**Ann Arbor HVAC Contractor Faces Legal Challenges in School Renovation Dispute**
*Ann Arbor, MI* — The HVAC contractor involved in a construction dispute with Ann Arbor Public Schools (AAPS) may be required to narrow its court allegations against the district and the project’s manager—or potentially add another defendant—as the case approaches a possible trial date later this year.
Ottawa Lake-based Core Mechanical Inc. was hired in early 2022 for an $11.4 million renovation project at Ann Arbor’s Wines Elementary and Forsythe Middle School. In a complaint filed last August, Core Mechanical alleged months of work delays and “severe mismanagement” by AAPS and Clark Construction Company, which managed work in a school boiler room. According to the complaint, these issues resulted in $2.7 million in lost productivity and other business damages.
Because Core Mechanical attributed part of these problems to a design error, Clark Construction responded late last year by seeking to assign blame to the project’s architect through a formal notice.
During a hearing on Wednesday, January 21, Patrick Facca, attorney for Clark Construction, stated that the notice naming another potentially responsible party was intended to highlight conflicting contract allegations. He explained:
> “They claim abandonment of contract, and then, they incorporate that in a breach of contract allegation against Clark. Well, abandonment of contract, of course, is the opposite of breach of contract.”
Core Mechanical’s allegations against AAPS include breach of contract for allegedly allowing inefficient project conditions to worsen, and “unjust enrichment” regarding expenses incurred by the HVAC provider. The claims against Clark Construction seek to enforce an indemnity agreement, citing Clark’s obligation to protect AAPS subcontractors from losses.
Kelly Kane, representing Core Mechanical, argued that fault notices typically relate to damages involving personal injury, property damage, or wrongful death—not contract disputes. Washtenaw County Trial Court Judge Carol Kuhnke agreed but noted that Core’s contract claims are “interwoven within the complaint,” making it “permissible for Clark” to identify the architect as a potential co-defendant.
Judge Kuhnke offered Core Mechanical the option to amend the complaint to clarify that only contract remedies are sought, dismiss any tort claims, or add a defendant. Kane requested 21 days to amend or clarify the claims against Clark Construction.
Currently, the court has tentatively scheduled a settlement conference for September 24 and a bench trial for November 6, 2024. These dates may change as attorneys prepare documentation and expert testimony.
**Project Delays and Damages**
Core Mechanical’s original allegations state that a reassignment of work and operating “in a piecemeal fashion” led to an additional 12,885 man-hours, with most damages estimated just over $2 million. Other claimed damages include:
– $358,562.48 for costs related to extended project delays
– $182,464.96 for added project management expenses
– $122,936.15 for installing variable frequency drives for electrical lighting
– Approximately $8,000 and $8,600 for added boiler room design changes and investigative tasks
The heating and cooling service provider also alleges that AAPS terminated their contract a year and a half into the project.
Both Clark Construction and AAPS have denied the allegations as unfounded. AAPS officials and representatives declined to comment on the ongoing litigation.
https://www.mlive.com/news/ann-arbor/2026/01/contractor-must-narrow-claims-or-add-3rd-defendant-in-ann-arbor-school-construction-dispute-judge-says.html