Attorneys with Foley Hoag have filed a lawsuit in Massachusetts state court on behalf of the home goods retailer Wayfair after a construction management company allegedly failed to pay subcontractors, resulting in “double payments” totaling $2.1 million. Wayfair, headquartered in Boston, claims that Loc Associates, doing business as Generis Collective, failed to timely pay subcontractors working on its first retail store, located at Edens Plaza in Wilmette, Illinois. According to the suit, filed on July 12 in Suffolk County Superior Court, Wayfair has brought claims of theft, fraud, unfair and deceptive trade practices, as well as breach of contract against the construction manager.
To keep the project on schedule, Wayfair has paid or is in the process of paying $1.99 million directly to subcontractors. This amount covers what Generis Collective owed them, in addition to the $1.49 million Wayfair had already paid Generis for invoiced work between December 2022 and the beginning of the year. Essentially, this has required the retailer to “double pay” for the same services. For a more detailed overview of the case, visit the original article.