In a significant legal dispute that underscores the complexities of construction and property management, Philadelphia-based PMC Property Group has filed a lawsuit against Wausau Window and Wall Systems, a Wisconsin-based glass manufacturer.
The lawsuit, filed on July 5 in the Common Pleas Court of Philadelphia, stems from allegations of defective windows and missed deadlines that have resulted in multiple incidents of windows “spontaneously” breaking in PMC’s Riverwalk and Franklin Tower apartment complexes.
The Allegations
PMC, a prominent real estate developer, claims that the windows supplied by Wausau for its Riverwalk Tower II project are faulty, leading to safety concerns and financial losses. According to court documents, PMC contracted Wausau to design, fabricate, and supply window wall systems for the Riverwalk project, investing approximately $50 million in the endeavor. However, PMC officials argue that Wausau failed to meet its contractual obligations, delivering defective products that have compromised the integrity of the buildings.
In addition to the window issues, PMC alleges that Wausau did not deliver perforated metal panels intended for installation around the garage of Riverwalk Tower II. This failure has reportedly delayed the completion of the project, forcing PMC to seek alternative designs and materials at considerable additional expense. The court documents indicate that these delays have resulted in millions of dollars in damages, impacting rental opportunities and the overall viability of the properties.
The Counterclaim
In a surprising twist, Wausau has initiated its own legal action against PMC, seeking approximately $2 million in final payment under their contract. Wausau’s suit has raised eyebrows, particularly given the ongoing issues with the windows and PMC’s claims of damages. The situation has escalated tensions between the two parties, with PMC asserting that Wausau has disregarded its right to offset damages caused by the alleged defects.
Ongoing Safety Concerns
The situation has not only raised legal questions but also safety concerns for residents of the Riverwalk and Franklin Tower complexes. Reports indicate that since the apartments were completed in 2021, multiple windows have fallen out, prompting complaints from residents. The Philadelphia Department of Licenses and Inspection (L&I) issued a violation notice to PMC in late June, recommending the construction of sidewalk shelters to protect pedestrians from falling glass.
In response to these safety issues, PMC has stated that it is collaborating with a glass vendor to remove and replace the cracked windows. Additionally, the company is erecting protective scaffolding at the affected properties to mitigate risks to residents and passersby.
The Future of Wausau
Adding another layer of complexity to the situation, Apogee Enterprises Inc., the parent company of Wausau, is reportedly in the process of retiring the Wausau brand. As Wausau ceases to sell windows and curtain walls, concerns about the company’s ability to address ongoing issues with PMC’s projects are mounting.
As this legal battle unfolds, it serves as a cautionary tale for property developers and contractors alike. The ramifications of defective materials and contractual disputes can have far-reaching impacts on safety, finances, and community trust. For PMC Property Group, the resolution of this lawsuit will be critical not only for its immediate financial health but also for its reputation in the competitive Philadelphia real estate market.
P.s PMC claims that windows in its Riverwalk (pictured) and Franklin Tower complexes in Philadelphia are presently breaking, allegedly due to defective windows supplied by Wausau Window and Wall Systems. Photo: PMC.
Source: Wausau with additional information added by GlassBalkan