Two Chattanooga area subcontractors have filed federal lawsuits alleging more than $224,000 in unpaid work on the ongoing Chickamauga Lock replacement project.
Damron Plumbing and Logan Moore LLC filed separate complaints amid a broader dispute between Shimmick Construction Company and the U.S. Army Corps of Engineers, which in May terminated Shimmick’s contract for work on the lock chamber.
Both companies worked under Chattanooga-based Southern Spear Ironworks, subcontracted by Shimmick, which is headquartered in Irvine, California.
Damron Plumbing filed its lawsuit Sept. 17, seeking nearly $130,000 in pay for plumbing work on the lock’s operations and control buildings.
Logan Moore filed its suit Oct. 6, alleging it is owed about $94,000 for interior and exterior framing work.
Both companies allege Southern Spear failed to make payments required under their subcontracts. The lawsuits also name Shimmick and several companies that issued payment bonds, which provide a means for qualifying subcontractors and suppliers to recover unpaid amounts on federal construction projects.
Southern Spear is also owed significant amounts by Shimmick for work performed before the Army Corps terminated Shimmick’s contract May 8, the company’s president and CEO Sean Compton said.
“Southern Spear disputes the amounts claimed in the pending lawsuits and is pursuing its own rights against Shimmick and its payment bond sureties,” Compton said in an emailed statement.
Compton did not specify how much Southern Spear claims Shimmick owes or explain why the company disputes the amounts sought by Damron Plumbing and Logan Moore.
The two lawsuits seek payment under several legal claims, including breach of contract, unjust enrichment and claims against payment bonds. Logan Moore also alleges Southern Spear violated the Tennessee Prompt Pay Act, a state law that sets strict timelines for payment on construction projects.
Neither complaint establishes liability, and the allegations have not been resolved by a court judgment, according to the records reviewed.
Disputes began before termination
Elizabeth “Ellie” Hill, an attorney representing Logan Moore, said the company’s payment problems began months before the Corps terminated Shimmick.
“Our nonpayment arose before Shimmick was terminated from the project,” Hill said in an interview.
Logan Moore last received payment in late 2025, Hill said, and she could not provide an exact date.
Logan Moore demanded payment from Southern Spear on April 29, 2026, and subsequently notified Shimmick, the Army Corps and payment-bond sureties about the outstanding amounts, according to the complaint.
Hill said Southern Spear had told Logan Moore’s representatives that Shimmick had not paid Southern Spear.
“With regards to the $94,000 that we’re owed … we do not have evidence that Shimmick paid [Southern Spear] for work that Logan Moore performed,” Hill said.
Hill confirmed that Logan Moore had not received additional payments since filing its lawsuit.
“Of course, any diversion of … close to $100,000 from a company is going to have an impact on its operations and Logan Moore is no exception,” Hill said.
Hill could not say whether the nonpayment affected the company’s staffing or other construction projects.
The complaint also alleges that Palomar Casualty and Surety Company, which issued a payment bond for Southern Spear, denied Logan Moore’s claim on Aug. 11. Hill declined to comment on the reason for the denial.
Damron Plumbing and Logan Moore received stop-work notices from Southern Spear on May 13, five days after the Corps terminated Shimmick’s contract.
Damron Plumbing declined to comment when contacted by the Times Free Press.
“I am unable to answer any questions currently … our firm’s policy is to not publicly discuss active litigation at all,” Damron’s attorney, Caleb Smith, said in an Oct. 15 email.
Shimmick did not respond to requests for comment regarding the lawsuits and Southern Spear’s allegations of nonpayment.
(READ MORE: Final contract marks milestone for 20-year effort to replace Chickamauga lock)
Contract disputes
The Chickamauga Lock replacement project is underway at the Chickamauga Dam on the Tennessee River, near Highway 153.
Shimmick and the Army Corps previously disputed compensation and construction schedules on the project, reaching a settlement of approximately $33 million in August 2024. Shimmick had sought additional compensation and extensions related to project changes and delays.
That settlement preceded the Corps’ May 8 termination of Shimmick’s lock chamber contract and is separate from the two subcontractor lawsuits.
The Corps cited scheduling failures, quality deficiencies and inadequate construction progress in announcing the termination. Shimmick publicly disputed the decision and announced plans to appeal.
Shimmick submitted a notice of appeal to the Armed Services Board of Contract Appeals on June 2, according to Nathan Reed, an attorney with the board.
Federal contract records from USAspending.gov show approximately $313 million in obligations associated with the lock chamber contract. That figure represents federal funds obligated under the contract, not necessarily money paid to Shimmick. The total amount disbursed by the Army Corps has not been established.
Hill said Logan Moore filed its lawsuit after demanding payment and pursuing claims against the project bonds. The earlier lawsuit filed by Damron Plumbing did not influence her client’s decision, she said.
Asked what would constitute a satisfactory resolution for Logan Moore, Hill said, “payment of amounts due.”
“We hope that the project can be completed, and the parties who performed work paid promptly,” she said.
Contact commercial real estate reporter Jay Luzardo at jluzardo@timesfreepress.com.