September 9, 2021, District of New Jersey – Bernard Katz, as Liquidation Trustee for the bankruptcy estate of the Debtor Hollister Construction Services, Inc. sues Defendant Elevation 1, Inc. for “professional negligence” and “breach of contract”.
Debtor was a regional general commercial construction services firm that provided construction management services, i.e., professional management services for construction projects. Debtor did not perform construction services itself, but instead partnered with subcontractors through the pre-construction, design, engineering, construction, and post-construction phases of construction project. Allegedly, Hollister executed three separate subcontracts with Elevation to design, engineer, fabricate and install aluminum, glass and glazing, stair tower glazing systems, base building commercial glazing systems, metal wall paneling, insulated metal wall panel systems, etc. Defendant also allegedly agreed to submit shop drawings and samples to be approved by Hollister in connection with its design and engineering responsibilities.
The Trustee contended that although Defendant was required to submit shop drawings and samples to be approved by Hollister, Hollister’s approval did not relieve Defendant from responsibility for errors or omissions in the shop drawings or samples. The Trustee alleges that the Defendant had a duty to render professional services as outlined in the subcontracts. The Trustee further alleges that the Defendant breached its duty and contracts by failing to design, engineer, fabricate and install the curtain wall that conformed with industry norms and the requirements and as a result the Debtor suffered significant harm of not less than $17 million. Accordingly, the Trustee seeks to recover $17million from the Defendant as damages that the Debtor allegedly suffered as a result of breach.
The case is In re Hollister Construction Services, Inc. pending in the United States Bankruptcy Court for District of New Jersey under case no. 19-27439 (MBK). Honorable Judge Michael B. Kaplan is overseeing the Debtor’s bankruptcy case. The Trustee is represented by law firm of Trif & Modugno, LLC.