Subcontractor sues over sewer work

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A Pewaukee subcontractor is suing Brownsville-based Michels Corp. and the city of Milwaukee for more than $60,000 related to a 2012 sewer project.

Rawson Contractors Inc. filed the lawsuit Sept. 17.

Michels won a $7,993,374 contract for the combined-sewer lining project on North 26th Street from West St. Paul Avenue to West McKinley Avenue, according to a bid award notice.

Rawson signed on as a subcontractor in July 2012 but still had not been paid for its work by Aug. 19, 2013, according to court documents.

Neither Edward Hannan, an attorney with Waukesha-based Hannan Legal LLC who represents Rawson, nor Ken Servi, Rawson’s president, immediately responded to requests for comment.

Rawson alleged Michels breached their contract and has benefited unfairly from Rawson’s work, for which Michels owes $60,259.65, according to court documents. Rawson filed a construction lien with the city for that amount in September.

David Stegeman, Michels’ chief legal officer, declined to comment on the lawsuit but said he expects to file an answer to the complaint next week.

Kathryn Block, an assistant city attorney for Milwaukee, said she received a copy of the complaint Tuesday and was not prepared to discuss Rawson’s allegations or the project.

However, she said, any construction lien filed against the city can recover only money the city still owes the general contractor. Block said she does not know whether the city is holding any money from Michels, although it is possible the city might not have paid the contractor in full if there are questions about paperwork or quality of work.

According to the complaint, Rawson asked Milwaukee County Circuit Judge Michael Guolee to force the general contractor to pay its bill and to order the city to turn over any money it is withholding from Michels.