A Washington state information-technology and staff augmentation company faces a second civil lawsuit over claims it accepted pay for work at the Department of Energy’s Hanford Site but failed to pay the subcontractor hired to provide the services.
E2 Consulting Engineers of California filed the lawsuit Monday in Benton County, Wash., Superior Court against i-3 Global and owner Kristopher Lapp. That follows a similar lawsuit filed April 26 in the same court by Integrated Global Staffing, which like i-3 is based in the Hanford-area city of Kennewick.
I-3 Global was named the 2016 protege of the year by the Department of Energy for its work with mentor Mission Support Alliance (MSA), support services contractor at Hanford.
E2 Consulting Engineers said i-3 Global certified to Hanford prime contractors MSA and CH2M Hill Plateau Remediation Co. that it had paid invoices of subcontractors in full with the money it received from those larger companies.
But E2 Consulting Engineers said i-3 Global owes it $515,304 for staff augmentation it supplied on behalf of i-3 Global to CH2M and MSA. The money was owed for unpaid invoices from E2 Consulting to i-3 Global dating to July 2018, according to the lawsuit.
I-3 Global used E2 Consulting employees to fulfill subcontracts to provide an electrical planner to MSA and a safety specialist, health physicist, work activity planner, and mechanical engineer to CH2M, the complaint says.
Starting in summer 2018, E2 Consulting repeatedly demanded payment from i-3 Global, which repeatedly promised to pay soon, according to the lawsuit. When i-3 Global finally sent five checks in February, all were returned for insufficient funds, it adds. I-3 Global said that was due to an accounting software problem, but checks sent in March also bounced.
The lawsuit claims i-3 Global misrepresented facts to E2 Consulting even as it said on April 11 it could no longer provide services to MSA. I-3 Global knew it had insufficient funds to maintain its business, but encouraged E2 Consulting to continue providing services on its behalf, the lawsuit said.
E2 Consulting is asking the court to set up a trust for i-3 Global’s and Lapp’s assets related to the money it claims it is owed. The California company is also seeking payment of interest, attorney fees, and legal expenses.
The Integrated Global Staffing lawsuit says i-3 Global failed to pay $446,618, for staff augmentation it provided to its client for Mission Support Alliance. Integrated Global Staffing maintains MSA paid i-3 Global for the staff augmentation.
I-3 Global also faces a third lawsuit filed May 2 in the Benton County Superior Court over a line of credit extended by Columbia State Bank in December 2017. The bank says i-3 Global and its owner owe $856,000 for the loan, which was initially due to be repaid Nov. 20, 2018, plus interest and appraisal fees.
