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Minot parking ramps developer, contractor resolve dispute

Developer, contractor reach confidential resolution

The developer of Minot’s downtown parking ramps has dismissed its lawsuit against the project’s general contractor in U.S. District Court in North Dakota.

On Jan. 29, developer Cypress Development and affiliated contractor Diversified Development, along with owners Steve Larson and Barclay Armitage of Portland, Ore., dismissed their case brought last November against Shaw-Lundquist Associates of St. Paul, Minn., without award of fees or costs to any party. The attorney for the plaintiffs said the parties reached a confidential resolution.

The lawsuit had alleged Shaw-Lundquist failed to adequately pay Diversified for work on the ramps. Plaintiffs sought damages in excess of $75,000.

The lawsuit states Shaw-Lundquist demanded Larson and Armitage submit personal guarantees to insulate it from certain cost overruns. According to the complaint, instead of relying on the personal guarantees, Shaw-Lundquist suggested to Larson and Armitage that they form a construction company with bonding capacity to subcontract components of the project. Shaw-Lundquist then would release them from their guarantees. Larson and Armitage formed Diversified, which signed two subcontracts for $3.34 million for each garage.

According to the complaint, Shaw-Lundquist breached the subcontracts by failing to pay amounts due and by unreasonably denying change orders submitted by Diversified for work it performed at Shaw-Lundquist’s request.

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