As judge denies Forest City's request to reopen modular factory, contract with Skanska to build B2 terminated; judge orders meeting to resolve control of factory
A state judge today denied Forest City Ratner's request for a court order to reopen the closed modular factory at the Brooklyn Navy Yard, but did order a meeting to hasten the dispute resolution process between estranged partners Forest City Ratner and Skanska.
Justice Saliann Scarpulla, at various times exasperated with each party, urged mediation between the bitter adversaries to resolve differences over running the FCS Modular factory, which could take six months to resolve and form a cloud over attempts to restart the factory, run by both companies, as some of the 157 employees drift away.
Fundamentally, Skanska blames Forest City for huge cost overruns in the stalled and delayed B2 tower, while Forest City blames Skanska's mismanagement of a fixed-price contract. That gap--worth perhaps $50 million--has fueled a series of lawsuits.