The Daily Item, Sunbury, PA


July 10, 2013

Midd-West,, contractor still at odds over $1 million

MIDDLEBURG — The $1 million dispute over construction at Midd-West High School was back in Snyder County Court on Monday, with both sides arguing about where the disagreement should be decided.

The Midd-West School District and IMC Construction, of Chester County, have been battling for about a year concerning Midd-West’s withholding of money from the project’s general contractor. The district wants the dispute heard in the county court, while the construction company has asked for arbitration.

“It was incomplete work, and paperwork was not filed properly,” said Orris Knepp, solicitor for the school district. “Under the terms of the contract, Midd-West is permitted to withhold 5 percent due to IMC until everything is complete.”

Officials with IMC could not be reached for comment Tuesday.

While Midd-West would like the case handled by the county court, IMC wants the case to go to the American Arbitration Association. It filed a request for arbitration in April 2012 after Midd-West withheld more than $1 million from the company, Knepp said.

In response, Midd-West filed a petition with the Snyder County Court to review the contract and determine who has jurisdiction in the case, Knepp said.

The sides were in Snyder County Court in front of Judge Michael H. Hudock on Monday, with IMC asking for a summary judgment in the matter, Knepp said. No timeline for the decision was given, Knepp said.

The school district wants the matter to be settled in the local court system, instead of with the Arbitration Association, Midd-West Superintendent Wesley Knapp said.

“We don’t think we’re required to go to arbitration,” he said.

Knapp said the dispute between the parties centers of the completion and quality of the work at the high school, a $40 million project.

But most of all, wherever the case heads, the district would simply like matters to be done once and for all, Knapp said.

“We’d like to get things settled,” he said.

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