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Counterclaim filed in Princeton cannabis facility dispute

A counterclaim and a response to counterclaim has been filed in a civil case involving a Princeton cannabis growing facility under construction.
Image Credit: From The Flowr Corporation web site
December 08, 2020 - 6:00 AM

A counterclaim has been filed by Princeton cannabis companies against their construction contractor in what’s becoming a messy dispute with millions of dollars on the line.

Last month, contractor Ketza Pacific Ltd., filed suit against B.C. Green Pharmaceutical and Castle Rock Farms for what it says are unpaid bills that could total $1.4 million or more, among other allegations. But in a response to that suit and in counterclaim, B.C. Green and Castle Rock allege their relationship with Ketza broke down over quality of work and other issues. It says it’s owed money — not the other way around.

Work involved completion of a cannabis cultivation facility building and infrastructure, to be built in phases.

Despite awarding Ketza multiple contracts for other work, the companies spelled out multiple issues including what they say are deficiencies in exterior construction that include such things as incorrectly installed gutters and downspouts, improper sealing of flashing, improper installation of keyways and keying systems and failure to clean the site of debris and waste.

The defendants say the deficiencies will cost more than $33,000 to remedy.

The counterclaim also cites numerous deficiencies in interior work, including substandard door frames, failure to clean the site, drywall and painting deficiencies, and other items at a cost estimated at $308,000.

The defendants claim they had sufficient cause to call Ketza in default of the contracts, and their failure to correct the deficiencies in the time specified provided reason to terminate the contract.

Castle Rock and B.C. Green are claiming damages totalling $340,674.71 to correct the deficiencies, as well as unspecified impact costs as a result of the repairs.

Ketza filed a notice of default in September, 2020 claiming to date it has not received any payment for amounts due or evidence of financial arrangements being made to complete payment.

In October, Ketza issued termination and default notices to Castle Rock for failure to pay. A second termination notice was issued later in October for failure to provide reasonable evidence of financial arrangements.

None of the allegations have been proven in court.

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