The Oaks apartment complex, which has a history marked by construction delays, is now the focus of new entanglements – these involving lawsuits.

The Collegiate Contracting Service, the construction and development team responsible for the building of The Oaks in summer 2006, filed a $6.7 million lien against Elon University in late July. A lien is a legal claim of another person’s property in order to secure payment for a debt.

Most students are unaware of the legal battle that involves the university.

“I’m surprised. I was unaware a legal issue was going on in the community I live in,” said sophomore Jenny Cupero, a resident of The Oaks. “I hope it doesn’t affect my living conditions because I’m happy there.”

Ken Mullen, assistant vice president for business and finance, said he was unable to comment specifically about the legal battle while it is in litigation. He gave little indication about what students should expect as a result of the filed suits.

“The university feels and believes the Collegiate Development suit is unfounded and inappropriate,” he said. “We are confident we will prevail.”

Mullen did not offer a time frame for the length of the lawsuit. “These things have lots of twists and turns in them,” he said. “There is just no way to see.”

At issue are a series of lawsuits filed by various parties involved in developing The Oaks. The suits attempt to enforce contracts and resolve disputes incurred by construction delays. Among the key legal questions is whether the delays were justified by unforeseen circumstances or the fault of certain parties.

Elon University collaborated with the Collegiate Housing Foundation and created CHF-Elon, a partnership between the school and foundation. The Collegiate Housing Foundation helps colleges and universities build student housing without taking on any of the building, financing or construction responsibilities.

This was Elon’s first time partnering with the Collegiate Housing Foundation. It is fairly common for schools to make these partnerships. There were similar CHF partnerships with the University

Its construction group, Collegiate Contracting Services, contracted with numerous subcontractors responsible for the more routine supplies such as windows, cabinets and carpet.

The university owns the land The Oaks is built on, but CHF-Elon owns the buildings. Elon acts as a manager that collects “rent” from students for CHF-Elon. After Elon and CHF-Elon’s 30-year contract ends, Elon would officially own The Oaks.

There were several problems that delayed the opening of The Oaks residences until the latter half of last year’s fall semester. There were issues with permits and out-of-state contractors.

These complications were exacerbated by plumbing setbacks. Students were split from their roommates and lived in temporary housing. In short, it was an inconvenience for students.

Apparently, it was an even bigger debacle for some of the contractors, who allege they have not been fairly paid for their services.

“The ongoing law suit is a legal dispute between the people who built the buildings and people who own the buildings,” said Dan Anderson, assistant vice president and director of university relations.

Paul Sheridan is the attorney for two companies subcontracted by Collegiate Contracting Services: Elite Door and Trim and Prosource Builders’ Supply. Both of these companies filed suit against CHF-Elon, Elon University and Collegiate Development and Contracting Services.

Elite Door and Trim settled out of court this summer, but Sheridan would not reveal with whom. Prosource Builders is still embroiled in litigation. It has filed a lien and lawsuit against Elon University, CHF-Elon, Collegiate Contracting Services, Collegiate Development Services and Liberty Mutual.

“In a lien you want to name everyone in the chain and figure out who has the money,” Sheridan said.

Prosource is seeking more than $160,000.

“Parties do seem to be talking and moving forward,” Sheridan said. “Hopefully it will be sooner rather than later.”

Cupero, The Oaks resident, echoed this sentiment. “I hope Elon handles it in such a way that it goes away quietly,” she said. “Without affecting students who pay to live there.”

Reporter: Margeaux Corby - 10/10/07