River Eagle sues Shive-Hattery claiming breach of contract, hampering project


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Posted Online: Jan. 03, 2013, 11:05 pm
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By Anthony Watt, awatt@qconline.com
The group planning to develop East Moline's former Case-New Holland site is suing Shive-Hattery, accusing the engineering firm of breaking an agreement and trying to hamper the project.

In 2010, the River Eagle group — comprised of Mike VanDeHeede, Matt Stern, Dan Murphy and state Sen. Mike Jacobs, D-East Moline, — bought 132 acres of the site for about $1.5 million with plans to develop it into Fountainhead of the Quad Cities, a mixed business and residential development.

River Eagle contracted with Shive-Hattery in February 2012, the suit states.

River Eagle is accusing Shive-Hattery of breach of contract and "tortious interference with business expectancy," according to the suit, filed on Monday in Rock Island County Circuit Court.

The suit accuses Shive-Hattery of breach of contract by breaking an agreement to turn over engineering and architectural work it initially had done for the Fountainhead project.

The suit alleges Shive-Hattery did not provide the services River Eagle required, so the group canceled the initial contract with the firm.

The engineering firm then filed liens against River Eagle for about $190,000, and the two parties negotiated a settlement in which River Eagle would pay $175,000 and Shive-Hattery would lift the liens, the suit states.

The engineering firm only partially lifted the liens and demanded more money, according to the lawsuit, which said afterfurther negotiation, River Eagle agreed to pay an additional $15,000, and Shive-Hattery agreed to fully lift the liens and turn over the work done on Fountainhead.

River Eagle contends Shive-Hattery has failed to turn over all of the work on the Case site as agreed.

The charge of "tortious interference" stems from accusations Myron Scheibe, office director and vice president of Shive-Hattery's Moline branch, is involved in a similar project near the River Eagle site, the suit contends.

The suit identifies that project as the RiverTech development -- a site of just more than 15 acres between 25th and 29th streets on River Drive in Moline, west of the Western Illinois University Riverfront Campus.

RiverTech would include many of the same features as Fountainhead, making it a competitor for the same kind of tenants River Eagle is targeting, the suit states.

Mr. Scheibe is accused of trying to slow River Eagle's progress through the liens and by withholding the full body of architectural work.

River Eagle is asking that Shive-Hattery turn over all the work River Eagle is owed; and for unspecified awards for the alleged breach of contract and tortious conduct and attorney's fees.

Mr. Scheibe said Shive-Hattery believes it met requirements of the agreement and intends to defend itself aggressively against what he described as a false suit.

"We categorically deny all of the allegations that are in the complaint."



















 



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  Today is Monday, Oct. 20, the 293rd day of 2014. There are 72 days left in the year.

1864 -- 150 years ago: The store of Devoe and Crampton was entered and robbed of about $500 worth of gold pens and pocket cutlery last night.
1889 -- 125 years ago: Michael Malloy was named president of the Tri-City Stone Cutters Union.
1914 -- 100 years ago: Dewitte C. Poole, former Moline newspaperman serving as vice consul general for the United States government in Paris, declared in a letter to friends that the once gay Paris is a city of sadness and desolation.
1939 -- 75 years ago: Plans for the construction of an $80,000 wholesale bakery at 2011 4th Ave. were announced by Harry and Nick Coin, of Rock Island. It is to be known as the Banquet Bakery.
1964 -- 50 years ago: An application has been filed for a state permit to organize a savings and loan association in Moline, it was announced. The applicants are Ben Butterworth, A.B. Lundahl, C. Richard Evans, John Harris, George Crampton and William Getz, all of Moline, Charles Roberts, Rock Island, and Charles Johnson, of Hampton.
1989 -- 25 years ago: Indian summer is quickly disappearing as temperatures slide into the 40s and 50s this week. Last week, highs were in the 80s.


(More History)