A local construction company that faces accusations of shoddy work on the derelict and derided Grand Apartments near Union Station has countersued the building’s owners, alleging it did nothing wrong and is owed $400,000 for its work there.
Saunders Construction in Englewood oversaw work on The Grand at 1777 Chestnut Place between 2016 and 2018. The 24-story, 508-unit complex is owned by San Francisco-based Shorenstein Properties and managed by South Carolina-based Greystar.
On Aug. 5, Shorenstein sued Saunders, blaming the construction company for 33 leaks and “large-scale floods,” widespread power outages and unsafe balconies that had to be removed.
In a countersuit Sept. 29, Saunders disputes all of that. It refers to the building’s problems as “alleged” construction defects and repeatedly denies it caused them, if they did occur.
“Saunders’ conduct followed, met, or exceeded generally accepted industry standards,” the countersuit states. “Saunders substantially performed its obligations and constructed The Grand in accordance with the contract” between it and Shorenstein, Saunders said.
Saunders is countersuing Shorenstein because, the construction company alleges, it hasn’t been paid the $403,000 it is owed for repair work it has done on The Grand. It accuses Shorenstein of unjust enrichment and breach of contract.
“In accepting the value of Saunders’ services, labor, materials, supplies and goods, (Shorenstein) expected or should have expected to pay for them,” the countersuit states.
Shorenstein and its attorney declined to comment on Saunders’ allegations.
The Grand has been empty since August, when residents were forced to leave so the two-tower complex can be repaired. Several former tenants filed lawsuits accusing Shorenstein of breaching its contracts. Four settled out of court, Denver 7 reported.
Meanwhile, a federal case is ongoing. Katherine McCormack, an attorney and former resident of The Grand, claimed in a lawsuit Aug. 25 that Shorenstein and Greystar knew structural defects would cause it to evict tenants but continued signing long-term leases anyway.
The lawsuit, which attorneys for Shorenstein and Greystar have not yet responded to in court, accuses Shorenstein of kicking all tenants out with little notice, in breach of their leases.
“Incompetency,” McCormack wrote, “is very on-brand for the defendants.”