Del. contractor files $10M lawsuit against home builder
Lawyers for a Delaware contractor will tour the site of the Glen Riddle development today as part of their preparation to seek more than $10 million, which they say is owed to their client, from building giant Centex Homes...The Delaware contractor has already won one breach of contract battle with Centex. Horsey obtained a lien against Centex/Taylor from Circuit Court on Aug. 11, 2004, for just over $2.3 million.

Del. contractor files $10M lawsuit against home builder
By Jay Hodgkins and David Anderson
Staff Writers

Horsey and Sons is accusing the corporation and its parent company of breach of contract and of transferring its assets to avoid paying creditors, according to court documents.

The Delaware contractor has already won one breach of contract battle with Centex. Horsey obtained a lien against Centex/Taylor from Circuit Court on Aug. 11, 2004, for just over $2.3 million.

However, the court allowed Centex/Taylor to bond the debt, according to court documents, and a Horsey spokesman claimed Thursday that they have still not been paid any of that amount.

The dispute arises from work Horsey performed from June 2001 to May 2004 on the development's 200,000-gallon-per-day water sewage treatment plant that Worcester County now owns and operates after Centex was to have paid for it.

According to the petition, Centex/Taylor transferred ownership of four buildings in Riddle Farm worth millions to Centex Homes for "zero consideration" in the year after Horsey obtained the lien.

The lawsuit claims that by not recording any revenue for the buildings, Centex/Taylor was able to hide assets that the Circuit Court could have garnished and awarded to Horsey or other creditors.

Horsey also accused Centex Homes of selling individual condominium units within those buildings after the transfers, netting proceeds of $24.7 million.

In the lawsuit, Horsey and its attorneys, Howard G. Goldberg and Sharon K. Engelhard of Baltimore, are seeking a number of judgments against Centex, including a court order to garnish the earnings from the sale of the condo units and bar Centex from transferring any more Riddle Farm properties for less than their market values.

Engelhard declined to comment about the case, but did confirm their team of lawyers would be touring the Glen Riddle site in preparation of the requested one-day trial that has not been scheduled.

Developer Thomas Ruark, who has worked side-by-side with Centex at Glen Riddle as the builder and owner of the two golf courses and the Ruth's Chris Steakhouse within the development, said his relationship with Centex has been "fine."

John Ross, a Worcester County wastewater treatment specialist, said the Glen Riddle treatment plant was exceptional and won a national design award recently. However, he said he was aware of conflict between Horsey and Centex about what work Horsey actually performed.

"I know they've had a lot of arguments about who provided what services, but I can't speak to that," Ross said.

Representatives at Centex's corporate offices in Dallas and local offices in Berlin could not be reached for comment.