Financial Alert on Rushmore Apartments on Pennsylvania Ave in Washington, DC

After signing a subcontract worth $1.5 million to construct a 117-room luxury apartment on Pennsylvania Avenue in Washington D.C., White Marsh, Maryland subcontractor M&R Drywall & Metal Stud now claims their general contractor stiffed them on nearly a third of the contract price.

According to a complaint filed on March 19, 2021 with the US District Court for the Middle District of Pennsylvania, M&R argues general contractor Kinsley Construction of York, Pennsylvania still owes them $496,020.11 following construction at the Rushmore Apartments at 1220 Pennsylvania Ave. in Washington D.C. 

M&R’s civil action addresses five counts against Kinsley Construction, which include breach of contract, promissory estoppel, unjust enrichment, violation of the District of Columbia Private Contractor Payment Act, and violation of the Pennsylvania Contractor and Subcontractor Payment Act

“That legal matter is settled,” Kinsley Vice President Ciara Young said on March 26. “The case has been settled and dismissal will be filed, so that matter has been resolved.”

However, according to the case’s official civil docket with the U.S. District Court for the Middle District of Pennsylvania, the complaint had yet to be resolved as of March 26. 

“Due to confidentiality agreements, I can’t provide any further comment, but the legal action will be dismissed to the mutual satisfaction of the party,” said Young. 

The attorneys representing M&R, Ashley Weber and Jeffrey Bright of Saxton & Stump, declined to comment on the behalf of their client at this time. 

According to the complaint, M&R began furnishing and installing drywall to the roughly 99,000-square-foot apartment building in July of 2018. The subcontractor completed their services in June of 2020. 

The complaint also suggests that M&R has reason to believe the property owner, listed as 1220 Pennsylvania Avenue, LLC, has not assessed any liquidated damages or additional backcharges against the GC for the work completed by M&R. 

“Despite repeated demand, Kinsley has failed and refused to render payment of M&R’s contractual balance to M&R for the work performed pursuant to the subcontract,” M&R wrote in the complaint. 

On January 22, 2021, Kinsley Construction filed a civil action with the Superior Court for the District of Columbia to discharge a mechanics lien in the form of a bond at the Rushmore Apartments project. 

According to the filing, Kinsley Construction sought to bond off a lien worth $497,889 that was originally filed by Corinthian Contractors against the GC. 

By February 26, 2021, Kinsley Construction voluntarily dismissed the action to bond off the lien, according to the Superior Court for the District of Columbia.