Lyons distillery sues engineering firm for delays in its expansion

LYONS — Spirit Hound LLC, a distillery in Lyons, claims in a lawsuit that its contracted civil engineering and design firm failed to perform as contracted, causing delays and additional costs.

However, the engineering firm, Kimley-Horn and Associates Inc., a North Carolina firm with an office in Centennial, said in its response to the lawsuit that Spirit Hound may have distilled the need for the lawsuit 34 days too late.

Spirit Hound engaged Kimley-Horn to help it with an expansion of the distillery located at 4196 Ute Highway in Lyons. Part of the agreement with the engineering firm was for it to shepherd the project through the town of Lyons permit process.

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Kimley-Horn’s documents “were inaccurate, defective and ultimately deficient,” the lawsuit said. The work “required significant removal and replacement of in-place construction and redesign by other engineering professionals …,” Spirit Hound’s attorneys wrote.

The lawsuit claims breach of contract and asks for damages.

Kimley-Horn, which sought and received removal of the lawsuit from Boulder County District Court to U.S. District Court in Denver, denied most of the allegations in the lawsuit. It also said that Spirit Hound failed to seek mediation first, as required by the contract; that damages under the contract are limited to “twice the total compensation received by Kimley-Horn … or $50,000, whichever is greater;” that Spirit Hound waived rights to certain damages; and that the contract required any claims to be filed within one year of when cause of action was accrued, which would have been Feb. 15, 2023. The lawsuit was filed March 20, 2024. 

The case is Spirit Hound LLC v. Kimley-Horn and Associates Inc., moved to U.S. District Court May 9, 2024, case number 2024cv1292.