Allied Erecting and Dismantling Co., Inc. v. United States Steel Corporation

CourtDistrict Court, N.D. Ohio
DecidedAugust 27, 2021
Docket4:12-cv-01390
StatusUnknown

This text of Allied Erecting and Dismantling Co., Inc. v. United States Steel Corporation (Allied Erecting and Dismantling Co., Inc. v. United States Steel Corporation) is published on Counsel Stack Legal Research, covering District Court, N.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Allied Erecting and Dismantling Co., Inc. v. United States Steel Corporation, (N.D. Ohio 2021).

Opinion

UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF OHIO EASTERN DIVISION

ALLIED ERECTING AND ) CASE NO. 4:12-cv-1390 DISMANTLING CO., INC., ) ) ) PLAINTIFF, ) JUDGE SARA LIOI vs. ) ) MEMORANDUM OPINION UNITED STATES STEEL ) AND ORDER CORPORATION, ) ) ) DEFENDANT. )

Before the Court is the renewed motion of defendant United States Steel Corporation (“U.S. Steel”) for judgment as a matter of law (“JMOL”) under Fed. R. Civ. P. 50(a) with respect to Count IV and the portion of Count V pertaining to the “Hot End” of Fairless Works. (Doc. No. 426.) Plaintiff Allied Erecting and Dismantling Co. (“Allied”) has filed a memorandum in opposition (Doc. No. 429), and U.S. Steel has filed a reply (Doc. No. 430). Also before the Court is Allied’s motion to reopen the record and to amend the second amended complaint. (Doc. No. 431.) U.S. Steel has filed a brief in opposition (Doc. No. 434) and Allied has filed a reply (Doc. No. 435). With leave of Court, U.S. Steel filed a sur-reply. (Doc. No. 437.) For the reasons set forth herein, defendant’s renewed Rule 50(a) motion (Doc. No. 426) is denied without prejudice to reassertion (in any form) in the context of a new trial. Plaintiff’s motion to reopen the record and to amend the second amended complaint (Doc. No. 431) is denied. I. BACKGROUND This case (filed on June 4, 2012) involves a decades-long relationship between Allied and U.S. Steel that culminated in decades of litigation in this court and others. This case has been pending for years, and the parties have engaged in extensive discovery, extensive pre-trial and trial-related motion practice, and a jury trial. There have been two appeals and two remands1 and,

in each instance, a number of the myriad complex issues in the case have been resolved and the remaining claims and issues have been narrowed. Under the relevant contracts between these parties,2 “Allied dismantles U.S. Steel’s Fairless plant [a defunct steelmaking plant in Pennsylvania] at essentially no cost, and, in return, U.S. Steel lets Allied keep and sell the scrap metal generated by that dismantling work.” Allied II, 814 F. App’x at 23. As noted by the Sixth Circuit, after the second appeal and remand, only two of Allied’s breach of contract claims in its second amended complaint (Doc. No. 43) remain for resolution. First, there is Allied’s breach of contract count IV. Here, Allied alleges that U.S. Steel removed certain buildings from the scope of Allied’s dismantling work without compensating Allied for the buildings’ scrap value, thus violating the 1992 Specification’s removal compensation provision.

* * * Second, there is Allied’s (distinct but similar) breach of contract count V. Here, Allied more broadly alleges that U.S. Steel refused to let Allied remove any scrap or railroad track from the Tin and Sheet facility—all of which Allied supposedly owned—thus violating the 1992 Specification’s assignment of ownership provision.

Allied II, 814 F. App’x at 24 (emphases in original; internal record citations omitted).

1 See Allied Erecting & Dismantling Co. v. U.S. Steel Corp., 726 F. App’x 279 (6th Cir. 2018) (“Allied I”); Allied Erecting & Dismantling Co. v. U.S. Steel Corp., 814 F. App’x 21 (6th Cir. 2020) (“Allied II”). 2 Over the years, the parties entered into a complicated patchwork of contracts, only two of which are directly at issue now. These are a 1992 construction contract, which the parties refer to as the “1992 Specification,” and a 2003 settlement agreement, which the parties refer to as the “2003 AIP.” See Allied II, 814 F. App’x at 23 (describing the relevant contract provisions). 2 II. DEFENDANT’S RENEWED RULE 50(a) MOTION In its second remand order, the Sixth Circuit noted “that U.S. Steel raised two alternative grounds for affirmance in its [appellate] brief.” Id. at 27. But the Circuit “[left] it to the district court to resolve these issues in the first instance, within the context of a new trial.” Id. This Court now “‘must implement . . . the [Sixth Circuit’s] mandate, taking into account the appellate court’s

opinion and the circumstances it embraces.’” Kay v. United of Omaha Life Ins. Co., No. 09-cv- 11887, 2015 WL 13035521, at *1 (E.D. Mich. Mar. 3, 2015) (quoting United States v. Cook, 238 F.3d 786, 789 (6th Cir. 2001) (citing cases)). Based upon the parties’ briefing, the language of the Circuit’s opinion evidently was not clear with respect to the sequencing of the resolution of the unresolved Rule 50(a) matters and the new trial. Understandably, U.S. Steel would like this Court to first address the remaining grounds it raised in support of its Rule 50(a) motion, while predictably Allied argues that U.S. Steel is not entitled to revisit its original JMOL motion, claiming that “both the letter and the spirit of the Sixth Circuit’s mandate” require a new trial. (Doc. No. 423 at 13; Doc. No. 429 at 7.)

The Court requested that the parties file briefs including pinpoint citations to the trial record, and as necessary citations to court rulings, in support of their respective arguments on the remaining Rule 50(a) matters. (Doc. No. 425 at 2.) As with the course of proceedings in this entire case, the arguments for and against the instant motion give an entirely new meaning to the expression “moving target.”4

3 Page number references herein are to the consecutive page numbers applied to each individual document by the court’s electronic filing system. 4 Almost from the outset of this case, perhaps due to the self-inflicted complexity resulting from their complicated contractual arrangements or perhaps just as a deliberate strategy, the parties have exhibited a troublesome pattern of raising alternate arguments once an initial argument has been rejected. To this day, in the briefs on the instant motions, they persist in this pattern, resulting in expenditure of countless hours of judicial resources. This behavior pattern contributes nothing to the resolution of the very real disputes this case involves. 3 After considering the parties’ briefing and the Circuit’s remand directive, the Court concludes that, in order to give meaning to the phrase “within the context of a new trial[]” in the Sixth Circuit’s opinion, this Court must conduct a new trial on Count IV and what remains of Count V5 and, in the context of that new trial, the Court will resolve any Rule 50(a) motions that may be raised, including any renewed ground for a Rule 50(a) motion that was previously raised

but not fully considered by this Court. Accordingly, U.S. Steel’s renewed Rule 50(a) motion for judgment as a matter of law based on the initial trial record (Doc. No. 426) is denied. This denial is without prejudice to U.S. Steel’s right to raise Rule 50(a) challenges (including new ones) “within the context of [the] new trial.” III. PLAINTIFF’S MOTION TO REOPEN/AMEND

The Court now turns to Allied’s motion to reopen the record to submit additional damages evidence and to amend Count IV by adding a request for declaratory judgment. A. Motion to Reopen the Record Allied first asserts that it has the right, when met with a Rule 50(a) motion alleging insufficient evidence, to have the record reopened and to be given an opportunity to correct any deficiency. (See Doc. No. 429 at 18–21, referenced by Doc. No. 431 at 1.) Allied claims it would be prejudiced if U.S. Steel is permitted to belatedly raise an evidentiary deficiency that was not raised during the initial trial when, according to Allied, it would have still had an opportunity to address the deficiency by presenting additional evidence.6

5 The so-called “Fox Rail” portion of Count V has already been resolved and was not appealed.

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Allied Erecting and Dismantling Co., Inc. v. United States Steel Corporation, Counsel Stack Legal Research, https://law.counselstack.com/opinion/allied-erecting-and-dismantling-co-inc-v-united-states-steel-ohnd-2021.