Munson Hardisty, LLC v. Legacy Pointe Apartments, LLC
This civil action involves a dispute over the construction of Legacy Pointe Apartments in Knox County, Tennessee. Plaintiff, the general contractor, alleges that defendant, a Tennessee limited liability company, unilaterally modified project specifications, resulting in unpaid extra work. Plaintiff claims defendant made fraudulent representations to HUD and lenders, transferred funds to an affiliate, and then colluded to assert subcontractor claims against plaintiff's Payment Bond. Plaintiff filed suit alleging violations of the False Claims Act (FCA), the Racketeer Influenced and Corrupt Organizations Act (RICO), and several state law claims. The Court denied defendant's motion for judgment on the pleadings, finding plaintiff sufficiently pled facts for all claims to proceed.