By Devin Fry
MAYVILLE, N.D. (Valley News Live) – A Minnesota construction company is suing the City of Mayville, alleging the city wrongfully withheld more than $468,000 owed for a citywide street and drainage project.
R.J. Zavoral & Sons, Inc., a Minnesota-based contractor, filed the lawsuit March 18 in U.S. District Court. The company claims the city breached a contract the two parties signed in 2022 for street and storm drainage improvements.
According to the complaint, the city withheld money across four categories:
- $246,000 for alleged asphalt overruns
- $113,543.67 in retainage, citing incomplete punchlist work
- $80,000 for additional engineering fees
- $29,000 in liquidated damages
Zavoral argues the city had no legal basis to withhold the funds and failed to act in good faith. The company says it notified the city of the alleged contract violations, but the city did not resolve the dispute.
The city has not filed a response to the lawsuit. Under federal court rules, Mayville has 21 days from the date it is served to respond.
Zavoral is seeking compensatory damages exceeding $75,000, plus interest, court costs and attorney’s fees. The company has also demanded a jury trial.
