SAN FRANCISCO – An Afghanistan construction company alleges it was deceived into an agreement with a California company.
Arvin Kam Construction Co. filed a complaint on May 17 in the U.S. District Court for the Northern District of California against
Environmental Chemical Corp, doing business as ECC Remediation Services, and Does 1 to 200 citing fraud, breach of settlement agreement and other counts.
According to the complaint, the defendant was awarded a contract from the U.S. Army Corps of Engineers for construction work in Northern Afghanistan and subcontracted the plaintiff. The suit states that the defendant later terminated the contract in August 2012 with the plaintiff because the defendant was told the plaintiff was actively supporting an insurgency.
In March 2014, the suit states that the two parties entered into agreements known as the Further Clarification of Settlement Agreement and Release of Claims, which regarded the issue of a request for equitable adjustments (REA). The plaintiff alleges that the defendant made a false promise to submit the REAs in order for the plaintiff to drop its claim of $7.5 million against the defendant so the defendant could receive REAs in the amount of more than $3 million.
The plaintiff requests a trial by jury and seeks all damages according to proof, restitution and disgorgement, interest at the maximum legal rate, all legal fees and any other relief as the court deems just. It is represented by Mogeeb Weiss of Weiss Law PC in Alameda.
U.S. District Court for the Northern District of California Case number 4:16-cv-02643-DMR