Unpaid repairs on Pueblo historic building lead to $1 million breach of contract lawsuit

A company that did repair work following a fire  Aug. 4, 2020, at the Fenix Apartment complex, 2315 Sprague Ave., is suing the owner for breach of contract.
A company that did repair work following a fire Aug. 4, 2020, at the Fenix Apartment complex, 2315 Sprague Ave., is suing the owner for breach of contract.

A $1 million breach of contract lawsuit filed in Pueblo County District Court alleges the owner of Pueblo's historic Sacred Heart Orphanage building has not paid for repairs made by a Peyton roofing company.

The former orphanage building located at 2315 Sprague Ave. was built in 1904 and has been used in recent years as an apartment complex and a meeting place for Victory Life Ministries. A fire on Aug. 4, 2020, destroyed one of the complex’s 50 units and forced residents out due to severe damage to another 11 units, the Chieftain reported.

The lawsuit, filed Feb. 7 by Tectum Roofing LLC of Peyton, lists defendants Fenix Historic Investments, Bellco Credit Union and the Public Trustee of Pueblo County, which is a beneficiary under the deeds of trust for the building.

The lawsuit alleges Tectum, as general contractor, entered into an insurance contract for roofing and other insurance work on the building.

“Fenix has materially breached the contract by failing to pay Tectum all amounts due and owing under the contract,” the lawsuit states. “Tectum supplied certain equipment, materials and labor to Fenix for incorporation into the project with the reasonable expectation it would be paid.”

The lawsuit indicates Tectum’s last substantive work on the contract took place Jan. 10. It indicates the company recorded a statement of lien for a little more than $1 million on Jan. 26 with the Pueblo County Clerk and Recorder’s Office.

The lawsuit, filed by Murray Weiner and Hilary Roland of the Mulliken, Weiner, Berg & Jolivet law firm in Colorado Springs, seeks payment of the contract plus interest.

According to the Pueblo County assessor’s website, the building has a $3 million assessed valuation.

A search of Colorado Secretary of State’s records indicates Fenix has a Castle Rock mailing address and a principal street address in Lone Tree. Denver-area Realtor James Yeager is listed as the registered agent on the business summary.

“I own the building for the moment, but it is under contract for purchase,” Yeager said Friday. “The terms of the contract are subject to a confidentiality agreement.”

The building's new owners did not respond to the Chieftain's request for comment.

The district court has not yet set a hearing date on the lawsuit.

More on fire:Pueblo United Way leads effort to help displaced fire victims

Chieftain reporter Tracy Harmon covers business news. She can be reached by email at tharmon@chieftain.com or via Twitter at twitter.com/tracywumps.

This article originally appeared on The Pueblo Chieftain: Roofing company sues Pueblo apartments owner for breach of contract

Advertisement