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Poelman sign

Poelman Construction's banner flew on the hotel front during construction.

Poelman Construction Ltd., which built the Murieta Inn and Spa, is suing the hotel’s owners for more than $2 million it claims it’s owed due to lengthy construction delays.

The suit, filed May 16 in Sacramento County Superior Court, says Poelman is owed $2,020,156.80 plus attorneys’ fees, interest and lost profits. Named as defendants are The Murieta Inn LLC, Cosumnes River Land LLC, Bank of the West and John Does 1-100.

In the suit, first reported by the Sacramento Business Journal, Poelman says the hotel’s owners promised Poelman would be compensated for all delays caused by the architect, the owners or Sacramento County and its inspectors.

Poelman’s suit says it entered into the contract to build the facility in September 2014. A ceremonial groundbreaking was held the following November.

“Due to numerous design issues and delays caused by county approval process, the construction project commenced on April 10, 2015, when the building permit was issued,” the suit says. Almost immediately, it says – by June – plumbing issues caused delays. “Thereafter,” the suit says, “numerous design issues and disputes between the owner, architect and county inspectors delayed the project. Each and every delay was discussed with the owners throughout the project. Written notice of delays and confirmation of many of the conversations about the delays was provided to owners in a timely manner.”

Throughout the project, the suit says, the hotel ownership, represented by Murietan John Sullivan, “repeatedly advised and confirmed to plaintiff that they would be compensated for all delays they experienced as a result of owner changes, architectural deficiencies and delays caused by the County of Sacramento.”

Poelman says in the suit that the hotel ownership signed “numerous change orders granting in excess of 1,000 days of additional time” as well as experiencing 160 rain days.

“Further, recognizing the substantial delays were going to result in delay related costs for which the defendants would be obligated to pay to plaintiff, John Sullivan and other members of the ownership group requested that Poelman’s personnel assist the defendant’s attorneys in outlining and documenting the delays experienced on the project for the purpose of asserting a delay claim against the County of Sacramento and to identify delays that the architect was responsible for,” the suit says.

Poelman filed a lien against the property on Feb. 16, two weeks after the hotel’s public opening.

Ken Poelman, president of the company, was quoted by the Business Journal saying that he has been trying to meet with the hotel’s ownership, but “they have always been unavailable.” The Business Journal quotes Sullivan writing in an email that “Poelman Construction and Cosumnes River Land disagree over the causes of certain delays in completion of the Murieta Inn. ... The parties have agreed to mediate their dispute in an effort to resolve their differences.”

In email responses after this story was published, Poelman confirmed Sullivan's statement that the dispute is heading to mediation, and Sullivan added that mediation will happen in July.

Poelman Construction was listed among the ownership group that bought hundreds of acres of undeveloped Rancho Murieta land and the Country Club in 2013.

The 83-room Murieta Inn, which includes a restaurant and spa, is managed by the Marcus Corp., a national company based in Milwaukee.


John Hein's picture
Joined: 08/07/2007
Posts: 343
Post rating: 408

Surprise surprise

Is anyone surprised? I'm not, it's the American way. Only in Rancho Murieta!!

John Hein

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