Steakhouse owes millions, contractors say

Contractors claim they are owed millions of dollars for their work on the swank Del Frisco's Double Eagle steakhouse in Center City.

Six filings in state and federal courts, as of Friday, pit contractors against the restaurant or against the general contractor. In a seventh pleading, the restaurant is suing the general contractor, alleging that its mismanagement delayed the opening by a month. And in an eighth case, the general contractor has filed notice that it intends to sue the restaurant and the building's owner.

Del Frisco's - in the Grande, formerly the Packard Building at 15th and Chestnut Streets - opened to the public Nov. 28. It was to be ready by Oct. 27, according to Del Frisco's lawsuit against Lorient L.L.C., of Plainfield, Ill., the general contractor.

Although lawsuits and mechanic's liens are not uncommon in construction, the scope of the litigation is broad and the amount in dispute large.

In Del Frisco's suit, filed in U.S. District Court near its office in Wichita, Kan., the restaurant claims that "change orders" added about $4.4 million to the $7.5 million project. Del Frisco's claims that it paid Lorient about $7.9 million as of early March.

A common thread in the contractors' claims is that they were directed to perform extra work on an accelerated timetable at a construction site in disarray.

Among those seeking payment from Lorient is Goldsmith Associates of Cherry Hill, an electrical contractor. In its suit, filed in U.S. District Court in Philadelphia, it says that overtime and change orders sent its $650,000 contract to nearly $1.85 million - of which Lorient still owes $1.1 million.

Pollard Construction Inc., of Blackwood, Camden County, hired to provide millwork, claims in its federal suit against Lorient that the job site was "not prepared to accept any of the millwork in question," preventing Pollard from working according to timetable.

In its suit, filed in U.S. District Court in Philadelphia, Pollard alleges that Lorient has not paid any of the $279,000 it is due. In a counterclaim, Lorient alleges that Pollard pulled out of the project during a billing dispute and that Lorient hired another contractor to finish the job and to correct what it says was "nonconforming work."

"Ultimately, the contractors who built this became the de facto lenders of this project," said Lane F. Kelman, a partner of Cohen Seglias Pallas Greenhall & Furman, a law firm representing a number of contractors, including Pollard. "They didn't sign up for that."

Jeffrey Venzie of Venzie, Phillips & Warshawer, of Center City, identified in court papers as Lorient's attorney, directed questions to Cindy Johnson of Johnson & Newby, a law firm in Chicago. She and a Johnson & Newby partner did not return e-mails seeking comment.

Lorient filed a praecipe in Common Pleas Court of Philadelphia, usually a precursor to a lawsuit, naming Del Frisco's of Philadelphia, its parent company, and Grasso Holdings Acquisitions L.L.C., an owner of the restaurant space.

Other claims have been directed against Del Frisco's, including a $140,446 mechanic's lien by Stenton Corp., of Essington, which handled painting, and a $101,455 mechanic's lien by UKJ L.L.C. of Golden, Colo., which provided framing, drywall, doors, and acoustical ceiling.

Del Frisco's is "doing our best to get our hands around the claims," said Ray Risley, a regional general manager.