NEW YORK CITY—Despite previous reports, Skanska first brought suit against Forest City Ratner Cos. in their dispute over the Pacific Park Brooklyn site; not the other way around. The bitter rift has left construction of the project's first modular multifamily building (known as B2) stalled.

Regarding the suit—which was filed at 11:36 a.m. Tuesday—and the squabble in general Skanska USA Building co-CEO Richard Kennedy says, “The work at the B2 Project is currently stopped because Forest City Ratner has steadfastly refused over many months to engage in an honest dialogue about the serious commercial and design issues facing the project. Forest City Ratner represented with great confidence they had developed the high-rise modular solution. According to Forest City, they had “cracked the code. That turned out not to be true. Now, rather than acknowledging their problems, they are slinging mud at Skanska. But slinging mud at Skanska in the press and in legal documents that misstate the actual facts is not going to get the B2 Project moving again or put the modular factory workers back to work.

"Skanska prides itself on its ability to work through challenges in a way that is timely, effective and respects the commercial interests of all parties involved," he continues. "Unfortunately Forest City Ratner operates by a different standard and so we find ourselves in this current situation. Despite the rhetoric from Forest City Ratner, we remain hopeful commercial and economic sensibilities will prevail and these matters will be resolved so we can get back to building the B2 Project and get the factory workers back to work.”

In a countersuit brought by FCRC—at 11:52 a.m. Tuesday—the developer charges the contractor with “multiple failures and missteps as the construction manager.” It is seeking damages. Skanska lacked the skill, experience and diligence to complete the project in accordance with the promised schedule and price.”

FCRC president and CEO MaryAnne Gilmartin says in a statement, “Our priority is to reopen our factory and put the employees that Skanska wrongfully furloughed back to work so we can resume construction on B2. Skanska's unilateral action has barred construction from continuing, and this lawsuit is the first of many steps we intend to take to get this building moving again.”

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Rayna Katz

Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.