Real Estate Developer Sues Hixxa for Breaching ERRS Contract on Amazon Facility

A real estate development firm seeks nearly $448,000 in damages as a result of Hixxa Communications’ breach of contract, alleged its complaint Friday (docket 5:24-cv-00702) in U.S. District Court for Western Louisiana in Shreveport. Ryan Companies, as general contractor, and Hixxa, as subcontractor, entered into a contract in November 2021 in connection with the construction of a new Amazon fulfillment center in Shreveport, said the complaint. Under the subcontract, Hixxa was obligated to design, furnish and install an emergency responder radio system (ERRS) in the Amazon facility in accordance with the applicable project specification, it said. Hixxa was obligated to begin and complete its work as required by the project schedule, said the complaint. Hixxa was further obligated “to take necessary action to accelerate its work should it delay the progress of its work,” it said. It was obligated to do so without additional compensation and is liable under the subcontract “for any direct damages resulting from any such delay,” it said. In the event that Hixxa failed to cure any default within three working days after Ryan issued a notice of that default, Ryan was authorized under the agreement to terminate the subcontract, finish Hixxa’s work either through its own employees or another subcontractor and charge the entire cost to Hixxa, “together with all damages suffered because of Hixxa’s delayed performance,” it said. Though Hixxa completed some of its obligations, “it failed to fully complete its scope of work,” it said. The plaintiff made numerous attempts to compel Hixxa’s performance, said the complaint. In a September email, the defendant represented to Ryan that it was in the process of acquiring the remaining materials needed to finish the job, and would be back to finish the project once those materials were procured, it said. But Hixxa didn’t return to complete its work as promised, it said. The defendant notified Ryan in a Nov. 15 email that it was unable to complete the ERRS project, and the plaintiff responded April 8 with formal written notice that it had terminated the subcontract, it said: “As a result of Hixxa’s failure to perform, Ryan was forced to engage a second subcontractor to furnish and install the ERRS.” Not only did the cost of the work exceed the original subcontract price, “much of the work that was performed by Hixxa must be replaced or modified in order to accommodate/facilitate the work to be performed by the new subcontractor,” said the complaint. In addition to the damages, Ryan further seeks attorneys’ fees and court costs, “which are recoverable pursuant to the parties’ contract should Ryan prevail against Hixxa,” it said.