Schreiber Foods, Inc. a 3 billion dollar company, takes unsupported deductions from contract payment to small contractor. Green Bay, Wisconsin
DS Mechanical, LLC is a small Michigan based mechanical contractor. Schreiber Foods, a 3 billion dollar corporation, purchased a walk-in cooler and installation from us for their Carthage, MO plant. DS Mechanical quoted and Schreiber accepted our quote which states Schreiber is responsible for the electrical and DS Mechanical will make one trip from Michigan to Missouri to install. The installation was complete and final sign-off obtained from Schreiber 9/1/09. Since that time we have been attempting to obtain final payment from them.
Shawn Owens, Schreiber Foods Project Manager in Carthage, MO has stated that someone - he can't remember who - from the cooler manufacturer told him to make changes to the electrical different than the drawings he signed off on. He has not, in the past 6 months, provided one document to support this claim. His "proof" is his statement and a quote - not an invoice - from his electrician. If he had any proof, we would have no issue. The manufacturer stated they will pay the additional cost of the electrician and DS Mechanical's 2nd trip to their site. He doesn't, and since Schreiber Foods does not have an open contract with the manufacturer, they have chosen to deduct the money from DS Mechanical simply because they can.
We attempted to resolve this with his managers Cory Dorn and Lynn Sternhagen and Jerry Smyth, Schreiber Foods General Counsel. Cory Dorn and Lynn Sternhagen have either not had the courtesy to respond or were told not to by Jerry Smyth. In any case, all three people are standing behind Shawn Owens which means all three are party to extortion.
Apparently 3 billion dollars isn't enough. As it stands, unless DS Mechanical, LLC agrees to accept Shawns Owens and Schreiber Foods unsupported claim and deductions and take $ 1,340.00 ($ 5,432.07 less than is owed) and close the project unchallanged, Schreiber Foods will pay us nothing. Jerry Smyth, Schreiber Foods General Counsel will delay and evade dragging this out through mediation and court. As DS Mechanical, LLC is in Michigan and must pursue this in Wisconsin as per our contract, he is well aware, as are we, that by the time the issue is resolved we will have spent more than the $ 6,772.07 that is owed.
THIS IS EXTORTION - A CRIMINAL OFFENSE.