Local News

Colville Tribes Moves Forward with Breach-of-Contract Case on $2.7 Million Contract

Press Release


Apr 19, 2018

The Colville Tribes continues to press a significant breach of contract case against South Bay Excavating (SBE), Liquid Networks (LN), two corporations in western Washington, and their father-and-son principals James and Jason Clements. The Tribes’ suit concerns a large-scale infrastructure project for trenching and installation of fiber optics cable on the Colville Reservation, including from Coulee Dam to Okanogan. 

A $2.4 million contract with South Bay was signed in November of 2016, with work to be completed by October 31, 2017.  Subsequent change orders increased the value of the contract to $2.7 million. Work progressed under the contract until June 2, when SBE’s employees failed to show up for work.  SBE gave no prior notice to the Tribes or to Tribal members who had been hired for the project, and who were on site and ready to work that day.

On June 3, Jason Clements, Vice-President of SBE, notified Sean Kelsey, then the head of the Tribes’ IT Department, that SBE employees were not working on the project. He told Kelsey he did not know when they would return.  SBE employees never came back.

SBE then purported to assign the project contract to Liquid Networks, a new company formed by Jason Clements. Jason Clements is the son of James Clements, SBE’s founder and president.

The Colville Business Council declined to approve the assignment and directed the Office of the Reservation Attorney to file suit against both entities and their principals, James and Jason Clements, in the Colville Tribal Court.  The suit was filed on January 5, 2018.

“This was an important infrastructure project for the Tribes and the entire region,” Colville Business Council Chairman Dr. Michael E. Marchand said today. “It will bring broadband to people on the Reservation who currently lack this service.

 “This breach of contract by South Bay, and the company’s transparent attempt to transfer its contract to a close relative’s company, cannot go unchallenged by the Tribes. We will not be taken advantage of.”

The Tribes sued James and Jason Clements as individuals, in addition to their companies. The Tribes estimates that South Bay owes at least $360,000 in money it unlawfully retained, with additional damages to be determined at trial.  Approximately $435,000 was paid to South Bay for work it completed. 

The Clements have retained legal counsel and filed a motion to dismiss the suit in Tribal Court.  On Friday, the Tribes filed a response to the motion.  A hearing is set for May 14.

“We are confident that we will win, and recover all damages suffered by the Tribes as a result of this breach,” Marchand said. 

                                                                                                                                   


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