Aker Solutions Inc. v. Shamrock Energy Solutions, LLC

District Court, E.D. Louisiana·Decided December 30, 2019·No. 2:16-cv-02560·Unknown

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF LOUISIANA

AKER SOLUTIONS, INC. CIVIL ACTION

VERSUS NO. 16-2560

SHAMROCK ENERGY SECTION M (4) SOLUTIONS, LLC; AND SAMURAI INTERNATIONAL PETROLEUM, LLC

ORDER & REASONS

Before the Court are two post-trial motions. One is a motion by defendants Shamrock Energy Solutions, LLC and Shamrock Management, LLC (collectively, “Shamrock Defendants”) brought under Rules 52(b), 59(a)(2), and 59(e) of the Federal Rules of Civil Procedure to amend the findings of fact and for a new trial,1 to which plaintiff Aker Solutions, Inc. (“Aker”) responds in opposition.2 The other is a motion by Aker for attorney’s fees,3 to which the Shamrock Defendants and defendant Samurai International Petroleum, LLC (“SIPCO”) (collectively with the Shamrock Defendants, “Defendants”) respond in opposition,4 and in further support of which Aker replies.5 Having considered the parties memoranda, the record, and the applicable law, the Court issues this Order & Reasons denying the Shamrock Defendants’ motion for new trial, but amending the Findings of Fact and Conclusions of Law to clarify that the Court employed the clear-and-convincing evidentiary standard in analyzing Aker’s single-business-enterprise claim, and also to clarify that the attorney’s fee award was based on a clause in the contract between

1 R. Doc. 138. 2 R. Doc. 145. 3 R. Doc. 137. 4 R. Doc. 139. 5 R. Doc. 144. Aker and SIPCO. The Court also grants Aker’s motion for attorney’s fees, awarding to Aker $474,848.50 in attorney’s fees. I. BACKGROUND6 This matter involves unpaid invoices for services rendered where the obligation and the obligor were disputed. Aker filed this suit against the Shamrock Defendants and SIPCO,7

alleging that SIPCO is obligated by contract to pay Aker $1,780,144.19 for work Aker performed, and SIPCO breached the contract by its failure to pay. Aker alleged that the Shamrock Defendants were jointly and severally liable with SIPCO for SIPCO’s debt under the single-business-enterprise theory. The matter was tried before the Court, sitting without a jury, over two days. After considering the evidence admitted at trial, the arguments of counsel, and the applicable law, the Court issued its Findings of Fact and Conclusions of Law pursuant to Rule 52 of the Federal Rules of Civil Procedure. The Court held that Aker and SIPCO had a valid and enforceable contract consisting of a master service contract (“MSC”), work order, and change order under

which SIPCO was obligated to pay Aker for performing a feasibility study related to a potential oil-and-gas exploration-and-production (“E&P”) opportunity.8 Aker fully performed all work in a timely manner in accordance with the contract and SIPCO breached the contract by failing to pay Aker’s invoices in the total amount of $1,780,144.19.9 Further, applying the controlling law, the Court held that, under the totality of the circumstances, SIPCO and the Shamrock Defendants

6 A more complete recitation of the facts can be found in this Court’s Findings of Fact and Conclusions of Law. R. Doc. 134; Aker Sols., Inc. v. Shamrock Energy Sols., Inc., 2019 WL 4981912 (E.D. La. Oct. 8, 2019). 7 Jeffrey Trahan, the sole member of each of the Shamrock Defendants and SIPCO, was also named as a defendant. Aker alleged that Trahan was personally liable for SIPCO’s debt under the alter-ego theory. The Court held that there was insufficient evidence to apply the alter-ego theory to hold Trahan personally responsible for SIPCO’s debt to Aker, and dismissed with prejudice Aker’s claim against Trahan. R. Doc. 134 at 39 & 44; Aker Solutions, 2019 WL 4981912, at *18 & *21. 8 R. Doc. 134 at 32-36; Aker Sols., 2019 WL 4981912, at *15-17. 9 R. Doc. 134 at 36; Aker Sols., 2019 WL 4981912, at *17. constituted a single-business enterprise because there was overwhelming evidence that the Shamrock Defendants and SIPCO were so intimately affiliated that the legal fiction of their corporate distinctiveness should be disregarded, and they could be treated as a single entity, liable for each other’s actions and debts.10 Thus, the Shamrock Defendants were held to be jointly and solidarily liable with SIPCO for SIPCO’s liabilities to Aker.11 The judgment was

entered on October 15, 2019, and these post-trial motions followed. II. LAW & ANALYSIS A. Shamrock Defendants’ Motion for New Trial Rule 52(b) of the Federal Rules of Civil Procedure provides that, after a bench trial, “[o]n a party’s motion filed no later than 28 days after the entry of judgment, the court may amend its findings – or make additional findings – and may amend the judgment accordingly.” Fed. R. Civ. P. 52(b). A Rule 52(b) motion “may accompany a motion for a new trial under Rule 59.” Id. Similarly, Rule 59(a)(2) states that “[a]fter a nonjury trial, the court may, on motion for a new trial, open the judgment if one has been entered, take additional testimony, amend findings

of fact and conclusions of law or make new ones, and direct the entry of a new judgment.” Rule 59(e) specifies that “[a] motion to alter or amend a judgment must be filed no later than 28 days after the entry of the judgment.” Courts apply the same standard to both Rule 52(b) and Rule 59 motions. Interstate Fire & Cas. Co. v. Catholic Diocese of El Paso, 622 F. App’x 418, 420 (5th Cir. 2015). Motions under Rules 52(b) and 59 call into question the correctness of a judgment. In re Transtexas Gas Corp., 303 F.3d 571, 581 (5th Cir. 2002). Such rules are “properly invoked to correct manifest errors of law or fact or to present newly discovered evidence.” Id. at 581

10 R. Doc. 134 at 39-44; Aker Sols., 2019 WL 4981912, at *19-21. 11 R. Doc. 134 at 44; Aker Sols., 2019 WL 4981912, at *21. (internal quotation marks and citation omitted). When the motion is not based on newly discovery evidence, the movant “must clearly establish a manifest error of law or fact.” Interstate Fire, 622 F. App’x at 420 (internal quotation marks and citations omitted). “Manifest error is one that is plain and indisputable, and that amounts to a complete disregard of the controlling law.” Guy v. Crown Equip. Corp., 394 F.3d 320, 325 (5th Cir. 2004) (internal

quotation marks and citations omitted). Consequently, “[a] Rule 59(e) motion should not be used to relitigate prior matters that should have been urged earlier or that simply have been resolved to the movant’s dissatisfaction.” In re Self, 172 F. Supp. 2d 813, 816 (W.D. La. 2001). The grant of such a motion is an “extraordinary remedy that should be used sparingly.” Indep. Coca-Cola Emps. Union of Lake Charles, No. 1060 v. Coca–Cola Bottling Co. United, Inc., 114 F. App’x 137, 143 (5th Cir. 2004) (citation omitted). A district court has considerable discretion to grant or deny a Rule 59(e) motion. See Edward H. Bohlin Co. v. Banning Co., 6 F.3d 350, 353 (5th Cir. 1990). 1. Single Business Enterprise

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Aker Solutions Inc. v. Shamrock Energy Solutions, LLC, (E.D. La. 2019).

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