A Flathead District Court jury last week awarded Sandry Construction Co. damages for some of its work on a 2-million gallon, in-ground water storage tank that Kalispell paid to have built several years ago on Sheepherder Hill west of town.

Sandry was a subcontractor on the project and in October 2009 filed a lawsuit against general contractor DYK Incorporated, based in El Cajon, Calif., and the city of Kalispell.

In the lawsuit, Sandry Construction alleged it was directed to provide additional excavation work and base materials for the project, which it did under protest, and never received additional compensation for that work or those materials.

Disputed testimony at trial included whether Sandry Construction or another subcontractor excavated deeper than what was called for, whether additional work or fill material was needed to correct that situation and whether DYK told Sandry Construction it would be paid for those aspects of the project, Kalispell City Attorney Charlie Harball said.

In a special verdict, the jury determined that DYK breached its subcontract with respect to backfilling of the water tank, resulting in $25,606 of damages for Sandry Construction. 

The jury also determined that DYK committed constructive fraud, resulting in damages of $63,482 for Sandry.

Jury members found the city of Kalispell was not liable for any damages to Sandry.

“It was a good verdict for us and one we anticipated,” Harball said of the two-year-old lawsuit.

Kalispell was represented by Hammer, Hewitt, Jacobs and Quinn through its insurance policy with Montana Municipal Interlocal Authority.

The lawsuit was essentially a dispute between contractors, Harball said, with Kalispell brought in under the legal theory it benefited and was liable to Sandry for “unjust enrichment.” 

At the end of the day, Kalispell has a well-built water storage tank sitting on a proper foundation, Harball said. “The general contractor did a really good job for us,” he said.

Reporter Tom Lotshaw may be reached at 758-4483 or by email at tlotshaw@dailyinterlake.com.