McBride Homes announced June 18 that it has paid $10 million to cover the approximately 400 mechanics’ liens its former subcontractor, Builder’s Bloc, placed on homes in Eureka, Fenton, House Springs and Imperial, and elsewhere in the St. Louis area.
According to a written statement from the Chesterfield homebuilding company, McBride decided to pay off the liens to “put a stop to the continued harassment of its homeowners by Builder’s Bloc.”
More than 100 Jefferson County homes in McBride subdivisions were tied up in a legal battle between McBride and its subcontractor, Builder’s Bloc, a construction company based in Chesterfield. The two companies have worked together for the past 10 years to build homes in the St. Louis area. However, McBride fired Builder’s Bloc in February, alleging in an April 11 lawsuit that the subcontractor breached its contract, failing to complete homes on time and costing the company $13 million in delays.
On April 18, McBride amended the lawsuit, asking for a restraining order to prevent Builder’s Bloc from filing the liens. On June 5, Judge Richard Stewart with the St. Louis County Circuit Court declined to issue the restraining order, allowing Builder’s Bloc to continue filing the liens.
“McBride has paid all liens and threats of liens that Builder’s Bloc has improperly been filing on homes built by McBride,” the homebuilding company said in a written statement.
“McBride’s decision to swiftly go above and beyond at this early juncture of the litigation is solely motivated by removing its homeowners from the discussion. And now, the focus can be squarely placed on the damage to McBride caused by Builder’s Bloc. Builder’s Bloc can no longer use the fabricated story of lien claims to divert away from its own failures and risk.”
McBride went on to say that it will continue to pursue its lawsuit against Builder’s Bloc for breach of contract and damages, adding that it is now reassessing the damages because the $10 million needed to pay off the liens included a $1 million overpayment, said Erin Hardebeck, McBride’s director of marketing.
“To be clear, this is not a settlement,” McBride said.
A preliminary court hearing regarding McBride’s lawsuit against Builder’s Bloc has been scheduled for Friday, Aug. 29, at the St. Louis County Courthouse with Stewart presiding.
“It is deeply unfortunate that a former contractor has chosen to harass families who have nothing to do with this dispute,” said McBride Homes CEO Jake Eilermann in the statement. “As always, we are putting our customers and neighbors first. We are confident in our legal position and look forward to a successful resolution, including recovering millions in damages and attorney’s fees from Builder’s Bloc.”
Builder’s Bloc claims that filing the lines against the homes was necessary after McBride failed to compensate it for more than $10 million in labor and material costs.
In a lawsuit filed May 15, Builder’s Bloc also claimed it filed the liens after McBride “perpetuated a fraud of massive proportions upon the people of Jefferson County” by filing fraudulent notices of intended sale documents with the Recorder of Deeds Office. Builder’s Bloc alleges that the notices of sales had closing dates that the subcontractor wasn’t aware of or that were not realistic.
According to Missouri state law, contractors are required to file liens to seek payment no later than five days before the home’s closing date stated in the notice of intended sale. In its suit, Builder’s Bloc alleges that the company missed its opportunity to place the liens on properties due to the false notice of intended sale, therefore, losing its lien rights and shouldering the cost of building the home.
Builder’s Bloc alleges McBride filed the false notices on more than 116 McBride homes in Jefferson County, with 32 homes in the Polo Grounds subdivision, 10 homes in the Greens at Rox Run subdivision and 11 in the Windswept Farms subdivision, all in the Eureka area, along with 21 homes in the Valley at Winding Bluffs subdivision in Fenton, 21 in the Bear Ridge subdivision in House Springs and 21 homes in the Timbers subdivision in Imperial.
A court hearing regarding Builder’s Bloc’s lawsuit against McBride has been scheduled for Monday, July 21, at the Jefferson County Courthouse, with Div. 1 Circuit Jefferson County Circuit Judge Joseph Rathert presiding.