Ascend Elements and Turner-Kokosing Joint Venture are set to undergo arbitration concerning reports of unpaid labor following a civil court hearing in the courtroom of Judge John Atkins on Wednesday.
The joint venture, made of Turner Construction Company and Kokosing Industrial, Inc. filed a lawsuit in civil court against Ascend Elements in March, alleging Ascend failed to pay for work that was done and materials delivered by the Joint Venture by December 20 of 2024 at the location of the Apex 1 facility in Commerce Park II in Hopkinsville.
The plaintiff says Ascend owes them $138.4 million. They also state that they are entitled to recover interest from Ascend at a rate of 12%, on top of what is already owed.
Legal representation for Ascend and the Joint Venture was in attendance, along with many other lawyers representing subcontractors. At a previous hearing on April 23, lawyers discussed whether the case should be settled through arbitration or litigation.
Ascends’ representation filed a motion to settle through arbitration. On Wednesday, Sasha Riedisser, representing Ascend, says it is their priority to resolve this matter with the joint venture. Then they will handle any issues that any subcontractors may have.
After reviewing the case, Atkins granted the motion for the case to be settled through arbitration, which is a private form of mediation where an arbitrator acts as a neutral party and hears the case’s evidence.
Vic McConnell represents the joint venture and shared that their contract with Ascend included a carve-out clause regarding matters that could be arbitrated. McConnell says arbitration is supposed to be used for disputes unless the disagreement relates to a mechanics lien. McConnell says they could move forward with applicable law, which could include court action such as litigation.
Atkins called the carve-out compelling, but says he doesn’t have any choice but to have the two parties undergo arbitration, and sub-contractors should file their claims at the state level.
Following more discussion, McConnell shared that the joint venture and the fellow subcontractors don’t know why Ascend has not paid for the work done at the Apex 1 Facility site. However, he alleges that Ascend has settled with two subcontractors.
Construction on the Apex 1 Facility is currently at a temporary pause. At an April Hopkinsville City Council meeting, Plant Manager Mark Fern shared that construction is set to resume once the facility’s design phase is completed. The facility is set to be operational by the end of 2026.