Alaska Helicopters, Inc. v. Whirl-Wide Helicopters, Inc.

406 F. Supp. 1008, 22 Cont. Cas. Fed. 80,245, 1976 U.S. Dist. LEXIS 17196
CourtDistrict Court, D. Alaska
DecidedJanuary 13, 1976
DocketCiv. No. A175-73
StatusPublished
Cited by4 cases

This text of 406 F. Supp. 1008 (Alaska Helicopters, Inc. v. Whirl-Wide Helicopters, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Alaska primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Alaska Helicopters, Inc. v. Whirl-Wide Helicopters, Inc., 406 F. Supp. 1008, 22 Cont. Cas. Fed. 80,245, 1976 U.S. Dist. LEXIS 17196 (D. Alaska 1976).

Opinion

[1009]*1009MEMORANDUM AND ORDER

VON DER HEYDT, Chief Judge.

This cause comes before the court upon the motion of the third party defendants for summary judgment.

The instant action was initiated by Alaska Helicopters, Inc. (hereafter Alaska), to recover certain sums allegedly due it by Whirl-Wide Helicopters, Inc. (hereafter Whirl-Wide), for certain work performed on the Snettisham Line Project near Juneau, Alaska. Plaintiff’s complaint primarily is based upon diversity of citizenship although such is not alleged. Plaintiff is granted leave to file a first amended complaint setting forth the jurisdictional basis of its action. That amendment shall be accomplished within ten days from the date of this order. The defendant, Whirl-Wide, joined as third parties Hoak Construction Company, the Insurance Company of North America, and the American Insurance Company (hereafter, respectively, Hoak, I.N.A. and American), alleging diversity, ancillary, and Miller Act, 40 U.S.C. § 270b(b), jurisdiction. The court sustained the filing of the third party complaint, over the third party defendants’ objection, by order dated July 24, 1974. The third party complaint sets forth causes of action based both upon contract and the Miller Act, 40 U.S.C. § 270a et seq. The instant motion seeks to defeat the Miller Act claim and, in the process, attacks the underlying contract claims.

In a motion for summary judgment the court must determine whether a genuine issue of material fact exists and, if not, then viewing the evidence in the light most favorable to the party opposing the motion, and the inferences to be drawn therefrom, is the movant entitled to prevail as a matter of law? Radobenko v. Automated Equipment Corporation, 520 F.2d 540 (9th Cir. 1975). However, it bears emphasis that the issue of fact must be genuine. Radobenko v. Automated Equipment Corporation, supra, 520 F.2d 540, 544. Accordingly, while the court has read the depositions of Ronald A. Smith, Rex I. Bishopp, and Harry L. Hoak in their entirety, only the deposition of Smith will be considered for the purposes of establishing the facts upon which the instant motion is based.

Many of the facts and the inferences to be drawn from them are contested. Nevertheless, a brief summary of the facts, viewed in the light most favorable to Whirl-Wide and taken from the Smith deposition, may be beneficial.

On January 1, 1972 Whirl-Wide and Hoak entered into a contract whereby Whirl-Wide agreed to supply three helicopters to Hoak for use on the Snettisham Line Project in consideration of the lump sum of $600,000.00. Hoak was the general contractor on the Miller Act project with Whirl-Wide performing as a sub-contractor for Miller Act purposes. The contract was to terminate October 30, 1972. There was a major amendment to the contract dated September 19, 1972, whereby Whirl-Wide agreed to supply additional helicopters on a minimum guaranteed flight-hour basis. It was initially contemplated that the project would be completed during the 1972 construction season. However, because of certain unanticipated factors this proved impossible and thereafter, on April 2, 1973, Whirl-Wide and Hoak entered into a second contract for helicopter services covering the period from April 1, 1973, to December 31, 1973. This second contract was terminated by either the alleged assignment of May 14, 1973, the subsequent cancellation between Whirl-Wide and Hoak, or the impossibility1 of performance because of the illegal nature of the contract in view of the cease and desist order issued by the Alaska Transportation Commission. In any event, Whirl-Wide admits that it did not supply any services to the project after May 14, 1973, and that it did not have a contract with Hoak after May 14, 1973, since Smith, acting for Whirl-Wide, admits that Hoak agreed to pay Smith his commissions only if Alaska would so agree and it did not, at least in relation to the Hoak offer. See deposition of Ronald A. Smith pages 61 — 64 and page [1010]*101079, lines 17-22. See generally, Smith deposition, page 38, lines 17-19, page 39, lines 1 — 14, page 48, lines 12-25, and page 49; lines 1 — 11. Subsequent to May 14, 1973, Alaska and Hoak entered into a contract to provide helicopter services so that the project could be completed.

Defendant-third party plaintiff, Whirl-Wide, contends that certain sums are owed to it by Hoak both on the 1972 and the 1973 contract. Whirl-Wide contends, as to the 1972 contract, that there was an underuse of one helicopter and an overuse of another. It appears that Whirl-Wide is maintaining that such uses of the aircraft violated the underlying agreement or concept upon which the entire 1972 contract was based. Additionally, Mr. Smith contends that certain oral assurances were made to him by Mr. Hoak at their Denver meeting in 1972. Insofar as the 1973 contract is concerned, it is apparently Whirl-Wide’s contention that it had performed substantially all of the 1973 contract, Smith states 90%, prior to the cease and desist order of the Alaska Transportation Commission. While Whirl-Wide admits that it was paid for all sums owed on the 1973 contract through May 14, 1973, and that it had no contract with Hoak after that date, the defendant-third party plaintiff contends that Hoak owes it a commission (the difference between the price paid by Hoak for the services and that received by Alaska from Whirl-Wide under the original 1973 contracts or the difference between what Alaska received from Whirl-Wide under the original 1973 contract and the amount that Alaska received from Hoak under its subsequent contract with Hoak), on monies paid by Hoak to Alaska after May 14, 1973. The legal basis for such a claim is unclear, given Smith’s testimony in his deposition. The court notes that it has only considered those parts of the Smith deposition that did not call for a legal conclusion on the part of the deponent.

The third party defendants contend that the 1972 claim is barred insofar as it seeks recovery on a Miller Act basis against the sureties since more than one year lapsed between the filing of the first amended third party complaint and the time that the last services were performed for the project under the 1972 contract. See, 40 U.S.C. § 270b(b). Additionally, the third party defendants contend that the 1973- claim is barred since that claim is grounded upon services performed subsequent to May 14, 1973. They allege that such a claim must be barred since Smith admits that he had no contract, express or implied, with the prime contractor, Hoak, after such date and accordingly the Miller Act claim is barred for failure to furnish the prime contractor with the mandatory notice required by 40 U.S.C. § 270b(a).

The court first will consider the 1972 contract. The first amended third party complaint, the one in which the Miller Act claim was first raised, was filed on April 26, 1974.

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406 F. Supp. 1008, 22 Cont. Cas. Fed. 80,245, 1976 U.S. Dist. LEXIS 17196, Counsel Stack Legal Research, https://law.counselstack.com/opinion/alaska-helicopters-inc-v-whirl-wide-helicopters-inc-akd-1976.