaid, and NEM is entitled to the recovery of said sum against HPP-One, as principal, and Atlantic Specialty Insurance Company, as Surety, under the Lien Bond. COUNT FIVE: Violation of Conn. Gen. Stat. § 42-158j 1-21. The allegations of paragraphs 1-21 of Count One are incorporated as if fully set forth in this Count Five. 22. On January 23, 2023, pursuant to the provisions of Conn. Gen. Stat. § 42-158j, NEM made written demand via certified mail on HPP-One for payment for the labor, material, and equipment provided to the Project for which it has not been paid. NEM demanded that if payment was not made within ten days, that HPP-One place funds in the amount of its claim, plus interest of one percent per month, into an interest-bearing escrow account. NEM also demanded, pursuant to Conn. Gen. Stat. § 42-158p, that HPP-One provide information concerning the retainage escrow account for the Project, including the name of the bank where 7 the escrow account was established, the account number, and the most recent monthly report as to the value of retainage being held. 23. Despite NEM's demands pursuant to Conn. Gen. Stat. § 42-158j for payment, HPP-One has failed and/or refused to make payment to NEM for the labor, material, and equipment provided to the Project for which it has not been paid. 24. Upon information and belief, despite NEM's demand, HPP-One has failed and/or refused to place any funds owed to NEM for the Project in an interest-bearing escrow account. 25. Accordingly, HPP-One is in violation of Conn. Gen. Stat. § 42-158j by failing to make payment to NEM or place any funds owed to NEM in an interest-bearing escrow account. 26. As a direct and proximate result of HPP-One's violations of Conn. Gen. Stat. § 42-158j, NEM is entitled to interest on the full balance due at the statutory rate of one percent per month, statutory penalties, and reasonable attorney's fees. COUNT SIX: Violation of Conn. Gen. Stat. § 42-158p 1-26. The allegations of paragraphs 1-26 of Count Five are incorporated as if fully set forth in this Count Six. 27. NEM's January 23, 2023 letter to HPP-One demanded that HPP-One provide evidence and an accounting of the Project's retainage escrow account in accordance with Conn. Gen. Stat. § 42-158p. 28. Despite NEM's demand pursuant to Conn. Gen. Stat. § 42-158p, HPP-One has failed and/or refused to provide evidence and an accounting of the Project's retainage escrow account, as demanded by NEM. 29. Upon information and belief, despite the requirement under Conn. Gen. Stat. § 42-158p that HPP-One maintain all retainage it has withheld from NEM, which retainage 8 includes amounts due and owing to NEM, in an escrow account within the State of Connecticut, HPP-One has failed and/or refused to comply with this statutory requirement. 30. As a direct and proximate result of HPP-One's violations of Conn. Gen. Stat. § 42- 158p, NEM is entitled to interest on the retainage funds withheld by HPP-One at the statutory rate of one percent per month, as well as attorney's fees for the enforcement of its rights pursuant to Conn. Gen. Stat. § 42-158r. 9 WHEREFORE, Plaintiffs respectfully request the following relief: COUNT ONE 1) Compensatory damages in excess of $15,000; 2) Costs; 3) Interest pursuant to Conn. Gen. Stat. § 37-3a; and 4) Such other and further legal and equitable relief as may be required. COUNT TWO 1) Damages for Quantum Meruit; 2) Costs; and 3) Such other and further legal and equitable relief as may be required. COUNT THREE 1) Damages for unjust enrichment; 2) Costs; and 3) Such other and further legal and equitable relief as may be required. COUNT FOUR 1) Compensatory Damages in excess of $15,000; 2) Costs; 3) Interest pursuant to Conn. Gen. Stat. § 37-3a; and 4) Attorneys' fees and costs pursuant to Conn. Gen. Stat. § 52-249. COUNT FIVE 1) Interest, penalties, and attorneys' fees pursuant to Conn. Gen. Stat. § 42-158j; and 2) Such other and further legal and equitable relief as may be required. 10 COUNT SIX 1) Interest, penalties, and attorneys' fees pursuant to Conn. Gen. Stat. §§ 42-158p and 42-158r; and 2) Such other and further legal and equitable relief as may be required. PLAINTIFFS: NEW ERA MECHANICAL CORP. and LRC FUNDING, LLC By: A/4 1(7 Thomas G. Librizzi Jonathan E. Friedler McElroy Deutsch Mulvaney & Carpenter, LLP One State Street - 14th Floor Hartford, CT 06103 Phone: (860) 522-5175 Fax: (860) 522-2796 Juris No. 101812 tlibrizzi@mdmc-law.com jfriedler@mdmc-law.com 11 RETURN DATE: AUGUST 22, 2023 SUPERIOR COURT DOCKET NO.: FST-CV-23-6061197-S JUDICIAL DISTRICT OF NEW ERA MECHANICAL, CORP. and STAMFORD-NORWALK LRC FUNDING, LLC AT STAMFORD v. HPP-ONE, LLC and ATLANTIC SPECIALTY INSURANCE COMPANY JULY 26, 2023 STATEMENT OF AMOUNT IN DEMAND The amount in demand, exclusive of interest and costs, exceeds Fifteen Thousand Dollars ($15,000.00). PLAINTIFFS: NEW ERA MECHANICAL CORP. and LRC FUNDING, LLC By: ,01.41-,1 /7e Thomas G. Librizzi Jonathan E. Friedler McElroy Deutsch Mulvaney & Carpenter, LLP One State Street - 14th Floor Hartford, CT 06103 Phone: (860) 522-5175 Fax: (860) 522-2796 Juris No. 101812 tlibrizzi@mdmc-law.corn jfriedler@mdmc-law.com 12 CERTIFICATION The undersigned hereby certifies that a copy of the foregoing was served via electronic mail pursuant to Practice Book § 10-13, on this 26th day of July, 2023, to all counsel and self- represented parties of records, as follows: COUNSEL FOR HPP-ONE, LLC Michael J. Jones, Esq. Ivey Barnum & O'Mara 170 Mason Street Greenwich, CT 06830 Email: mjones@ibolaw.com Thomas G. Librizzi 13 Bond No. 800141530 BOND IN SUBSTITUTION FOR MECHANIC'S LIEN (Pursuant to Conn. Gen. Stat. Sec. 49-37) KNOW ALL BY THESE PRESENTS: That HPP-One, LLC, a Delaware limited liability company with a principal place of business located at 1 Elmcroft Road in Stamford, Connecticut, as principal, and Atlantic Specialty Insurance Company, a corporation organized under the laws of the State of New York, and licensed to do business in the State of Connecticut, as Surety, are holden and firmly bound unto New Era Mechanical Corp. of White Plains, New York in the penal sum of $898,700.00, to which payment well and truly to be made, we hereby bind ourselves, our heirs, executors, administrators and successors firmly by these presents: The condition of this obligation is such that, WHEREAS, the said New Era Mechanical Corp. has filed a mechanic's lien on property owned by HPP-One, LLC and which is situated at 880 Pacific Street in the City of Stamford, Connecticut, which lien is to secure the sum of $817,000.00 and is dated July 22, 2022 and recorded in the land records of the City of Stamford, Connecticut in Volume 13036 at Page 267; and WHEREAS, the bond is being substituted for said lien. NOW THEREFORE, if the principal shall pay to the obligee lienor or its assigns, such amount as a court of competent jurisdiction may adjudge to have been secured by such lien with interest, costs and attorney's fees, not exceeding the sum of $898,700.00, then this bond shall be void, but otherwise to remain in full force and effect. IN WITNESS WHEREOF, the/said Principal has caused these presents to be signed and its seal affixed hereunto this ____ZZLZ, day of May, 2023. HPP-ONE, LLC By: Witness: toe---CA elaAli le its is"e ovri-#04 a 4kis .$74.) 4-732 ac-7 WitaSS: Qvni IN WITNESS WHEREOF, the said Surety has caused these presents to be signed and its seal affixed hereunto this _22nd_ day of May, 2023. ATLANTIC SPECIALTY INSURANCE COMPANY W ess: Grace Hol 'rfield Its Attorney-in-Fact, Mark W. Edwards, II 8.4, itness. n.43Alm 444Ttr---. [intact INSURANCE Power of Attorney KNOW ALL MEN BY THESE PRESENTS, that ATLANTIC SPECIALTY INSURANCE COMPANY, a New York corporation with its principal office in Plymouth, Minnesota, does hereby constitute and appoint: Robert M. Verdin, Mark W. Edwards II, Jeffrey M. Wilson, Alisa B. Ferris, Robert Read Davis, William M. Smith, Anna Childress, Richard H. Mitchell, Robert R. Free!, each individually if there be more than one named, its true and lawful Attorney-in-Fact, to make, execute, seal and deliver, for and on Its behalf as surety, any and all bonds, recognizances, contracts of indemnity, and all other writings obligatory in the nature thereof; provided that no bond or undertaking executed under this authority shall exceed in amount the sum of: unlimited and the execution of such bonds, recognizances, contracts of indemnity, and all other writings obligatory in the nature thereof in pursuance of these presents, shall be as binding upon said Company as if they had been fully signed by an authorized officer of the Company and sealed with the Company seal. This Power of Attorney is made and executed by authority of the following resolutions adopted by the Board of Directors of ATLANTIC SPECIALTY INSURANCE COMPANY on the twenty-fifth day of September, 2012: Resolved: That the President, any Senior Vice President or Vice-President (each an "Authorized Officer") may execute for and in behalf of the Company any and all bonds, recognizances, contracts of indemnity, and all other writings obligatory in the nature thereof, and affix the seal of the Company thereto; and that the Authorized Officer may appoint and authorize an Attorney-in-Fact to execute on behalf of the Company any and all such Instruments and to affix the Company seal thereto: and that the Authorized Officer may at any time remove any such Attorney-in-Fact and revoke all power and authority given to any such Attorney-in- Fact, Resolved: That the Attorney-in-Fact may be given full power and authority to execute for and in the name and on behalf of the Company any and all bonds, recognizances, contracts of indemnity, and all other writings obligatory in the nature thereof, and any such instrument executed by any such Attorney-in-Pact shall be as binding upon the Company as if signed and sealed by an Authorized Officer and, further, the Attorney-in-Fact is hereby authorized to verify any affidavit required to be attached to bonds, recognizances, contracts of indemnity, and all other writings obligatory in the nature thereof. This power of attorney is signed and sealed by facsimile wider the authority of the following Resolution adopted by the Board of Directors of ATLANTIC SPECIALTY INSURANCE COMPANY on the twenty-fifth day of September. 2012: Resolved: That the signature of nnAuthorized Officer, the signature of the Secretary or the Assistant Secretary, and the Company seal may be affixed by facsimile to any power of attorney or to any certificate relating thereto appointing an Attorney-in-Fact for purposes only of executing and sealing any bond, undertaking, recognizance or other written obligation In the nature thereof, and any such signature and seal where so used, being hereby adopted by the Company as the original signature of such officer and the original seal of the Company, to be valid and binding upon the Company with the same force and effect as though manually affixed. IN WITNESS WHEREOF, ATLANTIC SPECIALTY INSURANCE COMPANY has caused these presents to be signed by an Authorized Officer and the seal of the Company to be affixed this twenty-seventh day of April, 2020. o orl0. ,..tit ry, „ ..4.1% :t , f . I!? 'cr.4,%.. „ff.,..,. OM' Ff,41:6. ,.'icA ina: 71:::1I: : : '\11 ,)-.2 1985 -81 By STATE OF MINNESOTA 1\,-,tann aocat nW, Paul J. Brehm, Senior Vice President HENNEPIN COUNTY ,.. .4'1;" • • }:t•Ve On this twenty-seventh day of April, 2020, before me personally came Paul J. Brehm, Senior Vice President of ATLANTIC SPECIALTY INSURANCE COMPANY, to me personally known to be the individual and officer described in and who executed the preceding instrument, and he acknowledged the execution of the same, and being by me duly sworn, that he is the said officer of the Company aforesaid, and that the seal affixed to the preceding instrument Is the seal of said Company anti that the said seal and the signature as such officer was duly affixed and subscribed to the said in strumenr by the authority and at the direction of the Company. -,Aaliaalate,atianatt.ada.ar na, ALISONDUN NASIOROOT 47141, NOTARY PUBLIC • MINNESOTA My Commission Expires I, `nionfin-' January 31, 2025 .( Notary Public I, the undersigned, Secretary of ATLANTIC SPECIALTY INSURANCE COMPANY, a New York Corporation, do hereby certify that th e foregoing power of attorney is in felt force and has not been revoked, and the resolutions set forth above are now in force. Signed and sealed. Dated 22nd day of May , 2022 i ;; •••"7" ' ,,N. 40 - • • • • •:*%. ii".• oft44." cj SEAL ts-' • 1986 (S'i 'This Power of Attorney expires I oi+ • / January 31, 2025 Kara Barrow, Secretary Please direct bond verifications to sniety@Ingerinsurance.com -naaa'an.a.valaraimacn.... EXHIBIT B RETURN DATE: AUGUST 29, 2023 SUPERIOR COURT DOCKET NO.: FST-CV-23-6060971-S JUDICIAL DISTRICT OF NEW ERA MECHANICAL, CORP. and STAMFORD-NORWALK LRC FUNDING, LLC AT STAMFORD v. HPP-SIX, LLC, and ATLANTIC SPECIALTY : INSURANCE COMPANY JULY 26, 2023 AMENDED COMPLAINT GENERAL ALLEGATIONS AS TO ALL COUNTS 1. Plaintiff, New Era Mechanical Corp. ("NEM" or "Plaintiff"), is a plumbing and mechanical contracting corporation organized and existing under the laws of the State of New York with a principal place of business located at 99 Lafayette Avenue, White Plains, New York 10603 and is authorized to conduct business in the State of Connecticut. 2. Plaintiff, LRC Funding, LLC ("LRC Funding"), is a limited liability company organized and existing under the laws of the State of New York with a principal place of business located at 7 Renaissance Square, 4th Fl., White Plains, New York 10601 and is authorized to conduct business in State of Connecticut. 3. Defendant, HPP-Six, LLC, ("HPP-Six"), is a Delaware limited liability company with a principal place of business located at 1 Elmcroft Road, Suite 500 in Stamford, Connecticut 06902. Prior to September 25, 2020, HPP-Six was the record owner of real estate located at 0 Washington Boulevard, #P6 Stamford, Fairfield County, Connecticut (the "Property"). HPP-Six is the current owner of the Property. 4. Defendant, Atlantic Specialty Insurance Company is a corporation organized and existing under the laws of the State of New York, with a business address located at 605 Highway 169 North, Suite 800, Plymouth, MN 55441 and is licensed to do business in the State of Connecticut and to issue surety bonds. 5. In 2020, the Property was undergoing construction of an apartment building (the "Project"). COUNT ONE: Breach of Contract 1-5. Paragraphs 1-5 of the general allegations are incorporated as if fully set forth in this Count One. 6. On or about October 13, 2020, HPP-Six entered into a written trade contract with NEM pursuant to which NEM was to perform certain plumbing work for the Project (the "Plumbing Trade Contract") for the agreed upon services fee budget of $3,446,550.00. 7. The Plumbing Trade Contract further provided that HPP-Six designated BLT Management, LLC ("BLT") as its agent for construction management and supervision of performance of the Plumbing Trade Contract. 8. Subsequent to entering into the Plumbing Trade Contract, NEM undertook the performance of its obligations thereunder in strict and full accordance with the applicable Project plans and specifications and completely and fully satisfied its obligations despite interferences, disruptions, delays, demands for extra work and other acts or omissions of HPP-Six and/or its agent, BLT. 9. During the course of construction for the Project, the Covid-19 pandemic caused material and supply shortages, which impacted the cost of materials and supplies for the Project which constituted a force majeure event and for which NEM is entitled to time extensions and additional compensation under the Plumbing Trade Contract. 2 10. During the course of the performance of the work under the Plumbing Trade Contract, HPP-Six ordered, required, and directed NEM to perform certain additional work beyond that called for or required under said contract. 11. NEM performed such additional work and submitted change order requests to HPP-Six for costs incurred and other sums due NEM under the Plumbing Trade Contract. 12. HPP-Six failed and/or refused to accept NEM's change order requests and did not issue change orders to compensate NEM for such extra and additional work. 13. Such failure and/or refusal was wrongful and in breach of the Plumbing Trade Contract, causing NEM financial harm and detriment. 14. During the course of construction for the Project, HPP-Six and/or BLT, failed to properly manage and perform its express and implied obligations under the Plumbing Trade Contract in that they, among other things: a. Failed to properly schedule the work; b. Attempted to manage construction of the Project by utilizing 3-week look ahead schedules that included randomly established dates that routinely failed to get accomplished, thereby throwing the Project into disarray; c. Failed to properly coordinate, control and sequence the work of the trade contractors to avoid interference, delays, and disruptions to NEM's work on the Project or to facilitate completion of the Project as reasonably anticipated; d. Demanded that NEM work in areas prior to the completion of the predecessor work; 3 e. Changed the scope and sequence of NEM's work during the performance of the Plumbing Trade Contract without granting time extensions or paying for said changes; f. Delayed and disrupted the progress of NEM's work; g. Failed to issue appropriate time extensions to which NEM was entitled for completion of its work; h. Issued improper backcharges; i. Failed to provide temporary heat during construction; and j. Failed to pay all sums otherwise due NEM. 15. As a result of the foregoing, numerous activities by various trades were performed in a piecemeal fashion, out of sequence, which forced NEM to perform its own work in a piecemeal fashion, requiring it to repeatedly return to areas to complete work instead of performing in a sequential fashion as reasonably anticipated. 16. The foregoing conduct constituted a breach of HPP-Six's express and implied contractual obligations and, as a result, NEM was a) forced to perform extra work without additional compensation, b) forced to perform work out-of-sequence and contrary to its planned execution; c) delayed and disrupted; and d) forced to accelerate its work and work excessive overtime; all of which caused NEM to suffer severe financial harm and detriment, including, but not limited to, material price escalation costs, excessive labor and overtime costs, and additional costs attributable to out-of-sequence work, delays and loss of productivity. 17. In compiling its bid and contract price for the Project, NEM could not have reasonably anticipated the ongoing and constant interruptions and interferences in the prosecution of its work. 4 18. On or about March 26, 2021, NEM and LRC Funding executed a written Assignment of Contract Proceeds (the "Assignment") pursuant to which, among other things, NEM assigned to LRC Funding all of NEM's right, title and interest in and to all monies and claims for monies due and to become due to NEM under th